The Vietnam property market has become one of the hottest investment hotspots in Asia today because of high interest from developers and overseas property investments from buyers. See how Vietnam is now getting the attention from known investors and developers of Asia properties out there.
According to the latest real estate news, the Vietnam property market has been recently booming as foreign investors continue to show interest through mergers, acquisitions and joint ventures. These buyers mostly come from neighbouring Asian countries such as Japan, South Korea and Singapore. Interests for overseas property investment are also mainly focused on two of Vietnam’s mega-cities, Hanoi and Ho Chi Minh. Many mostly invest in its luxury property market, which is currently the most flourishing real estate sector.
The Japanese, one of Vietnam’s biggest investors, are planning to put a property investment of $2 billion into the local property market. Leading Japanese developer Kajima Corporation has even formed a joint venture with Indochina Capital to gather funds worth US$1 billion. These funds will go to four large-scale Vietnam real estate developments in the country’s three major cities—Hanoi, Ho Chi Minh and Da Nang.
As such, Vietnam has been named as one of the top countries for overseas property investment. In fact, Kajima is mainly interested in tapping the growing middle class market and build high-value real estate developments for them.
It’s also not only Kajima who is now becoming a key foreign player in the Vietnam property market, Frasers Centrepoint Limited, a Singaporean investment fund company, has acquired a 70% stake in an upscale residential apartment project in Ho Chi Minh. So far, US$100 million has been injected into the property development.
As testament to the growing interest of foreign investors in Vietnam’s property market, a total of 6% of the country’s registered foreign-direct investments went to the real estate sector. We can say that this interest can be attributed to the accelerating urbanization and the growing middle-class market. This can also be because of the improving transparency in the local real estate industry, where there is better access to market information and improved enforcement of planning and land regulations.
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