Foreign capital inflows into Vietnam's real estate market may set a record in 2017.
More than $ 2 billion
A report by the Foreign Investment Agency shows that in the first 10 months of 2017, one of the six large-scale foreign-invested projects is the smart complex at functional area 2A in Thu Thiem new urban area. (District 2, Ho Chi Minh City), with a total registered investment of $ 885.85 million invested by Korea. Of the 19 industries attracting foreign investors, real estate ranked third with registered capital of 2.04 billion USD, accounting for 7.4% of total foreign investment in Vietnam in 10 months.
Ho Chi Minh City is the leading locality in attracting foreign investment in real estate. From the beginning of the year to the end of October, in more than $ 5 billion of foreign capital, real estate ranked second, accounting for 32, 9%. In the first 10 months of 2017, Ho Chi Minh witnessed many "handshakes" between domestic developers and foreign investors.
Notably is the cooperation between Nishi Nippon and Hankyu (Japan) with Nam Long Investment Joint Stock Company to build Mizuki Park residential area of 26ha in Binh Chanh distric with total investment capital of 351 million USD or Kim Son Land attracted $ 100 million from Japanese investors.
Meanwhile, Dong Nai, Long An attracts foreign capital inflows into industrial real estate.The investors are mainly from Japan, Taiwan and Singapore.
Talking about more than $ 2 billion of foreign capital into the real estate market in the past 10 months, Mr. Ngoc Khuong - Director of Savills Vietnam's investment division said this is a huge amount because a the package of 30 trillion dong of housing loans and housing support under the Government's Resolution 2 2013 only completed disbursements in 2016 (including extended period), while in just 10 months, foreign capital for real estate has exceeded $ 2 billion. This shows that the real estate market in Vietnam is attractive to foreign investors.
In answer to the question, is there a paradox between $ 2 billion of foreign investment capital and the reality reflected in the stock market recently when real estate stocks are always in the category of net sales, a specialist in the capital market, said that listed companies reflect only part of the picture of the real estate market. Actually foreign investors are quite interested in real estate stocks. However, the value stocks such as VIC (Vingroup), Novaland (NVL), Khang Dien (KDH), the area for foreign investors to participate is no longer.
Continuing to capitalize
Commenting on foreign capital inflows, in a statement on M & A real estate shortage of clean land, issued in August last, Jones Lang Lasalle Vietnam (JLL) said that the inflows of foreign investment into the real estate sector is expected to hit record levels in 2017 and 2018. Accordingly, in large cities, residential real estate is still "fertile land."
This is evidenced by the research report on apartment market with the theme "Big Wave" that Savills Vietnam launched. Accordingly, TP. Ho Chi Minh City and Hanoi are the two provinces with relatively high number of new households, 58,000 and 42,000, respectively, leading to the continuous increase in housing demand.
JLL Vietnam commented, generally, the houssing segment is still the most attractive segment with foreign businesses. Foreign investors now tend to move into the commercial real estate market, especially in grade A offices that are well located in major cities such as Ho Chi Minh City, which has potential growth in capital value and relatively high investment yield, ranging from 7-8%.
"We find that office rents in Vietnam are higher than in other countries in the region, which reflects a shortage of supply," said JLL Vietnam.
(Source: tapchitaichinh.vn)
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