It’s not just the real estate firm Cushman & Wakefield that’s bullish about the Vietnamese real estate market, global agent Savills is vocal, too, about its positive outlook on the sector.
Savills Managing Editor Neil MacGregor said that they are seeing signs of impending recovery, following the surge of demand from offshore investors such as Japanese, Singaporeans and South Koreans after the market bottomed out.
Although Vietnam still lags behind its Asian peers in terms of market recovery, MacGregor noted that Vietnam is an attractive destination as it now offers lucrative investment opportunities given that many other Asian markets, which are currently at the top of their cycles, may begin to cool over the next few years.
“We believe Vietnam remains a key destination for real estate investment in the Southeast Asian region. Our current investment picks include operating hotels and office buildings, as well as niche residential development opportunities,”
His view is similar to the statement of the managing director of Cushman & Wakefield, Arsh Chaudhry, who previously pointed out that although Vietnam was not recognised as an attractive investment destinations roughly three years ago, the situation has now changed.
Chaudhry pointed out that investors have come to realise the investment opportunities in the country as well as the advantages on offer, including the stable policy framework and current exchange rates.
He was also quick to point that the confidence of investors had been boosted when the interest rates declined from 25% to 12%, which is stable enough to develop a healthy market. More importantly, with interest rates now pegged at 12%, regular buyers can afford to get into the sector.
Meanwhile, MacGregor forecasts that Ho Chi Minh City could be the first to log growth in rental and residential prices given that its market is already showing a better balance between supply and residential demand. The improvement is likely to become more apparent in the second half of this year, he said.