After injecting billions of dollars abroad, investors from Singapore, China and Hong Kong are shifting their sights to Vietnam after news of its possible recovery spread like a wildfire.
The brighter prospects arose after the local property market increasingly became more open to overseas investment opportunities, which receives general approval from property experts. Vietnam Real Estate Association Deputy General Secretary Tran Ngoc Quang, for one, said that “the Vietnamese market is developing and all market forecasts confirm that this is a market with great potential.”
Also, the government may allow foreign ownership anytime soon as the lawmakers are now carefully considering the proposed law intended to lift the restriction for foreign investors. This has further roused the interest of Asian investors as indicated by the surge of investment in the property sector.
For example, Singaporean firm SLP Group is considering residential, commercial and industrial developments in Vietnam. Such interest is attributed by the firm’s CEO Tricia Teo to the country’s “attractive” housing prices, which are “balanced with investment capital.”
She also added that this particular trait serves as an encouragement for foreign investors to expand operation in the country.
This rings true for China and Hong Kong investors who reportedly upped their investments in the country. Vietnam Briefing reported that Hong Kong-based Sunwah Group spent USD $200 million for an apartment building project in Binh Thanh District, while China’s Textong Group spent USD $215 million to develop infrastructure in Quang Ning province’s 660-hectare Hai Ha Industrial Park.
Investors from South Korea and Japan are also showing strong interest in the Vietnamese real estate industry, according to Neil MacGregor, managing director of Savills Vietnam.
Just recently, the US-based Association of Foreign Investors in Real Estate ranked Vietnam as the fourth emerging market in the world for property investment, which is another indicative of the impending recovery of the property sector.