Market news


Vietnam continues to be the "TOP of destination foreign investors in 2018"

“Vietnam continue attracting foreign investors in 2018 and next ten years. Apart from subjective factors, in terms of objective factors; domestic market with the size of significant population compared with other countries, young and dynamic population, middle class is increasing, urbanization grows fast pace will be make force the demand not only for housing market, also retail market, office building, etc.”

Vietnam continue to hold strong appeal to investors more inherent risks and a complex and developing suite of hedging solutions available. While both yield spreads and economic fundamentals continue to reinforce appetite for real estate investment, the limited investible stock is limited, suggesting that interest is being driven more by longer-term potential than shorter-term returns.

Investors may find Vietnam’s existing yield spreads appealing on paper but its greater appeal is by far its longer term economic growth potential. Oxford Economics forecasts its GDP growth in 2018 GDP to be 6.65%, higher than other major ASEAN countries. Vietnam’s stable political environment and solid economic growth prospects provide a solid foundation for the next stage of growth in its real estate markets. As rosy as the background looks, average real estate investment turnover from 2012- 2016 was just US$760 million per annum, meaning that there is a limited pool of investment grade assets.

While Vietnam has seen previous property cycles correct sharply, the fundamentals now appear more supportive for a sustainable upturn in the property cycle. Further liberalisation of the economy and removal of foreign holding limits on Vietnamese public companies are also favorable. Foreign investors may have opportunities to build up the stock of prime commercial assets over the next five to ten years.

 

Song Chau Group (SCBI).

Tags:

Related news

The trade war between the USA and the people’s republic of China

The trade war between the USA and the people’s republic of China

The US’s economy keep growing although problems have arisen from the trade war against china. The Belt and Road Initiative (BRI) of China can be a way out for them although Chinese trades in the planned region will be hampered by US’s companies movements into these countries. China’s dream of expanding its trade empire could be stopped in the next 5 years.
HCMC real estate market Q3 2018 | Quarterly report highlights

HCMC real estate market Q3 2018 | Quarterly report highlights

Vietnam's economy retains the growth momentum, real estate market prices in HCMC were stable q-o-q across all segments "Except Office Leasing Grade A". A slight decrease in selling price in USD term was due to the VND devaluation recently. Supply in villas and townhouses are expected to remain scarce to end 2018
Hanoi real estate market Q3 2018 | Quarterly report highlights

Hanoi real estate market Q3 2018 | Quarterly report highlights

In the last quarter of 2018, the market will continue the upbeat trends with new projects in the CBD and the West. Besides, new large-scale projects will be launched in Q4 2018, the sold units and office leasing are expected to increase accordingly thanks to strong demand from both end-users and investors, local buyers and foreign buyers.
Vacation property sector still record good absorption rates

Vacation property sector still record good absorption rates

Many key developers are still very optimistic about the future of vacation property sector. According to Mr. Le Minh Dung, Vice Managing Director of BIM Group, Vietnam recently was ranked among top 10 fastest-growing tourist destinations by United Nations World Tourism Organization.
Vietnam's GDP growth rate and marketview Q2 2018

Vietnam's GDP growth rate and marketview Q2 2018

The Vietnam economy continued to achieve an impressive growth in the second quarter of 2018. Vietnam’s GDP increased by 6.79% y-o-y in Q2 2018 and 7.08% y-o-y in the first half of the year, and it is the highest growth observed in the last eight years.
Hanoi receive new large retail supply commercial space for lease

Hanoi receive new large retail supply commercial space for lease

Only 7% of total retail supply in Hanoi is located in CBD. 2018 is expected to be an active year in Hanoi retail coming from eight under-development projects. This is the largest number of new projects ever planned for a single year. Hence, new supply causing pressure on the vacancy rate, the landlords should save larger space for anchor tenants as well as increasing the number of anchor tenants. More importantly, high-impact tenants whose products generate intense word-of-mouth marketing online should receive preferential terms.
Some developers HCMC's retail sector will be forced to lower rental expectations

Some developers HCMC's retail sector will be forced to lower rental expectations

Vietnam’s retail market has jumped to 6th place, higher than some developed markets in the region such as Singapore, Hong Kong, and Indonesia and showing high potential for further growth. Vietnam market achieved high scores in terms of market saturation with good scope for growth. Saturation in both Hanoi and Ho Chi Minh City is far behind the levels seen in some other SEA cities