CBRE: Vietnam property remains strong with foreign investor support

According to Vikram Kohli, regional managing director of Southeast Asia for CBRE, foreign investors have accounted for almost all large property transactions in Vietnam since the beginning of this year.

Half of all successful residential deals in the country this year may be attributed to foreign investors, with buyers from Singapore, Hong Kong and Taiwan exhibiting the most enthusiasm in the serviced apartment and condominium segments. Together they represent 75 percent of buyers in the buy-to-rent market.

Foreign investors have accounted for almost all large property transactions in Vietnam
since the beginning of 2018. (Photo: Dzung Vu/Shutterstock)

Kohli added foreign investors are not merely entering Vietnam to set up operations, but also committed to keeping their money here - they are in it for the long run.

Such commitment could explain the 15 percent rise in prime residential prices in Ho Chi Minh City over the past two years, he added.

The residential segment of the property market is expected to improve the country’s economic standing. Vietnamese GDP growth is already projected to hit 6.8 percent this year, according to World Bank forecasts. Such buoyant prospects are attributable to rapid urbanisation and a young, educated population, Kohli explained.

The strongest supporters of most large M&A transactions in Vietnam have been investors in property developments, hotels, apartments and offices since 2015. Singaporean, Japanese and South Korean developers have entered into joint ventures with local counterparts to develop centrally located sites as well as areas close to the mass rapid transit.

Additionally, Kohli also pointed out Vietnam has the second largest retail market in Asia this year.