The D’Capitale apartment blocks on Tran Duy Hung street in Hanoi (Photo: VNA)Hanoi (VNA) – The flow of foreign direct investment(FDI) into property in the first months of 2019 promises to bring many newopportunities for the real estate market.
In January and February, foreign investorspoured money into 18 fields, with processing and manufacturing attracting 6.93billion USD, or 81.8 percent of total registered capital. Property rankedsecond with 478 million USD, 5.6 percent of the total.
The Ho Chi Minh City Real Estate Associationsaid in recent years, property has been among the top magnets for FDI, whichhas become a very important source of funding as capital flow from domesticbanks has slowed in recent years.
Chairman of the association Le Hoang Chau saidFDI is not only an additional source of funding for the real estate market, italso creates many opportunities and value for property firms.
Economist Nguyen Tri Hieu said over the lastthree years, FDI inflow into Vietnamese real estate has been increasing.Investors from Singapore, Japan and the Republic of Korea have paid attentionto downtown areas of big cities or areas near important transport facilitieslike metros or elevated railways.
Several bottlenecks in terms of legal procedureshave been removed, boosting the market’s investment attraction. Additionally,many businesses have reformed to be listed on the stock market and partner withforeign investment funds to carry out projects.
Insiders said foreign investors in Vietnam’sproperty market can be divided into two groups. The first one is interested inmoney-making real estate like office buildings, shopping malls, servicedapartments and hotels in downtown areas, while the second focuses on housing.
Jones Lang LaSalle (JLL) Vietnam said there isan FDI wave worth hundreds of millions of USD ready to flow into the country’sproperty sector.
The real estate services firm said the countrywelcomed 15.5 million foreign visitors in 2018 and targets the number at 20million in 2020. Additionally, Vietnam is also stepping up infrastructuredevelopment, including 2,000km of new expressways, metro systems in Hanoi andHCM City and airports.
Therefore, it is not a surprising thinginvestors and property developers are ready to pour money into thisfast-growing market, JLL noted.
Experts expect the local property sector willcontinue recording growth in almost all segments, with industrial real estatethe hottest in 2019, driven by the relocation of factories from China and the positiveimpacts of trade agreements.-VNA
VNA
