Vietnam Real Estate Attracts Investors
Vietnam – Vietnam real estate seems to be attracting investors, as there are rapid advancements in the sector being observed in the country. Since there is an increase of both middle and affluent classes in the country, they are now promoting the next wave of demand.
Vietnam has a high development prospect in the Asia region and Vietnam real estate is attracting a lot of investments. A lot of big names in the industry are also eyeing Vietnam as their upcoming investment destination since there is high potential regarding its future development.
Nomura Real Estate, a Tokyo based company, has already made a very noticeable transaction in Vietnam in January as it purchased a 24% stake in Sun Wah Tower.
For the first quarter of this year, the Asia Pacific Investment Quarterly report shows that the buying of a stake in a Grade A office building located in HCMC District 1 reflects that the city office market will continue to record and register high occupancy and high demand as well.
According to a report by Savills, a global real estate provider, aside from the office spaces, Vietnam has a very healthy hospitality sector that is seen as a huge opportunity for investments from foreign investors.
In January, Japan’s Mikazuki Hotel also revealed plans to invest as much as $100 million in a project in Da Nang city. The development will be a major deal with a 5-star hotel, along with a food and beverage complex and a water park as well. It will be located on a land spreading 11.5 hectares.
There are other projects that are attracting investors as well as a mixed-use project is already in the pipeline with residential components in the major cities of Vietnam.
CapitaLand, a Singapore based real estate firm, also acquired a 0.9-hectare prime location in March in the Tay Ho District in Hanoi. It has over 380 residential units and more than 21,000 square meters of office space.
Vietnam’s city is attracting a lot of investors. These acquisitions are a clear hint that Vietnam is continuing to draw investments and this particular city stands out for many reasons. People are interested in investing in them and there are many development prospects as well.
There has been rapid demand observed in Vietnam because the affluent and middle class are trying to promote the upcoming wave of demand in the country. The demand for premium property has risen and will continue to rise. It is expected to reach 44 million by 2020 and then 95 million by 2030.
Foreign businesses are also showing interest in the country and want to make sure that they find out if there are any good opportunities that they can avail and make the most of in Vietnam.
Vietnam, out of all the countries in Asia, might not be an instant click for investments but it is clearly attracting a lot of investors and this shows that the country might have a lot to offer in the years to come.