Property market attractive to both eastern, western investors
Over the last three years, the Vietnamese market has recorded strong investment from Singapore, Hong Kong (China), Japan and the Republic of Korea.
Su Ngoc Khuong, Investment Director of Savills Vietnam, noted more investments and M&As conducted by Asian investors compared to European and American companies.
Foreign investors’ investment targets and methods are affected by many factors, including cultural differences and geographical distance. Meanwhile, property investment is greatly influenced by local regulations, especially legal affairs, which may be barriers to European and American investors.
However, that doesn’t mean European and American investors ignore the Vietnamese market, he noted, elaborating that many of them have engaged in the securities sector. Few have directly invested in property projects or companies but the majority acted as investors of listed businesses.
Notably, they have also focused on providing real estate-related services. Many companies managing and operating offices, resorts, hotels, serviced apartments and malls or those providing investment advice and market research are from Europe and America, Khuong said.
European and American investors are still taking part in Vietnam’s property market by different means, he said, adding that “they cannot rule such an attractive and potential market like Vietnam out of their investment map.”
Some foreign investors said a real estate market with a large young population is a very attractive opportunity. Big cities like Hanoi, Ho Chi Minh City, Da Nang and Nha Trang are major destinations which are attracting more young people who tend to live separately or come to start their careers, leading to a surge in housing demand.