Real estate sees strong interest from foreign, local investors
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In the last quarter of 2016, one of the contractors for Ho Chi Minh City’s first metro line, Maeda, partnered with Thien Duc, a local developer, to develop a US$30-million high-end residential project, Waterine Suites, according to Savills Vietnam.
The project is the first property investment by the Japan-based company after almost two decades in Vietnam.
In the hotel sector, the global private equity investment firm, Warburg Pincus, joined hands with VinaCapital to build a US$300-million hotel, aiming to become a leading hospitality platform in Vietnam and South East Asia.
Shortly after its foundation, the joint venture acquired a 50% stake in the Sofitel Legend Metropole Hanoi, a five-star hotel in the heart of the capital, from Vietnam Opportunity Fund under VinaCapital, for approximately US$100 million.
Meanwhile, Dubai-based real estate developer Limitless, an affiliate of the Dubai World holding group, resumed work on the US$550-million project Ha Long Star in northern Vietnam. The project features about 2,000 villas, townhouses and apartments along with retail outlets, leisure facilities and hotels in Ha Long, Quang Ninh province, one of the most popular tourist destinations in the country.
In central Vietnam, VinaCapital and its joint venture partners, Gold Yield Enterprises and Sun City Group, have begun construction of the US$4-billion project HOIANA, aiming to turn it into Vietnam’s largest integrated resort. The first phase of the project, scheduled for completion in early 2019, features a 685-room New World Hotel, 100-key Rosewood Residences and Resort, Championship Golf Course and the largest casino in Vietnam.
CBRE Vietnam announced the launch of the CBRE Hotels Vietnam team earlier this year that offers hotel market research, consulting, valuation and capital markets services to meet increasing demand from hotel investors, developers, financiers and others.
According to Savills Vietnam, Vietnam’s economy is a highlight in South East Asia and the country’s property market continues to show resilience, with consistent growth across different sectors despite the ups and downs of the global economy.
Major real estate companies, especially local firms, are shifting their focus to low- to mid-end residential developments to attract more buyers, targeting the young workforce which accounts for the majority of the country’s population.
The trend is towards smaller units in locations with good accessibility, a full range of amenities, competitive pricing and favourable payment terms, the property services provider said.
This market movement will to help the real estate sector in Vietnam continue its sustainable growth trend moving forward.