HO CHI MINH CITY: Vietnam’s property market is attractive for foreign investors, according to experts.
The attraction is not just in terms of certain locations and segments, but across the board.
Nguyen Trong Toan, investment manager at property consultancy Savills’ Hanoi office, said every segment has its own charm for foreign investors.
In the residential segment, they are seeking investment opportunities and developing projects under their own brands amid scarce supply and high demand for housing, he said.
They leverage their advantages in branding, design and construction standards and quality, he added.
In the office segment, the market has seen growing demand from energy, manufacturing and consulting businesses, which has kept occupancy rates steady.
In major cities like Hanoi, Da Nang and Ho Chi Minh City, the segment offers increasing opportunities for foreign investors to position their products to meet green standards such as LEED, WELL and BREEAM certification.
In the Hanoi property market, Toan said foreign investors are not focusing just on central districts but also looking elsewhere.
This is a move to capture the shift by private offices and the development of urban transportation infrastructure.
In the retail sector, the entry of retail giants underlines the prominence and attractiveness of the country.
In February Central Pattana, a powerhouse under Thailand’s retail conglomerate Central Group, prepared to establish a legal entity in Vietnam to enter the market.
Earlier, after opening its third Emart hypermarket in Ho Chi Minh City, THISO (a subsidiary of THACO) unveiled plans to expand in the north with a fourth outlet by acquiring a 2.4ha plot in the Tay Ho Tay Urban Area in Hanoi.
The hotel segment also showed signs of recovery.
According to Savills Vietnam’s Market Report, hotel occupancy rates and tariffs increased in Hanoi and Ho Chi Minh City.
Last year, occupancy rates increased by 21% in Hanoi annually and 18% in Ho Chi Minh City.
Foreign investors are more open to various forms of investment to maximise the potential of the market, Toan said.
After researching the market well, many foreign investors are also considering opportunities outside major cities. — Viet Nam News/ANN
