Foreign investors make beeline for VN property market

Việt Nam’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.

Nguyễn Trọng Toàn, investment manager at property consultancy Savills’s 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 said.

In the office segment, the market is seeing growing demand from energy, manufacturing and consulting businesses, which is keeping occupancy rates steady.

In major cities like Hà Nội, Đà Nẵng and HCM 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 Hà Nội property market, Toàn said foreign investors are not focusing just on central districts but are also looking elsewhere. 

This is also a move to capture the shift by private offices and the development of urban transportation infrastructure, he said. 

In the retail sector, the entry of retail giants underlines the prominence and attractiveness of the country. 

In February Central Pattana, a retail powerhouse under Thailand’s leading retail conglomerate Central Group, prepared to establish a legal entity in Việt Nam to enter the vibrant market.

Earlier, after opening its third Emart hypermarket in HCM City, THISO (a subsidiary of THACO) unveiled plans to expand in the north with a fourth by acquiring a 2.4-hectare land plot in the Tây Hồ Tây Urban Area in Hà Nội City.

The hotel segment is also showing signs of recovery. 

According to Savills Việt Nam’s Market Report, hotel occupancy rates and tariffs have increased in Hà Nội City and HCM City. 

Last year, occupancy rates increased by 21 per cent in Hà Nội City annually and 18 per cent in HCM City. 

Foreign investors are more open to various forms of investment to maximise the potential of the market, Toàn said.

After researching the market well, many foreign investors are also considering investment opportunities outside major cities.

Viet Nam News