Vietnam real estate continues to attract foreign investors

(VOVworld) – Last year foreign direct investment in real estate accounted for 40% of Vietnam’s total investment. Real estate came second to processing and manufacturing in FDI attraction. Thanks to various favorable conditions for the development of the real estate sector in Vietnam, this year the sector will remain an attractive investment channel among foreign investors.

Vietnam real estate continues to attract foreign investors - ảnh 1
By last November, Hanoi’s real estate market witnessed 10,000 successful transactions, doubled against the previous year

Statistics from the Foreign Investment Agency (FIA) of Vietnam's Ministry of Planning and Investment indicate that over the last 11 months of 2014 32 FDI projects worth 17.33 billion USD were licensed in the real estate sector.

Su Ngoc Khuong, an expert in the field, explains the situation: “Vietnam’s real estate market has been seen as reaching its bottom. This presents an opportunity for foreign investors to enter Vietnam's real estate market, bringing a remarkable increase in FDI into the sector in 2014. Investors from Japan, the Republic of Korea, and Singapore are leading participation in the Vietnam market.”

Many economists believe that in 2015, Vietnam will see a surge in FDI inflow into real estate because the market has been on a recovery trend with good growth.

Vietnam real estate continues to attract foreign investors - ảnh 2
New regulations on housing and real estate business for foreigners are expected to infuse a fresh spirit into Vietnamese real estate market.

More opportunities will open when Vietnam joins the Trans-Pacific Partnership and other free trade agreements. Revised laws on housing and real estate business have loosened regulation, creating more opportunities for foreigners to invest in Vietnamese real estate.

Nguyen Huu Cuong, chairman of the Hanoi Real Estate Club, says: “the amended laws now allow more foreigners to buy and own houses in Vietnam. This provides a chance for flourishing investment by foreign investors in Vietnam's real estate sector in 2015.”

Real estate is a way to absorb large amount of remittance into Vietnam. 20% of the 10 to 13 billion USD in the annual remittance to Vietnam flows into real estate.

Nguyen Hong Son, head of valuation and financial advisory of the Savills Hanoi real estate company, told us: “We’re in an international integration process which is guarantee by the government’s commitments to loosen administrative procedures. We think there will likely be greater capital inflow from both domestic and foreign investors into the real estate sector in 2015. Investors and banks both seem ready to invest in the sector.”

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