Strong interest in residential development projects
In the first half of 2017, Vietnam continued to attract significant Foreign Direct Investment (FDI). FDI disbursement reached US$7.72 billion, up 6.5% YoY while registered FDI was US$19.22billion, increasing by 54.8%compared to the same period last year.
Much of the increase in FDI was in the manufacturing sector, and as a result was driving industrial developments. In May, Hemaraj Land & Development from Thailand and Vietnam-based Cienco 4 secured approval for their US$1 billion joint venture industrial park, covering 3,200 hectares of land area, in Nghe An Province, northern Vietnam.
Aeon Mall has entered into a joint venture with BIM Group to develop their second mall in Hanoi
|
Beyond industrial developments, FDI is also a contributing factor to the growth of other sectors of the property market. Both office and hospitality sectors are showing high occupancy, increasing office rents and healthy room rates. Whilst these sectors are gaining more and more traction among developers, the focus from investors is still on operating assets, with the exception of developments in prime locations in the major cities of Ho Chi Minh City and Hanoi. However, with limited available stock we are seeing significant yield compression across sectors.
Japanese investors remain active in the market. Nishi Nippon Railroad and Hankyu Realty have joined hands with Nam Long in developing Mizuki Park, a 26-hectare residential project in Binh Chanh District, Ho Chi Minh City, with a total investment size of US$351 million. Meanwhile, Aeon Mall, the renowned Japanese retail group, has entered into a joint venture with BIM Group to develop their second mall in Hanoi on a 16.7-hectare site, with a total estimated investment size of US$200 million.
Local developer SonKim Land has also successfully completed their US$100 million funding from Japanese investors. The second quarter of 2017 continued to see strong interest in residential development projects. China Fortune Land Development Group has acquired the stake of VinaCapital in Dai Phuoc Lotus project for US$65.3 million. Dai Phuoc Lotus is a residential township project with a total area of 198.5 hectares in Dong Nai Province, adjacent to Ho Chi Minh City. VinaCapital’s 65% stake in the Times Square project, a mixed-use development site in Hanoi, has also been transferred to Elite Capital Resources Limited for a total consideration of approximately US$41 million.
16:35, 2024/10/22
New international brands diversify Hanoi hotel offerings
Hanoi's hotel market is also experiencing a decline in rental rates amid the seasonal lull in tourism and leisure activities.
20:57, 2024/10/21
Hanoi set to deliver new luxury apartments this quarter
Over 19,000 new apartments were delivered in the first nine months of this year, surpassing the total supply in 2023.
20:10, 2024/09/25
Hanoi's real estate market soars: Apartment transactions up 101%
The mid-range segment in Hanoi will continue to play a significant role in supply.
18:57, 2024/08/24
Hanoi to add 8,300 apartments to social housing reserves by 2029
Along with relieving housing pressure in central urban areas, the new social housing projects will also help to expand residential zones beyond the city's borders.
16:10, 2024/08/05
Hanoi real estate market: Developing in right direction
The price increase for apartments in Hanoi in the first half of 2024 compared to the beginning of 2023 is 31%.
15:54, 2024/08/03
Property prices in Hanoi, Ho Chi Minh City driven by speculators: experts
Specialists expect that new legislation will help to tighten market control and thus bring prices down.
- Vietnam to mobilize resources for social housing development
- Vietnam’s real estate market back on road to recovery
- Booming West Hanoi property driven by infrastructure investments
- Hospitality real estate attracts remittances: VARS
- Supply constraints keep housing prices high: expert
- Real estate prices are on the rise in downtown Hanoi