Recent land auctions in Hanoi have seen land prices skyrocket, raising concerns among experts about the potential negative effects on the real estate market and the local economy.
Vietnamese developers are seeking new capital sources as banks tighten credit for real estate.
From 2020 onwards, foreign developers including Sumitomo, CapitaLand and Mitsubishi Corporation will enter, expected to contribute to a new modern city in the future.
Hospitality real estate which has been an attractive sector for investors is expected to continue growing this year partly due to boosts from global megatrends.
Disbursed foreign direct investment in 2018 increased by nine per cent to over $19 billion accompanied with sustainable economic growth has solidified platform for real estate development.
Residents of cities are rising rapidly with the emerge of megacities that will change the landscape of the real estate market, requiring more creative investors in the increasingly limited space of each apartment.
The largest transactions this year, for major office, residential and retail sites, all backed by foreign capital let people gauge the fervor foreign investors have in Vietnam, Asia’s rising star.
New apartments with diversified and unique amenities are increasing competition within the market, which is expected to be extremely beneficial to both consumers and the real estate market in Vietnam.
Vietnam continues attracting investment interest, and Ho Chi Minh City stands out on investors’ lists, guaranteeing best positions for investment and development prospects in Asia Pacific, according to statistics of major property deals just announced by Savills Vietnam.
Fast demand growth together with limited land fund are the main reasons for the price surges of luxury apartment segment in Danang city.
The real estate market in Cam Ranh city, Khanh Hoa province has been heating up more than ever, whilst a lot of investors are finding destinations in this southern city.
This is due to the difference in the investment purposes between Hanoi and Ho Chi Minh City, according to Do Thu Hang, associate director of Research and Consulting at Savills Vietnam.
State Bank Governor Le Minh Hung said that securities loans amount to VND10 trillion (US$441 million), adding “The proportion of securities lending is very low compared to the total credit loan, a sharp year-on-year decrease.”
It is too soon to identify the eastern part of Hanoi as a blooming real estate market.
