Many foreign invested enterprises (FDI) "jump"
into the real estate market of Vietnam with the commitment that will establish
foreign standards but the price can be equal, even lower than domestic
enterprises. This not only brings benefits to consumers but also contribute to
" cooling down" the price of real estate as the domestic enterprises
"heat up" in a long time.
More choices for consumers
Recently, Oliver Brazier, CEO of EZLand Vietnam -
International Investment Fund KEY SICAV SIF from Luxembourg, said that the
company has had an plan to build 1,000 to 1,500 apartments every year for the
next 5-8 years in Vietnam.
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| Project of HausNeo in District 9 |
In the short term, the HausNeo project in District 9 (Ho Chi
Minh City) is the first product of the company with the design inspired by European
quality. It is worth mentioning that these apartments are centered on types of
affordable housing.
Many comments shared that this was really a wise step of
EZLand Vietnam. As forecast, consumption rate of mid-range apartments would
increase rapidly from 40-50% to 60% by the end of 2017.
In fact, this is not the first foreign enterprise to build
housing projects with international standards and affordable price which before
that many of those from Japan, Korea, Singapore, Malaysia ... has also targeted
this model. Nonetheless, the investment method of FDI enterprises is mainly the
acquisition or merger, and investing in projects of domestic enterprises.
Namely, the project Flora Anh Dao (District 9) and the
Mizuki Park residential area (26 ha in Binh Chanh District) have been developed
by two japanese investors, Hankyu Realty and Nishi Nippon Railroad in
cooperation with Nam Long Real Estate Company. The value of this deal of Flora
Anh Dao (District 9) announced by Nam Long is $ 20 million; while the Mizuki
Park residential area has a total investment of $ 351 million.
According to Dr. Bui Quang Tin - CEO of Bizlight Business
School, the investment in offices for rent, hotels, commercial center is almost
saturated, while the demand for housing in all models is very positive. Particularly,
reasonable models are lacking supply. Therefore, not only Vietnamese
enterprises but also from Korean, Singaporean, Japanese, Taiwanese ones are
entering this market.
A positive signal for the market
According to a report of Ho Chi Minh City Real Estate
Association (HoREA), in the first 10 months of 2017, the country attracted $ 28.24
billion in foreign direct investment (FDI), up 1.6 times compared with the same
last year (10 months of 2016 only reached $ 17.6 billion). This is also the
highest increase in 10 years.
Ho Chi Minh City alone attracted US$ 5.03 billion in FDI,
leading the country twice as many as in the first 10 months of 2016. Of which
the real estate sector accounted for 32.9%, ranked second only after processing
and manufacturing sector (34.5%).
In addition, the amount of remittances to Ho Chi Minh City
in nine months of the year also reached over $ 3.3 billion, up 6% compared to
the same period in 2016; of that, about 22% of remittances are invested in real
estate.
Even real estate loans was also considerably disbursed.
Statistics show that up to 9 months of 2017, outstanding loans for real estate
in Ho Chi Minh City accounts for about 10% of the total of the country, 6.5%.
Outstanding housing loans particularly for over 10,000 individuals and
households reached VND 4,740 billion, contributing to the improvement of
housing for these people.
With these positive numbers, Dr.Bui Quang Tin said that this
brings positive signals for the real estate market because FDI companies invest in real
estate not only offices for rent, hotels and commercial centers, but also
housing construction. Therefore, the attraction of FDI into real estate is very
necessary.
"At present, Vietnam is targeting the real estate
development of green and energy-saving, which is now being considered by
foreign investors. Not only that, the investment of foreign companies also
brings healthy competition in price for real estate market, the benefits to
consumers as well, "added Tin.
However, according to what Dr. Tin said, to take best use of
these advantages require a great deal of effort from the relevant ministries
and agencies, most importantly things are transparency, improvement of the
investment environment, simplification of administrative procedures, the time
cut for enterprises.
Source: baotintuc.vn
We are proud of being top five reliable company specializing in investment fields in Vietnam. Please contact us for inquiries via email : info@fdi-vietnam.com or call us directly at + 04.32020505. Our official website: fdi-vietnam.com. Let us help your business in Vietnam.
Source: baotintuc.vn
We are proud of being top five reliable company specializing in investment fields in Vietnam. Please contact us for inquiries via email : info@fdi-vietnam.com or call us directly at + 04.32020505. Our official website: fdi-vietnam.com. Let us help your business in Vietnam.
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