The global real estate market fluctuates in a complicated way, the volume of real estate transactions worldwide is estimated to reduce 15% in 2016 compared to 2015.
Vietnam is one of the most attractive destinations for retailers in Southeast Asia due to the booming economy. Demand for office will increase sharply as many foreign companies will come and set up offices in Vietnam in 2016.
Being an export-oriented economy, with export accounting significantly for 80% of nominal GDP, Vietnam is attracting a large and increasing amount of foreign investment. With the rising demand for land and industrial plants, this segment will continue to be an attractive investment channel. Statistics show that only 500 out of 90,000 foreigners are homeowners, therefore the demand in the rental apartments segment is relatively high.
The GDP growth over years, policies to attract investment, along with tourists are driving forces for the hotel market of Vietnam. The number of 5-star hotel still accounts for a large portion in the market, despite the increasing supply from 3-star hotels.
Being the most clearly affected segment from the real estate cycle, luxury apartments recorded the return of a series of delayed and newly invested projects. During the period from 2010 to 2014, after a long time of quiet, the value of land, villas, townhouses continuously decreased over the years. In 2015, along with the recovery of the real estate sector in general, the segment of apartments and townhouses also showed signs of growth with a series of new projects and existing projects which were restarted and offered on the market.
Vietnam is regarded as an attractive market compared to other countries in the ASEAN, as the economy and real estate market are being improved. Therefore, many foreign investors will continue to seek opportunities for cooperation and investment in productive assets in major cities of Vietnam.
Typical businesses having the highest real estate revenue in 2015 showed the orientation and clear division according to each specific segment, the competitive advantages as well as supportive policies of the government.
Besides, previously, if Vietnam’s retail market was primary with only three big brands including Metro, Big C and Saigon Co-op, the until now many well-known brands have been formed and developed in industry including domestic and foreign investors.
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