Vietnam among Top Options for Int’l Realty Investors: JLL

International property investors are looking at Vietnam as an appealing option.


                                      A view of Hanoi's West Lake. Photo: Internet

Vietnam has emerged as one of the most attractive destinations in Asia for real estate investors as ASEAN economies are set to thrive thanks to the operation of the ASEAN Economic Community and the imminent Regional Comprehensive Economic Partnership (RCEP), according to Anthony Couse, Asia Pacific CEO at Jones Lang LaSalle (JLL).

While some member states, including Malaysia and Singapore, have faced the challenge of slowing growth, Vietnam has been riding an upswing, delivering growth in gross domestic product of around 6% so far this year.

Vietnam’s real estate sector has hit its stride since 2015. A number of recent government reforms, such as stronger financial requirements for property developers and the relaxation of rules on foreign investment, have served to make the country an increasingly attractive destination, particularly for investors from Singapore and Japan, Anthony Couse said.

Investment into real estate reached $983 million in the first ten months of 2016 with Ho Chi Minh City -- the commercial hub of the country -- a standout.

The Thu Thiem New Urban Area, a 657 hectare site east of Saigon River under construction, is designated to be the new central financial district. It is set to be home to more than 150,000 residents and 200,000 office workers.

The retail and hospitality sectors are also growing. Takashimaya, Vietnam's largest department store, was opened in Ho Chi Minh City in August. Meanwhile, the Hoi An South Integrated Resort is currently being constructed, with its first phase to be completed in 2019; and Halong Bay got its first five-star property, Wyndham Legend Halong Bay, in June.

The CEO noted that Vietnam, like many other countries in the region, is still grappling with several structural issues. Its state-owned enterprises are in need of reform, while its banking sector would benefit from greater transparency and improved compliance.

Tuan Minh / BizLIVE