One of the fastest growing property markets especially within the resort property sector is Vietnam. The influx of foreign buyers and investors this year has increased mergers and acquisitions along with investment in coastal resort property.
The tourism sector for 2016 had more than 10 million international visitors and Savills predicts more than 11.5 million will visit in 2017. The Hanoi Statistics Office reports the city received 1.3 million international visitors and local hotels are expected to launch 900 new rooms in 2017.
In an interview with VietnamNet, Stephen Wyatt of Jones Lang LaSalle predicts ‘…billions of dollars are just waiting to be poured into the market in most segments, with a focus on apartments, offices, hotels, and industrial real estate.’
Savills reports one major investment was by CapitaLand Group with its investment in a 1.5 acre commercial land site in central Ho Chi Minh City to build Vietnam’s first A-class International complex. The new property is set to receive a $500 million investment from Singapore developers.
It has also been announced that CapitaLand has acquired a 90% stake in a project to build 300 apartments in Thao Dien, Ho Chi Minh City.
Developer Keppel Land recently invested $37 million, increasing its stake to 16% in the Saigon Centre in downtown Ho Chi Minh City. Phase One on Le Loi Boulevard has since been completed. The Second Phase, once completed, will feature international standard office buildings, premier serviced apartments and a hotel linked to a retail mall. The 43 storey second phase is designed by New York architect NBBJ and features seven levels of retail and dining spaces across 50,000 square meters and a now completed five floor, 15,000 square meter department store.
There has been a recent announcement of a $40 million partnership investment in District 7 of five apartment blocks in the LaCasa project by local group An Gia and the Creed Group of Japan.
In March of this year Hong Kong Land became a strategic partner of the Ho Chi Minh Infrastructure Investment Joint Stock Company to develop new residential housing in the Thu Thiem New Urban Area. Located across the Saigon River, the area measures 650 hectare with original plans for 382 hectares developed for residential spaces and 334 hectares for commercial use.
There is investment from contractor Kojima of Japan, who are arranging a joint partnership with Indochina Capital for a $1 billion investment over the next 10 years. The initial developments will be in Hanoi, Danang and Ho Chi Minh City, for residential property, hotels and resorts.
Keisuke Koshijima, senior executive officer at Kajima Corporation, called Vietnam, Kojima’s key market in the region.
Vietnam Real Estate Development Co., LTD. a subsidiary of China Fortune Land Development Co. (CFLD) is planning to construct industrial cities throughout SouthEast Asia with Vietnam being a prominent location.
The CFLD along with Tin Nghia Corporation signed a memorandum of understanding in September to construct a New Industrial City east of Ho Chi Minh City in Dong Nai.
Savills reports a strong supply in apartment units with the stock at 24,160 units showing an increase of 12% quarter over quarter and 49% year over year. Fourteen fresh projects and twenty-one new launches added 9,220 units. It’s expected that 40,800 units will be delivered to the market in 2017 for the apartment sector.
The villa/townhouse sector had 36,038 units at an increase of 3% quarter over quarter and 14% year over year. Three new projects are expected to bring to the market 1,005 units with villas comprising of 58% of the units.
By Kevin Murphy: www.kevinmurphy.london