FDI flows remain strong in real estate, illustration photo According to Minister of Construction Tran Hong Ha, the real estate sector in Vietnam commands special attention among foreign investors. So far, Vietnam has attracted 26,646 projects with the total investment capital of more than $334 billion from 129 countries and territories, with the real estate sector consistently attracting the second-largest portion among the Vietnamese economic sectors. “The government has been highly appreciative of foreign investment and has been working to create more favourable conditions for them to invest in Vietnam,” Ha said at a recent international conference on real estate investment in Vietnam in Hanoi. Khanh Nguyen, associate director of the Capital Markets Division of JLL Vietnam, said that over the past 10 years, despite the ups and downs of the Vietnamese economy and the real estate market, foreign direct investment (FDI) inflows remained stable. According to the Foreign … [Read more...] about FDI flows remain strong in real estate
Developing real estate leads
Talk around town: Mortgaged real estate projects are legal but risky
Viet Nam News Chu Lan Huong Lê Thu Trà, a woman living in Hà Nội’s Hà Đông District, lived in anxiety for days because she did not know what happened to the contract she had signed to buy an apartment from a new real estate project. Trà’s worry was real – in some recent incidents at housing projects, customers came out on the losing end. In some situations, apartment projects that were still mortgaged by banks or credit entities were sold to customers, leading to ownership disputes between the parties. Gia Phú Residential Building in HCM City’s Thủ Đức District was the scene of one such incident. The bank that funded the project announced its intention to auction off the building to clear the debt of the main investor, who had not paid the bank for the past seven years. The building’s hundreds of residents live in fear of losing the money they spent their lives saving to afford an … [Read more...] about Talk around town: Mortgaged real estate projects are legal but risky
Real estate in HCM City holds great appeal for foreign investors
Phu My Hung Urban Area in District 7 of HCM City (Photo: VNA) HCM City (VNA) – The flow of foreign direct investment (FDI) into real estate in Ho Chi Minh City has followed the same trend as with the FDI movement into the country, with the property sector always among the top FDI recipients in recent years. HCM City has taken the lead in FDI attraction over the last three decades since Vietnam opened its economy to the world, and real estate is one of the sectors receiving most foreign investment. Among major deals recently, Lotte Group of the Republic of Korea has finalised procedures to invest 20.1 trillion VND (855.6 million USD) in a project named Thu Thiem Eco Smart City in the Thu Thiem New Urban Area in District 2. Also in this urban area, the Empire City Tower project with total capital of 1.2 billion USD is now under construction and expected to complete in 2022. It is invested by a joint venture of two Vietnamese companies and the Denver Power Ltd of the UK. … [Read more...] about Real estate in HCM City holds great appeal for foreign investors
Vietnam’s real estate market a gold mine for foreign investors
VietNamNet Bridge - More foreign invested real estate projects have been registered recently, while more M&A deals in the sector have also been reported. Vietnam's real estate market is a gold mine for foreign investors In late July, the 100 percent foreign owned real estate developer Alpha King introduced three real estate projects in district 1, HCMC, including the high-end serviced apartments at No 2 Ton Duc Thang, the A-class office building Alpha Town at No 289 Tran Hung Dao and Alpha City complex at No 87 Cong Quynh. Alpha King’s CEO Jimmy Chan said it will takes two to three years to build the projects. Japanese Hinokiya Group has decided to cooperate with Vietnam’s TWG for its first investment project in Vietnam. According to Le Cao Minh, CEO of TWG, the two sides would set up a 50/50 joint venture to develop a Japanese style housing project, covering an area of 9.7 hectares. FIA reported that the FDI into the real estate sector (housing, industrial … [Read more...] about Vietnam’s real estate market a gold mine for foreign investors
Restrictions on real estate credit bearing fruit
Recent moves to restrict credit for real estate are having an effect. One day in July, Ms. Nguyen Mai Phuong, a 45-year-old businesswoman living in Ho Chi Minh City’s Binh Thanh district, visited a few banks to seek a loan of VND2.5 billion ($110,000) to purchase land. She was told of the new interest rates on home loans, ranging from 8-10 per cent per annum for the first year, depending on the customer’s objectives, and then 11-12 per cent. “I’m re-considering my plans, as these rates are much higher than a few months ago,” she said. Most local real estate developers have also been restricted in approaching capital resources over the last year due to the State Bank of Vietnam (SBV)’s moves to tighten capital flows into the local property market by raising the credit risk on real estate loans and reducing the proportion of short-term capital to be used for medium- and long-term loans by commercial banks, due to concerns about bad debts amid the … [Read more...] about Restrictions on real estate credit bearing fruit