Michael Piro, COO of Indochina Capital How do you see the real estate market in Vietnam shaping up as of late? Overall, the market is in fairly good health, considering it has had a relatively strong run. We have seen most sectors grow, especially with strong demand in the apartment market. Apart from that, we have seen the hospitality and retail segments maintain their relatively good performance over the last few quarters. The market is in much better shape compared to 10-12 years ago, when times were difficult for developers. Now, we see more stable growth in the market based on a fundamentally strong economy, growing foreign direct investment (FDI), inflation that is seemingly under control, and a relatively stable currency. Vietnam is one of the fastest-rising economies in the whole world, and many foreigners have either already picked up on that fact or have begun to. The market is full of potential and I am really interested in finding out where it can go. What have … [Read more...] about Excitement rises in Vietnam’s real estate
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JLL: Real estate market in 2019 marked by 5 trends
Vietnam’s real estate market will be shaped by five main trends in 2019 according to a JLL report: the mid-end and affordable apartment segment, flexible workspaces, technology companies in the office segment, e-commerce in logistics, and hotel lifestyle. The mid-end and affordable segment will dominate the country’s property market, with the report noting an increase in small and ultra-small apartments. About ten years ago, high-rise projects had two-bedroom apartments of about 120 sq m, but now there are no two-room apartments over 100 sq m being built. Preferences in apartment size among both buyers and developers have changed. “Most first-time homebuyers are only able to afford larger apartments in apartment blocks far from the city center,” said Mr. Stephen Wyatt, General Director of JLL Vietnam. “But psychologically, young buyers want to live in a convenient location, so they buy small apartments with full amenities and community … [Read more...] about JLL: Real estate market in 2019 marked by 5 trends
Tien Thinh International opens investment opportunities in Australia
Aiming to provide proper information on Australian investment opportunities as well as detailed explanations on the real estate purchase process in Australia, in early October 2018, Tien Thinh International hosted the Business Migration & Investment Opportunities In Australia 2018 Conferences with the theme of Commercial And Residential Property Investment In Australia in three major cities, including Ho Chi Minh City (October 9), Haiphong (October 11), and Hanoi (October 12). Tien Thinh International held three seminars about investment opportunities for Vietnamese firms in Australia The event has been successfully conducted with more than 100 potential attendees from the three major cities in Vietnam. Opening the event, Le Thanh Tung, director of Tien Thinh International, provided useful information on business migration and investment opportunities in Australia. Besides, Tung introduced the latest customer services recently launched by Tien Thinh International, such as … [Read more...] about Tien Thinh International opens investment opportunities in Australia
Condotel—the future of the real estate industry
Michael Piro, director of Strategic Services Can you share with us your general opinion about the potential and prospects of condotel development in Vietnam? There is tremendous opportunity for condotel products in Vietnam. Condotels typically find themselves on resort properties, a holiday destination option that has become increasingly popular in Vietnam. If you look the country, it has a more than 3,000km of coast line, so naturally you are going to find a lot of beachfront hotel and hospitality developments. This is what makes Vietnam an attractive destination for condotel products. I think Vietnam has a lot to offer to both developers and buyers of this product, but I do have concerns about the speed in which it is progressing in—it is happening too quickly. The key driver for success and sustainability in this market is transparency. Developers need to be very open with buyers to make sure they are clear on both the risks associated and the rewards of these types of … [Read more...] about Condotel—the future of the real estate industry
Foreign bankers reconsidering local partnerships
More than a decade after Vietnam tried to increase the efficiency of local banks without disrupting the human capital and knowledge embedded in existing structures, under a policy of “strategic partnerships”, divestitures of minority stakes in important local banks by several foreign investors last year put an end to the hotly-debated policy. Despite the shifts in mission among these foreign lenders, with their long-term commitments reportedly remaining unchanged, consecutive divestments by foreign banks in a single year raised many questions, especially when the easing of restrictions on foreign bank ownership and the positive track taken towards resolving bad debts added to the dynamism in Vietnam’s banking sector over recent years. Illustrative photo Different tastes Vietnam has seen a growing number of foreign banks withdraw from its under-banked economy, the latest indication that all might not be as well as bankers often claim. Last July, the … [Read more...] about Foreign bankers reconsidering local partnerships