Real estate

Vietnam’s real estate market continued to see many M&A activities in the third quarter of 2017, with a number of transactions in the commercial and residential sectors, according to the latest report from Jones Lang LaSalle (JLL).

The supply of affordable apartments under VND1 billion (US$44,000) in big cities has become increasingly scarce due to rising construction costs, industry insiders said.

The Ministry of Construction should use several new financial tools to diversify the investment capital sources for the development of the local real estate market, the Ho Chi Minh City People’s Committee proposed.

The domestic construction material market has been stable to date this year, according to the Ministry of Construction.

Authorities should applied regulations on allowing foreigners to buy houses in Vietnam more flexibly to better attract foreign investment in the real estate industry, experts said.

By September-end, loans to the real estate sector accounted for 16.8 percent of the total outstanding loans of credit institutions.

Hybrid properties have been a highlight of the Vietnam real estate market in recent years.

VND 20 billion (~ US$ 1 million) is enough to buy a penthouse in Hanoi or a beachfront villa with private swimming pool in Da Nang city or Phu Quoc island.

The market segment for offices and retail space for lease in Hanoi has seen stable rental prices for grade A and B office buildings in the third quarter of the year, according to the CB Richard Ellis Vietnam, Co., Ltd (CBRE)- the world’s largest commercial real estate services and investment terms.

Dr. Le Thi Bich Thuan analysizes: There is no concept of renovating the old quarter, but the construction of new urban area (on the ground of the old apartment only) with the criteria of sustainable new urban development, on both social infrastructure and technical infrastructure.

On September 18, Vingroup has been named as the Best Real Estate Developer in Vietnam, Best Retail Developer in Vietnam, Best Mixed Use Developer in Vietnam, and Best Leisure/Hotel Developer in Vietnam by the world’s leading financial magazine Euromoney.

Savills Vietnam publication in Q2/2017, at Hanoi, the index was at 106.1, down 1 point (pt) QoQ and 2 pts YoY.

Hong Kong recently marked the 20th Anniversary of the 1997 Handover of the territory from Britain to China and thoughts also turned to the Asian Financial Crisis which unfolded in the same year.

A report by the Gachvang real estate trading floor shows that the price of land and houses in old quarters in Hanoi has increased by 20-40 percent compared with earlier this year.

This is the latest result reported by Gachvang Co., Ltd. about 14 routes around the "West Street" of Hanoi, also known as the international intersection located in the old town, centered around the Ta Hien main street.

In the first half of 2017, Vietnam continued to attract significant Foreign Direct Investment (FDI). FDI disbursement reached US$7.72 billion, up 6.5% YoY while registered FDI was US$19.22billion, increasing by 54.8% YoY.

In the first half of 2017, Vietnam continued to attract significant Foreign Direct Investment (FDI). FDI disbursement reached US$7.72 billion, up 6.5% YoY while registered FDI was US$19.22billion, increasing by 54.8%compared to the same period last year.

Areas around the zone are now some of the most expensive in Vietnam

Actually, the M&A (merge and acquisition) transactions are not the only one factor that stirred up the real estate market up until now.

In Vietnam, the rapidly rising numbers of touristsare providing a huge boost to the hospitality sector. Booming tourism is also accelerating coastal development. The property market in Viet Nam has seen dynamic investment activities across many sectors in the first quarter of 2017.