Ho Chi Minh City ranked among top 5 real estate markets in Asia-Pacific

Investors expect annual returns of 20-25 percent.

Ho Chi Minh City is in the top five of the Asia-Pacific region for real estate investment and development prospects, with annual returns expected to be up to 25 percent, according to a new report.

Emerging Trends in RealEstate Asia Pacific 2016, jointly published by the Urban Land Institute and consulting firm PwC, has ranked the city fifth for investment and fourth for development. Tokyo is at the top, followed by Sydney and Melbourne. Osaka and Ho Chi Minh City are neck and neck.

The Vietnamese city has emerged as one of the most promising markets in the region over the past two years, jumping from the 19th place in 2014 to one of the top five this year.

Foreign investors, mainly from Japan, South Korea and Singapore, are interested in the city's property market on expectations of an annual return of between 20 and 25 percent, according to the report.

The report also attributes the city’s rise as an attractive destination to the government’s efforts to stabilize the local currency, control inflation, ease property lending and improve market access for foreigners.

Global investors prefer entering Vietnam’s real estate market through mergers and acquisitions. They are laying eyes on a wide range of projects, from beach resorts, serviced apartments, residential buildings to hotels, mostly in the three major cities Hanoi, Ho Chi Minh City and Da Nang.

For instance, Singapore-based investment fund Frasers Centrepoint Limited has acquired a 70 percent stake in a luxury residential apartment project from a local realestate developer. The $100-million project, namely G Home, covers a one-hectare area in downtown Ho Chi Minh City.

Emerging Trends is based on the opinions of 343 internationally renowned real estate professionals, including investors, developers, lenders, brokers and consultants.

ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation.  Our services are as following:

• Advisory
• Market Entry
• Tax Advice
• Legal Advice

We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.

We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

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FDI in Real Estate Reached 1 Billion USD in 2016

The area of real estate business attracted total FDI capital reached 1 billion USD in the first 9 months of 2016.

Foreign Investment Department (Ministry of Planning and Investment) has announced FDI report for the first 9 months of 2016. Accordingly, there were 1,820 newly licensed projects with total registered capital of 11.02 billion USD, increased by 1.1% over the same period. Meanwhile, there are 851 projects registered to adjust capital with the added value of 5.3 billion USD, decreased by 13.9% over the same period.

Generally in the first 9 months of 2016, total newly registered and additional capital reached 16.4 billion USD, decreased by 4.2% over the same period in 2015.

In 9 months, foreign investors have invested in 19 sectorsin which the field of processing industry, manufacturing is the sector attracting more attention of foreign investors with 767 new projects and 608 respectively adjust capital projects.

In 9 months, foreign investors have invested in 19 sectors, in which the field of processing industry and manufacturing are the sectors attracting more attention of foreign investors with 767 new projects and 608 projects register to adjust capital.

Total new and increasing capital to processing industry and manufacturing reached 12.15 billion USD, accounting for 73.9% of total registered capital in 9 months.

In particular, the field of real estate business ranks 2^nd with 34 newly registered projects, total capital reached 1 billion USD. The field of professional activities, science and technology ranks 3^rd with 649 million USD, accounting for 3.9% of total investment capital…

In the first 9 months of 2016, there are 65 countries and territories have investment projects in Vietnam. Korea leads the way with a total investmentcapital reached 5.58 billion USD. Singapore ranked 2^nd with total investment of 1.84 billion USD. Japan ranked 3^rd with total investment capital of 1.7 billion USD.

Foreign investors have invested in 54 provinces and cities in which Hai Phong attracted the most investment capital with 37 new projects and 28 projects register to adjust capital, corresponding to 2.74 billion USD. Followed by Hanoi and Dong Nai with total investment capital of 1.97 and 1.89 billion USD respectively.

Some large projects that are licensed in the first 9 months of 2016 including LG Display Hai Phong with total registered investment capital of 1.5 billion USD, invested by LG Display Co., Ltd (Korea). The goal of the project is producing and processing plastic OLED display products for mobile devices such as cell phones, smart watches, tablets.

LG Innotek plant project in Hai Phong with total registered investment capital of 550 million, invested by LG Innotek Co., Ltd. (Korea) with the goal of producing camera modules.

Amata City project in Long Thanh has a total investment of 309.3 million USD, invested by Thai investor with the goal of building service urban in Dong Nai.

ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation. 

We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.

We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

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Danang Resort Real Estate Is Growing Well

Savills Vietnam has just published a report updating the situation of Danang real estate market in the first half of 2016. Accordingly, the segment of hotel, resort and villa continues to be exciting with the launch of many new projects as well as the presence of many famous brands in the world.

Specifically, according to Savills Vietnam, in the first half of 2016, the number of tourists coming to Da Nang has increased by 28% year on year, while domestic passenger traffic increased by 4% year on year.

Thanks to the flourishing of the tourism activity, only in the second quarter of 2016, the total number of 3 – 5 stars hotel in Danang increased by 4% quarter on quarter and 15% year on year. The average occupancy rate has also increased by 2% compared to the first quarter of 2016. The average room rate has increased by 6% over the same period in 2015.

Place these datas in the context of the tourism industry of some central provinces (from Ha Tinh to Thua Thien Hue), which are suffering heavy losses due to the environmental disaster caused by Formosa in the first months of 2016, it is clear that the attraction of Danang tourism is very good.

Also according to Savills, in the second half of 2016, 3 new projects in the hotel segment, which are expected to enter the market, will continue to provide about 1,320 rooms; including Crowne Plaza phase 2, Hilton Danang Hotel and Four Points under Sheraton. Since the third quarter of 2016 to 2018, it is expected to have 35 new projects entering the market.

For the resort villa segment, Danang is a pioneer in high-end coastal real estate segment and second (after Nha Trang) in total supply with 1,199 villas and 3,367 apartments. The surveys indicate that more than 80% of buyers coming from Hanoi, being attracted by diverse portfolio of products, complete infrastructure, tourism prospects, attractive sales policy as well as an image of Danang as a green, young and dynamic city.

We have to mention the successful projects such as Bana Hill, Ocean Villas, Hyatt Regency, Furama, Intercontinetal and Azura. Moreover, there are large-scale future projects that are Soleil Danang, Coco Bay, Da Phuoc, Han Riverside, Ariyana, Central Coast, Vinpearl Han River and Ocean Suites & Estates. The market is expecting a large supply of coastal apartments and villas.

According to Savills Vietnam, Danang provides investors benefits from the complete development of infrastructure and urban planning. While the northwest coastal areas have the advantages of natural landscapes to develop eco-tourism, the urban areas are developing towards becoming a center of trade, finance and education. In addition, the eastern coastal areas are marked for tourism and hotel industries; the southern of Danang is expected to develop tourism and a large urban area.

With the modified Real Estate Business Law, Housing Law and expanding the conditions for foreigners to own houses in Vietnam, the real estate market of Danang will certainly become more attractive and with sustainable development in the future.

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