Japan, Korea, Singapore ... are pouring billions into frantic Vietnamese real estate

07/11/2016   Viewed: 965
Capital inflows from Japan, Singapore, Korea ... continue pouring into the housing market strong. A growing number of real estate projects with foreign investment are growing more than the previous period.
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Recognition of Foreign Investment Department (Ministry of Planning and Investment), May 10, 2016 real estate sector remained at No. 2 on the attraction of foreign direct investment (FDI), just behind manufacturing and processing industry.
There have been 46 new license projects with a total registered capital of over 982 and additionally million, accounting for 5.5% of total registered capital. This figure is less than half compared to the 2.39 billion dollars to attract the whole of last year.

However, as observed by Duong Thuy Dung, director of research at CBRE Vietnam, although the figure is lower than last year's commitment, but should look at the substance rather than quantity. By more than 1 years, higher capital inflows disbursement commitments. Meanwhile, in the period 2007 - 2008, which is committed to the real estate sector at up to 25% of total FDI, but disbursement figure is very small then.

The figures from the Ministry of Planning and Investment also shows that Japan, South Korea and Singapore are quietly powerful pouring capital into Vietnam real estate market. Korean investors continued to lead with the number of new and additional grant to date is 5.62 billion US dollars, accounting for 31.9% of total investment capital in Vietnam. Japan still at No. 2 with $ 1.92 billion, accounting for 10.9% of total registered capital and Singapore at No. 3 with 1.73 billion US dollars, accounting for 9.8% of total investment capital.

In fact, the market is going strong trend of business cooperation between the Vietnamese real estate companies with Japan, South Korea and Singapore, especially in HCM City market. We realize there are many real estate projects with foreign investment are growing more than the previous period.

Besides, foreign investors are also quite responsive to the market. They not only participate in the premium segment and luxurious as before, but also to promote development cooperation rather average product line, to meet the demand for housing improvement of the majority of Vietnamese people, meeting application housing standards of Japan, Korea or Singapore.

Previously, capital flows can be found in many projects in HCMC as Creed Group's investment in the City Gate NBB, development cooperation project with $ 500 million River City An Gia Phat Dat and Investment; Nishi Nippon or Hankyu Realty and cooperation with South Long Railroad.

Now, the Japanese continue to move into this field landings. Toshin Development has recently invested projects proposed underground shopping center Ben Thanh. JICA also has information that will help Vietnam Japanese investment projects in HCMC inundation worth 211 million dollars, and started implementation in 2017. In turn, these businesses will then receive treatment area horizontal price with the total investment of the project, to develop the first 20-storey condominium.

Another batch of Japanese names bared five senior real estate development in HCMC by partnering with local businesses. For example, Maeda with project development Thien Dac apartment Waterina (District 2), Global Group handshake with JSC Investment project Dream House in District 8; Pressance Corporation Tien Phat signed to cooperate with the acquisition and implementation of a project to build 500 apartments, with a total investment capital of VND1,200 billion (including the amount of land).

In addition to these new factors, many large corporations from Korea or Singapore are also accelerated funding in this area. Notably, The Global (Japan) recently partnered with funding JSC Dream House (Dream House) to jointly develop a project in District 8; Singapore's CapitaLand recently acquired a project in Cau Kho district (District 1), worth nearly $ 52 million to develop two residential towers, of about 300 units.

Two Japanese investors are also NNR and Hankyu Nam Long is working with to develop affordable apartments in the East. Meanwhile, Keppel Land is "shake hands" with Tien Phuoc development projects average apartment.

It can be seen clearly, in some inflows pouring into real estate, the Japan, South Korea and Singapore has topped the investment wave. Vietnam's middle class is forecast to have the strongest growth in the decades ahead. According to HSBC, the fastest speed possible Southeast Asia, prospects of 12 million (2012) to 33 million people by 2020.

This will boost the demand for housing, education, health, commercial services ... increasing, to improve the quality of life. Therefore, in recent years the real estate giants and abroad constantly pouring capital into this market. Prospects segment of luxury housing, resort real estate continues to be evaluated as potential breakout.

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