10:23 | 10/01/2018 Investment
The real estate sector ranked third in attracting foreign direct investment (FDI) to Vietnam, accounting for 8.5 percent of the total registered capital, which was announced at the CBRE Vietnam’s press conference on the real estate market held on January 4.
|At the CBRE Vietnam’s press conference on the real estate market held on January 4|
According to Nguyen Hoai An, Manager of research, consultation, appraisal and asset management of CBRE, many foreign investors have realized the future potential of the real estate market in the Northern region, particularly in Hanoi.
In 2017, Vietnam remained an attractive destination for foreign investors with total FDI capital registered in the country hitting a record high of US$35.88 billion, up 44.4 percent against last year.
Although not exceeding 10 pct of the total registered capital, FDI in the real estate sector has continuously increased over the past five years. Previously, investment capital in the real estate sector focused on the southern market. However, according to CBRE, since 2017, many foreign investors have paid special attention to Hanoi’s property market.
They have joined together with several big domestic investors to carry out projects, for example, Sumitomo Group’s deal on the northern side of the Red River which is expected to be a hot spot for real estate.
The Japanese group decided to participate in Vietnam’s real estate market through urban planning and infrastructure development.
CBRE Vietnam’s Manager Nguyen Hoai An said that the intensive involvement of foreign investors in Vietnam’s real estate market will create positive changes in products and the methods used to sell and introduce them, for example, selling real estate online.
Experts predict that increases in purchasing power and demand for houses will help boost the market’s growth in 2018.