16:15 | 20/08/2015 Economy
Regulatory reforms to create more open policies are making the domestic property market more attractive to foreign investors, including those from Singapore.
Xuan Phuong Urban Area in the capital city's Nam Tu Liem District. Photo: VNA
A recent survey of Singaporean developers on the attractiveness of property markets in the Asia – Pacific region ranked Vietnam third, placing it after Malaysia and Australia.
The attractiveness of Vietnam's property market stems from a combination of factors, including the country's economic recovery and regulatory reforms, especially with the amended Law on the Real Estate Business and Housing taking effect from the beginning of July with loosened policies on foreigners’ home ownership.
Rich Singaporeans are seeking opportunities to invest in property abroad as opportunities in the home market are narrowing. Singapore has an estimated 105,000 millionaires.
Singaporeans saw Vietnam's property market as an attractive market in Southeast Asia with an anticipated rising demand for housing due to the country's growing population with many young people. Currently, many Singaporean property firms are present in Vietnam, including major players such as CapitalLand, Keppel Land, Sembcorp and Mapletree.
Statistics from the Foreign Investment Agency showed that to date, Singapore is the biggest investor in Vietnam's property sector, with 75 projects, worth a total of 10 billion USD, accounting for 16.4 percent and 20.6 percent of the number of projects and the total registered capital in Vietnam's property sector, respectively.
At a recent meeting in Singapore with Vietnamese Prime Minister Nguyen Tan Dung, leading Singaporean firms showed interest in investing in many sectors, including the property sector of Vietnam.
Still, experts urge authorities to implement more transparent policies to encourage a higher foreign investment inflow into the property sector.
The property sector ranked second in FDI attraction in the first seven months of this year, with total registered capital of 1.69 billion USD, accounting for nearly 20 percent of the country's total FDI./.