Foreign investors show keen interest in Vietnam's real estate
Foreign investors show keen interest in Vietnam's real estate
A recent survey by the Vietnam Real Estate Research Institute reveals robust international interest, with calls for better legal and regulatory frameworks to fully capitalise on this growing investment trend.
A survey conducted by the Vietnam Real Estate Research Institute in September has highlighted a strong demand from international investors for Vietnamese real estate properties.
This burgeoning focus, underscored by an extensive September 2023 survey of 500 major investors from 10 globally renowned real estate organisations – including those in the US, South Korea, and Singapore – signals a significant shift in global investment patterns.
According to the survey, a noteworthy 10.5 per cent of respondents rated the Vietnamese real estate market as highly attractive due to its compelling pricing. Meanwhile, 47.4 per cent found the market very appealing but noted the need for legal, informational, and data improvements to better facilitate foreign investment.
A spokesperson from the Vietnam Real Estate Research Institute remarked, "Vietnam's real estate market presents an enthralling opportunity for foreign investors, particularly given its price points. However, there is a clear call for enhanced legal and regulatory frameworks to maximise these investment opportunities."
Interest varied across different segments of the market, with 57.9 per cent of foreign investors expressing keenness in acquiring mid- to high-end apartments. Rental demand in this segment was substantial, accounting for 36.8 per cent.
The tourism and resort real estate sector also garnered notable interest, with purchase and rental demands reaching 26.3 per cent and 31.6 per cent, respectively.
Industrial real estate and commercial office spaces, however, seemed less appealing, with a mere 5.3 per cent showing interest in these areas.
When it comes to the timing and mode of investment, 63.2 per cent of investors asserted their willingness to invest more when conditions improve. Meanwhile, a moderate investment approach was favoured by 15.8 per cent, and 10.5 per cent were inclined towards substantial long-term investments.
This surge in foreign interest in Vietnamese real estate is a testament to the country's growing appeal as a prime investment destination. Nevertheless, the survey's findings also point towards a crucial need for the country to streamline and enhance its legal and regulatory environment to fully harness this international investment wave.
With Vietnam's real estate market currently at a pivotal stage, addressing these concerns could unlock tremendous potential, both for the investors and for the country's economic landscape.
