Real estate continued to be the second most attractive industry to foreign investors in Vietnam in the first half of this year, when receiving $604.8 million in pledged capital, higher than $465.5 million a year earlier, according to data of the Foreign Investment Agency under the Ministry of Planning and Investment.
A Cayman Islands-incorporated will carry out a $225.6 million project in the southern metropolis of Ho Chi Minh City
, marking the largest real estate project licensed since the start of this year, the Saigon Times newspaper reported.
According to real estate brokerage CBRE Vietnam
, major year-to-date foreign-invested realty projects include a $300-million 21-storey building project by Samsung, and a Russian firm’s $300-million investment in Hanoi through TNR Holdings.
Many merger and acquisition (M&A) deals in the real estate sector have been involved with foreign players.
For instance, Keppel Land has signed an agreement to acquire a 40% stake in Empire City Company, the investor of a mixed-use complex in Ho Chi Minh City’s District 2. Meanwhile, Japan’s Creed Group will step in a $533 million residential project to develop up to 8,000 apartments.
Marc Towsend, managing director of CBRE Vietnam, was quoted by the Vietnam Investment Review as saying that foreign investors have been targeting mainly residential projects that can meet real needs of homebuyers.
Foreign investors are selling projects as a thaw in the market allows speculative funds to restructure their portfolios and they seek to avoid renewing their licenses, not because Vietnamese properties are losing appeal, he added.