Demand for industrial real estate is poised to continue rising when more foreign investors rush to Vietnam to take advantage of the Pacific Rim trade deal and other free-trade agreements to which Vietnam is and will be a member, said Jonathan Tizzard, head of Valuation & Advisory at Cushman & Wakefield.
Mr. Tizzard pointed out that demand for high-end housing will increase as the number of foreign expats and high-income earners become larger. In addition, the high-end office segment will witness higher demand as corporations seek to lease office downtown. The fast urbanization pace will also prompt agricultural workers to seek jobs at industrial parks.
The transport infrastructure will also be expanded given the continued growth of the logistics industry, he added.
There will be a breakthrough in liquidity, the Vietnam Economics newspaper cited property developers and distributors in Hanoi as saying when asked about the impact of the TPP
Following the Housing Law that allows foreigners to buy home in Vietnam starting July 1, 2015, the TPP once signed will clear the way for overseas real estate investors. Housing prices are considered ‘quite cheap’ in comparison with those in regional countries, the newspaper added.
Nguyen Manh Ha, chairman of Phu Quy Land Company, said the TPP will benefit the domestic real estate market and homebuyers as well.
A large number of Singaporean investors have come to Vietnam, bringing with them edge-cutting business thinking, design, architecture, technology and materials. Those factors will meet the popular demand for middle-end housing with international standards, Mr. Ha tipped, adding housing prices will become more reasonable in the future thanks to rising supply and falling input costs.
Construction Minister Trinh Dinh Dung was quoted as saying home prices will be more affordable as increasing developers apply new technologies and building materials, thus cutting prices.