In Vietnam, rapidly rising numbers of tourists are providing a huge boost to the hospitality sector. The property market in Viet Nam has seen dynamic investment activities across many sectors in the first quarter of 2018.
Vietnam’s economy posted its strongest first-quarter growth in ten years, expanding 7.38% year-on-year (YoY) in the first quarter of 2018 and extending the strong momentum shown in the second half of 2017. The country continues to draw investment interest, and Ho Chi Minh City stands out on investors’ lists, securing top positions for investment and development prospects in Asia Pacific. Market sentiment remains positive across all sectors of the economy.
The city’s office market continued to record healthy demand and high occupancy in the first quarter of 2018. There were, however, very few investment transactions in this sector due to the shortage of available properties for sale. A notable transaction was the January acquisition by Nomura Real Estate of a 24% ownership interest in Sun Wah Tower, a Grade A office building in Ho Chi Minh City.
Investors were also seeking to acquire development sites and properties in the country’s hospitality sector, amid increasing consumer demand and surging international arrivals to Vietnam. In January, Japan’s Mikazuki Hotel Group announced plans to invest US$100 million in a project in Da Nang city. Covering an area of nearly 11.5 hectares, the development aims to accommodate a five-star hotel, waterpark, theme park and F&B complex fronting the beach in Da Nang. Also in the first quarter, a Vietnam-based investment company, Bamboo Capital, acquired the Malibu resort project for approximately US$14.8 million from Indochina Hoi An Beach Villas Co., Ltd.
The property market remained an attractive prospect for developers interested in mixed-use projects with residential components in major cities. In March, CapitaLand acquired an approximately 0.9 hectare site in a prime location within Hanoi’s Tay Ho District. The project will comprise a 380-unit residence, around 21,400sqm of office space, and over 19,300 sqm of retail space. This latest acquisition will expand CapitaLand’s portfolio to 12 residential developments, one integrated development and 21 serviced residences, across six cities in Vietnam. Another Singaporean developer, Keppel Land, acquired the remaining 10% stake in Jencity Limited, which has plans to build a township – Saigon Sports City – for approximately US$11.4 million. Covering an area of 64 hectares, the township will comprise about 4,300 premium homes and Vietnam’s first one-stop lifestyle hub with comprehensive facilities for sports, entertainment, shopping and dining.
For more information, click 27062018 – Savills announces Vietnam Investment Q1.2018 – EN
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