Vietnam, 1 July 2017 – Vietnam has become an attractive destination for many foreign investors largely due to the country’s friendly policies encouraging FDI, its political stability and strong economy. The level of FDI has continued to grow year-on-year due to these strong fundamentals with newly registered FDI to USD 19.2 billion in first half of the year, representing a rise of 54.8% y-o-y. Vietnam remains one of the most favourable destinations for foreign investment in South East Asia. Whilst FDI in real estate is set to increase over the coming years, the market is still dominated by domestic investors that can take advantage of the local market knowledge and an ability to close transactions within tight timescales.
Vietnam and other countries in region
Global transactional volumes stabilised in the first quarter of 2017, coming in at US$136 billion, roughly flat on the levels recorded in Q1 2016. Real estate investments remain attractive from a yield perspective; however, pricing concerns due to continued pressure on occupier fundamentals in key global markets could be an issue, with forecast rental growth in 2017 little changed from 2016. Investment volume across Asia Pacific’s commercial real estate market began 2017 at the same pace as a year ago with first quarter transaction levels coming in at US$25 billion, up 1% on the 12 months ago but down 43% on the previous quarter. The shortfall was largely confined to Australia and Hong Kong (where capital outflow restrictions impeded Chinese cross-border transactions), as well as South Korea. Japan and Singapore led the quarter.
For more information, click http://www.joneslanglasalle.com.vn/vietnam/en-gb/news/364/vietnamese-ma-property-activities-clear-land-shortage
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