02:40 (GMT +7) - Monday 21/08/2017

Property

JLL: Vietnam increasingly in investor spotlight

Released at: 19:53, 28/07/2017

JLL: Vietnam increasingly in investor spotlight

Photo: Duc Anh

Southeast Asia in general continues to catch the eye of investors, according to latest JLL report.

by Doanh Doanh

Southeast Asian countries are increasingly attractive to real estate investors, according to the latest report from real estate consultants JLL.

“We’re seeing growing interest from large-scale mainland Chinese groups looking to invest in Indonesia, as well as Vietnam and the Philippines,” said Ms. Regina Lim, Head of Capital Markets Research, Southeast Asia, at JLL. “We anticipate continued interest in industrial and logistics assets in the next six to 12 months, as they’re seen as an avenue to leverage the growth in manufacturing and e-commerce in Southeast Asia.”

JLL’s report stated that stronger exports, coupled with rising capital expenditure from companies stepping up their investment across industries in recent months, are positive growth indicators for Southeast Asian countries.

In the first half of 2017, Singapore picked up over $2.2 billion worth of investment in office assets and over $1.45 billion in residential land from Hong Kong and mainland Chinese investors.

Meanwhile, 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 at $19.2 billion in the first half of the year, representing a rise of 54.8 per cent year-on-year. Vietnam remains one of the most favorable destinations for foreign investment in Southeast Asia.

In 2017, a vibrant real estate market will elevate the number of merger and acquisition (M&A) deals to a new record. Vietnam’s real estate market continues to have irresistible appeal to foreign investors, mostly through M&As. Joint ventures have become popular among foreign developers with strong financial capacity and track record joining forces with local developers who own land and have strong connections with the local community.

JLL observed that there are hundreds of millions of dollars waiting to be poured into the market in most segments, including residential, office, retail, hospitality and industrial. Investors are from countries such as Japan, South Korea, and Singapore, with an increasing number of groups from mainland China.

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