The local real estate market has become one of the hottest in Asia but the risks of investment remain high, foreign and domestic experts say.
Marc Townsend, managing director of CB Richard Ellis Vietnam (CBRE), said the country was attracting more and more investment, particularly in Ha Noi and Ho Chi Minh City .
“These two markets have a dense population, higher incomes and rapid pace of urbanisation,” he said.
Many foreign real estate advisors and managers are looking at other locations as well, including Da Nang , Phan Thiet, Nha Trang, and Mui Ne, all of which are on the coast, and Hai Phong, where large seaports are scheduled to be built.
A series of laws and directives related to the property sector have encouraged investment, including the Land Law that took effect in July of last year, the Property Transaction Law in January of this year and Decree 84 in May.
High economic growth, an increase in foreign direct investment, and the increasing number of multinational companies entering the Vietnamese market after the country’s accession to the World Trade Organisation (WTO) have all contributed to spurring growth in the property sector.
Vietnamese companies that wish to expand are also looking for high-quality offices.
Trinh Huy Thuc, chairman of the Vietnam Real Estate Association, said: “Vietnam has 729 urban areas, and HCM City and Ha Noi are classified as special because of the number of higher quality buildings, including Grade A structures.”
Urbanisation around the country is expected to increase, with 30 percent of localities urbanised by 2010 and 50 percent by 2020, Thuc said.
“Demand, especially for housing, will be great,” Thuc said, adding that an estimated 366 million sq metres of housing, including 176 million sq. m in urban areas and 190 million in rural areas, would be needed.
He said the demand for leased offices, apartments, hotels and spaces for retail activities would also increase.
According to CBRE, the fees for leased offices would continue to rise next year because of the supply shortage.
CBRE estimates that the rental of Grade A offices will be 45-46 USD per sq.m inclusive of service fees by the end of 2008.
Marc Townsend, managing director of CB Richard Ellis Vietnam (CBRE), said the country was attracting more and more investment, particularly in Ha Noi and Ho Chi Minh City .
“These two markets have a dense population, higher incomes and rapid pace of urbanisation,” he said.
Many foreign real estate advisors and managers are looking at other locations as well, including Da Nang , Phan Thiet, Nha Trang, and Mui Ne, all of which are on the coast, and Hai Phong, where large seaports are scheduled to be built.
A series of laws and directives related to the property sector have encouraged investment, including the Land Law that took effect in July of last year, the Property Transaction Law in January of this year and Decree 84 in May.
High economic growth, an increase in foreign direct investment, and the increasing number of multinational companies entering the Vietnamese market after the country’s accession to the World Trade Organisation (WTO) have all contributed to spurring growth in the property sector.
Vietnamese companies that wish to expand are also looking for high-quality offices.
Trinh Huy Thuc, chairman of the Vietnam Real Estate Association, said: “Vietnam has 729 urban areas, and HCM City and Ha Noi are classified as special because of the number of higher quality buildings, including Grade A structures.”
Urbanisation around the country is expected to increase, with 30 percent of localities urbanised by 2010 and 50 percent by 2020, Thuc said.
“Demand, especially for housing, will be great,” Thuc said, adding that an estimated 366 million sq metres of housing, including 176 million sq. m in urban areas and 190 million in rural areas, would be needed.
He said the demand for leased offices, apartments, hotels and spaces for retail activities would also increase.
According to CBRE, the fees for leased offices would continue to rise next year because of the supply shortage.
CBRE estimates that the rental of Grade A offices will be 45-46 USD per sq.m inclusive of service fees by the end of 2008.
(Source: VNA)
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