City real estate at $2 billion volume

Hanoi and Ho Chi Minh City have seen real estate sector transactions reach a total volume of more than $2 billion in the last two years. According to Adam Fitzpatrick, director of advisory and transactions and investment properties at CBRE Vietnam, residential projects are still sought after by many foreign investors. CapitaLand, Mitsubishi, and Keppel Land are just some of the big names involved in a range of large-scale projects of this kind in Vietnam. “We can read the growth rate of mergers and acquisitions (M&A) in Vietnam by looking at the initial public offering activities and the growth rate of private equities, which have been more active recently. We expect that this trend will continue throughout the next several years,” said Fitzpatrick. In the past two years, unlike a majority of transactions in Ho Chi Minh City, which were focused on the central business districts, those in Hanoi are mostly taking place in decentralised areas. Ho Chi Minh City made up three quarters of the aforementioned $2 billion. Investment transactions in Vietnam, said Fitzpatrick, are still low due to remaining challenges such as the poor-quality valuation as well as the lack of transparency, structuring, and track records. As for the rest of Vietnam, 75 per cent of transaction value stems from Hanoi and Ho Chi Minh City. While many different types of assets are put into transaction, development sites are experiencing rising interest. According to the recent survey ‘Emerging trends in real estate, Asia Pacific 2018’ by PwC, which… [Read full story]

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