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HCM City: FDI flow into property sector triples

Ho Chi Minh City’s real estate sector attracted 984.4 million USD in foreign direct investment (FDI) during January-November, triple the figure from the same time in 2016.
HCM City: FDI flow into property sector triples ảnh 1A view of Ho Chi Minh City (Photo: baodautu.vn)

HCM City (VNA) – Ho Chi Minh City’s real estate sector attracted984.4 million USD in foreign direct investment (FDI) during January-November,triple the figure from the same time in 2016.

The surge in FDI capital was led by large projects, including Mizuki Parkresidential area in Binh Chanh district with total investment of 351 millionUSD with Japanese partners Nish Nippon and Hankyu. Japanese investors also put100 million USD into another real estate project in the city whileSingapore-based Keppel Corporation is spending more on property projects inDistrict 2 and District 7.

Another housing project with initial investment of 290 million USD is beingdeveloped by Japanese Mitsubishi Group in collaboration with Bitexco group. Ajoint venture valued at 1 billion USD between Kajima Corporation, also fromJapan, and Indochina Capital is slated for investment in the city in the next10 years.

According to CBRE Vietnam’s Managing Director Marc Townsend, foreign investorsare increasingly interested in property in Ho Chi Minh City.

They are hunting investment opportunities in housing projects withwell-developed transport infrastructure or those which have been put intooperation as they can bring back stable income, he stated.

Rapid urbanisation, a stable economy, deep integration, a growing middle-classpopulation and a transparent business market have made Ho Chi Minh City attractiveto foreigners, CBRE said.

Foreign investors can easily access property market information, legalframeworks and procedures for project licensing.

Ho Chi Minh City was ranked third in a survey of 50 cities worldwide forproperty rental growth. The survey, conducted by real estate firm Savills, alsoplaced the southern hub fifth in terms of investment prospects, and second fordevelopment prospects.-VNA
VNA

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