Industry insiders have recently pointed out that investors both local and foreign are taking notice of Vietnam's booming property market. Observers have noted that while two of the world's biggest economies, China and the United States, are currently tangled in a bitter trade war, many have noticed Vietnam's potential as a viable property market.
Real estate firm DKRA chief executive officer Pham Lam recently said that many developers from various regions including mainland China, Japan, South Korea, Hong Kong, and Malaysia have been busy in the Vietnamese property market. These investment activities have been going on for quite some time already. Some have said that it has been going on for the last three to five years.
The testament to this keen interest towards Vietnam's property market was the launching of a mid- and high-priced residential project in Ho Chi Minh City. The project was spearheaded by CapitaLand, a top real estate developer based in Singapore.
This latest project is CapitaLand's 12th project in Vietnam. The project is expected to be completed and fully operational in the last quarter of the year 2020. In a report by South China Morning Post, the paper quoted the company saying that Vietnam is its third core market, next only to Singapore and China.
In 2017, Vietnam was also the recipient of a huge round of residential project from two huge Japanese investors, Hankyu Realty and Nishi Nippon Railroad. The two Japanese investors have tied up with Vietnam's local property developer in order to push through with their projects. The two Japanese inventors have a combined investment of $350 million, all of which are concentrated in Ho Chi Minh City. Half of the total funds came from the two Japanese firms. The rest of the investment was put together by their local Vietnamese partners.
Japanese multinational auto manufacturer Mitsubishi Motors have also started to invest in Vietnam as part of the company's effort to diversify its portfolio in the country. Mitsubishi started in 2016 after establishing a local property development project based in Hanoi. The project was reported to have an estimated value of $1.9 billion.
Some market analysts have pointed out that the extreme interest in Vietnam's property development market is due to the fact that it is still in its early stages. Thus, Vietnam has still considered a new market with huge opportunities and a massive untapped market. The huge influx in terms of demands for real estate can also be traced back to the country's middle class and upper-class economic boom.
