Vietnam’s economic powerhouse will be marching into the next decade with its property market on the rise.
Ho Chi Minh City has been ranked third in a survey of 50 cities worldwide for property rental growth.
The survey, conducted by real estate firm Savills, also ranked Vietnam’s southern metropolis fifth in terms of investment prospects, and second for development prospects.
In its new publication, “Impacts: the future of global real estate”, Savills said cities that are resource rich, young and fast-growing, economic powerhouses, or at low risk from natural disasters, are the ones to watch for over the next decade.
Troy Griffiths, deputy managing director of Savills Vietnam, said: “This is an annual, long-running survey across a multitude of sophisticated property investors that demonstrates the strong sentiment towards Ho Chi Minh City and Vietnam as a highly favorable investment destination.”
“This is underwritten by the first position across all surveyed cities as buy options for office, retail, industrial and residential assets,” he added.
According to another report, “Emerging Trends in Real Estate Asia Pacific 2016”, jointly published by the Urban Land Institute and consulting firm PwC, foreign investors, mainly from Japan, South Korea and Singapore, are interested in the city’s property market on expectations of an annual return of between 20 and 25 percent.
The city is an attractive destination to investors mainly due to the government’s efforts to stabilize the local currency, control inflation, ease property lending regulations and improve market access for foreigners.
Global investors prefer entering Vietnam’s real estate market through mergers and acquisitions. Many are eying beach resorts, serviced apartments, residential buildings and hotels, mostly in Hanoi, Ho Chi Minh City and Da Nang.
By Ngan Anh