Vietnam ranks second among the most sought-after emerging real estate markets in the Asia-Pacific region in terms of investment strategy, only behind India.
Real estate research and consulting unit CBRE has just surveyed investors' intentions and plans in the Asia-Pacific region in 2024. The survey was conducted in November-December /2023 and received more than 500 responses from investors and organizations.
The results show that Vietnam ranks second among the most sought-after emerging markets in terms of investment strategy, opportunities, and added value, only behind India. The third place belongs to Thailand.
According to CBRE, most investors in Vietnam focus their attention on industrial and office real estate. Vietnam's strong and export-focused economy has driven growing trade activities, creating a strong demand for efficient logistics and supply chain management.
In addition to commercial real estate, housing development project land in Vietnam continues to attract strong interest from developers and foreign investors.
According to CBRE, most investors in Vietnam focus their attention on industrial and office real estate. Vietnam's strong and export-focused economy has driven growing trade activities, creating a strong demand for efficient logistics and supply chain management.
In addition to commercial real estate, housing development project land in Vietnam continues to attract strong interest from developers and foreign investors.
Many investors actively seek discounted properties or properties owned by landowners facing legal or financing difficulties. This trend highlights the resilience and attractiveness of the housing segment in Vietnam.
Mr. Nguyen Pham Anh Duy, Director of the Investment Consulting Department, CBRE Vietnam, commented that foreign investors have a long-term vision of the potential of the Vietnamese economy and are willing to invest capital to benefit. right in the last price adjustment cycle.
According to Mr. Duy, this is especially true with current developments. The buyer benefits from the seller, who is an investor who needs to divest capital after a long period of holding the asset.
The survey also shows that investors in Asia-Pacific prefer to seek double-digit profit targets. They have switched to an investment strategy that focuses on assets that can increase in price or assets that are having problems paying debt, forcing prices to decrease.
Specifically, more than 60% of foreign investors plan to upgrade prime buildings in their investment portfolio according to ESG (environmental - social, and corporate governance) standards in 2024. The majority among them are private foundations, real estate funds, and real estate trusts (REITs). This is also a trend to pursue the strategy of increasing asset value.
According to CBRE, in general, the demand for buying real estate projects in the Asia-Pacific region is still quite weak, while the demand for selling projects is high. With the interest rate hike cycle having stalled in major global markets, investors are waiting for signs that the current price adjustment cycle has ended before cashing in.
Investors in most markets will continue to maintain a wait-and-see attitude in the first half of 2024. However, the market expects the US Federal Reserve to cut interest rates in the first half of 2024 and Central banks in Asia-Pacific also adjusted accordingly. Thanks to that, commercial real estate project buying and selling activities will accelerate in the second half of the year.
(VietNamNet)
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