Real estate continues to attract foreign capital in 2019

Foreign capital inflows into Vietnam real estate in the first months of 2019 increased strongly and are expected to continue the upward momentum in the coming quarters.

FDI inflows into real estate

By March 20, 2019, total newly registered capital, increased and contributed capital to buy shares of Foreign Direct Investors (FDI) in the field of real estate business is 778.2 million USD, in when the same period was 486 million USD.

Previously, according to statistics of the Foreign Investment Agency (Ministry of Planning and Investment), the total FDI capital into real estate in Vietnam reached 6.6 billion USD, accounting for 18.6% of the total FDI capital 35.46 billion USD in 2018. The figure has more than doubled compared to FDI capital for real estate in 2017 (3.05 billion USD).

Some experts said that FDI inflows into real estate increased in 2018 and forecasted to be positive in 2019, when many investors shifted capital flows into ASEAN, including Vietnam. Japan is at the top of the list of countries with investment projects in Vietnam in 2018. These foreign investors are also interested in Vietnam's real estate market.

Some Japanese investors share the upcoming investment plan in a seminar on real estate and infrastructure investment in Vietnam in coordination with the Ministry of Planning and Investment in coordination with the Japanese Association of Real Estate and Infrastructure, Nikkei Economic Times has held recently.

Meanwhile, according to the report of the Urban Land Institute - ULI USA, Ho Chi Minh City of Vietnam ranks fourth in the Asia Pacific market in terms of real estate investment potential in 2018.

HCM City ranks fourth in the Asia Pacific market in terms of real estate investment potential in 2018 on the ULI rankings.

East area continues to lead HCM City real estate

While Vietnam's real estate market has a positive increase in foreign capital, HCM City has also witnessed great strides in attracting FDI into real estate. According to a report from Ho Chi Minh City Department of Planning and Investment, in the first 5 months, HCM City attracted 2.77 billion USD of foreign direct investment, in which real estate sector has the most investment capital (46.7%), most of which come from Korea, Japan...

The gateway areas become attractive investment destinations, including the East of Ho Chi Minh City, with the highlight being District 9. This is well-known as the largest in Ho Chi Minh City, with the area is 114 km2, it locates at the Northeast gateway, adjacent to Thu Thiem new urban area and has many key traffic projects going through. District 9 along with District 2 and Thu Duc has a lot of potential thanks to the city investing hundreds of thousands of billions to build synchronous infrastructure, with the orientation to become a creative city.

Infrastructure is invested synchronously up to hundreds of thousands of billion VND in the East.

Regarding infrastructure, Metro Line No. 1 is under construction; New Mien Dong bus station, 3 times larger than the old Mien Dong bus station, with a total investment of about VND 4.000 billion under construction. There is also a high-tech zone which is considered a key project in the direction of developing a major urban space of HCMC.

District 9 is invested and developed in infrastructure system, attracting large corporations such as Korea, USA, Japan... so many foreign experts, engineers and workers come here to work and live.

The Vinhomes brand "world-class urban" scale project is also about to launch soon in the center of District 9, which is expected to contribute to the real estate market's vibrant time.

According to An Mai