TPP promises a boost to VN’s real estate market

Viet Nam is a potential market for investors, affirmed Nguyen Xuan Quang, President of the Nam Long Investment JSC.

Mr. Quang said the real estate ownership regulations for foreign entities and individuals following the 2014 Housing Law and Viet Nam’s accession to the TPP would bring in a “new gust of wind.” 

According to the President, thanks to the TPP, Viet Nam would be able to attract more FDI projects, enjoy increasing demand for apartment and office lease.

According to Mr. Neil MacGregor, Managing Director Savills Viet Nam, Viet Nam’s real estate prices escaped from the bottom line while those in other Southeast Asian countries are standing at high levels. 

The Managing Director also forecast that the domestic real estate market would be promising over the next two years with annual growth rate of around 10-15%. Office lease was projected to surge sharply thanks to the future flux of FDI investors.

The CBRE Viet Nam – Commercial Real Estate Service assessed that TPP would spur investment in Viet Nam especially from the U.S. and Japan. The company also forecast that foreign investment would boost demand for world-class office space, office lease, and apartments.

The Viet Nam National Real Estate Association (VNREA) reported that since the beginning of the year, the real estate market has flourished stably with regular supply and increasing transactions.

The real estate sector ranked third in FDI attraction with US$1.81 billion./.  

By Khanh Phuong