Monday, April 30, 2012

Time for Singapore investors to consider Vietnam

Vietnam’s low interest rates and falling inflation have led to renewed interest from many Singaporean investors, according to a report by Savills. Positive foreign direct investment and well-balanced trade have also helped to strengthen the Vietnamese dong against the US dollar and other currencies.

In addition, US$8.5 billion (S$10.52 billion) was collected last year in remittances from Vietnamese living abroad, while the country’s stock market has displayed a 35 percent growth so far this year.



As such, Savills sees “an increasing range of high quality projects available to investors at pricing levels previously unavailable to foreigners,” especially for Singaporean real estate investors.

“Opportunities abound, we have not seen this many high quality investment opportunities in Vietnam for many years. It is the time for foreign investors to enter the market and prepare for the positive rebound widely expected in 2013 and 2014,” said Neil MacGregor, Deputy Managing Director at Savills Vietnam.

With Vietnam’s legal framework undergoing positive changes in recent years, Savills has reported “a growing number of opportunities available for foreign investors, with all permits and approvals secured”. Developers can now secure projects with less development risk than in the past.

“The office markets in the centre of Hanoi and Ho Chi Minh City remain undersupplied with less than one million sq m combined, the retail market is set to explode with few retail centres developed to date and the residential market is showing tentative signs of recovery with sales expected to pick up in the second half of 2012,” noted MacGregor.

View the original article here

Source From Property Guru

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