Foreign investors are still sounding out prospects in Vietnam’s property market even though it remains plagued by protracted woes, according to Cushman & Wakefield Vietnam. Chris Brown, general director of Cushman & Wakefield Vietnam, said at the introduction of a third-quarter report last week that while investors did not care much about the Vietnamese property market two years ago due to risks, many Asian investors now want to return here to explore investment opportunities. Cushman & Wakefield Vietnam has recently got a couple of requests from foreign investors wanting to venture into cash-strapped projects or build business links with local investors, according to Brown. Cushman & Wakefield Vietnam is working on a deal in which a European investor will get involved in a project in HCMC. The property market in Myanmar holds growth potential but a legal corridor there is unclear, while the markets in Laos and Cambodia are not big and that of Thailand is highly competitive. This is one of the reasons Vietnam is still favored by foreign investors, Brown said. The market survey of Cushman & Wakefield Vietnam indicated that office rates continued to decline in the third quarter, with an average rate of some VND960,000 per square meter (US$45.6) for grade-A office space and VND523,000 (US$25) for grade-B. After five consecutive years of fall, office rentals have started to be more stable given a drop in supply as some projects halt the implementation progress, according to Cushman & Wakefield Vietnam. Regarding the retail segment, the rates for retail space in the city downtown remains high at over VND2.2 million per square meter (US$106), three times higher than that in uptown areas. Brown noted many foreign firms as new market entrants do not place too much weight on sales but branding, so they are willing to pay high rates, and that this explained some buildings in the downtown had been able to find tenants. However, investors of office buildings should reconsider their rates if they want their vacancies filled up. Besides, investors of apartment projects have much to do as Hanoi and HCMC grapple with a combined unsold volume of around 27,800 apartment units For more market information please contact to hafacen@gmail
Posted on: Wed, 23 Oct 2013 01:25:19 +0000
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