FDI in property soars by 70%

May 29, 2024 - 12:40

Foreign direct investment (FDI) in the property sector has jumped by 70 per cent year-on-year to over US$1.98 billion as of May 20.

New real estate developments in District 1 in downtown HCM City. — VNS Photo Bồ Xuân Hiệp

HCM CITY — Foreign direct investment (FDI) in the property sector has jumped by 70 per cent year-on-year to over US$1.98 billion.

According to the Foreign Investment Agency, the sector had attracted nearly 18 per cent of the total FDI as of May 20, making it the second most attractive after manufacturing,

HCM City, Hà Nội, Hải Phòng, Bắc Giang and Quảng Ninh provinces have seen the highest investments thanks to their strategic location and excellent infrastructure.

A recent survey by the Vietnam Institute of Real Estate Studies found foreigners are drawn to the Vietnamese real estate market because of competitive prices.

Cushman & Wakefield has indicated a positive outlook for FDI in property from 2024 to 2026, driven by low bank interest rates and favourable government policies.

Singapore, Hong Kong, mainland China, Japan and South Korea are among the top investors in the sector, putting most of their money in the high-end and luxury segments.

Singapore topped the list and in fact the overall FDI list with nearly $3.25 billion.

Despite the growing interest, the sector faces challenges related to the laws and access to information for foreign investors.

Overall FDI reached $11.07 billion, up 2 per cent year-on-year, according to data from the Foreign Investment Agency.

Hong Kong ranked second behind Singapore with nearly $1.45 billion, up 220 per cent and accounting for 13.1 per cent.

It was followed by mainland China, Japan and South Korea, with China leading in the number of new projects. — VNS

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