Hospitality Drives Vietnam Real Estate Growth

• Proeksa Meas
• 31 December 2015
• Construction Focus
• 1199 Views

Hospitality assets in Vietnam will lead the growth in the country’s property market, according to Don Lam, the founding partner of Ho Chi Minh City-based VinaCapital, a leading investment management and realty development firm, in an interview with Deal Street Asia.

With beachfront projects available at lower costs and beachfront land more competitively priced compared to other markets in Southeast Asia, Lam believes the hotel and resort segment will offer significant opportunities for real estate investors.

According to Lam, a large number of underdeveloped beachfront properties in Vietnam are available at about 10-15 percent of the cost of similar developments in Bali or Phuket. Increase in tourist arrivals will only add to the opportunities, Lam said.

In the long term, Vietnam will also see more foreign investments “The next 12 months will see minimum impact. But maybe in the medium term, two or three years, there will be more interest. Just like the markets in Thailand or Malaysia- when foreigners were allowed to invest, it took them a few years to start buying property there,” he added.