VIETNAM is becoming the region’s magnet for property developers and buyers as housing prices in the neighbouring Chinese mainland and Hong Kong markets continue to shoot higher.
As the Sino-United States trade dispute rages, Vietnam may end up benefiting from the lose-lose battle, putting the country’s booming property market into the global spotlight, says Terence Chan, managing director of Ashton Hawks.
Over the past decade, manufacturers in the Chinese mainland and Hong Kong, feeling the pinch from the rising labour and production costs, have turned to Southeast Asian countries as an alternative manufacturing base. The trade skirmish between the world’s two largest economies is likely to accelerate this relocation trend, Chan noted.
Vietnam, hailed as one of the most vibrant economies in the Southeast Asian region, has attracted as much as $20.33 billion in foreign direct investment in the first half of the year, about $7.91 billion of which come from manufacturing and post-production industries.
The FDI sector accounts for almost 70 per cent of the country’s export turnover, equivalent to 22 per cent of its economic output.
“The country has what it takes to grab the crown from Chinese mainland as the world’s factory. This will give the huge impetus to its thriving real-estate market,” Chan reckoned.
One property project Chan mentioned is Waterina Suites, a residential tower designed by famous Japanese architect Kengo Kuma who is famous for his design of the Tokyo Olympic Stadium 2020.
The project, in the central business district of Ho Chi Minh City, is developed by Maeda Corporation, a Japanese real-estate developer that will celebrate its 100th anniversary next year.
Waterina Suites has 98 units with top-notch amenities, including 25-metre swimming pool, residential lounge, BBQ and spa area. Starting price for units is HK$4.1 million and down payment could be as low as 10 per cent. Rental yield is projected to be as much as 7 per cent.