Business

FDI to real estate surges 65 percent in H1

Foreign direct investment (FDI) earmarking for the real estate market hit 692 million USD in the first half of this year, a year-on-year increase of 65 percent, according to CBRE, one of the foreign property service providers in Vietnam.
Foreign direct investment (FDI) earmarking for the real estate markethit 692 million USD in the first half of this year, a year-on-yearincrease of 65 percent, according to CBRE, one of the foreignproperty service providers in Vietnam.

Anumber of property projects emerging in the period included Alma Resortworth 300 million USD in central Khanh Hoa province invested by Israel’s Alma Group, a 234 million USD urban area in the western part of WestLake and a 200 million USD apartment building project of Hong Kong’s Sun Wah Vietnam Real Estate Limited.

This shows that thecountry’s real estate market is attractive again to foreign investors.Resort projects have proven their advantages while housing ones haveseen positive changes, mostly in Hanoi and Ho Chi Minh City , withincreasing supplies and falling inventories.

In Hanoi , 79percent of sold apartments were from completed projects. However, CBREexperts said the supply of apartments in Hanoi has not yet met thereal demand.

They forecast that the segment of housing for middle income earners will become hot in the remaining months of the year.

From June 16, customers can mortgage the contracts they signed to buyapartments from projects which have had their foundations built toborrow bank loans from the 30 trillion VND loan package.

The Ministry of Finance recently issued Circular 48/2014/TT-BTCguiding the implementation of Governmental Resolution 01/NQ-CP regardingthe extension of the payment of land use charges and the cost of buyingstate-owned housing. The circular took effect on June 10, 2014,allowing many real estate projects to delay the payment of land usecharges within 24 months.

In the first sixmonths of 2014, real estate ranked third among all economic sectors interms of foreign investment attraction with nine new projectsregistered.-VNA
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