Savills Vietnam optimistic about real estate investment amid COVID-19
Hanoi (VNA) - Property consultants
Savills Vietnam have adopted a positive outlook on real estate investment in Vietnam
amid the COVID-19 pandemic, saying that when it eases there will be increasing
numbers of investors injecting new capital into the sector.
According to its most recent report, residential real estate is experiencing a short-term
negative impact as travel bans are preventing buyers from visiting and closing deals,
especially given that China, the Republic of Korea, and Japan account for a large
proportion of foreign demand.
Developers, however,
have prepared strong project pipelines in order to be ready when local and foreign
demand return to previous levels, as Vietnam still has among the lowest real estate
prices but highest rental yields in the region.
This is a difficult
period for local and international property investors, according to Dr. Su Ngoc Khuong,
Senior Director of Savills Vietnam. In his opinion, for cash-rich investors with experience in
the sector, however, it is also a time of great opportunity in Vietnam and overseas
as those that have over-extended undertake rapid divestment.
He noted that one
trend on the rise since last year is investor groups seeking to partner with others
to develop larger-scale M&A opportunities. There are deals of this nature in
Vietnam currently under negotiation and valued at well over half a billion dollars
in total, Khuong added.
A variety of government
incentives have been put in place in response to the challenges posed by the outbreak,
including tax breaks and the suspension of tax payments and land rentals for businesses
hurt by the COVID-19.
A credit package
of 250 trillion VND (10.6 billion USD) and supportive measures such as rescheduling
and reducing interest rates, maintaining current loan classifications, and reducing
fees, among others, will also be offered to enterprises facing difficulties due
to the outbreak.
In order to support
enterprises and improve the business environment, the Government has also asked
relevant authorities to review and reduce administrative procedures and speed up
the disbursement of investment capital.
The latest robust
Government directives are being implemented to support property and business throughout
this period of slowdown. “With increased liquidity and a potentially rich investment
environment, we anticipate that when the pandemic eases, more and more investors
will pour new capital into Vietnam’s real estate sector,” Khuong said./.