The American CBRE Group has recently released the results of its survey on “Investor Intentions and Plans in the Asia-Pacific Region in 2024,” showing that the Vietnamese real estate market ranks second among the most sought-after emerging markets in terms of investment opportunities and value added, second only to India.
The survey received over 500 responses from institutional investors with various questions related to investment plans, future challenges, coping strategies, preferred market segments, and countries to prioritize for investment in the coming year.
Most investors in Vietnam are focusing on industrial and office real estate.
According to CBRE’s survey, investors assess that the Vietnamese real estate market has a unique context, where investment portfolios include scarce income-generating assets that are often not widely available on the market. Most investors in Vietnam are focusing on industrial and office real estate.
Vietnam’s strong and export-oriented economy has driven the development of commercial activities, creating a strong demand for efficient supply chain and logistics management. Investors recognize the potential from these drivers and have a strong interest in industrial real estate.
In addition, land for residential development in Vietnam continues to attract strong interest from local and foreign investors. Many investors actively search for discounted assets or assets under the ownership of land owners who are facing legal difficulties or financial constraints. This trend highlights the recovery potential and attractiveness of the residential segment in Vietnam.
Mr. Nguyen Pham Anh Duy, Director of the Investment Advisory Department of CBRE Vietnam, remarked: “Foreign investors have a long-term vision of Vietnam’s economic potential and are willing to invest capital that can benefit directly from the recent price adjustment cycle. This is particularly true in the current situation, where buyers benefit from sellers who are looking to divest after holding the assets for a certain period of time.”
CBE’s survey shows that investors in the Asia-Pacific region prefer to seek double-digit profit targets, so they have shifted their investment focus to assets that can appreciate or assets that have issues in debt repayment, forcing them to lower the price.
Specifically, over 60% of investors, mostly private equity funds, real estate funds, and real estate investment trusts (REITs), plan to upgrade prime buildings in their investment portfolios to meet ESG (Environmental, Social, and Corporate Governance) standards by 2024. This is also a trend aiming to pursue asset value enhancement strategies.
