Real Estate Sector forecast to top Vietnam’s M&A in 2018
Original article: vietnamnet.vn
Real Estate Sector Overview
A report of the Vietnam M&A Forum 2018 showed that real estate M&A deals ranked second last year.
However, in the first six months of 2018, the sector rose to top position with a 66.75 percent share.
The rise in the first six months of the year was attributed to the success of many major M&A deals.
Right in January, the country’s M&A market started off with the acquisition of the Sun Wah office tower project by Nomura Real Estate Development.
Nomura acquired 24 percent stake in the Grade A office building located in a prime location of District 1.
In June, another major mixed-use residential development deal was the divestment of Keppel Land’s stakes in Quoc Loc Phat JSC’s development project in District 2, Ho Chi Minh City.
Steady growth market
The Real estate sector , consumer goods, and banking and finance sectors will lead the Vietnamese M&A market this year.
The investors are most interested in property projects in big cities or new urban areas with a high population density.
The demand rise while supply is limited.
The fees of real estate transfer transactions in Vietnam are higher.
The real Estate Sector as Housing,Industrial real estate still very interested for the South Korean and Japanese investors.
JLL Vietnam also expects foreign investors to continue showing a keen interest in the Vietnamese real estate market.
Incoming foreign investors are actively hunting for “clean” and “clear” projects that can meet their required returns and conditions
Adding that due to the strong focus on Vietnam from regional investors, JLL anticipates M&A activities to reach record 2018.
Therefore, relevant ministries and departments should facilitate the project procedures to enterprises and investors in order to further promote the real estate M&A market, Huong said.