Foreign investment continued to flow into Vietnam's real estate sector, with a total investment capital of nearly $1.98 billion recorded in the first five months of 2024, a significant growth of 70.8% compared to the same period last year, according to the General Statistics Office (GSO).

The figure accounted for 17.9% of the country’s total.

As a result, real estate ranked the second among 17 sectors that attracted FDI the most in the five-month period, behind the manufacturing and processing sector.

The sector saw 1,782 new enterprises to be established, equivalent to 102.2% of the figure from the same period of 2023.

Meanwhile, 1,529 real estate businesses resumed operation, equal to 124.7% of  the figure from the same period last year.

Vietnam remained attractive to real estate investors in spite of challenges, according the Mr. Matthew Powel, Director of Savills Hanoi.

There were huge demand from investors, particularly those in the region such as Singapore, South Korea and Japan, he said.

With Vietnam’s advantages in terms of population, urbanization rate and the current economic growth rate, there is still ample room for the sector to develop, he said.