Property

The No Va Real Estate Investment Group Joint Stock Company (Novaland), a member of the NovaGroup, has received a $250 million investment from Warburg Pincus. Warburg Pincus is the largest and most active private equity fund in Vietnam, with total disbursed and committed capital of more than $1.5 billion since 2013.

Analysts told the “Removing obstacles and promoting investment in the real estate sector” seminar on May 27 that it is necessary to quickly remove bottlenecks in the market so that it will not affect other markets. Real estate currently accounts for 25 per cent of GDP and involves at least 40 industries.

To improve the quality of FDI attraction, the Ministry of Planning and Investment (MPI) has asked cities and provinces to review and evaluate the implementation of certain FDI projects. These include projects with registered investment of over $100 million; those with a land area of over 50 hectares; and those in the field of real estate in Hanoi, Ho Chi Minh City, Da Nang, Hai Phong, Khanh Hoa, and Ba Ria-Vung Tau that have a land area of over 2 hectares.

According to Nguyen Chi Thanh, General Secretary of the Vietnam Association of Realtors (VARS), land fever is unlikely this year and land prices will be adjusted more reasonably thanks to sound control policies and the implementation of the social housing development program.

The Vietnam Association of Realtors (VARS) has warned that the policy of “closing the valve” on credit and corporate bonds will negatively affect real estate supply. It therefore recommends opening up capital to all industries, including real estate, and to have more regulations on businesses attracting foreign capital, investment products such as real estate investment trusts (REIT), real estate securitization, and saving funds for housing.

Investing in apartments in industrial areas is becoming a popular trend in Vietnam, as demand for renting and apartment prices are both on the rise. This is especially true in key provinces in terms of investment attraction, such as Bac Ninh, Bac Giang, Vinh Phuc, and Thai Nguyen in Vietnam’s north, which have many industrial parks and tens of thousands of foreign experts.