Vietnam’s luxury market captivates overseas investors

Buoyed by the country’s strong economy and robust real estate market

Dusk over Ban Nguyet Lake, Vietnam. TonyNg/Shutterstock

In the third quarter of 2019, the new median price for luxury apartments in Vietnam reached USD5,320 per square metre, a substantial 64.9 percent increase year-on-year, reported APAC Real Estate, citing a study published by JLL.

Primarily lured by the strong economy and robust real estate market, foreign investors have decided to move their capital into the country’s high-end residential market as they form strategic alliances with local developers, such as SonKim Land.

Vietnam is currently one of the rapidly evolving economies in the globe, growing about seven percent year-on-year during the first nine months of 2019, in what was considered as a nine-year high.

More: Vietnam’s low-priced properties capture Hong Kong and China’s attention

Earlier this year, SonKim Land received USD121 million from several investors, such as Credit Suisse’s Singapore branch, Hong Kong-based EXS Capital, and Japanese fund manager ACA Investments.

Andy Han Suk Jung, CEO of SonKim Land, said that the funding will be used to support the growth of their company and expand their portfolio of high-end residential, hospitality, and commercial projects across the country.

Since their partnership with EXS Capital in 2013, the firm has expanded rapidly, launching several luxe projects, including the Gateway Thao Dien, Serenity Sky Villas, and Metropole Thu Thiem.

Director of financial management at EXS Capital Cathy Huang said that the robust economic growth of the country, as well as its young population, were fundamental drivers for international capital.