Singaporean businesses eye real estate market

Singaporean businesses eye real estate market

09/01/2008 -- 4:49 PM

Ha Noi (VNA) – Singaporean businesses are showing their interest in the real estate market in Viet Nam , considering this to be a promising market.

“As the political situation is stable and the economy has experienced growth for many consecutive years, the Vietnamese people are getting richer and their demand for housing is high. I suppose this is a potential market,” said Edwin Yu Kwok Kam, Director of the IMC Industrial and Property Investment Company.

Edwin said at the Investment Opportunities in Viet Nam forum, which opened in Ha Noi on January 9, that the demand for housing will continue rising in Viet Nam where the property market is in short of supply.

Statistics released at the forum indicated an imbalance between the demand and the supply of apartment and office for rent. In the Ha Noi capital city, almost all apartment and office building projects report an occupancy rate of more than 95 percent.

According to the real estate service provider, CB Richard Ellis (CBRE), Ha Noi has 4,924 hotel rooms rated at 3 - 5 stars and the figure remains modest as compared with 20,000 hotels in Bangkok .

Ho Jiann Ching, business development manager from the Ayala International Holdings Ltd. said he has seen a big opportunity in Viet Nam and believed that once entering the market, foreign businesses would be successful.

Singapore now ranks second among foreign investors in Viet Nam , with 500 projects, capitalised at 9.7 billion USD.

Dang Dung – Vice President of the Ha Noi Association of Young Entrepreneurs (HAYE)– said almost all Singaporean projects are invested by multi-national groups. Small Singaporean firms, which have capital ranging between 1 and 10 million USD, are yet to come to Viet Nam .

The two-day forum, which is focusing on financial and real estate investment, is co-organised by the HAYE and Singapore-based Allevents Group (AEG) and attracted the participation of more than 100 domestic and foreign businesses and investment funds.-Enditem

(VNAgency)