[NEWS] – 3 bright spots for real estate investment in the near future

According to Savills Prospects, the three countries with the most prominent prospects in the region today are Vietnam, Singapore, and Japan.

High inflation accompanied by signs of economic recession in the US and Europe has been covering the picture of the global real estate market with bleak colors. However, in some markets in Asia - Pacific, including Vietnam, the development story and the bright spots of the market can still be found.

According to Savills Prospects, the three countries with the most prominent prospects in the region today are Vietnam, Singapore, and Japan.

The unit pointed out, emerging Asian economies such as China, Vietnam, Indonesia and India are forecast to lead the global GDP growth in 2023. Meanwhile, the developed economies Developments like Australia and Japan will also leave the US and Europe a gap when it comes to economic development next year.

Vietnam

According to Savills Vietnam expert, the improvement in the business environment and investment incentives from the government is boosting the interest of foreign businesses in the Vietnamese real estate market. While some domestic investors faced difficulties due to tight credit, foreign investment flows into the market continued to grow.

For example, at the beginning of this year, Singapore’s CapitaLand announced a plan to develop a complex project with a total investment of 1 billion USD with an 8-hectare scale, expected to provide more than 1,100 luxury apartments and shophouses in Ho Chi Minh City. HCM.

In the commercial leasing market, Savills data for the third quarter of 2022 shows that office and retail rents in the downtown area of Hanoi and Ho Chi Minh City still recorded an upward trend.

Savills Vietnam also said that Vietnam is on track to grow by 2022, with increasing FDI capital and a strong domestic economy. The Vietnamese government has been introducing a series of measures to improve the transparency of the real estate market. This is a good sign, creating a premise for liquidity and investment activities in the future. At the same time, infrastructure is also interested in strong investment. Infrastructure development is also strongly invested, boosting investment demand in many fields.

Singapore

According to a report by MSCI Real Assets, in the first three quarters of 2022, the total value of real estate investment transactions in Singapore reached $9.1 billion, up 47% over the same period in 2022.

Despite concerns about the global economy, the Savills Prospects report indicates that office rents in Singapore’s CBD are still increasing, with vacancy rates falling. The demand for office space here mainly comes from technology enterprises, an industry that already accounts for a large proportion of tenants in this country.

Savills Singapore said that despite global economic fluctuations, industrial real estate rental prices in Singapore will continue to increase in 2023. This expert also said that warehouse rents in Singapore will continue to increase. Singapore in the third quarter of 2022 recorded an increase of 2.8% compared to the previous quarter.

Japan

While real estate investors around the world face rising financial costs, the Bank of Japan still moves to keep interest rates low. In addition, the weakening of the yen has made real estate in Japan more affordable for foreign investors.

Multi-generational family housing is considered as one of the segments with the ability to quickly recover in times of uncertainty; This is also the point that makes this segment attractive to foreign investors.

“Overall, Asia remains an attractive destination for foreign investors. Vietnam, Singapore, and Japan are some of the bright spots in the real estate market in the region and are also places to find positive stories about the market. However, these are not the only bright spots in the Asian market, we can still find positive stories of change in other countries in the region,” emphasized Savills expert.

(Source: Collector)