Wednesday, July 16, 2008

Property market inviting for foreign investors











Real estate markets have become more active during the last six months with several foreign-backed projects to build tourist facilities and hi-tech zones under-way.

The tourism real estate projects are increasing in expectation of a boom in the number of visitors coming to Vietnam, a property expert said.

“With several international events being held and planned for Vietnam, the country’s tourism destinations are attracting the attention of tourists from around the world,” he said.

“The local property market is very attractive to foreign investors,” said Francis Ng Sool Lin, director of Malaysia’s Berjaya Land Berhad.

“It is attracting several investors from Malaysia and Southeast Asia to the potential market.”

Several investors from the Middle East were also reported to be interested in the local property market. Recently, executives from Sovereign Hospitality Holdings visited Vietnam to study property investment opportunities.

In May, Canadian property company Asian Coast Development Ltd. (ACDL) invested US$4.2 billion in one of the nation’s largest tourism projects in Ba Ria-Vung Tau Province.

The completed development will include a five star hotel, an international convention center, an apartment complex and a golf course.

In July, Kingdom Hotel Investment started to sell apartments in Raffles Residences in Da Nang Province at a price of more than $1 million. The apartments are located alongside a 30-kilometer beach and Ngu Hanh Mountain.

Hong Kong’s Starbay Holdings is also considering investing in a $1.6 billion tourism complex on a 500-hectare area on southern Phu Quoc Island.

Recently, France’s Accor Corporation broke ground on the luxurious 400-room Novotel Hanoi on the Park, which will become Accor’s fifth hotel in the capital. Previously, a project to construct Vietnam’s first six star hotel began in central Khanh Hoa Province, backed by Vinpearl Trading and Tourism JSC.

In the meantime, projects to construct hi-tech zones, related infrastructure and luxury apartments in Ho Chi Minh City are attracting billions of dollars from foreign investors.

In June, a Taiwanese-Vietnamese joint venture received a 50-year license to build a 15.9-hectare software park in the Thu Thiem New Urban Area.

The $1.2 billion Thu Thiem Software Park will be developed by local company SaigonTel and TA Associates Vietnam.

On July 1, local authorities granted a license to Berjaya Land Berhad for a $3.5 billion project to construct a university village in HCMC’s Hoc Mon District.

The 880-hectare project is expected to comprise an educational campus and facilities, as well as hotels, convention centers and civic and administrative zones.


Source: Thanhnien News