PwC Singapore, in conjunction with the Urban Land Institute (ULI) has just released its annual survey on the Asia-Pacific real estate market and finds that Ho Chi Minh City ranks third best out of 22 cities in the Asia-Pacific for property investment in 2020.
PwC and ULI surveyed 460 real estate professionals for the report and finds that HCMC is #3, behind Singapore – #1 and Tokyo – #2.
According to the reports analysis, HCMC has seen a surge in popularity in the last five years thanks to the country’s strong economic growth, with foreign investors, mainly from Japan, Singapore and South Korea who have become interested in the Vietnamese property market and who have expectations of annual returns in the 20 – 25% range.
The report finds that the majority of real estate capital that has gone into HCMC has been on the development side and has targeted the residential sector. This has led to problems with overbuilding and land values and rents have risen sharply during these last five years.
The report says that, “Retail space in Ho Chi Minh City is now three times or more the rent of similarly located retail space in Manila.” The report also highlights the problem for real estate investors that HCMC remains a market with relatively few investable assets and where risks are high.
According to VietnamRealEstate.tv