It’s time for real estate investments: foreign investors
Feb 21, 2009
CA - Foreign investors believe that this period, when the real estate market is gloomy, is proving to be the
right time for investors to inject money into the market.
Edward Minh Chi, Chairman of the Board of Directors of Minh Viet Investment Joint Stock Company,
believes that Vietnam’s real estate market will warm up gradually by the end of this year, while difficulties will
still exist in the second and third quarter. However, he thinks that it is now the right time for investors to learn
about consumers’ tastes and make investments.
He does not agree with the opinions that say that investors should not invest in high-grade projects as the
commodities are now in oversupply. Every segment of the market will have its suitable targeted clients, and
high-grade projects will target high-income earners.
Besides, he believes that it is now the right time to kick-off investment, because it will take time to make
products, and when the products are ready, the market will heat up.
Many investors, for example, have decided to inject money into penthouses, hoping that they will have
products to sell in two years, when the market stabilizes. Their clients will be Vietnamese high-income
earners, Viet Kieu and foreigners.
Kim Winn, General Director of Coldwell Banker Vietnam, the US leading real estate group, said that Vietnam
proves to be the ideal place for foreign investors thanks to its advantages in comparison with other regional
countries. Vietnam has a national economy with high growth rate and stable political situation, which make
investors feel secure when they make investments.
“Vietnam has a population of 84 million, and 50% of the population is the youth. Vietnam is the market with
great potential,” Winn said.
She believes that the real estate market will warm up by the end of 2009 or early 2010.
However, she has also pointed out the shortcomings of the Vietnam’s market, including the complicated