Savills urges real estate investors to come to Vietnam
As the Asian property market is slowing, investors should look farther than first-tier cities to improve profitability, according to a press release issued last Friday.
Investors have analyzed risks and potential benefits in emerging markets such as Vietnam, Malaysia, the Philippines and Indonesia.
Savills said HCMC is one of the hottest office space markets in the region with occupancy at 97% in quarter four last year. The company predicted strong demand would remain as tenants are moving up to office buildings of higher quality.
Meanwhile, real estate investments in the education sector are expected to bring profit to investors. As the middle class is expanding, there would be greater needs for better education in Vietnam.
The logistics sector is opening up plenty of investment opportunities. Savills said the dynamic retail industry is being challenged by successful online retailers. Good warehouse and logistics locations to ensure an efficient supply chain and last mile delivery will be critical.
