Problems of 5 real estate projects in Ho Chi Minh City have been solved
According to HoREA's quick report, on the progress of solving problems in real estate projects in Ho Chi Minh
Foreign investors are targeting legal enough projects with reasonable prices. The investors mainly come from Korea, Singapore, Japan, Taiwan, Malaysia, Thailand...
M&A deals on the rise
Business mergers and acquisitions, recognized by real estate research units, are actively taking place in the quiet real estate market. Reporting to the Vietnam Association of Realtors (VARS), a series of large deals began to appear. Foreign investors are quietly acquiring more large land funds, from apartment projects to industrial and office real estate..., in many localities nationwide.
Liquidity is difficult, real estate businesses are in a state of cash flow depletion, loan conditions are also difficult, and administrative and legal problems cause some businesses to sell part or all of their projects to foreign partners.
According to VARS, this is the way to help businesses manage cash flow to repay debts, avoid collapse, dissolution and bring cash flow to continue implementing other projects.
In the Vietnam real estate market report for the second quarter and first six months of 2023, VARS said that foreign investors are maintaining their interest in domestic real estate projects. Later on, the level of interest increased. The hunting target of foreign investors is projects that complete legal procedures.
"The number will not be much and will be limited to small-scale projects with complete legality. Medium and large-scale deals will maintain the negotiation process until the end of the fourth quarter of 2023, even extending to the second quarter of 2024," VARS said.
According to this research unit, some famous names such as Central Retail, Keppel Land, Frasers, and WHA have been conducting M&A activities in the past time, focusing mainly on housing, industry and commerce.
Happy or worried?
Previously, in an interview, Mr. Vu Cuong Quyet, General Director of Dat Xanh Mien Bac, used to worry that the market is difficult, real estate prices are low, and businesses are struggling, which is an opportunity for foreign investors to buy projects at low prices. The loss will belong to the real estate business in such a playground.
From another perspective, Dr. Nguyen Van Dinh, Chairman of VARs, expects that when the M&A is successful, the market will have more quality products, significantly improving the scarce supply. More importantly, the inflow of money will promote start-up projects, pulling the psychology of investors and businesses up.
As an investor with many years of experience in promotion and M&A activities with foreign investors, Mr. Than Thanh Vu - Founder of the Vietnam Real Estate Tourism Association, Chairman of Sao Khue Group, commented: Investors Foreigners are now most interested in residential real estate, followed by industrial real estate. Before the epidemic, investors were very interested in office and commercial real estate, but the epidemic has changed living and working habits from home, so the level of interest has decreased a lot.
Investors in Asia currently interested in Vietnam's real estate market are mainly Japan, Korea, Singapore, China, Malaysia, etc. In other regions, investors often need to be more open due to needing to understand more about the Vietnamese market and the legal regulations. Investors from other regions need to understand more about the Vietnamese market and legal regulations, so they are very shy.
Regarding the question: "Is it worrying that when the market is difficult, real estate businesses will be bought by foreign investors from Vietnamese enterprises at bargain prices?" Mr. Vu said that foreign investors should consider that they are very careful about money because they cannot solve some of the difficulties of real estate projects in Vietnam, such as legal procedures and demand.
Not to mention, many projects have product designs unsuitable for the current new situation, which means that they are no longer suitable for the needs of customers or end consumers. So will foreign investors spend money to "hug the debt"?
According to Mr. Vu, foreign investors are professional investors. They manage risk very carefully; they research carefully before making an investment decision. Suppose there is such a foreign investor willing to buy it. In that case, it should be happy because they will add their resources and expertise to renew and revive the project with high profitability for the parties involved and the Vietnamese economy.
