As Singapore-based property developers deepen their foray into emerging Southeast Asian markets, the opportunities for investment are increasing. Not only are residential projects viable investment options, but commercial and industrial spaces are also added to the mix.
Photo credit: CapitaLand
CapitaLand for example, is investing US$500 million (S$713 million) into commercial property in Vietnam come 2017. They will also be looking into acquiring more residential development sites to add on to the 9 which they have already launched since they established their presence in Vietnam in 1994. Major wealth management funds are indicating interest in investing in Asian real estate and many of these emerging markets are untapped pools of potential.
Photo credit: d1mension.co
One of the most recent developments is a residential project in Ho Chi Minh city named the D1mension, suitably so as it stands on prime district 1 land. The project will consist of a 102-unit residential block as well as a 200-unit serviced apartment block which will be operated under the Somerset brand. More than half of the 30 units launched in the residential tower have already been sold and more will be launched next month. Private residential properties in Vietnam have been selling well as the middle class grows and rapidly. CapitaLand has already sold more than a third of the 1,700 units they have in stock with total sales accumulating to $114 million. The rising suburban class and increased foreign business investment will mean a higher demand for housing.