Commercial property is attracting much interest from investors in Vietnam’s property market with hundreds of millions of US dollar waiting to be poured into almost all segments of Vietnam’s property market, including housing, office, retail, hotels, and industrial zones.
Housing investment is usually the most attractive segment, but investors are switching their attention to commercial property, especially grade-A office projects with ideal locations and high growth potential.
Office rents in Vietnam are currently much higher than in other countries in the region, reflecting a shortage of office spaces and more and more foreign investors have been entering and setting up offices in Vietnam. The office rents could soar by up to 20% at some grade-A buildings in 2018 and continue to rise in downtown areas in 2019. Lack of space and land availability in the CBD has made this investment very attractive for institutional investors wanting to invest in Vietnam.