CBRE's survey on investors’ intentions and plans in Asia Pacific in 2024, conducted in November-December 2023, received 500 replies from investors and institutions.

The survey found that Vietnam ranks second among the most sought-after emerging markets in terms of investment strategy, opportunities and added value. The first position belongs to India, while the third to Thailand.

According to CBRE, most investors in Vietnam target industrial real estate and offices. The strong export-oriented economy backs up trade activities, thus creating strong demand for effective supply and logistics chain management.

In addition to commercial property, the land for housing development in Vietnam continues to catch attention from foreign investors. Many investors are seeking properties offered with discounts, or properties belonging to landlords facing legal or capital problems. The growing trend shows the recovery possibility and the attractiveness of the housing market segment in Vietnam.

Nguyen Pham Anh Duy from CBRE Vietnam said foreign investors have long-term vision about the potential of Vietnam’s economy and they are willing to make investments to get benefits in the last price adjustment cycle.

Buyers can get benefits from buyers, or investors, who want to divest after a long period of holding properties.     

The survey found that the investors in Asia Pacific are seeking double-digit profits. They tend to invest in properties which may see prices increase in the time to come, or properties whose owners have problems in payment capability and have to lower selling prices.

More than 60 percent of foreign investors have plans to upgrade the buildings in advantageous positions in their investment portfolios in accordance with ESG (Environmental, Social and Governance) standards in 2024. Most of the investors are private funds, real estate funds and REITs (real estate investment trusts). 

According to CBRE, demand for buying properties in Asia Pacific remains weak, while the number of offers is high.

As the interest rate increase cycle has stopped in major global markets, investors are waiting for signs of the current price adjustment cycle ending before cashing in.

Investors in most market are expected to keep a wait-and-see attitude in the first half of 2024. However, if the US FED cuts prime interest rates in the first six months of the year and the central banks in Asia Pacific follow, the purchase and sale of real estate projects will speed up.

Hong Khanh