Over the past few months, foreign funds have been ceaselessly selling a hefty volume of stocks worth up to $100 million during the year-end season of stock market launches, whilst actively seeking investment opportunities in the country.

Foreign funds are forecast to pour more capital into real estate

Specifically, during December 4-8, foreign funds were reported to sell a whopping volume of stocks worth around $53 million. Consequently, the excessive stock sale towards the end of 2017 earned the foreign funds over $100 million, which will be turned to seize upcoming disbursement opportunities.

In particular, on September 6, Dragon Capital, Vietnam’s largest asset management firm, confirmed a stock transaction worth around $123.7 million with Hong Kong-based private equity fund Caldera Pacific and South Korea-based financial investment firm Samsung Securities.

Likewise, Dragon Capital became Hai Phat Invest’s strategic partner with a 15 per cent ownership on December 8. Another two undisclosed foreign funds were recorded to engage in three stock purchases with the “rising star” of the real estate field Van Phu Invest (VPI) in less than 20 days. The second transaction was of an approximately 5.6 per cent stake and the third transaction was of 380,000 VPI stocks.

As claimed by numerous market specialists, foreign-owned funds might be restructuring their portfolios by divestiture and capital relocation. Several market analysts suggested a new wave of investment will reach real estate firms whose properties are condensed in Hadong district (western Hanoi).

As an outcome of the recent renovation of the district’s public infrastructure, such as newly-constructed routes and intersections, housing firms could immensely benefit from this suburban neighbourhood.

Specifically, the Van Phuc-Le Van Luong intersection, the Thang Long-Khuat Duy Tien road tunnel, and the up-and-coming Cat Linh-Hadong urban railway project, as well as the recently-erected overpasses in the area could play a major role in the attraction of foreign investment.

To boot, foreign investors are forecast to turn towards reputable listed real estate firms instead of investing in short-run profit generating companies.

VIR