return icon Vietnamnet.vn

Foreign real estate brokers expanding in Vietnamese market

VietNamNet Bridge - The property market segments which bring the highest profits are mostly controlled by foreign enterprises.
VietNamNet Bridge - The property market segments which bring the highest profits are mostly controlled by foreign enterprises.


{keywords}



In July, ERA Real Estate, a foreign broker, quietly opened five transaction points and one commercial office in the central business district of HCM City. The company now has 300 consultancy officers trained and certified in accordance with international standards.

The broker revealed an ambitious plan to become the leading real estate distributor in Vietnam in the next five years with a network of 50 transaction offices in large cities and staff of 5,000 well-trained workers.

The property market segments which bring the highest profits are mostly controlled by foreign enterprises.

To quickly adapt to the emerging market of Vietnam, the US broker decided to join hands with Eurocapital Group, an investment conglomerate which has had offices in Vietnam since 2008, to establish ERA Vietnam.

Thanks to cooperation with the partner, the US broker, new in Vietnam, has approached high-end and luxury real estate projects developed by Vietnamese conglomerates, including Sun Group, CEO Group, MIK, Sacomreal and Kien A, and foreign developers, including Keppel Land and Sunwah Group.

Foreign real estate brokers were once ‘the big fish in the little pond’ of Vietnam in 2006-2008, when the real estate market was ‘scorching hot’. They obtained the right to manage and distribute many large-scale projects because investors believed that foreign brokers would be more professional than Vietnamese. They included CBRE, Savills, Colliers International, DTZ, Cushman & Wakefield, Knight Frank, Coldwell Banker and JLL.

However, later, when the real estate market stagnated, the operation of foreign brokers narrowed considerably. Aldy Vina, Setia and Coldwell Banker all withdrew from the market. CBRE and Savills are among the few foreign real estate service providers which stayed in Vietnam.

Nguyen Khai Hoan from Khai Hoan Land said that the Vietnamese real estate market has been experiencing a difficult period with policies changing regularly and the market fluctuating all the time. 

“They have strong brands and good technology. However, the Vietnamese market is different from other markets with different conditions of material facilities and staff,” he commented.

In such a context, Vietnamese brokers, which understand the market and follow a flexible way to approach clients, has gradually regained the distribution market. STDA alone in 2016 had 9,796 successful transactions.

However, analysts commented that the best pieces of the cake still belong to foreign service providers which have stronger capability and experience. The services which bring high profits such as office, apartment and hotel management and leasing are managed by foreign companies.


RELATED NEWS

Real estate brokers now require certification

Real estate most popular for investors


M. Ha

MORE NEWS

Vietnam still approves use of Covid antibody treatment

Vietnam still approves use of Covid antibody treatment Evusheld as it is still effective against subvariants circulating in the Southeast Asian country.

Former Coast Guard generals accused of embezzling $2.1 million

The crime allegedly started in 2019 when the Vietnam Coast Guard’s Department of Technology was allocated VNĐ150 billion (US$6.3 million) to purchase equipment.

Transport Ministry told to disburse VND94 trillion in 2023

The Government has tasked the Ministry of Transport with disbursing nearly VND94.2 trillion of public investment in 2023, up 1.7-fold against the 2022 figure and 2.2-fold versus 2021.

Banks pumped VND800 trillion into real estate in 2022

As of December 31, 2022, the outstanding loans provided to the real estate sector had reached VND800 trillion, while the figure was VND700 trillion by the end of 2021, said the Ministry of Construction, citing SBV’s (State Bank of Vietnam) figures.

Finance Ministry suggests taxing land and buildings separately

The Ministry of Finance has proposed developing a new property tax law to separate the tax on land from that on buildings.

Vietnamese movies earn over VND350 billion during Tet

Vietnamese-made films tallied more than VND350 billion in ticket sales in the first nine days of the Lunar New Year, between January 22 and January 30, according to the independent analytical website Box Office Vietnam.

Nguyen Trong Hieu's music video in finals of German Eurovision Song Contest

In a landmark moment for Vietnamese music, Nguyen Trong Hieu, winner of Vietnam Idol 2015, has announced that his latest music video has made it to the final eight in the German Eurovision Song Contest (ESC).

Vietnam's tourism revenue reaches VND46 trillion in January

Vietnam’s tourism industry generated around VND46 trillion in revenue this January, with a surge in domestic and international tourist numbers, according to the Vietnam National Administration of Tourism.

Vietnamese consume nearly 60 tons of gold in 2022

Vietnamese consumers bought 59.1 tons of gold, representing a year-on-year increase of 37 percent, the fastest increase in Southeast Asia, according to the World Gold Council.

Vietnam remains in world’s Top 5 plywood exporters

Vietnam earned US$ 1.1 billion from exporting plywood in the first 11 months of 2022, securing the fifth place in the world’s top five largest plywood exporters, according to the International Trade Center (ITC).

Bui Thanh Nhon returns to Novaland as board chairman

Bui Thanh Nhon, founder of NovaGroup, has officially come back to the property developer Novaland as chairman and legal representative, according to a press release issued this afternoon, February 3.

Over 10,000 rose trees to replace fence at Hanoi park

More than 10,000 rose trees are being planted to replace the fence which has just been removed at Thong Nhat Park in Hanoi.

Nearly 550 trade fraud cases tackled within one month

Customs agencies nationwide detected and handled 543 cases violating customs regulations between December 16, 2022, and January 15, 2023, according to the General Department of Vietnam Customs.

Art of the Samurai Swords to be introduced in April

Art of the Samurai Swords, an exhibition from Japan, will be open in Quang Ninh province's Ha Long city this April.

Administrative reform must centre on people, enterprises: PM

Prime Minister Pham Minh Chinh chaired the third session of the Government’s Steering Committee for Administrative Reform on February 3, stressing that administrative reform must centre on people and enterprises.
back_to_top