Foreign capital flow into the real estate market has accelerated M&A deals, but analysts warn that bad debts for property loans are a hindrance in the M&A market.

Vietnam attracted $3 billion worth of foreign direct and portfolio investments to the real estate sector in 2017, a sharp increase of 80 percent over the year before. 

2017 was a discouraging year for investors who poured money into condotels. However, analysts believe that once legal problems are settled, investment in this type of property will be increasing rapidly.

VietNamNet Bridge - Vietnam has 20 coal-fired thermopower plants which produce 15.7 million tons of ash, slag and gypsum a year. 

VietNamNet Bridge - Forecasts about the real estate market in 2018 are all inclined towards optimism. 

Next year is likely to be a fiercely competitive one for real-estate companies in HCM City since scores of new projects are set to hit the market, analysts said.

VietNamNet Bridge - The real estate market continues to be bustling, with a series of M&A deals in 2007 and to be made in 2018.

VietNamNet Bridge - The M&A deals made in 2017 are expected to have the value of $2 billion, and the same value or higher has been predicted for 2018.

VietNamNet Bridge - Property investors in Vietnam have been scaling up their business, while more and more new investors have concluded M&A deals in the real estate sector. 

VietNamNet Bridge - Since the Housing Law took effect in July 2015, 549 land-use right certificates (red books) have been issued to foreign individuals and institutions who have bought houses in Vietnam.

VietNamNet Bridge - Experts believe that no less than $8-9 billion flows out of Vietnam every year through different channels, despite Vietnam’s tight forex policy.

Experts have urged state management agencies to take necessary measures to drive the current strong cash flow into real estate out of the market as prices are increasing, depriving low-income earners of the opportunity of owning houses.

VietNamNet Bridge - The northern province has favorable natural conditions to develop the use of artificial sand as natural sand resources in the locality are becoming limited. 

VietNamNet Bridge - The stable political certainties in Vietnam and high GDP growth rate have created a firm foundation for the next development stage of the real estate market. 

VietNamNet Bridge - The resort market segment in Hanoi remains untapped and awaits strong investments.

VietNamNet Bridge - According to the Foreign Investment Agency (FIA), foreign investors have poured capital into 19 of 21 business fields so far this year, of which real estate ranks second with investment capital of $53 billion.

VietNamNet Bridge - More and more hybrid real estate products have been marketed in recent years. Together with condotel and officetel, hometels are now being launched by real estate firms. 

The Chinese are considered ‘quiet investors’ compared with Singaporean, South Korean and Japanese, but there are signs they have been stepping up the takeover of Vietnamese properties.

VietNamNet Bridge - Though hometel properties are new in Vietnam, the segment is well known as a profitable business model as investors can make high profits when reselling or leasing. 

VietNamNet Bridge - The number of newly set up businesses in the real estate sector in the first four months of the year increased sharply compared with the same period last year.