Ho Chi Minh City continues to take lead in attracting FDI into real estate

In recent years, HCMC has 525 new foreign-invested projects with a total capital of $715.5 million, of which 102 projects has capital increased. 

A new report of the HCM’s Department of Planning and Investment showed that, real estate sector ranked first in attracting FDI in the first 8 months of this year , with a total capital of $318.9 million, accounting for 44.6%.    

In term of citizenship of investors, Singapore took lead with 44.8% of total capital, equivalent to $321.2 million. Japan ranked second with $106.7 million, accounting for 15% and South Korea followed with 8.8%, equivalent to 62.8 million.

Besides, HCMC also approved 1,121 foreign investors registering to contribute capital, purchase share or acquire capital in businesses in the city. Total registered capital reached about $1.15 billion.

In the first 8 months of 2016, HCMC continues to take lead in attracting FDI into real estate  

Notably, a project named Midtown with total registered capital of over $225.6 million will be developed in HCMC by the a company from Cayman Islands. This project is also the largest real estate licenses in the past 8 months.

Along with direct investments, the real estate market also saw several M&A in which both buyers and sellers also have investment from abroad.

Keppel Land, for example, signed an investment agreement with conditions to hold 40% of stocks in Empire City Co., Ltd, which will spend $1.2 billion to build the complex of luxury apartments, retail, office and 86-storey tower in Thu Thiem urban area, District 2, HCMC.

According to the HCM’s Department of Planning and Investment, District 7 is the most sought-after area for foreign investors, with total capital of $287.8 million, accounting for 40.2%. Other  attractive areas include District 1 ($153.4 million, 21.4%); District 2 ($86.9 million, 12.1%), Cu Chi District ($40.1 million, 5.6%).

Source: Tri thuc tre