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Home / Industry Overview / Real Estate

Hanoi and Hochiminh City rank among the most expensive cities in Asia, in particular the cities’ real estate price. Even Bangkok, Manila, Kuala Lumpur offer much more reasonable rate for both accommodations and office leasing

Every single square meter of a flat in middle-class building complex in Hanoi or Hochiminh City could cost US$1,000. A 200m2- ground villa in Ciputra, an upper-class complex near Hanoi is available for at least US$500,000 for which in Bangkok one must probably pay US$150,000. And the trend of increasing demand will hold on for at least 5 another years.

Too obvious is the lure of the market, for both domestic and foreign investors. Local firms often lack financial capacity as well as management to invest in upper-class projects which more and more provide room for international investors. Best examples are Phu My Hung (HCMC) and Ciputra (Hanoi) which were master-planned and operated by Taiwanese and Indonesian investors. Even most of high-profiled local invested projects in housing and office have been designed and managed by foreign firms.

Office leasing has also recorded a boom over the last 3 years. For now the lease rate for m2 of a A-class office building stands at US$35-40. Until 2008, Hochiminh City alone expects another 300,000m2 of new office space of A,B,C class.

During the span 2007-2010, the number of 5-star hotels to be built in Hanoi and HCMC will be 3 times of that of the span 1994-2006. Altogether, 10,000 new hotel rooms need to be there to meet the estimated demand in 2010.

In real state, foreign firms are eligible to form Joint Venture with a local partner, operate as 100% FDI enterprise or partner Build-Operate-Transfer projects.
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