A window to more foreign property deals

Recently, US-based Sands Sheldon Group conducted market surveys in Hanoi and Ho Chi Minh City in search of investment opportunities. The group’s billionaire chairman Sheldon Adelson said Sands Sheldon would pump around $5-6 billion into two mix-used resort developments in the country’s two growth hubs of Hanoi and Ho Chi Minh City.

The US-based group is now in the legal setup stage to be able to get its projects lift off the drawing board in an appropriate time.

Deputy director Yip Hoong Mun at CapitaLand Vietnam, a subsidiary of one of Asia’s largest real estate groups CapitaLand, said there was enormous potential for housing development serving medium-income people in Vietnam and the group was targeting this segment.

CapitaLand is reportedly pouring $111 million into developing two property projects in Ho Chi Minh City.

Indochina Capital - one of Vietnam's leading financial services groups with diversified fund management and financial advisory businesses - said it would continue expanding footprints in Vietnam in 2012.

In a recent press meeting, the group’s chief executive officer Peter Ryder stressed difficulties faced by local firms presented opportunities for firms like them to grow presence in the country.

“Ho Chi Minh City and Hanoi will continue to be most dynamic development areas in the next 15-20 years despite current lackluster market. Indochina Land will expedite at least two projects in these prime locations this year,” said Ryder.

Ho Chi Minh City-based Saigon Asset Management (SAM) general director Louis Nguyen assumed Vietnam’s property sector still held big potential for bounce-back in the coming period despite current impediments.

Nguyen, however, said current property prices remained high and procedure-related problems could hinder investors’ market entry.

Some foreign investors coming from Asian countries are reportedly contemplating buying up bad debts of some property projects and they are under negations with project developers and relevant banks.

Reality shows that foreign investors are expecting a property market recovery as in early 2012 the Vietnamese government has conveyed its message to roll out a raft of measures to help rev up property and stock markets.

The Ministry of Construction gave out proposals aiming at bringing some kinds of properties out from the list of non-production sectors to let credit flowing into some property segments serving growing social needs.