The Vietnamese real estate market is poised for strong growth in the next 15 years, but the Government should prevent speculation to avoid a bubble and improve human resources and infrastructure to attract foreign developers as the country integrates. — VNS Photo

HCM CITY (Biz Hub) – The Vietnamese real estate market is poised for strong growth in the next 15 years, but the Government should prevent speculation to avoid a bubble and improve human resources and infrastructure to attract foreign developers as the country integrates, a foreign expert has said.

Sigrid Zialcita, managing director of Cushman & Wakefield, Asia – Pacific, told yesterday's Property Report Congress Viet Nam 2016 in HCM City: "The Asia Pacific real estate market will grow the highest globally at 5.2 per cent this year. Viet Nam, Indonesia and the Philippines will lead ASEAN's growth."

Foreign investors are looking at Viet Nam with interest as its exports [by foreign companies here] increase significantly and are looking for a place to produce to replace China and Singapore, where costs are too high, according to the expert.

Recent improvements in infrastructure have taken Viet Nam to the next level of development, but the country must work hard to compete once FTAs and the TPP come into effect.

In the office segment, HCM City and Ha Noi have much less space than neighbouring countries, and Viet Nam must speed up supply.

The 542,000 square metres of space under construction cannot meet the demand and office investment is set to double by 2020.

The hospitality industry would need more than 120,000 rooms by 2030 to meet tourist demand.

"We have witnessed strong development by the retail industry with the entry of many foreign groups from Japan and Thailand and the country will need another 4.3 million square metres for the industry by 2030."

Marc Townsend, managing director of CBRE Viet Nam, said resorts are seeing significant development in Nha Trang, Da Nang and Phu Quoc.

"Two years ago we did not pay attention to that kind of real estate but now everything has changed. International direct flights to these destinations have boosted the real estate market."

He said land prices have increased by 30-40 per cent recently while apartment prices are steady.

"The secondary market is steady and there is no more opportunity for speculators," he warned.

The size of the country's real estate market has grown many times thanks to the entry of huge international capital.

"However, the market is still driven by housing demand from locals," he said, pointing out that the number of foreigners who want to buy a house in Viet Nam accounts for only 5 per cent of demand.

"Industrial parks are another strength of the Vietnamese real estate market," he said.

Townsend warned that HCM City and Ha Noi could face a supply glut because of the massive construction in the last two years.

Property Report is Asia's leading luxury real estate, architecture and design magazine, and is published by PropertyGuru Group.

Full list of Winners at the Việt Nam Property Awards 2016:

DEVELOPER

Best Developer Winner:

Nam Long Investment Corporation

Special Recognition in CSR Winner:

Nam Long Investment Corporation

BEST OF THE BEST

Best Commercial Development (Vietnam) Winner: Deutsches Haus Ho Chi Minh Stadt by Deutsches Haus Ho Chi Minh Stadt Ltd

Best Villa Development (Vietnam) Winner:

The Dàlat at 1200 Country Club and Private Estate – Villa by Acteam International Co Ltd, a company of the Centurion Global Group Singapore

Best Condo Development (Vietnam) Winner:

The Nassim by SonKim Land & HongKong Land

Best Green Development Winner:

Deutsches Haus Ho Chi Minh Stadt by Deutsches Haus Ho Chi Minh Stadt Ltd

DEVELOPMENT

Best Affordable Condo (Ho Chi Minh City) Winner:

Sky 9 by National Housing Organization

Best High­End Condo (Ho Chi Minh City) Winner:

Kris Vue by CapitaLand (Vietnam) Holdings Pte. Ltd

Best Luxury Condo (Ho Chi Minh City) Winner:

The Nassim by SonKim Land & HongKong Land

Best Housing Development (Ho Chi Minh City) Winner: Melosa Garden by Khang Điền House Trading & Investment JSC

Best High­End Condo (Hanoi) Winner:

The Link 345 CT1 Executive Apartments by Citra Westlake City Development Co Ltd

Best Condo Development (Resort) Winner:

Four Points by Sheraton and Luxury Apartment by Alphanam Real Estate Joint Stock Company

Best Villa Development (Resort) Winner:

The Dàlat at 1200 Country Club and Private Estate – Villa by Acteam International Co Ltd, a company of the Centurion Global Group Singapore

Best Hotel Development Winner:

The Hamptons Ho Tram by Tanzanite International

Best Office Development Winner:

Deutsches Haus Ho Chi Minh Stadt by Deutsches Haus Ho Chi Minh Stadt Ltd

DESIGN

Best Hotel Architectural Design Winner:

FLC Beach & Golf Resort Quy Nhon by FLC Group

Best Hotel Interior Design Winner:

The Hamptons Ho Tram by Tanzanite International

Best Condo Landscape Architectural Design Winner: Celadon City by Sai Gon Thuong Tin Tan Thang Investment Real Estate JSC

Best Condo Architectural Design Winner:

The Dàlat at 1200 Country Club and Private Estate – Condo by Acteam International Co Ltd, a company of the Centurion Global Group Singapore

Best Villa Landscape Architectural Design Winner:

The Hamptons Ho Tram by Tanzanite International

Best Villa Architectural Design Winner:

The Dàlat at 1200 Country Club and Private Estate – Villa by Acteam International Co Ltd, a company of the Centurion Global Group Singapore

Best Residential Interior Design Winner:

The Dalat at 1200 Country Club and Private Estate – Villa by Acteam International Co Ltd, a company of the Centurion Global Group Singapore

PUBLISHER'S CHOICE

Real Estate Personality of the Year

Chen Lian Pang CEO, CapitaLand Vietnam