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Vietnam’s real estate market is witnessing a rising number of merger and acquisition (M&A) deals. (Photo: VNA) |
In the third quarter of this year, a number of major M&As were made in the market, including Malaysia’s SkyWorld Development Berhad acquiring 2,060 sq.m of land in HCMC’s District 8 from Thuan Thanh JSC with a price of US$14.3 million for its housing project.
Gamuda Land, the property arm of Malaysia’s Gamuda Berhad, also purchased 3.68 hectares of land worth some US$315.8 million from Tam Luc Real Estate Corporation, which will serve both commercial and residential purposes.
Vietnam’s Saigonres Group acquired 90% of the shares of Duc Nhi JSC to own a 7,700 sq.m plot in Tan Phu district, HCMC.
Singapore's Keppel Land Limited paid US$50 million for a 65% stake in a local company that is expected to open a shopping mall in Hanoi in 2025.
In the central region, Vietnam’s First Real Land JSC purchased 22% of the charter capital shares of Bach Dang Trading and Service JSC, the owner of a 6,879 sq.m plot in Da Nang, with a price of US$8.2 million.
Meanwhile, F.I.T Group (Vietnam) also officially divested capital from the Cap Padaran Mui Dinh beach resort project with an area of 800 hectares in Ninh Thuan province.
By the end of October 2023, the total newly registered and adjusted capital together with capital contributions and share purchases by foreign investors exceeded US$25.76 billion, up 14.7% year-on-year.
The real estate business still ranked second at nearly US$2.14 billion, accounting for more than 8.3% of the accumulative registered investment.
Troy Griffiths, Deputy Managing Director of Savills Vietnam, said real estate M&A activities are increasingly vibrant, stressing the State Bank of Vietnam's continued pursuit of reducing interest rates to the 2020 level is also a good sign for housing property.
Neil MacGregor, Managing Director of Savills Vietnam, said with the shortage of apartment supply, investors who are able to successfully develop new projects will benefit from the strong demand at this time, especially if they target the growing middle-class buyers.
Such positive signs in attracting FDI and M&A show that investor confidence is being restored in the real estate market in Vietnam.
