(Construction) - Experts say that Vietnam's real estate market is attracting the attention of investors and contributing to an increase in the number and value of M&A deals with foreign corporations. The PropertyGuru Vietnam Property Awards 2023 is an important event contributing to the elevation of Vietnam's real estate and attracting international investors.
Recently, foreign enterprises have increased their M&A activities in Vietnam and invested in developing real estate projects. To learn about the potential of the property market and the appeal of real estate projects and developers in Vietnam, a reporter from Construction Newspaper interviewed Mr. Paul D. Volodarsky, a member of the judging panel of the PropertyGuru Vietnam Property Awards.
Mr. Volodarsky is also a partner and the head of regional real estate practice and head of hospitality sector at DFDL. The international law firm has over 15 years of operations in Vietnam, where it advises on investment, corporate, and M&A law.
|Mr. Paul D. Volodarsky has been on the judging panel of the PropertyGuru Vietnam Property Awards for four years.|
Reporter: What do you think about the fact that foreign corporations are recently increasing their investment in Vietnamese real estate through the purchase of shares and projects with greater value? For example, CapitaLand negotiated to buy some projects worth $1.5 billion from Vinhomes.
|Vietnamese real estate attracts attention as the quantity and value of M&A deals with international investors rise in the country.|
Mr. Paul D. Volodarsky: Foreign investors' interest in domestic real estate development shows the good growth of the Vietnamese market. In my opinion, buying shares of Vietnamese companies are especially important in the context of the recent slowdown in the real estate market due to legal changes affecting investment plans. I believe this reflects investors' confidence in the long-term potential of real estate and development in Vietnam.
Reporter: Well-known real estate brands have appeared in the Vietnamese market, showing that this market can also be an investment destination for Asia's super-rich. On the contrary, how far has the influence of Vietnamese real estate brands on foreign investors, through prestigious programs such as the PropertyGuru Vietnam Property Awards, grown?
Mr. Paul D. Volodarsky: I am fortunate to have been on the judging panel of the PropertyGuru Vietnam Property Awards for the past four years and have witnessed the market's outstanding growth as well as its level of complexity—increasing investment in real estate projects in Vietnam.
I think the awards have really given Vietnamese real estate developers the opportunity to introduce their quality products to not only the public and domestic customers but also to foreign markets. While the investment market is still largely driven by domestic demand, the PropertyGuru Vietnam Property Awards have really helped attract international investor interest to the property market.
We have witnessed that, thanks to prestigious awards, businesses receive greater attention from domestic and international investment groups. I hope that this will continue to thrive and help elevate real estate products in the market.
|PropertyGuru Vietnam Property Awards: an opportunity for great projects and developers to shine.|
Reporter: After each market crisis cycle, new unicorns/super-large-scale investors appear. What do you think about the next generation of unicorns in the Vietnamese real estate market?
Mr. Paul D. Volodarsky: It will be difficult to have the next large-scale real estate developer in any segment. We have seen a number of innovative investors in the market over the past few years. The important thing I can say about the next real estate unicorn is that there will be more creativity in design, targeting the market and asking how real estate developers can meet the needs of people for end use (whether residential, commercial, or industrial).
Reporter: In your opinion, how will wise investors behave in the current market conditions?
Mr. Paul D. Volodarsky: In my opinion, investors should calm down and look at the long-term development of Vietnam's real estate market. While there has been a slight slowdown over the past year, I don't think that reflects the long-term trend. I fully expect that the real estate market will recover quickly in the next few years as the economy will continue to grow despite the difficulties of the global economy.
PV: Thank you very much, Mr. Paul.
By Ninh Nhi