Singapore's super-rich are focusing their attention on Vietnam's real estate market, especially urban, coastal and rural areas.

According to Knight Frank's "The Wealth Report 2023", Vietnam is one of the top five destinations chosen by Singapore's super-rich to invest in real estate.

With a fast growth rate, Vietnam is considered one of the brightest investment destinations of the super-rich in the region. Real estate investors in Singapore appreciate the potential of urban, coastal and rural areas of Vietnam.

Compared with major cities in the world, Ho Chi Minh City ranks third among the cities with the most affordable luxury apartments, behind Sao Paulo (Brazil) and Cape Town (South Africa). This makes the Vietnamese city an attractive destination for real estate investors in the region.

Area (m2) of luxury apartments priced at 1 million USD in major cities around the world. Photo: Knight Frank Research.

“In 2022, we see high interest from foreign investors in the commercial real estate market in Vietnam. This trend will continue into 2023, but domestic property valuations will also come under competitive pressure from across Asia,” said Alex Crane, Managing Director of Knight Frank Vietnam.

Mr. Alex Crane believes that the cause of this pressure comes from the fact that individual investors can also exploit and take advantage of opportunities from other developing economies or in developed markets, where there are benefits. than Vietnam in terms of safety and profitability.

The Knight Frank report also notes in 2022, the second highest volume of commercial real estate investment from individual investors. Specifically, 32% of the Asia-Pacific super-rich (APAC) said they intend to increase their investment in commercial real estate, compared with the global average of 28%.

In 2022, the number of APAC super-rich people investing in commercial real estate increased by more than 30% year-on-year to a total value of more than  1.53 billion USD. This is a significant increase amid a 21.3% drop in investment volume across the region last year.

“Inflationary pressure in APAC remains moderate compared to the world, as central banks in the region have been adopting prudent monetary policy and maintaining financial discipline. In addition, the expectation that APAC will lead economic growth this year also contributes to stimulating real estate demand in the region, "said Christine Li, Director of APAC Research Services at Knight Frank.