According to Savills, since the COVID – 19 epidemic, Vietnam’s super-rich have promoted the purchase of real estate abroad, focusing on office and hotel types.
In a recent report by market research unit Savills, the demand for foreign real estate investment from businesses and the super-rich in Vietnam increased sharply after the epidemic with increasing value.
According to data from the Ministry of Planning and Investment, last year, Vietnam’s total investment capital abroad reached nearly 421 million USD. Industries attracting capital flows from Vietnamese businesses are real estate business, construction, wholesale, retail, electricity distribution…
With personal transactions, we can mention the purchase of an office building on Old Broad Street, London by a Vietnamese investor with a value of more than 200 million pounds (about 257 million USD). This is also the largest office transaction in London in 2023.
The office building in the UK was bought by a Vietnamese investor.
Mr. Matthew Powell – Director of Savills Hanoi said that some foreign real estate markets that attract Vietnamese investors include the UK, US, Australia, Japan… The common point of these markets is the destination. Study abroad for children of families with high to very high incomes.
In the UK, Savills’ records show that London is the leading real estate investment choice, followed by Manchester and Birmingham, cities with many universities and international students.
“Education-related needs are the top motivation for Vietnamese real estate investors to go abroad,” Mr. Powell said.
Also according to Savills, Vietnam is an emerging market with a sharp increase in the number of rich people wanting to invest in real estate abroad.
Mr. Jonathan Hewlett – Global President of Savills Private Office said that the first need of rich Vietnamese people is to rent or buy an apartment for their children to study abroad, be it in the UK, Australia, Canada or the US. They then start looking for further investments when their children want to work or settle abroad.
“Throughout our operations in Vietnam, we have received many requests from many investors who wish to expand investment channels in the international market, especially in the residential and commercial segments. ”.
According to Knight Frank’s Prosperity Report (UK), the number of super-rich people in Vietnam in 2023 increased by 2.4% compared to the previous year, to 752 people. This increase rate is quite high in the Asia-Pacific region.
The growth rate of Vietnam’s super-rich is forecast to be higher than South Korea, Hong Kong (China), and Singapore in the period 2023 – 2028. According to Knight Frank, by 2028, Vietnam will have 978 super-rich people.
Ngoc Mai