ASIA: Discover the top 10 investment destinations in Asia, with a focus on two of Vietnam’s cities that have recently made the list. Learn about the reasons why these cities are attracting investors and what opportunities they offer for business growth.
According to CBRE’s 2023 Asia Pacific Investor Intentions Survey, 31% of investors polled are looking for opportunistic deals, distressed assets, and nonperforming loans, up from 26% last year.
Furthermore, opportunistic strategies will account for 60% of the US$39.7 billion in funds raised by APAC-focused real estate funds in 2022, the highest amount in a decade.
Despite the hardship of the last two years, Vietnam’s economy remains the strongest in the region, ranking 38th in the world by nominal GDP and 26th in the world by purchasing power parity (PPP) in 2022.
Foreign direct investment (FDI) remains critical to Vietnam’s post-COVID economic recovery and drives the government’s ambitions to achieve middle-income status by 2045.
Vietnam’s Ho Chi Minh City was ranked third in Southeast Asia as a preferred city for cross-border investment, while Hanoi, the country’s capital, also made the list. According to CBRE, Vietnam continues to benefit from its status as a China-plus-One destination, attracting investors looking for value-add and opportunistic deals in this market.
For the fourth consecutive year, Tokyo emerged as the top preferred city for cross-border investment in APAC, with Singapore coming in second. The two countries remain a priority for core and value-add investors, owing to strong market fundamentals.
According to the consultancy, Hong Kong has ranked among the top five investment destinations for the first time since 2020. With the reopening of the border with mainland China and more reasonable valuations, investors are once again attracted to Hong Kong, according to the report.