Property acquisitions on the cards as cash-strapped developers sell out: analysts

By Vu Le   March 21, 2023 | 06:41 pm PT
Property acquisitions on the cards as cash-strapped developers sell out: analysts
The central business district in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
There will be a mergers and acquisitions boom in the property market over the next year as cash-strapped developers sell assets, analysts have forecast.

Neil MacGregor, managing director of Savills Vietnam, said developers have difficulty raising funding and so have to find new sources, including M&A.

Both foreign and domestic institutional investors, especially the former, want to invest in the Vietnamese property market. Japanese investors are looking for long-term investments, he said.

Bao Viet Securities Company expected real estate M&A to surge in 2023-24 since cash flows have dried up for property businesses due to sluggish sales, tightened credit and high interest rates and stringent restrictions on bond issuance.

Pham Lam, chairman of DKRA Group, told VnExpress that M&A could intensify from the middle of the second quarter.

It would take a few quarters for investors to do due diligence, bargain and other tasks before transactions are completed, he said.

 
 
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