Can Vietnam be profitable for Thai developers and agents?

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Vietnam could be the next significant overseas buying nationality, and here’s why.

Sansiri, the prolific Thailand property developer has revealed it has signed an exclusive strategic partnership deal with Hong-Kong-based and London-incorporated real estate agency Denzell Vietnam.

Why is the news important?

More than five years ago Sansiri was the first Thailand developer to recongise what was then the new trend of Chinese buying and investing in Thailand property.

They opened offices in China and obtained first-mover advantage over every other Thai developer.

This year they reported that as many as 80 percent of its foreign buyers are coming from Hong Kong and the Chinese mainland.

Perhaps this move into Vietnam can be seen as diversity, or perhaps it could be seen as a possible warning that the number of Chinese buying in Thailand is starting to wane. Who knows?

Interestingly, media reports also revealed that Denzell opened its first Vietnam office in Ho Chi Minh City on the same day.

Doesn’t it seem somewhat strange for a top Thai developer to sign exclusive sales rights to an albeit experienced agency but one that seems to have no prior presence in the country?

This agreement will allow Denzell to market Sansiri’s projects throughout Thailand to Vietnamese clients.

Media also reported Sansiri said Vietnam is one of the most attractive overseas markets for its international businesses, and that Ho Chi Minh City is the sixth international market it has entered.

Apichart Chutrakul, the Chief Executive Officer of Sansiri, said: “With the rise of interest in Thailand property in Asia-Pacific, and the strategic partnership with Denzell Vietnam, we want to further build on our success in Ho Chi Minh City as Thailand’s number one developer.”

Thailand’s property developers and real estate agencies would be advised to note this latest news. Sansiri was the first to enter China and is now reaping considerable rewards.

Property market news such as this is news that others can use and act on. Waiting until the Vietnamese market is fully developed is not an option for developers and agencies that want to benefit from property sales in the country.

Andrew Batt
The author of this article is Andrew Batt, the founder and editor of Andrew has been writing about property and real estate issues in Thailand and Southeast Asia for more than 10 years. He has worked for PropertyGuru Group, DDproperty, Dot Property Group, Hipflat and AsiaRents. He has also produced content for leading Thailand property developers and real estate agencies.

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