M&A trend in real estate sector in Asia
A series of other big deals in the area such as Yangon Building (Myanmar) in 2014, a 5-star complex between Shwe Taung Group for Keppel Land for $ 47.4 million for 40% of the shares, or a complex court deal Combining Pine Avenue in the central area of Seoul capital - South Korea is pegged at the price of USD 447 million; deal of A-class Twin Tree complex (in Seoul - Korea) between IGIS Asset Management and KTB Asset Management with a value of $ 316 million.
Trends in Vietnam over time
In the past 3 years, the transfer market of investment properties in Vietnam has grown significantly. In Vietnam, there have been a series of deals of Grade A offices, as well as a 5-star hotel and a large commercial center.
An important feature of the trend of transferring investment properties in Vietnam is concentrated mainly in Ho Chi Minh City, Hanoi and in the central position. In particular, the number of deals in Ho Chi Minh City is three times higher than those in Hanoi. This can be explained by the advantage of the location and scarcity of the land that is assessed as the golden land in these two cities, especially Ho Chi Minh City is considered as the business city of Vietnam.
Which basis to determine prices for transactions
Many important factors affect how to value a hotel or building, such as the following:
- The topography of the hotel or complex is assessed from the point of view of the material benefits of the operation of the hotel and the office area, as well as the convenience of travel, the view of the hotel and the elements Other relevant positions.
- The existing facilities of the complex have been tested for construction quality, design, effective layout and damaged and obsolete items.
- The economic environment, on both the micro and macro level, has been considered to determine the economic and demographic trends that are specifically relevant to the hotel. These trends have an impact on future demand for hotels and offices.
- The segment of the short-term room rental market into individual segments has defined specific market characteristics for the type of tourists expected to use the hotel areas. The investigating factors include the purpose of the visit, the average time of stay, the means and amenities needed, seasonality, daily changing needs and price sensitivity.
- Analysis of current and potential competitors has provided indications about current accommodation needs, market penetration of new rivals and industry competitiveness.
- The anticipation of the average number of guests renting rooms and rental periods is evidenced by the analysis of global supply and demand combined with close research.
