Jen Capital makes hay as Vietnam lifts property cap for foreigners

Betting on a new law that permits foreigners to buy an unlimited number of apartments in Vietnam, Hong Kong-based Jen Capital expects an influx of overseas capital to give the country’s real estate industry a shot in the arm.

The firm is the Vietnam property arm of the 110-year-old family-run conglomerate Chiaphua Group that owns a property portfolio spanning Hong Kong, the mainland, Canada, the US and Germany. Chiaphua’s notable property projects in Hong Kong were the phase one development of Bueamont, a joint-venture development with Cheung Kong Property in Tsueng Kwan O, and Greenfield Terrace in Tsing Yi with Sun Hung Kai Properties.

“We should be considered the first Hong Kong developer entering the Vietnam property market back in 1990s,” said Jonathan Cheng, executive chairman of Jen Capital, which manages US$100 million Jen Capital Vietnam Property Fund.

He said he believes the new law, which became effective on July 1, to boost the already booming real estate market.

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“There have been 400 property transactions by foreigners since the restriction was lifted on July 1,” he said.

Cheng expects home prices for medium to high-end properties to increase 15 per cent next year in Ho Chi Minh City after 15-20 per cent growth in 2015.