Knight Frank & Rutley was founded in 1896 as a valuations, surveying and auctions business. Since then, Knight Frank has grown to become the world’s largest privately owned global property agency and consultancy. Founded in Vietnam in 2009, Knight Frank Vietnam Co. Ltd. provides a range of services including Valuation Market Research, Commercial Sales and Leasing, Residential Sales and Leasing, Investment Sales and Property & Asset Management. Vietnam Business Forum reporter Doan Tien interviewed Mr Jeremy King - Managing Director of Knight Frank HCMC to learn about related issues.
Could you please talk about Knight Frank’s network and its operation in Vietnam?
Knight Frank is widely regarded throughout the world as the firm of choice for high quality commercial and residential property. Our firm has expanded throughout Europe, Asia Pacific the Middle East, Australia, Africa and the Caribbean. More than 6,343 professionals handle in excess of US$886 billion worth of commercial, agricultural and residential property annually, advising clients ranging from individual owners and buyers to major developers, investors and corporate tenants. Knight Frank has 209 offices in 44 countries worldwide.
K.F Vietnam Co. Ltd was awarded an investment license in November 2009 and has offices in Hanoi and HCMC. We provide the following services: Brokerage, valuation, consultancy and management services.
Knight Frank opened for business in Hanoi in January 2010 and the HCMC office followed soon after. In a relatively short time, we have assembled the most experienced team of property professionals in Vietnam. At present, we have over 70 staff in Vietnam. This is the greatest achievement of K.F Vietnam – our people are our strength.
Throughout 2010 we have been appointed by some of the biggest and most prestigious development companies in Vietnam to assist with their property requirements.
What is your assessment of Vietnam’s economy?
The global financial crisis significantly impacted the ASEAN region and Vietnam in 2009. The resulting worldwide economic recession, particularly among developed nations, is still impacting Vietnam.
The balance of trade in Vietnam with imports exceeding exports is causing some difficulties. This situation will improve when developed nations recover from the economic recession and demand more exports from Vietnam.
Many ASEAN nations, including Vietnam, have avoided recession and have continued economic growth. As world economies recover, property prices should accelerate in Vietnam and the region.
What is your advice to property investors coming to Vietnam?
When coming to Vietnam, property investors have a range of options available. Perhaps the simplest option is to buy shares in a publically listed property company. This option may offer a yield and potential capital growth. This method of investing can be quite passive. It is also possible for investors to buy ready built investment properties, or percentages of them, although these rarely come to the market. Therefore most investors must look at developing new properties.
Alternatively investors may choose to enter into a joint venture agreement with a local partner. There are a number of risks with such a move. However, if the investor can identify a well run company with sound corporate governance and a strong track record of delivering, then this type of investment can be very rewarding. Also if the local partner is experienced in the property development business then the process and procedures can be fast tracked and risks are lowered.
In certain circumstances the investor may get 100 percent control over a development project. There are significant risks associated with this course of action and it should only be pursued by very experienced operators.
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