Foreign investment into Vietnam's real estate sector totaled US$464.1 million in the 11 months of this year, a sharp fall compared to previous years.
The investment accounted for only 3.7 percent of new FDI pledges that Vietnam attracted during the period, recorded at $12.69 billion, down 16 percent from the same period last year, the Foreign Investment Agency said in a new report.
According to the agency, real estate had been the sector drawing in the largest FDI inflows for several years. In 2008, it attracted a record $23 billion from foreign investors. During the downturn last year, the sector continued to top the list with $6.84 billion.
But this year, it has fallen behind other sectors like manufacturing, electricty and construction, which had FDI pledges of between $1.1 billion and $6.2 billion in the first 11 months.
The trend is partly due to the ongoing market slump which has caused many developers to delay both existing and new projects, news website Thoi Bao Kinh Te Saigon cited industry insiders as saying.
Moreover, investors continue to stay cautious during the global economic crisis and the government's credit squeeze makes it even more difficult for developers, they said.