Property developers from Japan, Malaysia and Singapore still eye
Vietnam’s real estate market with interest, despite global difficulties and the
whirlwind of disinvestment in many FDI projects, as they still believe a
recovery is imminent.
With the property market
decidedly cold, Becamex Tokyu Co Ltd earlier this month broke ground at the
site of the Sora Gardens 1 apartments, the first project of the joint venture’s
Tokyu Binh Duong Garden City.
Sora Garden 1 is a 24-storey
building, one of three luxury apartment blocks to be built in the development
which lies 30km to the north of HCM City. The 1,500 apartments will range in
size from 70sq.m to 100sq.m, while the luxury houses and apartments are aimed
at middle to high-income customers.
Becamex Tokyu began work on the
1.2 billion USD project in March this year, marking the first time a Japanese
firm has been involved in a Vietnamese urban development.
According to Toshiyuki Hoshino,
general director of Becamex Tokyu, this is his group’s first venture into the
local real estate market. Through the project, the group will transfer its
technology and experiences of urban development to the local market, he added.
“The domestic property market is
currently in strife but remains a young market with high development
potential,” Hoshino told Vnexpress online newspaper, adding that his firm was
deploying its long-term business strategy in Vietnam.
“Many investors have fled the
market but my company is committed to long-term urban development and believes
the rapid population and urbanisation growth will lead to a roaring property
market recovery,” he said.
By the end of July, Singapore had
more than 550 projects with a total accumulated capital of 6.8 billion USD
invested in HCM City. In real estate development alone, Keppel Land of
Singapore boasts 18 licensed projects in Vietnam with a total capital of 2
billion USD.
The group has partnered with Tien
Phuoc and Phu Hung companies, as well as the HCM City People’s Committee to
develop housing projects.
Like their Japanese and
Singaporean counterparts, Malaysian investors are still interested in the
Vietnamese market. In October, Saigon Thuong Tin Tan Thang Investment Real
Estate Joint Stock Company (TTJSC) started marketing its large Celadon City
project in HCM City’s Tan Phu district, over a year after the project got off
the ground.
Chow Chee Fan, general director
of TTJSC, said the local property market is still in difficulty but the company
keeps investing to develop the project over the long term.
He said: “We are here for a long
term investment, so whether the market is up or down we will continue the
project development.”
Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Health care and Life Science with expertise in ASEAN 's area. We are currently changing the platform of www.yourvietnamexpert.com, if any request, please, contact directly Dr Christian SIODMAK, business strategist, owner and CEO of SBC at christian.siodmak@gmail.com. Many thanks.
No comments:
Post a Comment