Foreign businesses flock to build real estate projects

Since the beginning of 2024, a series of big names from many countries, such as Japan, Malaysia, Singapore... have spent a lot of money investing in real estate projects, notably affordable housing projects in Binh Duong.

Most recently, TT Capital Investment Joint Stock Company and two partners from Japan, Cosmos Initia (member of Daiwa House Group) and Koterasu, cooperated to develop affordable housing products in Binh Duong and neighboring provinces.

This joint venture announced that it will invest about 150 million USD in 5 years, aiming to bring thousands of low-cost apartments to the market each year. The joint venture has completed capital contribution for a project near Vincom Di An (Di An City), with a scale of nearly 2,000 apartments, selling price under 2 billion VND/apartment, likely to be launched in the third quarter of this year.

It is known that Bcons Group, a unit that has many social housing projects in Binh Duong, is also joining hands with Asset Limited (Thailand), continuing to carry out 11 housing projects with a total of nearly 9,000 apartments in the affordable segment in this locality.

Most recently, this investor announced plans to develop more than 2,000 social housing units in the Thong Nhat Street area (Di An City) in 2025.

In April 2024, Kim Oanh Group also signed a cooperation agreement to invest in the One World Urban Area real estate project with 3 Japanese partners, including Sumitomo Forestry Group, Kumagai Gumi Group, and NTT Urban Development Company. The project has a scale of nearly 50 hectares, with a total investment of more than 1 billion USD. The project is located between major roads such as Binh Duong Boulevard, Nguyen Thi Minh Khai and Ring Road 3 - Ho Chi Minh City.

One of Asia's leading real estate groups, CapitaLand (Singapore), also broke ground on the Sycamore Housing Project, covering an area of ​​19 hectares in Binh Duong. This project will build nearly 3,500 apartments, meeting the housing needs of about 13,000 residents. The total development value of the project is about 18,000 billion VND. It is known that this is the largest-scale project and has the most affordable price in the series of products that this investor is implementing in Vietnam.

Many advantages and incentives to attract investment

As a company that has invested in Binh Duong real estate, Mr. Ronald Tay, General Director of CapitaLand Vietnam, shared that the Sycamore Project is a testament to the company's belief in the Binh Duong real estate market.

“Binh Duong is not only a locality with a strategic location, favorable business environment, high-quality infrastructure, but also one of the localities with dynamic development, strongly attracting FDI capital,” said Mr. Ronald Tay.

Speaking to Dau Tu Newspaper reporters, Mr. Shin Ogawa, Head of Housing Operations of Cosmos Initia, also said that this enterprise and its joint venture partners highly appreciate the potential of the housing market in Vietnam, especially the real housing needs of people in Ho Chi Minh City, Binh Duong and neighboring areas, with real housing needs increasing, while supply is seriously lacking.

For his part, Mr. Nguyen Dinh Truong, General Director of TT Capital Investment Joint Stock Company, commented that the investment and implementation of the TT AVIO Apartment Project in Di An City was smooth and on schedule, thanks to the support and open support policies from local leaders. This will be the driving force for investors to continue to pour capital into projects in the area.

From the perspective of the Binh Duong Real Estate Association, Mr. Giang Quoc Dung, Chairman of the Association, said that investors from Japan, Singapore, Thailand and China are the groups most interested in the segment serving real estate needs. Therefore, they are always flexible in investing in Binh Duong.

In addition, according to Mr. Dung, Binh Duong has a favorable location, being located next to strongly developed localities such as Ho Chi Minh City and Dong Nai, and has a large land fund, allowing the construction of high-rise buildings without population quota restrictions. In addition, this province has an open investment environment and quick legal procedures.

Notably, the cooperation between Binh Duong and large corporations with global brands, such as Warburg Pincus, Sembcorp, Tokyu, CapitaLand Development, Aeon, etc. has recently achieved many successes and will continue to contribute to changing the urban appearance of Binh Duong. This is also one of the reasons why FDI enterprises in the real estate sector have the most realistic view of investment advantages in this locality.

With its potential and advantages, in recent times, not only foreign enterprises, but also many domestic investors have continuously poured capital into the real estate market in Binh Duong, focusing on the most potential and practical segment, which is affordable social housing.

For example, Phat Dat Real Estate Development Joint Stock Company plans to introduce the Thuan An 1 High-rise Complex Housing Project and the Thuan An 2 High-rise Complex Housing Project in Thuan Giao Ward (Thuan An City) in October 2024...