The 8,700-residence project, targeting the middle class, covers 190 hectares on Nguyen Xien street in Hanoi (Photo: nikkei.com)

Tokyo (VNA) – Mitsubishi Corp. is partnering with a Vietnamese firm to develop a major real estate project in Vietnam with construction costs of up to 200 billion JPY (1.9 billion USD).

The 8,700-residence project, targeting the middle class, covers 190 hectares on Nguyen Xien street, an area considered a “gold land plot” in Hanoi, the firm said.

The 17 high-rises to be built will contain 7,700 condominium units, each of which will be between 70 – 80 square metres and sold at 150,000 USD. Meanwhile, each of the 1,000 low-rise housing units will cover some 300 square metres and cost 600,000 – 700,000 USD.

The project also includes garden space, commercial properties, office buildings and research facilities.

Under the contract with Vietnamese partner Bitexco Group, Mitsubishi will sell 240 low-rise units and roughly 1,000 high-rise units during the initial phase with project costs estimated at about 30 billion JPY.

The low-rise housing will become available in November while units in two condominium high-rises will hit the market in early 2017.

The number of residences sold in Hanoi doubled to 20,000 in 2015, and demand is expected to remain high, according to a real estate market study.

Mitsubishi’s housing plan in Hanoi is part of its efforts to capture a bigger slice of Asia’s rising middle class. The firm also has other middle class property projects in Jakarta (Indonesia), Manila (the Philippines), and Shenyang and Dalian cities (China).-VNA