Japanese developers enter Vietnam’s property market. (Source: VNA)
Japan’s two leading property companies, the Daiwa House Group and Nomura Group, have revealed their intention to join hands with Sumitomo Forestry Co., Ltd to invest in Vietnam’s market.
The three companies plan to pour 27 billion JPY (224.6 million USD) in a 1,000- luxury- apartment complex in Vietnam.
The decision was prompted by increasing demands for luxurious condominiums in the Vietnamese property market spurred by loosened ownership regulations and stellar economic growth.
The complex will be built on an area of 28,000 square metres in Phu My Hung urban area in Ho Chi Minh City, which is billed as one of the most modern urban centres in Vietnam and favoured by most of the high-income earners and foreigners.
The complex, including gymnastic area and swimming pools, have apartments ranging in size from 85 square metres to 120 square metres. They are expected to be sold at high prices, at least doubling the average values of current apartments in Ho Chi Minh City.
The investors can invest in more apartments, depending on sale results.
The new Housing Law and the Real Estate Business Law have come into effect since July, which loosens requirements for foreigners to buy and own homes in Vietnam. The move is expected to serve as a catalyst to lure more foreign investment to the real estate sector.
The three Japanese property enterprises is now discussing with Phu My Hung Development Corporation possibilities for similar projects in other areas.
In addition, Mitsubishi Estate Co., Ltd also has plans to cooperate with a Singaporean group on property investment in Vietnam.-VNA
