From the early of year to now, Ho Chi Minh City has thousands of “layman” businesses” join in the real estate market.
Agriculture, transport, electronics… participated in real estate market
Currently, real estate market started backing the development trajectory. Many reports from market consulting company show that many companies have never worked in this field has already started to make the plan in the development real estate field.
Most recently, Saigon import-export seafood joint stock company (SeaProdex Saigon) indicates, the company halted trading of core fields to move the investment capital heavily in real estate. The segment which this business landed that is ground rental, warehouse rental, real estate business, financial investment…
“First, the SeaProdex Saigon will develop the project in no.6 – Pham Phu Thu, Tan Binh District. In addition, the company purchased the house and land area of the ground floor, mezzanine, 5th – 6th – 8th floor, in project no.49 – Pasteur and no.87 – Ham Nghi (District 1) to develop the hired project “, Mr. Duc Tam Vu – CEO of the SeaProdex Saigon said.
Reporting to the Department of planning and investment of HCM shows, in the first five months of the year, in many established registered enterprises, there has 42.6% of new business registering the real property, the equivalent of nearly 7 000 companies. Of these companies, there are thousands of the “layman” businesses taking part in the real estate market.
Meanwhile, information of Binh Tien company limited (Biti’s) will develop and invest the apartment project to take advantage of its large land fund in the West of HCM where are heating the real estate market in HCM In the past days, however, this business only produced the shoes before.
Besides, Hung Vuong seafood joint stock company also said they will grow into real estate business. This information is given by the leader of the company at the annual meeting of shareholders. Specifically, the land fund has about 10 hectares of land owned by the company in Tan Tao industrial area which is expected to build the warehouse will be used to do real estate project. In addition, Hung Vuong seafood company has made the plan to invest the capital for the trade center – high-end apartment in the land fund in District 6 to increase the value of the property.
In other cases, technical infrastructure investment HCM company (CII) – the famous business of infrastructure construction in HCM also announced the plan to invest in real estate. In 2017, the unit established the CII Land joint stock company to invest 2 senior projects in Thu Thiem new urban…
The advantage of the “layman” companies
The participation of “layman” enterprises in the real estate market comes from their own advantages. “The main advantage of this company is that they own the land fund. In particular, many state companies have the large land funds and beautiful location, when establishing the company, they rent the land 50 years of the city aiming to make the factory, however, after that, they did not use and then transfer to develop the real estate project, “Mr. Duc Vinh Tran – CEO of Tran Anh Long An real estate firm said.
In addition, the representative of the real estate Association of HCM (HoREA) identified, the real estate sector has always been rated as investment channel bringing the high returns. In particular, through the recent economic crisis, many real estate firms have dried up the land fund as well as the capital to continue to grow. Meanwhile, businesses in other fields such as agriculture, industry… develop which are still very good, having the abundant capital and land fund, so it is the suitable time for them to invest in the project.
“They have carefully observed the market preparing the strong capital and basing on the good land fund to step into the market,” Mr. Van Duc Nguyen – Vice President of HoREA said.
Sharing the plan participating in real estate market, the representative of the seafood company said: “It is not all years which the real estate market would also grow well. Therefore, the company is looking to go one step ahead, enlisting which the market is growing well cornering the investment resources in the real estate to get the long-term and stable source of revenue to develop the market “.
You are reading the article “The Real Estate In Ho Chi Minh: “Layman” Landed In The Real Estate Market” in the section “Real Estate News” on the website: www.realestatevietnam.com.vn/.
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