Mr. Than Thanh Vu, Chairman of Sao Khue Trade and Investment Promotion Company, who recently held a delegation of Vietnamese real estate businesses to promote investment in Japan, said diplomatic relations Vietnam – Japan is getting better and especially they see the economy of Vietnam developing sustainably.
On the other hand, the income of local people is rising, which will lead to higher demand for high-grade houses in the next few years, especially for young families … are the main reasons for stimulating investors. Japan’s head crushed capital into the real estate sector in the country.
Talking to the reporter, Mr.Vu said that during the trip the Japanese corporations have shared that they are eager to invest in Vietnam and are seeking investment opportunities in the real estate sector in HCMC and Ha. Interior development such as 5-star hotel, luxury housing, serviced apartments, commercial center, office buildings … in the central area.
For example, Sumitomo Group wants to develop a $100 million office tower project, or Toshin Group, the owner of the Takashiyama commercial center – recently opened in the downtown area of Ho Chi Minh City. The project is about $200 million … The total amount that these corporations want to invest immediately in the project is estimated at over $2 billion.
Therefore, Mr.Vu said that the possibility of upcoming will have many real estate projects in Ho Chi Minh City and Hanoi changed owners. Japanese businesses are financially strong, their lending rates are very low and they have a lot of experience in real estate business development and will be able to easily acquire real estate projects that have a good location in the country.
In a press conference announcing the real estate market report of the third quarter of 2016, CBRE revealed that the construction contractor of the Ben Thanh urban railway project – Maeda Japan Corporation has suddenly expanded its investment into the real estate market. This is a brand new investor in the market, which has been working with CBRE for six years only to research the market and to identify it in the investment segment.
It is known that the project that Meada invested is called Wateria Suites, in cooperation with Thien Duc Construction Company. The project has a total investment of $30 million, is deployed on a scale of 2,000 sqm with 89 apartments with an area of 150sqm-200sqm, a special feature of this project is the apartments have river surface.
According to JLL, the level of transparency in the property market will help attract capital, both new and old. For Japanese real estate investors, what they need most is the level of accuracy and timeliness of information, or, in other words, the transparency of the market.
Most recently, Kajima Group (Japan) signed an agreement with Indochina Capital to set up a joint venture specializing in real estate investment in Vietnam, with an estimated investment of $1 billion within 10 years with a capital contribution of 50:50. This is also the first time Kajima Group of Japan has invested in Vietnam as a developer of the project. And under this joint venture plan will buy back the real estate projects of domestic enterprises.
Or Mitsubishi Group recently signed with Bitexco Group to set up a joint venture to develop housing projects in Hanoi with initial investment capital of 290 million USD. Mitsubishi’s subsidiaries specializing in real estate have also partnered with South Korea’s Lotte Group to implement the Thu Thiem Smart City project in the functional area 2a in Thu Thiem New Urban Area. The total investment capital that the Lotte joint venture pledged is about $2.2 billion.
According to Stephen Wyatt, General Director of JLL Vietnam, foreign investors are very interested in Vietnam, many corporations are trying to understand the market and trying to get a firm foothold in the market. Many transactions are currently being signed and led by corporations from Japan.
According to Vu, the upcoming Vietnam Real Estate Tourism Association will hold an international real estate conference in Ho Chi Minh City, bringing together many large real estate investment groups in the region and in the world. In particular, more than 20 large investors from Japan will participate, explore the environment and partners to prepare to expand the scale of investment in real estate in the country.
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