BINH DUONG REALTY MARKET ENTICES INVESTING INFLUX

In the year to date, the southern province of Binh Duong has enticed a string of foreign-led projects into its realty market, focusing on the mid-income customer segment.

In early August, TT Capital Investment Corporation and two Japanese partners - Cosmos Initia and Koterasu Group - agreed to develop affordable housing line in Binh Duong province and surrounding localities.

The consortium announced it would splash around $150 million across five years, each year introducing thousands of affordable housing units into the market.

This consortium has also pooled capital into a real estate venture in Di An city with a scale of around 2,000 apartments, each costing below VND2 billion ($83,000). The products are slated for launch before the end of Q3..

Elsewhere, Bcons Group, a business with a pipeline of social housing projects in Binh Duong, is to work with Thai’s Asset Limited to deploy 11 housing projects in the province, with a scale of nearly 9,000 apartments in the affordable housing segment.

Back in June, the developer announced expediting a scheme to build more than 2,000 affordable homes in Di An city in 2025.

In April, Kim Oanh Group inked an investment cooperation agreement to implement the One World urban area project with three Japanese partners, Sumitomo Forestry, Kumagai Gumi, and NTT Urban Development.

The project, valued more than $1 billion, connects with arterial roads such as Nguyen Thi Minh Khai and Ring Road 3 of Ho Chi Minh City.

Meanwhile, CapitaLand from Singapore also kicked-off construction of its Sycamore housing project over 19ha in Binh Duong early this year. The project aims to build around 3,500 apartments to meet housing needs for 13,000 people with a total investment value approximating $750 million.

According to Ronald Tay, CEO of CapitaLand Vietnam, the Sycamore project is a testament to their trust in Binh Duong’s real estate market.

“Not only a locality with a strategic position, a conducive business environment and quality infrastructure, Binh Duong is also one of the localities with dynamic development and strong foreign investment attraction,” said Tay.

Giang Quoc Dung, chairman of the Binh Duong Real Estate Association, noted that investors from Japan, Singapore, Thailand, and China are those paying the largest attention to the housing segments with real demands. They, therefore, have poured capital into Binh Duong, a vibrant development centre.

"The locality has multiple advantages as it is adjacent to localities with strong development as Ho Chi Minh City and Dong Nai. There is also enough available land for the development of high rises, plus a conducive investment environment and a quick legal setup," Dung said.

In addition, a proven track record of cooperation between Binh Duong and global brands such as Warburg Pincus, Sembcorp, Tokyu, CapitaLand Development, and AEON is deemed one of the factors leading to foreign-invested businesses in real estate to have practical views about the advantages of this locality.

Along with that, many local businesses want to inject capital into Binh Duong’s realty market, focusing on the affordable housing line.

For instance, in October Phat Dat Real Estate Development Corporation is to present its Thuan An 1 and Thuan An 2 high-rise residential complexes in downtown Thuan An city.

Source: VIR