According to the latest property news in Vietnam, Mitsubishi Corporation will be the latest foreign overseas property investor to establish its presence in Ho Chi Minh’s real estate market. The developer will be joining hands with Vietnam property developer Bitexco to develop a large-scale mixed-use development project in Bitexco’s The Manor Central Park.
A Collaboration between Japan and Vietnam’s Leading Developers
Looking to take advantage of Vietnam’s rising middle class, Mitsubishi Corporation, one of Japan’s leading real estate developers, will also be jumping into the local residential property market with a large-scale redevelopment project composed of over 8,700 middle-income residences. However, the Japanese developer won’t be alone in this venture. According to the latest property news by Vietnam Investment Review, Mitsubishi will be joined by Bitexco Group of Companies (BITEXCO), the developer of Vietnam’s highest tower, the Bitexco Tower in Ho Chi Minh city, in investing in real estate for the middle-class market.
The two developers will be cooperating in building a Vietnam property that encompasses 17 high-rises with over 7,700 condominiums and 1,000 low-rises. This large-scale real estate project will take place in Bitexco’s The Manor Central Park, a mixed-use development site that spans over 90 hectares of land. With the developers planning to merge this site with a memorial park adjacent to it, another 100 hectares of land will be added. A grand total of 200 billion yen is estimated to be used solely for this redevelopment project.
It has been reported that the project will be mainly targeted to middle-class buyers, specifically company employees and government workers in their 30s and 40s. Each condominium unit is expected to cover around 70-80 square meters with an estimated cost of 15 million yen. During the initial phase, around 240 low-rise units and 1,000 high-rise units will go on sale in the Vietnam property market.
This Vietnam property marks Bitexco’s first partnership with an overseas property developer. Mitsubishi will hold a 45 percent stake in this Vietnam property project while Bitexco will hold the rest of the 55 percent.
Construction had only recently started and for interested domestic and overseas property investors, the first unit may go on sale as soon as October.
More Overseas Investors Head for the Vietnam Market
Mitsubishi is only one of the few in the latest wave of overseas property developers that are now investing in real estate that target the rising Vietnamese middle-class. With growing demand and policy changes, more foreign investors and developers are now becoming more and more attracted in Vietnam property.
“With steady economic growth and an expanding middle class, the Vietnamese market is expected to continue seeing an increase in the demand for housing. Amendments to the housing law made in July 2015, that loosened restrictions on the purchase of real estate by foreigners, are also likely to provide a boost to the housing market,” said Mitsubishi Corp’s statement.
Other foreign real estate developers with projects in Vietnam include Daewoo Engineering & Construction, a firm based in Korea, that has invested $2.2 billion in a project called Starlake New City in Hanoi. Another would be Tokyu Land, a Japanese developer, who is has its Binh Duong Garden City project worth $1.2 billion in the north of Ho Chi Minh.
With Mitsubishi becoming the latest foreign developer to jump into Vietnam’s property market, the country is certainly becoming a real estate hotspot for foreign investors. Interested in buying properties in Vietnam? See our property listings here or send us any business inquiries. You can also follow us in our Facebook page for more updates on real estate news in Vietnam.