Developers look to expand in Ho Chi Minh City
Developers look to expand in Ho Chi Minh City
The property market of Ho Chi Minh City is attracting a range of financiers wanting to set up large-scale projects in sectors like residential, industrial, and commercial property.
Lotte Properties, the real estate arm of Lotte Group, is seeking opportunities in the north-western part of the city. The group is the developer of the $900-million eco-smart city in Thu Thiem New Urban Area.
Jun Sung Ho, general director and CEO of Lotte Properties said, “We hope that we can unlock new opportunities in the city. We will study several projects that Ho Chi Minh City People’s Committee is offering in Hoc Mon and Cu Chi districts.”
Ho added that preferential projects are now given to multi-functional projects in cities like Hanoi and Ho Chi Minh City.
The eco-smart city in Thu Thiem has seen many years of delay due to overlapping legal regulations. A Lotte representative said that the group plans a groundbreaking ceremony; however, he refused to reveal the exact day, only that it could take place this month.
Meanwhile, CMIA Capital Partners and Surbana Jurong are cooperating in the High-tech Agriculture Eco-urban Area in Cu Chi district, with the total investment capital of up to $1.1 billion.
This project was launched in 2018 over 1,000-hectares, and is planned to provide multi-functional services in food processing, logistics, and eco-urban areas.
According to Ken Chan, a representative of CMIA and Surbana Jurong, the project expects to generate a turnover of $2 billion and more than 50,000 jobs for locals.
“With our experience, we are confident of turning this into a developed area to contribute to the socioeconomic development of the whole city,” said Chan.
CK Asset Holdings, one of the largest corporations from Hong Kong with the total asset value of more than $80 billion, also seeks to cooperate with domestic group Van Thinh Phat to set up projects in Ho Chi Minh City.
Justin Chiu, executive director of CK Asset Holdings said, “In each country, our investment decisions start with two essential conditions – government support and a trustworthy local partner. With our investment in Ho Chi Minh City, we are attracted to the government’s strategy to develop the city into a world-leading destination for real estate, finance, and advanced technologies. This is undoubtedly the right strategy showing vision and enthusiasm by the leaders of the city and the country.”
Domestic groups are also expressing their interest in real estate of Ho Chi Minh City. Sovico Group has signed an MoU with local authorities to implement a range of real estate projects with total capital of around $12 billion. Some projects that are proposed include a new urban area and a golf course, a trade centre, an eco-urban area, high-rise residential buildings, and a hospital.
Other developers are also submitting their projects, such as Hyundai E&C with a residential and urban area in Hoc Mon commune, Hung Thinh Group with a residential area with the investment capital of $87 million, Van Phu Invest with a new urban area, and Dat Xanh Group with a $480 million high-rise apartment building.
Ho Chi Minh City is in the top six locations attracting real estate investors in Asia-Pacific, according to a report released by CBRE in 2021.
Dang Phuong Hang, general director of CBRE Vietnam, said that Ho Chi Minh City had received a lot of attention from foreign investors, especially those looking for opportunities in Southeast Asia. “Real estate properties in Ho Chi Minh City are believed to have great potential for value appreciation and high returns,” Hang said.
