Japanese investors flock to real estateadminnamlong
Even though the Vietnamese property market is dominated by Singaporean and South Korean developers, Japanese investors are trying to climb closer to the top spot.
Japanese investors are increasingly attracted to the Vietnamese real estate market
For the past year, many Japanese investors have co-ordinated with Vietnamese counterparts to develop property projects in the country.
The largest project to come from Japanese investment so far, Sumitomo and BRG Group are expected to start construction of a $4.2 billion smart city in Hanoi this year.
Elsewhere, Mitsubishi has also co-operated with ¬Vietnamese property developer Bitexco to create 240 low-rise housing units and two high-rise condominiums out of a proposed total of more than 1,000 low-rises and 17 high-rises at The Manor Central Park project, also located in the capital.
Mitsubishi has recently decided to pour a total of around $500 million to develop a range of projects developed by ¬domestic Phuc Khang Group.
“Major cities like Hanoi and Ho Chi Minh City have high population density and large-scale economies, while the housing supply still limited. The improving infrastructure system within the real estate market offers high potential for future investment,” a representative from Mitsubishi said.
“Japanese and Vietnamese investors are of similar mindsets and hold similar -development strategies. Therefore targets from both sides will bring about new residential areas to Vietnam,” he said.
Meanwhile, Hankyu Hanshin Properties Corporation and Nishi Nippon Railroad have also been in co-operation with Nam Long Group to develop a range of property ventures in Vietnam.
Kajima Corporation, a Japanese group which has been actively investing across Southeast Asia, has a current partnership with Indochina Capital to invest more than $1billion spread over several years to develop a chain of 20 hotels in Vietnam, Cambodia, and Laos under the brand name of Wink Hotels.
Keisuke Koshijima, executive vice president and general manager of the Overseas -Operations Division of Kajima Corporation, told VIR that besides investing in the hotel segment, the company is still looking for opportunities in offices, residential areas, and other real estate development.
“Against the backdrop of continuing economic growth, Vietnam keeps its position as one of the hottest markets in the world for Japanese investors. I foresee that this trend will ¬continue in the years to come,” Koshijima said.
Alongside this, the Vietnam real estate market has attained interest from other groups such as Nikko, Tokyu, AEON, Nidec and Hitachi.