Tuesday was a special day for Ho Chi Minh's real estate market as two property developers announced projects worth a combined $4.5 billion at press conferences.
Amidst a slumping property market, the investment in the two projects, Hung Dien New Town and the Vietnam International University Township, is a positive sign.
Tan Hung Investment Shareholding Company, a specialist in agricultural exporting, fertilizer production and pepper processing, is making a "milestone" investment in the US$1 billion urban area project on nearly 20 hectares of land in Binh Chanh District and District 8.
Tan Hung's Chairwoman, Le Thi Giau, said the company would call other investors to partner it in Hung Dien New Town.
The town will be comprised of office buildings, high-end apartment blocks, a shopping center, sports area and hospital.
Work on the town project began Tuesday afternoon, after the morning press conference.
On the same day, the Malaysian company Berjaya Land Berhad also announced its HCMC $3.5 billion university urban area project, which will cover 925 hectares of the northwestern Hoc Mon District.
Ho Ngoc Mirth, deputy head of the city's northwest urban project management board, said Vietnam International University Township was not only the city's largest project in terms of capital but also the largest university urban area project in the country.
Nguyen Huu Tin, deputy chairman of the HCMC People's Committee, said the project was an urban development project as well as a center to train high-quality human resources for the city and the southern region. The township, scheduled to kick off next year, comprises universities, apartment buildings, medical centers, trade centers and parks.
Peter E. Dinning, the managing director of the Vietnam branch of Colliers International, a global affiliation of independently-owned real estate service firms, said Tuesday demand for housing in Vietnam was still great.
Though the local realty market faces many difficulties as property developers bear the pressure of mobilizing capital to invest, the market will have more optimistic signs in six to 12 months, he said.
Source: Thanhnien News
