Developers up the ante on country-wide investment

Recent buyouts and increased investment have spurred home and resort developments

The Korean-backed National Housing Organisation (NHO) has announced its intention to build 14 housing projects for low-income earners in Vietnam worth VND20.6 trillion ($1billion).

NHO’s announcement was confirmed after the Korean-backed company reached agreement with other developers to buy-out stalled projects. As many as 25,000 flats will be constructed to benefit low-income earners in Ho Chi Minh City, Hanoi, Danang, Binh Duong, Quang Ngai and An Giang.

These are not NHO’s first projects in Vietnam. The company has already developed a range of other residential projects, including Nest Home in Danang and First Home in Ho Chi Minh City.

Domestic firms have also been busy buying out failing property developments as companies look to restructure their portfolios.

Well-known domestic property developer NovaLand recently announced plans to take over three housing projects in Ho Chi Minh City worth VND3 trillion ($142.8 million).

Phan Thanh Huy, general director of NovaLand, was upbeat about the market, claiming there was real evidence of positive movement.

NovaLand has sold more than 1,000 apartments since the beginning of the year, with the company intending to make 3,000 apartment sales in 2014.

The Dat Xanh group also recently announced a joint deal with Pacific Property Infrastructure Joint Stock Company (PPI) to develop Water Garden, a residential project in Ho Chi Minh City. This project was originally earmarked as a public-private investment (PPI) valued at VND1.27 trillion ($60 million), however the PPI couldn’t proceed because of a lack of capital.

Some months ago, the Him Lam Joint Stock Company also bought out a VND1.1 trillion ($52 million) project in Ho Chi Minh City from Hoang Anh Gia Lai.

A range of new projects have also kicked off in the resort segment in recent months.

These include Sun Wah Vietnam Real Estate’s $200 million project in Ho Chi Minh City and US billionaire Rockefeller-owned Rose Rock agreement to develop a $2.5 billion resort and tourism complex in Phu Yen province. In addition, Moscow-based State Development has started its Cam Ranh Flower Resort with investment capital of $90 million.

The Hoa Binh Vietnam company also recently began work on its VND1 trillion ($47.6m) five-star resort in Phu Quoc Island’s Bai Truong. BIM Group also just broke ground on a five-star hotel in the same area, while Vingroup began construction on its Vinpearl Phu Quoc project.

According to Phu Quoc People’s Committee, more than 200 investors have registered tourist and resort projects in Phu Quoc Island, with around 100 projects already under construction.

Meanwhile, other investors are unveiling their real estate development plans. Vingroup has a list of 13 projects, FLC had just announced a VND5 trillion ($238m) project in Thanh Hoa province, the CEO group has released news of a VND4.5 trillion ($214.2m) investment in Phu Quoc, Lotte kicked off its $2 billion development in Ho Chi Minh City’s Thu Thiem area, and Lucky Cement has also announced its $1 billion eco-tourism project in Quang Ninh province.