Real estate players pump cash in as confidence rises

Real estate developers have underlined their confidence with some ambitious new plans
Photo: Le Toan

CEO Group chairman Doan Van Binh said his firm was quickly preparing for a busy year ahead following the firm’s floatation on the stock market which saw it increase its legal capital investment to double last year. Binh plans to invest VND1-1.5 trillion ($47.6-71.4 million) in 2015.

However, even this figure is dwarfed by conglomerates such as Vingroup, Bitexco, Phu My Hung or Novaland.

CEO Group’s optimism is based on the positive changes anticipated by the application of the laws on Real Estate Business and Housing which were passed by the National Assembly at the end of last year.

“I know those revised laws won’t have an immediate impact but they should help increase confidence,” Binh said.

Vietnam’s largest real estate developer, Vingroup, has begun construction on its $1.42 billion Vinhomes Central Park project in Ho Chi Minh City. This project will supply more than 10,000 apartments to the market. The group is also implementing its Vinhomes Nguyen Chi Thanh development in Hanoi with 378 units and has bought out Hong Ngan Real Estate JSC to expand its portfolio in Hanoi.

FLC Group, following a round of acquisitions, is now implementing FLC Complex with 500 units, FLC Garden City in Hanoi and a golf course and resort in Thanh Hoa province.

Meanwhile, after successfully developing industrial zones in Hanoi and Hai Duong province, VID Group has finished an office building for lease in Hanoi and starting its Goldmark City residential area in Hanoi. It has also received the go-ahead to transform the existing Dai Tu Industrial Zone into a residential area.

In Ho Chi Minh City, newcomer Dai Quang Minh Real Estate JSC has also implementing its large scale project in Thu Thiem.

Backed by experienced stock holders, Dai Quang Minh is implementing low-rise residential areas and infrastructure in the Thu Thiem New Urban project, providing more than 230 villas and 5,600 apartments.

However, Peter Ryder, general director of Indochina Land said that some segments such as retail and offices were still facing big challenges while the residential segment had seen an upward trend but competition had been tough and many projects still had substantial numbers of unsold units.

As an experienced real estate developer in Vietnam, Indochina Land will launch its high-end apartment project in Hanoi this year.