The real estate market has warmed up

CapitaLand has spent VND1.380 trillion to acquire a project covering an area of 60,000 square meters in district 9, HCMC which has been stagnant for five years. Just a short time before, it spent $33 million to take over a pending apartment project, covering an area of 1.4 hectares on Ton That Thuyet street.

With the two latest takeover deals, CapitaLand Vietnam’s investment portfolio now comprises 13 items. Vietnam has become one of the most important markets of CapitaLand in Asia where it has poured billions of dollars.

Hunting “frozen” projects which have great potential is the strategy that Bamboo Capital is pursuing. BCG Land, a member of Bamboo Capital, has recently spent hundreds of billion dong to acquire the 9,100 square meter land plot in district 2 from the previous owner – Hoan Cau Corporation.

Sources said BCG Land plans to pump VND1 trillion more to develop a 22-storey high-end apartment block on Sai Gon riverside.

Meanwhile, Novaland only eyes projects in advantageous positions. The real estate developer has acquired Co Giang apartment project in district 1 from Dat Viet Development JSC. The project, which has been stagnant for 11 years, has been renamed as Grand Manhattan. 

On Dien Bien Phu street, the 30-storey V-Ikon building which was criticized as spoiling the image of the city was auctioned by the Vietnam Asset Management Company (VAMC) at VND301 billion.

As 70 percent of construction workload at V-Ikon has been implemented, the new investor will only have to spend several hundreds of billions more to put the project in a very advantageous position into operation.

New investors all cherish ambitious plans when taking over the ‘frozen’ projects. As for Grand Manhattan, Novaland plans to provide 1,000 apartments to the market with the estimated price of VND150 million per square meter. 

Meanwhile, Bamboo Capital plans to implement its construction and business plan in 2018. 

With the new owner – Xuan Mai Investment & Construction, Eco Green, a project in district 7, covering an area of 14 hectares, has become busy again.

Analysts say that once the large-scale project heats up again, this will have positive impact on the market.

A report showed that in 2017, consumer goods manufacturing was the industry with the highest M&A value accounting for 57 percent of total value, followed by the real estate sector with 27 percent, finance & banking (4 percent) and materials & chemicals 3 percent.

Meanwhile, in the first six months of 2018, the real estate sector jumped into the first position with 66.75 percent.

US$1=VND22,000

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