Investment capital amount of $15.3 billion to be poured into real estate in Hanoi
By Hoa Dang
June 30, 2018 | 05:24 PM GMT+7
An array of the modern mega-projects has ever been launched in the north, east and west of Hanoi.
Numerous large-scale real estate projects along the Nhat Tan - Noi Bai axis have started
Hanoi has become a hotspot in drawing huge flow of investment. The city presented in-principle approval and investment certificates to 71 projects worth over US$17.5 billion including 11 FDI projects valued $5.67 billion at the annual conference "Hanoi 2018 Investment and Development Cooperation" recently held.
In particular, the Smart city project worth $4.12 billion invested by the joint venture between Vietnam’s real estate developer BRG Group and Japanese-based Sumitomo Group was licensed.
Lotte Mall project invested by South Korea’s Lotte Group was granted investment license. This commercial center covering a total investment capital of $585 million is located in Ciputra urban area.
In addition, Nidec Motor Vietnam got approval from the city to invest in a motor and electronic equipment factory with a total investment of $198 million while Heineken raised the investment capital of its brewery to $209 million.
Two environmental projects have been approved in principle, including the Xuan Son waste-to-electricity plant project which has an investment capital of $89.5 million and is jointly invested by T&T Group and Hitachi Zosen Corp (Japan) and the municipal waste-to-energy plant project at the Xuan Son waste treatment Complex invested by Indovin Power Co., Ltd. with the capital of $59.6 million.
These 71 projects are involved in the fields of transportation, environment, industry - commerce - service - tourism - entertainment sports, housing, urban area, education and training.
However, real estate sector leads in attracting investment. According to the preliminary statistics of TheLEADER, real estate sector accounts for up to $15.3 billion, equivalent to 90 per cent of value of these 71 projects.
Apart from Sumitomo Group's project, there are also unprecedented megaprojects. Tay Mo - Dai Mo urban area located in Nam Tu Liem district is invested by West Hanoi Urban Development Investment Joint Stock Company at a cost of $3.5 billion.
Gia Lam Urban Area situated in Gia Lam District is invested by Gia Lam Investment and Urban Development Co., Ltd with the capital of $3.81 billion.
Moreover, major urban projects which run along the Nhat Tan - Noi Bai axis have also started.
Essensia Parkway makes significant impact in the high-end real estate market as 100 per cent of the limited collection was successfully registered within just a few hours at the launching event with the theme “Live lux-well, in a truly refined world”.
Essensia Parkway is set to mark a significant milestone as the first branded residences project in Ho Chi Minh City to be operated by WorldHotels – one of the finest portfolios of independent hotels and resorts within BWH Hotels.
While the average price of apartments in Hanoi has reached new heights, with supply primarily concentrated in the premium and luxury segments, there are still no signs of a price slowdown.
Vietnam's hospitality industry is undergoing a major transformation with a brand repositioning strategy that emphasizes unique, sustainable, and community-focused experiences.
