Binh Duong Real Estate Thrives

9:10:30 PM | 31/12/2010

Binh Duong province has been long a top-choice destination for foreign industrial and manufacturing investors but it has also emerged a very attractive real estate market for FDI companies.
In 2007, SetiaBecamex Joint Stock Company - a joint venture between SP Setia Berhad, a top real estate developer in Malaysia, and Becamex IDC Corporation, a leading infrastructure and industrial park developer in Vietnam, began construction on EcoLakes My Phuoc ecological urban zone project covering on an area of 226 ha and costing more than US$620 million. This was considered an impressive stepping stone for a new wave of FDI capital into the estate market in Binh Duong province.
Growth in quality and quantity
Following this project, many other foreign-invested real estate projects continued flowing into the province, including The Canary urban zone in front of the Vietnam Singapore Industrial Park 1 (VSIP 1) in Thuan An district. Covering an area of 17.5 ha, the urban zone consists of around 1,200 apartments, a shopping mall of 82,000 square metres, a four-star hotel, an international school and other infrastructures. The US$200 million project, invested by Singapore’s Guocoland Co., Ltd, is expected for completion by 2015.
According to the investor, the first phase with 237 apartments has been completed and transferred to customers. Guocoland is carrying out the second phase of the project with 190 luxury apartments.
Apart from investors from Malaysia and Singapore, Charm Engineering Company of South Korea has most recently carried out its Charm Plaza project in Di An district. With a total construction area of 362,000 square metres, Charm Plaza a complex with six building blocks, including 2,700 apartments with individual area of 46 square metres or 176 square metres, supermarkets, a trade centre, an international kindergarten, swimming pools etc. Posco E&C was selected to construct the US$200 million project with 404 apartments in the first phase.
Many real estate investors have expanded their investment plans. Particularly, following the US$620 million EcoLakes My Phuoc project, SP Setia Berhad continued to invest US$117 million to build the 10.8-ha EcoXuan multifunctional urban zone in Thuan An district, which is expected to be offered on sale in the second quarter of 2011. This reflects a wide room still available for real estate investors.
Attractive environment for real estate development
According to Savills Vietnam, a world-leading property service provider, Binh Duong’s economy has expanded rapidly, powered by big FDI capital. The economic success has led to a great demand for construction, real estate development and related services. The southern province has recently focused on infrastructure development, especially the 1,000-ha Binh Duong new city project. Besides, the Tan Van-My Phuoc highway will link Binh Duong province with Central Highlands, Southwest Vietnam, Southeast Vietnam, international airports and seaports. Thus, the interest of global companies is seen as a certain trend.
According to investors, Binh Duong province has a high housing demand for foreign businesspeople and specialists as it is housing many FDI projects. Besides, investors see favourable conditions in the province, namely available land funds for new projects and adjacency to Ho Chi Minh City. Mr Khoo Teck Chong, General Director of SetiaBecamex, said: The progress of EcoLakes My Phuoc project is going very smooth. The first phase of the project with 251 apartments will be completed in December 2010, three months earlier than planned. Meanwhile, Mr Jeon Yong Ho, Director of DCT Partners Vietnam Co., Ltd, a legal entity of Charm Engineering in Vietnam, said: Adjacency to Ho Chi Minh City and favourable travel conditions increase the success of real estate projects in Binh Duong province.