Two Japanese real estate firms – Cosmos Initia and Koterasu – have teamed up with Vietnamese developer TTCapital Investment for a $150 million affordable housing project in Binh Duong province, southern Vietnam.
The joint venture aims to build 1,000 affordable houses a year for five years, starting with 2,000 units in the province’s Di An town.
Later, it will eye developments with suitable prices and legal conditions in areas surrounding Ho Chi Minh City, which neighbors the province.
The joint venture plans to introduce its first products mid-2024, with prices at below VND2 billion ($82,370) per unit for apartments of 50-60 square meters, or about VND35 million ($1,440) per square meter.
A release said the initiative was “a rare spark” in the ailing real estate market in HCMC and nearby areas, with Nguyen Dinh Truong, CEO of TTCapital, noting that land acquisition was especially easier in the affordable housing segment].
For Koterasu, the joint venture is its latest project in Vietnam, where it has been very active in recent years.
In January 2022, Koterasu, Van Xuan Group, a HCMC-based real estate developer, and Tokyo Business Service Capital Vietnam signed a strategic partnership in real estate development.
In September 2023, Koterasu and An Gia Real Estate Investment and Development signed an agreement under which the former would acquire secondary shares of the latter with a total value of $10 million, via put-through or order matching on the stock market.