Vietnam’s supply starved affordable housing market attracts Japanese investors

By Vu Pham, Hai Yen
Wed, August 21, 2024 | 3:21 pm GMT+7

Japanese investors are looking to take advantage of growth opportunities in Vietnam’s affordable housing real estate segment, where demand significantly outstrips supply.

Early this month, Cosmos Initia, a subsidiary of Japan’s leading realty developer Daiwa House Group, joined hands with its compatriot firm Koterasu Group and Vietnam’s TT Capital to build the TT AVIO apartment project in Binh Duong province’s Di An town. The province, neighboring Ho Chi Minh City, is a southern industrial hub.

TT AVIO apartment project takes shape in Di An town, Binh Duong province, southern Vietnam. Photo by The Investor/Vu Pham.

TT AVIO apartment project takes shape in Di An town, Binh Duong province, southern Vietnam. Photo by The Investor/Vu Pham.

This 17,450 square meter affordable housing project includes nearly 2,000 apartments with an average area of less than 60 sqm each. Eighty percent of these units will be priced below VND2 billion (approximately $802,840).

Cosmos Initia and Koterasu Group also plan to invest $150 million in TT Capital over the next five years, aiming to supply 1,000 affordable housing units to the market annually.

Earlier in April, local developer Kim Oanh Group partnered with three Japanese companies to develop a $1 billion 50-hectare urban area project, also in Binh Duong.

The three Japanese companies – Sumitomo Forestry Group, Kumagai Gumi Group, and NTT Urban Development Company – will together hold a 49% stake in the joint venture with Kim Oanh Group holding the other 51%.

Several real estate collaborations between Vietnamese and Japanese firms were also seen last year.

One of these was a strategic pact between Kim Oanh Group and Sumitomo Forestry to develop real estate projects, particularly in the southern province of Ba Ria-Vung Tau.

Sumitomo Corporation also teamed up with Vietnamese real estate conglomerate BRG Group to jointly develop a smart city project in northern Hanoi, while Marubeni and Hung Thinh Group inked a co-investment agreement for projects in HCMC’s Thu Duc city.

Industry insiders and experts say that it is the long-term growth potential of the Vietnamese real estate market that makes it especially attractive to Japanese investors.

Supplementary factors to this include the expectation that new laws will improve market transparency and sustainability. Vietnam’s young population, rising incomes and growing housing demand are other factors that make the country’s realty market even more appealing, they add.

In the past, Japanese businesses primarily focused on purchasing and distributing real estate projects in Vietnam. However, they are now shifting their attention to directly engaging in construction, with particular emphasis on affordable housing.

Keisuke Muraoka, housing division director at Cosmos Initia, emphasized that in addition to legally cleared land, Japanese investors take account of the experience and operational and management capabilities of their partner companies, as also their achievements in the real estate market.

Comments (0)
  • Read More
Singapore's YCH Group eyes developing logistics center in southern Vietnam economic zone

Singapore's YCH Group eyes developing logistics center in southern Vietnam economic zone

Tay Ninh province has pledged full support to Singapore’s YCH Group in developing a logistics center within its Moc Bai Border Gate Economic Zone.

Industries - Sat, July 12, 2025 | 1:48 pm GMT+7

Vietnam PM asks US firms to sustain support for 'reasonable, detailed tariff pact'

Vietnam PM asks US firms to sustain support for 'reasonable, detailed tariff pact'

Prime Minister Pham Minh Chinh has called on U.S. businesses to continue supporting the Vietnamese government in dialogues with U.S. agencies to soon reach "a reasonable, detailed tariff agreement for individual products and product groups".

Economy - Sat, July 12, 2025 | 11:32 am GMT+7

Mergers of Vietnamese provinces unlock new property development opportunities

Mergers of Vietnamese provinces unlock new property development opportunities

The merging of Vietnamese localities is expected to create a strong "boost" for the real estate market as expanded planning space, synchronized infrastructure, and new land reserves are key factors driving the market's transformation.

Real Estate - Sat, July 12, 2025 | 11:00 am GMT+7

Measures proposed for Thailand to minimize US tariff impacts

Measures proposed for Thailand to minimize US tariff impacts

Financial and banking experts in Thailand have warned that the U.S.'s proposed 36% tariff on Thai goods is likely to severely undermine Thailand's export competitiveness.

Southeast Asia - Sat, July 12, 2025 | 9:06 am GMT+7

Chinese construction major PCG eyes $383 mln underwater tunnel project in northern Vietnam

Chinese construction major PCG eyes $383 mln underwater tunnel project in northern Vietnam

Pacific Construction Group (PCG), one of China’s leading construction firms, has expressed interest in developing a VND10 trillion ($383 million) underwater road tunnel in Quang Ninh, a coastal province in northern Vietnam.

Infrastructure - Sat, July 12, 2025 | 8:04 am GMT+7

Vingroup stocks pull VN-Index up for sixth consecutive session

Vingroup stocks pull VN-Index up for sixth consecutive session

VN-Index, which represents the Ho Chi Minh Stock Exchange, on Friday increased for the sixth consecutive session thanks to large-cap stocks, with foreign investors continuing to strongly net buy.

Finance - Fri, July 11, 2025 | 7:20 pm GMT+7

Coca-Cola inaugurates largest-scale Vietnam factory in Tay Ninh province

Coca-Cola inaugurates largest-scale Vietnam factory in Tay Ninh province

Coca-Cola Beverages Vietnam on Friday inaugurated a $136 million factory in Tay Ninh province, the largest-scale among its four facilities in Vietnam.

Industries - Fri, July 11, 2025 | 5:27 pm GMT+7

Vietnam halts use of German ODA loans for HCMC metro line

Vietnam halts use of German ODA loans for HCMC metro line

The Government has approved a proposal by Ho Chi Minh City to stop borrowing official development assistance (ODA) loans from Germany’s KfW development bank for Metro Line No. 2 and instead use domestic funds to avoid further delays.

Economy - Fri, July 11, 2025 | 3:25 pm GMT+7

Seventeen housing projects foreigners allowed to buy in HCMC

Seventeen housing projects foreigners allowed to buy in HCMC

Ho Chi Minh City has announced a list of 17 residential projects located in areas where foreign organizations and individuals are allowed to own houses.

Real Estate - Fri, July 11, 2025 | 3:17 pm GMT+7

Auto enterprises to enjoy preferential import tariff policies

Auto enterprises to enjoy preferential import tariff policies

The Government has issued a decree amending and supplementing Decree No. 26/2023/ND-CP on the export and preferential import tariff schedules, as well as the lists of goods subject to absolute tax, mixed tax, and out-of-quota import duties.

Companies - Fri, July 11, 2025 | 2:13 pm GMT+7

Korean chaebol Samsung’s revenue makes up 13% of Vietnam’s GDP in 2024

Korean chaebol Samsung’s revenue makes up 13% of Vietnam’s GDP in 2024

Samsung’s revenue and export in Vietnam accounted for approximately 13.12% of the country’s GDP and 13.4% of its total export turnover in 2024, respectively, according to the National Statistics Office.

Companies - Fri, July 11, 2025 | 2:09 pm GMT+7

JPMorgan upgrades Vietnam stocks to overweight following US tariff deal

JPMorgan upgrades Vietnam stocks to overweight following US tariff deal

JPMorgan Chase has upgraded Vietnam stocks to overweight after the country became the first Southeast Asian nation to reach a preliminary tariff deal with the U.S.

Economy - Fri, July 11, 2025 | 11:38 am GMT+7

Vietnam government bond issuance surges nearly 70% in June

Vietnam government bond issuance surges nearly 70% in June

The Hanoi Stock Exchange (HNX) held 16 government bond auctions in June, raising nearly VND30.5 trillion ($1.2 billion), up 68.8% from May.

Finance - Fri, July 11, 2025 | 9:30 am GMT+7

Xuan Truong Company asked to make feasibility study for airport proposal in northern Vietnam

Xuan Truong Company asked to make feasibility study for airport proposal in northern Vietnam

The Ministry of Construction has asked Ninh Binh authorities to prepare a feasibility study on the potential development of an international airport in the province, the ministry said in a report submitted to the Government regarding a proposal from private construction company Xuan Truong.

Companies - Fri, July 11, 2025 | 9:18 am GMT+7

Vietnam-US tariff agreement: A strategic turning point toward deeper integration

Vietnam-US tariff agreement: A strategic turning point toward deeper integration

The tariff agreement between Vietnam and the U.S. marks not only a trade or diplomatic breakthrough but also reflects a long-term strategic vision, bold foreign policy, and Vietnam’s commitment to deep global integration, writes Nguyen Tuan Viet, an export promotion expert and CEO of Vietgo.

Opinion - Fri, July 11, 2025 | 9:00 am GMT+7

Apple supplier Luxshare enjoys 0% corporate income tax in central Vietnam province

Apple supplier Luxshare enjoys 0% corporate income tax in central Vietnam province

China’s Luxshare-ICT, a key supplier to Apple, reported that its subsidiaries in Vietnam’s central province of Nghe An enjoyed a 0% corporate income tax last year.

Companies - Fri, July 11, 2025 | 8:00 am GMT+7