The rapid pace of urbanization and population growth in Vietnam has put immense pressure on urban areas, as the supply of housing has failed to keep up with demand over the years. To address this challenge, a shift in real estate product offerings, particularly towards smaller and more affordable apartments, along with the development of satellite towns to decongest urban centers, has become imperative. This evolution in the real estate landscape is shaping the industry’s trajectory.
Cosmos Initia, a Japanese enterprise with a half-century of experience in developing real estate markets not only in Japan but also abroad, has just sealed its first investment collaboration on a project in Vietnam. The company recognizes that mid-range apartments are currently the sweet spot in terms of meeting the actual housing needs of the population.
To gain deeper insights into the strategies and perspectives of foreign investors, specifically those from Japan, regarding the Vietnamese real estate market, we had a conversation with Mr. Keisuke Muraoka, Director of the Housing Management Division at Cosmos Initia’s International Business Branch (a member of Daiwa House Group).
Mr. Keisuke Muraoka
|
With a focus on the mid-range housing segment in Vietnam, what are your expectations for the profitability of this segment through your collaboration with local partners in project development? What sets Cosmos Initia apart in this regard?
Mr. Keisuke Muraoka, representing Cosmos Initia: Firstly, as a foreign investor, entering the Vietnamese development market presents various challenges. Hence, we are immensely grateful for the opportunity to collaborate with local partners. Regarding profitability, as we are targeting mid-range consumers, we anticipate a consistent level of demand. We are confident in expecting stable profits.
Besides Binh Duong and Ho Chi Minh City, which other areas do you plan to focus on next, and why?
We aim to study the real estate market in Binh Duong through this initial project and intend to concentrate on neighboring areas of Ho Chi Minh City, such as Long An, Dong Nai, and Binh Duong, where we foresee continuous satellite town development.
What criteria does Cosmos Initia consider when participating in project development? Do you prioritize legal aspects, infrastructure progress, standards of living, or other factors? Similarly, what criteria do you use to select local partners in Vietnam?
In any real estate project, the most crucial factor is attracting buyers who genuinely intend to reside in the development. Even with flawless legal procedures, a project may fail if it doesn’t meet the living needs of its target market. Thus, besides ensuring legal progress, we are particularly attentive to factors like location, amenities, and the surrounding living environment. As for local partners, we seek out entities with extensive experience in residential development and a solid reputation in the market.
What will be the primary role of Cosmos Initia in this joint venture? Will you mainly focus on construction, financial investment, or strategic consulting?
Cosmos Initia’s primary role in this joint venture is as an investor, coupled with providing strategic advice and support informed by our extensive real estate expertise. Our contribution goes beyond financial investment, as we also ensure that the TT Avio project adheres to quality standards. With over 50 years of experience, we guide and oversee critical aspects of the project to guarantee that the final product meets customers’ expectations regarding quality and comfort.
Binh Duong has been experiencing rapid urbanization, infrastructure development, and relatively swift legal progress in real estate. Several developers are already active in the area, offering projects similar to TT Avio. What advantages will Cosmos Initia bring to the table to compete with other projects in the same segment?
Over the past 50 years, Cosmos Initia has delivered over 100,000 apartments. During this time, we have navigated challenging periods, including the global financial crisis, but we have always prioritized customer satisfaction and successfully completed our projects. While this is our first project in Vietnam, we remain committed to customer focus and ensuring quality and timely delivery for this development.
At the TT Avio project, why did you choose apartment sizes below 60 square meters? How will the joint venture benefit buyers, especially in terms of payment support?
The decision to offer apartments smaller than 60 square meters at TT Avio aims to optimize living spaces while catering to the needs and financial capabilities of a diverse range of buyers. We understand that smaller yet functional spaces represent a modern and practical trend, allowing customers to enjoy a comfortable life within a reasonable budget.
The joint venture not only enhances project quality but also offers flexible financial solutions. Cosmos Initia and our local partners are committed to assisting buyers in crafting tailored and convenient payment plans for their apartments.
As your inaugural project in Vietnam, what factors has Cosmos Initia focused on to ensure the success of this first venture and establish a foundation for future projects?
This project not only marks our entry into the Vietnamese market but also plays a pivotal role in laying the groundwork for future expansion plans. To ensure the success of our first venture and build a solid foundation for subsequent projects, we have concentrated on several key factors.
Firstly, we conducted thorough research on the scale and dynamics of the Vietnamese market, enabling us to better understand buyer needs and market nuances while ensuring our project aligns with actual demand. Secondly, we emphasized consistency in project execution, carefully considering legal factors and adapting processes to suit the local context. This not only maintains project quality but also facilitates sustainable development.
Lastly, we are committed to long-term investment and determined to cultivate the Vietnamese market. This commitment translates into ensuring project quality and sustainability, thereby instilling absolute confidence in our customers.
Thank you very much, Mr. Muraoka, for your insights and time!
The most extensive bribery case ever in Thanh Hoa: Numerous suspects prosecuted for “Giving and Receiving Bribes”
The Provincial Security Investigation Agency (PSIA) of Thanh Hoa province announced on January 31st that it has made the decision to initiate a prosecution against 23 individuals in connection with the offenses of “Accepting bribes” and “Giving bribes” as stipulated in Article 354(3) and Article 364(2) of the Criminal Code.
Accelerating disbursement of the 120 trillion VND credit package for social housing
Deputy Prime Minister Trần Hồng Hà has recently issued directives regarding the implementation of the 120,000 billion VND credit package for investors and buyers of social housing, workers’ housing, and projects for the renovation and construction of apartment buildings.
Astonishingly high price for old and dilapidated apartment buildings reaching nearly 200 million VND/m2, rivaling the most luxurious condominiums in Hanoi
Old collective apartments with prices starting from 100 million VND/m2 are usually the first-floor units that can be used for commercial purposes, while the upper-floor units are priced at 60-80 million VND/m2 for residential purposes.
“Prosecution of government officials, land registration officers, and tax department employees in the largest bribery case ever”
The Thanh Hoa Police Investigative Agency has initiated legal proceedings against 23 individuals involved in the crimes of “Bribery” and “Receiving bribes”. This is the largest bribery case in terms of the number of suspects ever discovered and apprehended by the Thanh Hoa Police.
