Japan’s Mitsubishi Corporation has announced a partnership with Vietnamese real estate group Bitexco to develop a phase of Manor Centre Park, Hanoi’s $1.9bn new suburb.
The Japanese conglomerate will hold a 45% stake in the joint venture, which will build 8,700 units in an area of 190ha at an initial cost of $286m.
The development will provide housing for the Vietnamese capital’s growing middle-class. The country has one of the most dynamic economies in the world, and average annual incomes have risen from $433 in 2000 to $2,111 in 2015, according to the World Bank.
Some 7,700 of the apartments will be located in 17 condominiums, and will have an area of 70-80 square metres and a sale price of $150,000. Another 1,000 will have a floor area of 300 square metres and sell for up to $700,000, reports Le Courrier du Vietnam.
The housing will be part of Bitexco’s new suburb for Hanoi, located about 8km from the city centre. As well as condos and villas, it will house a park, retail and office buildings, as well as sporting facilities.
The scheme, which has been in planning for the past eight years, will also involve the construction of the four-lane Dau Giay to Phan Thiet highway.
News website Nikkei Asian Review commented that Mitsubishi’s move is part of its efforts to capture a bigger slice of Asia’s rising middle class outside its stagnant domestic market. It has already developed similar projects in China, Indonesia, and the Philippines.
Image: Manor Centre Park: Hanoi’s new garden suburb (Bitexco)