Malaysia, Vietnam to build $600 mln urban town

Malaysia, Vietnam to build $600 mln urban town


Malaysia's leading real estate group sealed a deal with a large Vietnamese property developer Tuesday to form a joint venture and develop a US$600 million housing project in southern Vietnam.
Following the contract between Malaysia’s SP Setia Bhd. And Vietnam’s Becamex IDC Corp., the new entity – SetiaBecame Joint Stock Company – will build the Eco Lakes My Phuoc housing estate in Binh Duong Province’s My Phuoc Industrial-Urban Park, about 40km away from Ho Chi Minh City.

Covering 226 ha, the town will be home to 200,000 residents and include healthcare facilities, an international school and shopping malls.

Developers also aim to construct a man-made beach in the heart of the town.

The venture expects the town to introduce a new standard and style of living to the local real estate market.

SP Setie is Malaysia’s largest property developer with 24 affiliates in construction, urban development, banking and securities.

The group has engaged in other Binh Duong projects in like the Vietnam-Singapore Industrial Zone, the My Phuoc – Tan Van Highway, and the My Phuoc Industrial-Urban IP.

Vietnam’s real estate market is promising on the back of the country’s remarkable economic growth, higher living standards, positive consumer trends, rapid urbanization and a burgeoning tourism industry, according to the property consulting firms’ research.

The housing saturation in Southeast Asian markets is expected to make Vietnam a lucrative option for regional developers.

Another Malaysian urban developer, Gamuda Group, has recently obtained the nod from the Hanoi municipal government to invest $1 billion in a 323 ha integrated commercial complex.

Construction is set to start by the end of this year for completion in eight years.

It includes a convention center, office towers, international five-star hotels, and luxury properties.