Photo: CapitaLand Vietnam

 Singaporean developer ramps up Vietnam pipeline with acquisition of prime residential site in District 2 for $59.3 million.

CapitaLand announced on August 30 it has acquired a prime site in Ho Chi Minh City for $59.3 million and will build its 13^th residential development in Vietnam on the 6-ha site. The development is expected to yield more than 100 landed residential units, targeted for completion by 2021. This is CapitaLand’s third acquisition within a month as it actively replenishes its land bank and strengthens its foothold in high-growth developed and emerging markets.

The target site is in Binh Trung Dong ward in fast-growing District 2, where amenities such as international schools, shopping malls, supermarkets, and food and beverage outlets are aplenty. It is next to Ring Road No. 2 and 6 km from Phu My Bridge, providing convenient access to various key destinations. When completed, these will further enhance the connectivity of the area.

“We are pleased to bag another highly-coveted site in Vietnam, where our ninth residential development in the fast-growing District 2 of Ho Chi Minh City will be built,” said Mr. Lim Ming Yan, CapitaLand’s President & Group CEO. 

“Strong economic development, rapid urbanization, and rising affluence continue to fuel demand for quality residential developments in the country. CapitaLand has been seeing year-on-year growth in our Vietnam home sales, which are continually contributing to the Group’s earnings. As at the end of June, 93 per cent of CapitaLand’s launched residential units in Vietnam have been sold. We expect to hand over more than 30 per cent of the 2,680 units in Vietnam that have been sold in the second half of 2018.”

“It is in line with our strategy to reconstitute our portfolio by deploying capital gain into higher yielding assets in high-growth markets such as Vietnam. CapitaLand will continue with our disciplined investment approach to build a sustainable residential pipeline, while ensuring an optimal mix between trading and investment properties, as well as a balanced allocation between emerging markets and developed markets.”

“D2eight, our first landed residential development in Vietnam, was sold out within a day of its launch in April,” said Mr. Chen Lian Pang, CEO of CapitaLand Vietnam. “This demonstrates customers’ confidence in CapitaLand’s projects and underscores the robust demand for quality landed residential properties in the market.”

“Our acquisition of this site for landed development is therefore a strategic and timely addition to our residential pipeline. Given the site’s location and connectivity, coupled with CapitaLand’s building expertise and experience, we are confident that the landed development will appeal to homebuyers and investors seeking international quality, well-designed homes with good potential for capital appreciation.”

Vietnam is the third-largest market of CapitaLand in Southeast Asia, after Singapore and Malaysia. In March, it announced a joint venture to develop a 0.9-ha site in Tay Ho district in Hanoi into an integrated development, catering to the need for vibrant live-work-play spaces. This latest acquisition will add to CapitaLand’s existing $806-million portfolio in Vietnam. 

By Hong Nhung