With a total area of over 60,000 square metres, the development is anticipated to generate over 100 landed residential units, which is expected to be completed by 2021. This is Capita Land’s third acquisition in just a month as it vigorously restocks its land bank and enhances its position in high-growth developed and emerging markets.
The prime site is located in Binh Trung Dong Ward, District 2, Ho Chi Minh City , where international schools, shopping centers, supermarkets as well as food and beverage stores are abundant.
In particular, it is situated right next to Ho Chi Minh City’s Ring Road 2 and six kilometres to the Phu My Bridge, offering convenient entry to several essential stops. Additionally, The Cat Lai Port and Thu Thiem – the new financial centre and urban area of Ho Chi Minh City are nearby.
Various major infrastructure developments such as the construction of the My Thuy interchange and Cat Lai bridge are in motion. Upon its completion, these will further improve 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 Lim Ming Yan, CapitaLand’s President & Group CEO.
He added: "Strong economic development, rapid urbanisation and the rising affluence of its population 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 of 30 June 2018, 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 at approximately $593 million in the second half of 2018,” he added.
“This is CapitaLand’s third acquisition in the month of August, as we continue our momentum in replenishing our land bank. 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,” he said.
“Our acquisition of this site in Ho Chi Minh City’s District 2 for landed development is 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,” said Chen Lian Pang, CEO of CapitaLand Vietnam.
In the first six months of 2018, with the growth of Vietnam’s GDP reaching over 7 per cent, CapitaLand had sold 619 residential units in Vietnam with a higher sales value of $153 million compared to the same period in the previous year. Moreover, 724 residential units with a sales value of $96.5 million were delivered to home buyers.
Vietnam is the third largest market for CapitaLand in Southeast Asia, after Singapore and Malaysia. This latest acquisition will add to CapitaLand’s existing $804 million portfolio in Vietnam including two integrated developments, close to 8,000 quality homes across 12 residential developments, two retail malls, and more than 4,800 serviced apartment units in 21 serviced residences across seven cities – Ho Chi Minh City, Hanoi city, Hai Phong city, Halong city, Danang city, Binh Duong province and Nha Trang city.