CapitaLand buys landed housing site in Vietnam for S$81.4mil
CapitaLand is buying a prime site in Ho Chi Minh City for VND1,380 billion (approx. S$81.4 million)
CapitaLand is buying a prime site in Ho Chi Minh City for VND1,380 billion (approx. S$81.4 million), with the 60,000 sq m land parcel expected to contain over 100 landed housing when the development is completed by 2021.
This marks the Singapore-listed property developer’s third acquisition in August 2018 after CDL and CapitaLand clinched a 3.7ha mixed-use site in Sengkang Central, Singapore for S$777.78 million. CapitaLand also bought two prime residential sites in Guangzhou, China for RMB2.05 billion (around S$409.3 million) earlier this month.
In Vietnam, the landed housing plot is located in Ho Chi Minh City’s second district, which houses malls, supermarkets, F&B outlets and international schools. It is adjacent to Ring Road 2, while Cat Lai Port and the capital’s new financial centre Thu Thiem are also nearby.
“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 CapitaLand’s President and Group CEO Lim Ming Yan.
This represents its 13th residential project in the country, and the acquisition is timely given the group’s flourishing property development business there!
“CapitaLand has been seeing year-on-year growth in our Vietnam home sales. As of 30 June 2018, 93 percent of CapitaLand’s launched residential units in Vietnam have been sold. We expect to hand over more than 30 percent of the 2,680 units sold at approximately S$811 million in the second half of 2018.”
Moreover, units at group’s first landed housing project in the country known as D2eight were all sold within 24 hours of its launch on 8 April 2018, noted CapitaLand Vietnam CEO Chen Lian Pang.
“Landed property transactions dominated Ho Chi Minh City’s residential transactions with a high absorption rate of 66 percent in Q2 2018 (based on a research by Savills). Our acquisition is therefore a strategic and timely addition to our residential pipeline.”
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For 1H 2018, CapitaLand moved 619 houses in Vietnam for a total of S$209 million compared to the 656 homes sold for S$202.3 million in the same period a year ago.
Vietnam is CapitaLand’s third biggest market in Southeast Asia after Singapore and Malaysia. Currently, the group has a S$1.1 billion property portfolio in Vietnam consisting of two integrated projects, nearly 8,000 homes across 12 residential developments, two malls and over 4,800 serviced apartments across 21 properties in seven cities. This is yet to include a 0.9-hectare site in Hanoi’s Tay Ho District that will be used for another mixed-use project.