CapitaLand Development (CLD), the development arm of CapitaLand Group, is targeting to grow its residential portfolio in Vietnam to 27,000 units by 2028. This was announced at the groundbreaking ceremonies for CLD’s latest residential projects Sycamore in Binh Duong province and Lumi Hanoi in Hanoi, which took place on Feb 28 and Mar 1, respectively.
The five-year target is about 70% higher than CLD’s current residential portfolio in Vietnam numbering about 16,000 units, which include the approximately 7,500 units of Sycamore and Lumi Hanoi.
These launches follow other notable residential launches in Vietnam by CDL in recent years, such as the 88-unit Define in Thu Duc City, Ho Chi Minh City, which was fully booked in less than two hours upon launch. These unites were priced at above US$1 million ($1.34 million), setting a new price benchmark for the vicinity.
Another successful launch was Heritage West Lake in Tay Ho District, Hanoi, in which all 173 residential units and 202 small office/home office (SOHO) units were sold at prices about 30% above the market average.
The company’s confidence in the Vietnam housing market comes against the backdrop of the country’s robust economic fundamentals, favourable demographics and increasing urbanisation. To be sure, the General Statistics Office of Vietnam has shared that the country’s gross domestic product (GDP) grew 50.05% in 2023, making it one of the fastest growing economies in Southeast Asia.
Vietnam’s population of over 100 million and its rising middle class also offer a large and growing consumer market for various real estate sectors.
Jonathan Yap, CEO of CLD says: “Today, CLD’s portfolio in Vietnam comprises one retail mall, one SOHO development, two integrated developments, and about 16,000 quality homes across 17 residential developments in Hanoi, Ho Chi Minh City and Binh Duong province. As the Group marks 30 years of successful local operations in 2024, we are pleased to reinforce our commitment to Vietnam with a target for CLD’s residential business to reach 27,000 units by 2028.”
“In addition to Vietnam’s residential sector, we see the potential for CLD to tap real estate opportunities in its burgeoning commercial, industrial and logistics sectors in tandem with the country’s ascent as a global manufacturing hub. As Vietnam increasingly emphasises sustainable development, new opportunities that play to CLD’s strengths in sustainability have also emerged. We look forward to working closely with the authorities and our partners to contribute meaningfully towards Vietnam’s economic development and urbanisation journey.”
Adding on, Ronald Tay, CEO of CLD (Vietnam) says: “To achieve CLD’s target of adding another 11,000 residential units in the next five years, we will step up our capital deployment in Vietnam and expand our development pipeline through strategic tie-ups with reputable and like-minded local and foreign partners. We will focus on well-located large-scale projects in key cities – including Hanoi, Ho Chi Minh City, and up-and-coming provinces nearby such as Binh Duong province – to capitalise on CLD’s unique end-to-end expertise across the real estate value chain in multiple asset classes as well as our competitive advantages in master planning and sustainability.”
