CapitaLand Development (CLD), the real estate development arm of CapitaLand Group (CapitaLand), aims to grow its residential portfolio in Vietnam to 27,000 apartments by 2028.
The goal was set during the groundbreaking ceremony of the Sycamore project in Binh Duong province on February 28, 2024, and the Lumi Hanoi project in Hanoi on March 1, 2024. These are CLD's two latest projects in the Vietnamese market.
The 5-year target set by CLD is 70% higher than the Group's current housing portfolio in Vietnam, with more than 16,000 apartments, including more than 7,500 apartments in the Sycamore and Lumi Hanoi projects.
Mr. Ronald Tay, General Director of CapitaLand Development Vietnam (fifth from right) and leaders of ministries and sectors at the groundbreaking ceremony of the Sycamore project include: Minister of Construction Nguyen Thanh Nghi (middle), Mr. Roy Kho, Consul General of the Republic of Singapore in Ho Chi Minh City (fourth from right); Mr. Firdauz Othman, Consul General of Malaysia in Ho Chi Minh City (third from right); Mr. Vo Van Minh, Chairman of Binh Duong Provincial People's Committee (fourth from left); Mr. Dickson Kong, CEO of UOA Group (second from right); Mr. Nguyen Van Hung, Chairman of the Board of Directors of Becamex IDC Corporation (first from left).
Mr. Ronald Tay, General Director of CapitaLand Development (CLD) Vietnam (middle left) and delegates at the groundbreaking ceremony of Lumi Hanoi project include: Mr. Jaya Ratnam, Ambassador of Singapore to Vietnam (middle right); Mr. Takashi Kagamoto, General Director of Mitsubishi Estate Vietnam (third from left); Mr. Marc Boey, Executive Director of Real Estate Services and Chief Operating Officer of Far East International (third from right); Mr. Jean-François Milou, Chief Architect of studioMilou (second from right).
Mr. Jonathan Yap, CEO of CLD, said: "CapitaLand has been present in the Vietnam market since 1994, starting with serviced apartment and commercial projects, before embarking on residential development in 2007 with the launch of The Vista in Ho Chi Minh City. Through decades of development efforts, we are pleased to have built a reputable brand as the real estate developer of choice for CapitaLand in the Vietnam market. CapitaLand is also known for its premium luxury apartment projects with superior quality. To date, CLD has developed its portfolio in Vietnam with one commercial district, one SOHO project, two integrated developments, about 16,000 quality apartments across 17 residential projects in Hanoi, Ho Chi Minh City, and neighboring provinces such as Binh Duong. On the occasion of the Group's 30th anniversary in Vietnam, we wish to reinforces the Group's commitment, with an ambitious new target of expanding its portfolio to 27,000 apartments by 2028".
"In addition to the housing sector, CLD also sees other potentials in the Vietnamese market that the Group can exploit real estate opportunities. These are areas where Vietnam is recording impressive growth such as trade, industry, and logistics. With the growing interest in sustainable development, new opportunities to promote CLD's strengths are gradually opening up. In the coming time, we hope to continue to closely coordinate with authorities and partners to be able to make positive contributions to the socio-economic development and urbanization process of Vietnam," Mr. Yap added.
“To achieve our target of developing 11,000 additional apartments over the next five years, we will accelerate our capital deployment in Vietnam and expand our development roadmap through strategic collaborations with reputable local and international partners,” said Ronald Tay, CEO of CLD (Vietnam). “We will focus on large, well-located projects in key markets such as Hanoi, Ho Chi Minh City, and neighboring areas such as Binh Duong, leveraging CLD’s unique end-to-end expertise in the real estate value chain, as well as our competitive advantages in master planning and development.”
Mr Tay added: "Our strategy is clearly demonstrated through Sycamore and Lumi Hanoi, CLD's two largest residential projects in Vietnam, with a total of approximately 7,500 apartments and a total project development value of S$2 billion (equivalent to VND36 trillion). CLD is pleased to cooperate with UOA Group on Sycamore project, and joint venture with Mitsubishi Estate and Far East Organization to develop Lumi Hanoi. Offering a diverse choice of apartment types and the most premium amenities with sustainable features to enhance the quality of life for residents, we believe Sycamore and Lumi Hanoi will meet the needs of trendy customers in Vietnam."
Minister of Construction Nguyen Thanh Nghi (right) attended and presented flowers to the groundbreaking ceremony of the Sycamore project.
Delegates at the groundbreaking ceremony of Sycamore, CapitaLand Development's first large-scale residential project in Vietnam.
Mr. Jaya Ratnam, Singaporean Ambassador to Vietnam, spoke at the groundbreaking ceremony of Lumi Hanoi project.
A strong economic foundation, demographic advantages and rapid urbanization growth are the springboard for CLD to strengthen its confidence in the housing segment in Vietnam. Vietnam's GDP in 2023 achieved an impressive growth rate of 5.05%, the fastest growth rate in Southeast Asia. With a population of more than 100 million people and an increase in the middle class segment, the demand for home purchases in the Vietnamese market promises to be positively promoted.
The Group’s recent projects have consistently achieved impressive absorption rates. Define, a luxury apartment project located in Thu Duc City, Ho Chi Minh City, recorded a 100% booking rate just two hours after its launch. Define has helped set a new standard for apartment projects on the market, with only 88 apartments but the minimum value for each apartment is 1 million USD (equivalent to 24 billion VND).
Heritage West Lake, located in Tay Ho district, Hanoi capital, is also one of the Group's successful projects when all 173 apartments and 202 SOHO units (a product line that harmoniously combines office and resting place) were sold at a price about 30% higher than the average market price.
About Sycamore and Lumi Hanoi projects
Sycamore is located in Binh Duong New City, Binh Duong Province, about 30 km from Ho Chi Minh City. With a total development value estimated at over 1 billion Singapore dollars (equivalent to 18,000 billion VND), Sycamore provides about 3,500 long-term ownership apartments in low, mid, and high-rise subdivisions.
The 18.9-hectare project is expected to provide housing for approximately 13,000 future residents. The first phase is expected to be completed in 2024, with the entire project targeted for completion in 2027. Sycamore is expected to launch in the second quarter of 2024.
Designed by talented French architect Jean-François Milou of Studio Milou, Lumi Hanoi is a luxury apartment project, located in a prime location in the West of the Capital region, with a total development value estimated at 1 billion Singapore dollars (equivalent to 18,000 billion VND).
Spread over a total land area of approximately 5.6 hectares, the project offers 4,000 apartments to the market with nine towers ranging from 29 to 35 floors in height, developed in phases. Lumi Hanoi is also expected to launch in the second quarter of 2024.
Sycamore and Lumi Hanoi are two projects designed according to the standards of the EDGE green building certification system developed by the International Finance Corporation (IFC). Sycamore is covered by a system of lush green trees, providing about 80% shade for community areas, while helping to minimize the urban heat island effect and improve the health of residents.
Sycamore also offers other sustainable and wellness features such as an automatic rainwater harvesting system, bicycle parking and rich communal spaces. Lumi Hanoi offers more than 80 facilities for residents of all ages, including 15 sports fields and multiple swimming pools to promote an active lifestyle.
The Lumi Hanoi project offers the most optimal sustainable features, such as a 4.3-hectare green landscape infrastructure, an automatic rain collection system, ecological lakes, as well as electric vehicle charging areas and dedicated bicycle parking lots.
About CapitaLand Development (Vietnam) ( https://www.capitaland.com/vn )
CapitaLand Development (CLD) is the real estate development arm of CapitaLand Group, with a portfolio worth approximately S$21.6 billion as at 31 December 2023. CLD has extensive capabilities to develop diverse asset classes, including integrated developments, retail, office, residential, business park, industrial, logistics and data centres.
CLD (Vietnam) oversees and develops CLD’s investment and development business in Vietnam, one of CLD’s core markets where the Group has built a strong presence over the past 30 years. CLD’s portfolio in Vietnam includes one retail mall, one SOHO project, two mixed-use developments and approximately 16,000 quality apartments across 17 residential developments in Hanoi and Ho Chi Minh City. With strong expertise in master planning, land planning and project development, the unit has won numerous prestigious awards including the Asia Pacific Property Awards, PropertyGuru Asia Property Awards, PropertyGuru Vietnam Property Awards and the Golden Dragon Awards.
Going beyond the goal of developing real estate projects, CLD wishes to become the top choice of investors for all partners and customers, contributing to beautifying life and elevating the community. The company is committed to continuing to create quality working, living and playing spaces for the community, through sustainable and creative solutions.
In line with the Group's development philosophy, CLD places sustainability at the core of its business activities. CLD accompanies the Group through activities that contribute to environmental issues and social welfare of communities in countries where the Group is present, in order to bring long-term economic value to stakeholders.
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