Southeast Asia’s largest property developer CapitaLand said it has seen strong response for its first residential property in Vietnam.
At a topping out ceremony in Ho Chi Minh City on Tuesday, CapitaLand said it has sold three quarters of the units available in the development, called The Vista.
The property is about 10 minutes drive from the central business district.
The Vista is expected to be ready by the end of next year.
CapitaLand said it is confident of selling close to 90 per cent of its units by then.
To date, 74 per cent of the 850 units available have been sold.
Average prices now range between US$1,800 and US$2,200 per square metre.
Such prices, it seems, do not deter Vietnamese buyers.
Surrounding developments cost about US$1,600 to US$2,500 per square metre.
Businessman Kien Pham spent about US$500,000 for two of CapitaLand’s apartments.
He said: “We can sell it later for a profit … because we were the first buyer of the unit. In the Vietnamese market today, we have seen people earning more than a 100 per cent return within 3-4 years.”
Vietnam’s economy is growing and capital income increasing. But still, not many can afford a landed property.
So an apartment like The Vista would be the next best choice. And since the apartment was launched at the end of 2007, its price has already appreciated by 50 per cent.
CapitaLand has leveraged on local partners to develop properties in Vietnam.
“Our company is a local partner so we understand the local culture, like how Vietnamese families live, how big is the unit size we should make and the design, because different countries have different perspective in terms of living,” said Le Nu Thuy Duong, general director of Thien Duc Trading-Construction Company. The company is CapitaLand’s joint venture partner for The Vista project.
CapitaLand has said its strategy is to build more affordable housing in Vietnam.
Analysts said the move will help boost sales for CapitaLand. A group of property analysts in Singapore are currently visiting some of CapitaLand’s property developments in Vietnam to get an update.
Source : Channel NewsAsia – 8 Jun 2010