CapitaLand Development acquires prime mixed-use site in Ho Chi Minh City with estimated development value of US$720 million.

CapitaLand Development (CLD), the development arm of CapitaLand Group, is acquiring a prime mixed-use site in Thu Duc City in Ho Chi Minh City, with an estimated total gross development value of US$720 million.

The Vietnamese government has earmarked Thu Duc City as an economic and technological hub. The mixed-use project with an area of about 8 hectares will comprise over 1,100 high-end residential units and shophouses to meet the residential demand from Thu Duc City’s growing workforce.

Artist’s impression of the mixed-use project in Ho Chi Minh City comprising over 1,100 high-end residential units and shophouses

The project is located in a well-established residential area, near parks, schools and shopping malls. It also enjoys excellent connectivity, with Ho Chi Minh City’s central business district just a 15-minute drive away. CLD’s site acquisition is expected to be completed by 4Q 2023. The project is expected to be launched in 2024 and scheduled for completion by 2027.

A popular investment destination, Thu Duc City, is set to home several tech companies, medical facilities, logistics and commercial developments. The city’s growing population and rising per capita income have generated demand for high-quality residential properties.

As it attracts more residents and businesses, the city is expected to contribute 30 per cent of Ho Chi Minh City’s economic growth and 7 per cent of Vietnam’s every year. Thu Duc City is also home to Vietnam National University Ho Chi Minh City, the largest university in the country.

Ronald Tay, CEO of CLD (Vietnam), said: “We continue to expand in our core market Vietnam by securing another highly coveted site in Thu Duc City in Ho Chi Minh City, after our recent investment in Binh Duong and Memorandum of Understanding with the government to invest in the up-and-coming Bac Giang province.”  

“Given its strategic location and excellent connectivity, the prime mixed-use project in Thu Duc City will add to CLD’s quality residential portfolio in Vietnam, where we have over 13,000 units across 17 properties. With 28 years of experience operating in Vietnam, CLD has built a strong reputation for developing well-designed, well-loved, sustainable residential projects. DEFINE, CLD’s recent luxury residential development in Thu Duc City, was well-received and fully booked within two hours of its exclusive preview.

“Leveraging CLD’s global real estate expertise in delivering high-quality residential projects, we are confident of transforming our latest site in Thu Duc City into a vibrant and iconic mixed-use development that will meet the evolving aspirations and needs of discerning homebuyers and consumers.

"We will continue to seek more investment opportunities across various asset classes to strengthen CLD’s position as a leading developer in Vietnam. We remain committed to contributing to the economic success of Vietnam via our quality real estate products and services.” 

Strong demand for CLD’s high-quality residential developments in Vietnam

Two of CLD’s latest luxury residential developments in Ho Chi Minh City, DEFINE and ZENITY, have been a strong draw to homebuyers. At its exclusive preview held on December 4, 2021, the 88-unit DEFINE was fully booked within two hours at an average price of about VND125 million (US$5,500) per square metre, and all units were reserved above VND23 billion (US$1 million).

In May 2022, CLD unveiled its award-winning luxury residence ZENITY, in Ho Chi Minh City. The 198-unit ZENITY offers a wide selection of fully-furnished units, from two- to three-bedroom apartments to premium duplex and penthouse units, enabling residents to move in quickly upon handover. Sales of ZENITY in Vietnam are expected to be launched in 3Q 2022.

About 90 per cent of the units in Heritage West Lake, CLD’s first luxury residential development in the capital, have been booked since its exclusive preview in April 2022. The 173-unit Heritage West Lake features multiple first-in-market amenities such as a private lift lobby for all units and a rooftop heated swimming pool.