CapitaLand, the largest property developer in Southeast Asia, has set up a new business unit in China and Vietnam to expand its residential business in both countries.
CapitaValue Homes, CapitaLand’s new business unit, will focus on developing affordable and well-designed homes in the two countries. Through the new business unit, the company has extended its core residential business to include affordable housing, catering to home buyers whose mortgage capacity to purchase homes are pegged to 40 percent of the total household income level in that particular city.
“We have set up CapitaValue Homes to meet the real, non-speculative demand for affordable homes in China and Vietnam. Affordable housing has tremendous growth potential in these two countries due to their rapid massive urbanisation. For a start, CapitaValue Homes has identified two sites, one each in China and Vietnam, as its maiden projects,” said Mr. Liew Mun Leong, CEO and President of CapitaLand Group.
CapitaLand has appointed Chen Lian Pang as the chief executive of CapitaValue Homes. Mr. Lian brings with him over 20 years of real estate and construction experience both in Singapore and overseas, said Mr. Liew.
Mr. Chen Lian Pang, CEO of CapitaValue Homes, commented: “CapitaValue Homes will focus on building homes that would be affordable to owner-occupiers who are looking to purchase a first home.” He added that the new homes will have a more “standardised design with a different set of specifications and design approach compared to the mid- to high-end homes that we have been building in our core markets.”
“We are looking to build homes that are likely to be about 90 square metres in size for the China market and about 60 to 70 square metres in size for the Vietnam market. We will work closely with the local authorities to manage the land cost so that the selling prices would be affordable to our homebuyers, with mortgage repayment pegged at approximately 40 percent of the average income level in that particular city,” he said.