CapitaLand, South-east Asia’s largest property developer, said it received strong response for its residential property in Vietnam.
During a topping out ceremony held in Ho Chi Minh City, the property giant announced it has sold three quarters of the units in an apartment project called The Vista.
The development is a 10-minute drive away from the central business district and is expected to be ready for launch by the end of 2011.
The company is very confident of selling nearly 90 percent of its units by then.
Currently, 74 percent of the 850 units available have already been sold. The average price of the units now range from US$1,800 psm to US$2,200 psm.
Surrounding developments will cost between US$1,600 psm and US$2,500 psm.
Businessman Kien Pham paid nearly US$500,000 to acquire two of CapitaLand’s apartment units.
"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 percent return within 3-4 years," he said.
The economy in Vietnam is rapidly growing and capital income is also increasing, but these do not necessarily mean that many can afford a landed property.
An apartment like The Vista would probably be the next best choice. Since the apartment was released at the end-2007, its average selling price has already increased by 50 percent.
CapitaLand has leveraged with local partners to develop properties in the country.
"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, which is CapitaLand’s joint venture partner for The Vista project.
CapitaLand said its strategy is to develop more affordable housing in the country.
Several analysts said the move will boost sales for the company.