CapitaValue Homes (CVH), CapitaLand’s value housing division, is optimistic about sales in China as opposed to Vietnam, where it is struggling.
The company is “looking to acquire more land to build up the pipeline” because the China market has picked up, said Chen Lian Pang (pictured), CEO of CVH.
It will launch Phase One of The Lakeside in Wuhan in November comprising 1,000 units, with prices ranging between 5,500 yuan (S$1,075) psm and 6,500 yuan (S$1,276) psm.
“We’re still focusing on the same three cities — Shanghai, Guangzhou, Wuhan and are looking for second projects for each city. We’re not looking at new cities yet because it’s very challenging to manage (multiple) new start-ups at the same time,” he said.
In contrast, CVH’s developments in Ho Chi Minh City, Vietnam are still grappling with weak sales.
The developer has two value housing projects in Vietnam – Project Sparkle at Binh Chanh District and PARCSpring in Ho Chi Minh City.
“We did a soft launch (of PARCSpring and) the market response wasn’t so good, so we pulled back … Our investments are also on hold until we see how the economy moves next year,” Chen explained, adding that they “don’t expect the market to pick up until the second half of next year”.
Currently, CVH has a pipeline of 1,700 units in Vietnam and 5,500 in China.
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