CapitaLand Development (CLD), the development arm of CapitaLand Group (CapitaLand), is aiming to grow its residential portfolio in Vietnam to 27,000 units by 2028.

The target was announced at the groundbreaking ceremonies for CLD’s latest residential projects - Sycamore in Binh Duong province and Lumi Hanoi in Hanoi, which took place on February 28 and March 1.

The five-year target is about 70 per cent higher than CLD’s current residential portfolio in Vietnam that numbers about 16,000 units, which include the approximately 7,500 units at Sycamore and Lumi Hanoi.

According to Jonathan Yap, CEO of CLD, CapitaLand entered Vietnam in 1994, starting with serviced residence and commercial projects before embarking on residential developments in 2007 with The Vista in Ho Chi Minh City.

“Through decades of efforts, we are heartened to have built strong brand recognition for CapitaLand as a trusted developer of choice in Vietnam, especially known for our top-notch residential offerings of superior quality. Today, CLD’s portfolio in Vietnam comprises one retail mall, one SOHO development, two integrated developments, and about 16,000 quality homes across 17 residential developments in Hanoi, Ho Chi Minh City and Binh Duong province,” Yap said.

He further added that in addition to Vietnam’s residential segment, the company sees the potential for CLD to tap real estate opportunities in its burgeoning commercial, industrial and logistics sectors in tandem with the country’s ascent as a global manufacturing hub.

“As Vietnam increasingly emphasises sustainable development, new opportunities that play to CLD’s strengths in sustainability have also emerged. We look forward to working closely with the authorities and our partners to contribute meaningfully towards Vietnam’s economic development and urbanisation journey,” he said.

Meanwhile Ronald Tay, CEO of CLD (Vietnam), said that to achieve CLD’s target of adding another 11,000 residential units in the next five years, the company will step up capital deployment in Vietnam and expand its development pipeline through strategic tie-ups with reputable and like-minded local and foreign partners.

Tay added that Sycamore and Lumi Hanoi reflect some of these strategies. They are CLD’s largest residential projects in Vietnam to date with about 7,500 units in total and a combined gross development value of over S$2 billion (approximately $1.5 billion).

“To bring these mega developments to fruition, CLD is pleased to partner with United Overseas Australia (UOA) Group on Sycamore, as well as enter into a joint venture with Mitsubishi Estate and Far East Organization on Lumi Hanoi. Offering a diverse selection of unit types, first-rate amenities and sustainability features that enhance the well-being of residents, we are confident that Sycamore and Lumi Hanoi will meet the aspirations of increasingly discerning homebuyers in Vietnam,” he added.

CLD’s continued confidence in Vietnam’s housing market is supported by the country’s robust economic fundamentals, favourable demographics and increasing urbanisation.

In 2023, Vietnam’s GDP grew 5.05 per cent, making it one of the fastest growing economies in Southeast Asia. Vietnam’s population of over 100 million and its rising middle class also offer a large and growing consumer market for the real estate sector.

Notable launches by CLD in recent years included the 88-unit Define in Thu Duc city, Ho Chi Minh City, which was fully booked in less than two hours upon launch. Another successful launch was Heritage West Lake in Tay Ho district, Hanoi, in which all 173 residential units and 202 small office/home office (SOHO) units were sold at prices about 30 per cent above the market average.

Sycamore is located in Binh Duong New City within Binh Duong province, about 30 kilometres from Ho Chi Minh City. With a projected total gross development value of over S$1 billion ($750 million), Sycamore offers about 3,500 freehold units across a mix of low, mid and high-rise residential developments, providing homes for an estimated 13,000 residents on a site of 18.9 hectares. The first phase is scheduled to be completed in 2024, and the rest of the project is targeting completion by 2027. Sycamore is slated to launch in Q2 2024.

Designed by renowned French architect Jean-François Milou of Studio Milou, Lumi Hanoi is a high-end residential project on a prime site in the west of Hanoi with a projected gross development value of over S$1 billion ($750 million). Covering about 5.6 hectares, the project will comprise about 4,000 units across nine 29- to 35-storey towers to be developed over phases. Lumi Hanoi is also slated to launch in Q2/2024.