VIETNAM’S bright economic outlook and growing middle and affluent class (MAC) is prompting Gamuda Land to look for more sites to develop in Ho Chi Minh City (HCMC) and Hanoi.
Most Malaysian developers with projects in Vietnam have put their property launches on hold, but Gamuda Land is expanding and is bullish on prospects, according to Gamuda Land HCMC general director Wyeren Yap Vooi Soon.
The real estate market in Vietnam is moving upstream, thanks to investors from China, South Korea, Singapore, Malaysia and China who are pumping in huge investments, and creating jobs by the thousands for the locals, he said.
It was reported that the MAC, basically those who earn more than US$714 (RM3,063) a month, will increase from 12 million in 2014 to 33 million by 2020.
Vietnam’s average per capita income also will rise from US$1,400 to US$3,400 a year by 2020.
Gamuda Land has two ongoing township developments in Vietnam, namely the US$3.5 billion Gamuda City in Hanoi which started in 2007, and the RM5 billion Celadon City in HCMC that commenced in 2010.
Yap said the management has decided that it was time to explore new landbank opportunities in HCMC, as Celadon City was gaining traction and property sale was moving on the right track.
He said the company was looking at land parcels in the northern region of HCMC such as in GÚ V‚p District and District 12, as well as District 9 in the southeast region.
“We are even looking at some land in District 9. With the latest initiatives from the local government to improve the infrastructure in the district, there could be some potential there for us to explore.
“If we spot any good land, I believe the management will not hesitate to acquire them, given the positive outlook for Vietnam’s economy,” Yap said during a site visit to Celadon City recently.
The 82ha Celadon City integrated township in the Tan Phu District has a total gross development value (GDV) of about US$1 billion.
The residential component will have a total of 7,300 apartments across four precincts — Ruby, Sapphire, Emerald and Diamond — that can accommodate 25,000 people.
Gamuda Land has so far launched Ruby, which comprises five residential towers.
The apartments have built-ups ranging from 670 sq ft to 970 sq ft (two, three or 3+1 bedrooms) and they were bought mainly by the Vietnamese.
The price range for the units when they were first launched in 2011 was from US$60,000 to US$130,000. Today, the units are worth starting from US$100,000.
Celadon City also features an education hub, a cultural centre and Aeon Mall Tan Phu Celadon, the first Aeon Mall in Vietnam.
Yap expects Celadon City to generate US$120 million in property sales this year, up by about 20 per cent from last year’s US$100 million.
Meanwhile, Gamuda Land Vietnam general director Chow Chee Fan said there is pent-up demand from the locals in Hanoi for high-rise and landed residential properties.
“I would say 100 per cent of our property launches in Gamuda City were snapped up by the locals. Majority of them bought in cash. The price range for the properties were between US$300,000 and US$1 million each,” said Chow.
Gamuda City, which sits on a sprawling 474ha site, is located just 6km from Hanoi’s old central business district (CBD).
It has several precincts which include Gamuda Central, Gamuda Plaza, Gamuda Gardens, Gamuda City commercial hub and Gamuda Lakes.
The highlight of the township development is the 323ha Yen So Park, which is completed and open to public.
The first phase of Gamuda City is Gamuda Gardens, a 73ha integrated lifestyle project with a GDV of US$850 million. It has four product categories — apartments (2,100 units); landed residence (over 2,000 units); shop houses (100 units); semi-detached homes (200 units) and villas (100 units).
Chow is confident that Gamuda City will post higher property sales in fiscal years 2017 and 2018, to record US$150 million in each year, a bulk of which from Gamuda Gardens.