Prices at the 302-unit residential project in Ho Chi Minh City start from US$350,000. Source: CapitaLand
CapitaLand’s newest 302-unit luxury residential tower in Ho Chi Minh City (HCMC), Vietnam’s largest city, will be launched to Singaporean investors next Saturday (22 October), marketing agent JLL said.
Called D1MENSION, the US$106 million (S$143 million) project will comprise a 17-storey residential tower and a 22-storey serviced residence operated by CapitaLand’s The Ascott. It is expected to be completed in the first quarter of 2018.
Prices of the residential units range from US$350,000 to US$500,000 (S$482,729 to S$689,650).
Located in prime District 1, the financial centre of Vietnam, D1MENSION is within proximity to a number of international banks and shopping centres.
CapitaLand announced in September that it had purchased the site for US$51.9 million (S$70 million).
“With our previously launched projects in HCMC averaging about 90 percent sales, we are confident that the limited 102 units at D1MENSION will be equally sought after,” said Chen Lian Pang, CEO of CapitaLand Vietnam.
According to CBRE Research, there is a construction boom in District 1, with 95 upcoming projects in the area, most of which are offices, hotels and retail properties.
Although new condominium launches in HCMC dropped 27 percent in Q3 2016 from a year ago, there were still more than 8,000 units launched last quarter, CBRE said.
Meanwhile, interest in Vietnam as an emerging market is rising, with a slew of foreign developers capitalising on its growth potential.
For instance, CapitaLand’s total asset size in the country stands at S$748 million, making it the group’s third largest market in Southeast Asia, after Singapore and Malaysia.
Vietnam is also one of Keppel Land’s growth markets. The property giant is developing Empire City, a 14.6ha waterfront site in the upcoming Thu Thiem New Urban Area in District 2 of HCMC, which comprises residential apartments, office and retail properties, as well as an 86-storey integrated mixed-use complex.
Most recently, Singapore-based PropertyGuru invested in Vietnam’s biggest real estate website Batdongsan, its largest investment to date, making the country its fifth core market in the region.
“The outlook for Vietnam and its real estate market is very positive, supported by strong fundamentals such as one of the world’s fastest growing economies, with growth of six to 6.5 percent expected over the next three to five years, significant urban population growth over the next decade, and a rapidly growing middle-class population, which is expected to increase by over 130 percent in the next five years,” said Chris Fossick, Managing Director for Singapore and Southeast Asia at JLL.
Looking ahead, JLL Research expects overall apartment prices in HCMC to rise five to 10 percent per annum in the next three years, supported by strong absorption and affordability levels.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
