Following the success of the past four project (The Vista Vietnam, ParcSpring, Vista Verde Vietnam and The Krista) in Vietnam Ho Chi Minh City, CapitaLand Vietnam has set foot on its fifth development in Ho Chi Minh City.
The new upscale property development with around 1,000 homes as well as an approximated value of US$ 150 million ($211 million) is a 80-20 joint venture with Vietnamese developer Thien Duc Trading-Construction Company and will span across an area of 2.6 ha site in District 2 of Ho Chi Minh City.
District 2 is a newly developing area south-east of the Saigon River, while the majority of the city is on the river’s north-western side.
Because of the separation of District 2 by the Saigon River from the CBD of HCMC, District 2 was once the poorest parts of Ho Chi Minh City. But with the completion of Thu Thiem Bridge in 2008 and Thu Thiem Tunnel in 2011, District 2 has become the next highlight of HCMC with government focusing a lot of investment in the area and it could potentially become as modern as Singapore and Hong Kong.
According to Capitaland, The new project is on the fringe of the city centre and 10 minutes away from the future central business district in Thu Thiem peninsula.
CapitaLand Vietnam chief executive Chen Lian Pang also said “Vietnam’s continued economic growth, rapid urbanisation and a young and growing population will continue to drive demand for real estate in the country,”
A new law has been implemented in July 2015, allowing Foreigner with valid residential visa, as well as foreign companies to buy into the development in Vietnam. Together with this new law, CapitaLand could see the spur in numbers of foreign investor for their upcoming development.
However, The market will not be expecting a surge in foreign buyers because foreign property ownership is still capped at 50 years, and only 30 per cent of any apartment block can be sold to outsiders.
Nonetheless, the new law is seen as a positive move to invigorate the real estate market and emphasize the idea that Vietnam is open for foreign investment.
With the additional of the new development, CapitaLand’s Vietnam residential portfolio will increase to more than 7500 units of homes in HCMC and Hanoi, enhancing CapitaLand positioned as one of the top-performing foreign developers in Vietnam.