The target was announced by CapitaLand Development (CLD) at the groundbreaking ceremony of the Sycamore and Lumi Hanoi projects, the two largest residential projects of the Group in Vietnam, with approximately 7,500 apartments and a total project development value estimated at over 2 billion Singapore dollars (equivalent to 36 trillion Vietnamese dong).
On March 4, 2024, in Ho Chi Minh City, CapitaLand Development (CLD), the real estate development subsidiary of CapitaLand Group (CapitaLand), announced its ambition to increase its residential portfolio in Vietnam to 27,000 apartments by the year 2028. This goal was announced during the groundbreaking ceremonies for the Sycamore project in Binh Duong province on February 28, 2024, and the Lumi Hanoi project in the capital city of Hanoi on March 1, 2024. These are the two latest projects by CLD in the Vietnamese market. The five-year target set by CLD is over 70% higher than the current residential portfolio of the Group in Vietnam, with more than 16,000 apartments, including over 7,500 units from the Sycamore and Lumi Hanoi projects.
Mr. Ronald Tay, General Director of CapitaLand Development Vietnam (fifth from right), attended the groundbreaking ceremony of the Sycamore project along with leaders from various Ministries and Departments. Among them were Minister of Construction Nguyen Thanh Nghị (center), Mr. Roy Kho, Consul General of the Republic of Singapore in Ho Chi Minh City (fourth from right), Mr. Firdauz Othman, Consul General of Malaysia in HCMC (third from right), Mr. Vo Van Minh, Chairman of the People’s Committee of Binh Duong Province (fourth from left), Mr. Dickson Kong, CEO of UOA Group (second from right), and Mr. Nguyen Van Hung, Chairman of the Board of Directors of Becamex IDC (first from left).
Mr. Ronald Tay, General Director of CapitaLand Development (CLD) Vietnam (center left), was joined by delegates at the groundbreaking ceremony of the Lumi Hanoi project, including Mr. Jaya Ratnam, Ambassador of Singapore to Vietnam (center right), Mr. Takashi Kagamoto, CEO of Mitsubishi Estate Vietnam (third from left), Mr. Marc Boey, Managing Director of Real Estate Services and Operations at Far East International (third from right), and Mr. Jean-François Milou, Chief Architect of studioMilou (second from right).
Mr. Jonathan Yap, CEO of CLD, stated, “CapitaLand has been present in the Vietnamese market since 1994, starting with serviced apartments and commercial projects before venturing into residential development in 2007 with The Vista in Ho Chi Minh City. Through decades of development efforts, we are delighted to have built a reputable brand as a trusted real estate developer for CapitaLand in the Vietnamese market. CapitaLand is also known for its leading luxury residential projects with superior quality. To date, CLD has developed an investment portfolio in Vietnam comprising a commercial hub, a SOHO project, two mixed-use developments, approximately 16,000 quality apartments across 17 residential projects in Hanoi, Ho Chi Minh City, and neighboring provinces like Binh Duong. As we commemorate the Group’s 30-year journey in Vietnam, we aim to reinforce the Group’s commitment with a new ambitious goal of expanding the investment portfolio to 27,000 apartments by 2028.”
“In addition to the residential sector, CLD also recognizes other potentials in the Vietnamese market that the Group can explore opportunities in real estate. These are sectors where Vietnam is witnessing impressive growth, such as commercial, industrial, and logistics. With increasing interest in sustainable development, new opportunities for CLD’s strengths are gradually emerging. In the coming time, we look forward to continuing close collaboration with relevant authorities and partners to make positive contributions to Vietnam’s economic, social development, and urbanization,” Mr. Yap added.
Mr. Ronald Tay, CEO of CLD (Vietnam), said, “To achieve the goal of developing an additional 11,000 apartments in the next 5 years, we will intensify our investment deployment activities in Vietnam and expand the development roadmap through strategic partnerships with reputable partners both domestically and internationally. We will focus on large-scale projects with convenient locations in key markets such as Hanoi, Ho Chi Minh City, and neighboring areas like Binh Duong, by leveraging CLD’s unique comprehensive expertise in the real estate value chain, as well as the competitive advantage in overall planning and development.”
Mr. Tay also added, “Our strategy is clearly demonstrated through Sycamore and Lumi Hanoi, CLD’s two largest residential projects in Vietnam, with a total of approximately 7,500 apartments and a total project development value of 2 billion Singapore dollars (equivalent to 36 trillion Vietnamese dong). CLD is honored to collaborate with UOA Group in the Sycamore project and to form a joint venture with Mitsubishi Estate and Far East Organization to develop Lumi Hanoi. Offering a diverse range of apartment types and the highest luxury amenities with sustainable features to enhance the quality of life for residents, we believe Sycamore and Lumi Hanoi will meet the needs of discerning customers in Vietnam.”
The strong economic foundation, demographic advantages, and urbanization rate provide a solid platform for CLD to reinforce its confidence in the housing segment in Vietnam. Vietnam’s GDP in 2023 saw an impressive growth rate of 5.05% [2], the fastest in the Southeast Asian region. With a population of over 100 million and an increasing middle-income segment, the demand for housing in the Vietnamese market is expected to be positively driven.
Recent projects by the Group have consistently achieved impressive absorption rates. For instance, Define, a luxury apartment project in Thu Duc City, Ho Chi Minh City, recorded a 100% reservation rate within just two hours of its launch. Define has set new standards for residential projects in the market, with only 88 apartments but a minimum value of 1 million US dollars per unit (equivalent to 24 billion dong). Heritage West Lake, located in Tay Ho District, Hanoi, is also a successful project where all 173 apartments and 202 SOHO units (a mixed-use product combining workspace and living space) were sold at prices about 30% higher than the market average.
About the Sycamore and Lumi Hanoi projects
Sycamore is located in the new city of Binh Duong in Binh Duong province, about 30 km from Ho Chi Minh City. With a total development value estimated at over 1 billion Singapore dollars (equivalent to 18 trillion dong), Sycamore offers approximately 3,500 long-term ownership apartments across low-rise, mid-rise, and high-rise zones. The project covers a total area of 18.9 hectares and is expected to provide housing for around 13,000 residents in the future. The first phase is slated for completion in 2024, with the entire project targeted for completion by 2027. Sycamore is expected to be launched in the second quarter of 2024.
Designed by the talented French architect Jean-François Milou of Studio Milou, Lumi Hanoi is a luxury apartment project located in a prime location in the western part of the capital city, with a total development value estimated at 1 billion Singapore dollars (equivalent to 18 trillion dong). Spanning approximately 5.6 hectares, the project will introduce 4,000 apartments across nine towers ranging from 29 to 35 floors, developed in phases. Lumi Hanoi is also scheduled for launch in the second quarter of 2024.
Both Sycamore and Lumi Hanoi projects are designed according to the standards of the EDGE green building certification system developed by the International Finance Corporation (IFC). Sycamore is enveloped by a cool greenery system, providing about 80% shading for communal areas while helping to mitigate the urban heat island effect and improve residents’ health. Sycamore also offers sustainable features and health care amenities such as a self-draining rainwater system, bicycle parking, and diverse community spaces. Lumi Hanoi provides over 80 facilities for residents of all ages, including 15 sports playgrounds and multiple swimming pools to promote an active lifestyle. The Lumi Hanoi project offers the most optimal sustainable features, including extensive green landscape infrastructure spanning 4.3 hectares, an automatic rainwater harvesting system, ecological lakes, as well as electric vehicle charging stations and dedicated bicycle parking.
[1] All VND figures in this press release are converted based on the exchange rate of 1 Singapore dollar = 18,000 dong.
[2] Source: General Statistics Office of Vietnam.
About CapitaLand Development (Vietnam) (https://www.capitaland.com/vn)
CapitaLand Development (CLD) is the real estate development arm of CapitaLand Group, with an investment portfolio valued at approximately 21.6 billion Singapore dollars as of December 31, 2023. CLD possesses extensive development capabilities across diverse asset classes, including integrated developments, retail malls, integrated offices, residential and housing, commercial, industrial, logistics, and data centers.
CLD (Vietnam) oversees and develops CLD’s investment and development business operations in Vietnam, one of CLD’s core markets, where the Group has established a broad presence over 30 years. CLD’s investment portfolio in Vietnam includes one retail mall, one SOHO model project – a mixed-use product combining workspace and living space, two integrated developments, and approximately 16,000 quality apartments across 17 residential projects in Hanoi and Ho Chi Minh City. With strong expertise in comprehensive planning, land planning, and project development, the unit has won numerous prestigious awards, including the Asia-Pacific Real Estate Award, the Asia PropertyGuru Real Estate Award, the Vietnam PropertyGuru Real Estate Award, and the Golden Dragon Award.
Beyond real estate development goals, CLD aspires to be the top choice for investors and customers, contributing to enhancing community life and uplifting society. The company is committed to creating quality working, living, and recreational spaces for the community through sustainable and innovative solutions.
Following the Group’s development philosophy, sustainability is at the core of CLD’s business activities. CLD collaborates with the Group in contributing to environmental issues and social welfare in countries where the Group operates, aiming to create long-term economic value for stakeholders.
