CapitaLand Development (CLD), the development arm of the CapitaLand Group (CapitaLand), aims to build 27,000 residential units in Vietnam by 2028.

This was announced at breaking-ground ceremonies for CLD’s latest residential projects - Sycamore in southern Binh Duong province and Lumi Hanoi in Hanoi - which took place on February 28 and March 1, respectively.

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

“In addition to Vietnam’s residential sector, we see 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,” said Mr. Jonathan Yap, CEO of CLD. “We look forward to working closely with authorities and our partners to meaningfully contribute to Vietnam’s economic development and urbanization journey. As the Group marks 30 years of successful local operations in 2024, we are pleased to reinforce our commitment to Vietnam with a target for CLD’s residential business to reach 27,000 units by 2028.”

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

“We will focus on well-located large-scale projects in key cities, including Hanoi and Ho Chi Minh City, and up-and-coming provinces nearby such as Binh Duong, to capitalize on CLD’s unique end-to-end expertise across the real estate value chain in multiple asset classes as well as our competitive advantages in master planning and sustainability,” he added.

CLD’s continued confidence in Vietnam’s housing market is supported by the country’s robust economic fundamentals, favorable demographics, and increasing urbanization. Vietnam’s GDP grew 5.05 per cent in 2023, making it one of the fastest-growing economies in Southeast Asia. Its population of over 100 million and its rising middle class also offer a large and growing consumer market for various real estate sectors.

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. Today, its 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.

Sycamore and Lumi Hanoi 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 ($1.5 billion).