Gamuda Land’s Successful Expansion in Vietnam Signals Strong Growth Prospect

24 May 2024

PETALING JAYA –  Gamuda Land, Malaysia’s leading property developer is making significant milestones in its regional growth strategy through the expansion of its operations in Vietnam. Since venturing into the Vietnamese market in 2007, Gamuda Land has successfully developed the 82-ha Celadon City in Ho Chi Minh City and 274-ha Gamuda City in Hanoi, laying the foundation for its robust presence in the region.

In the last two years, Gamuda Land has been focusing on its quick turnaround projects (QTP) strategy, which aims to complement its township development model through the deployment of capital in diversified projects with an exit time frame of 3-5 years. This quickens and halves the return-on-investment time frame compared to the township strategy, which requires significant placemaking and infrastructure investment with a longer investment horizon of 10- 20 years.

“This strategic move underscores our commitment to tapping into Vietnam’s burgeoning real estate market and capitalising on its immense growth potential. Vietnam remains a key market for Gamuda Land, given the country’s strong average economic growth rate of 6% per year in the last two decades and the prospect of it becoming one of the fastest growing Asian economies,” said Chu Wai Lune, the Chief Executive Officer of Gamuda Land.

He added that the company’s expansion efforts have yielded remarkable results, with the successful introduction of its three QTPs, garnering widespread acclaim and investor confidence. Notably, the first two towers of Eaton Park are fully taken up during the preview over the weekend.

Eaton Park is a mixed-use development located in District 2 of Ho Chi Minh City, nestled near the city centre, yet distanced from the hustle and bustle of it, making it a very appealing address for potential customers. The development comprises 1,968 exclusive apartments, 12 penthouses, 51 podium shops, and 21 shophouses spread across six towers, with a gross development value (GDV) of USD1.1 billion. Similarly, Elysian located in Thu Duc, comprising 1,398 apartment units and 8 shop lots with a total GDV of USD253 million, has achieved an impressive take-up rate of 93% for 2 out of the 4 towers.

Artisan Park in the neighbouring province of Binh Duong, comprising 349 townhouses and shop-houses have also recorded sales of 80%, further solidifying the company’s strong foothold in the Vietnamese market. Artisan Park boasts a GDV of USD131 million.

“Buoyed by this achievement, we are thrilled to announce our upcoming launch in Ho Chi Minh City, Gamuda Land’s fourth QTP – The Meadows, a low-rise residential development in Binh Chanh District, the Western corridor of Ho Chi Minh City. This upcoming launch is poised to meet the growing demand for premium real estate in this vibrant district,” Chu said.

The Meadows encompasses 212 townhouses and villas spread across more than 5-ha land site, meticulously curated with quality design and master planning that is the hallmark of Gamuda Land. The project is expected to quench the thirst for landed products, given the scarcity of housing supply in Ho Chi Minh City. The GDV for The Meadows is USD82 million.

“Ho Chi Minh City’s land banks are rapidly dwindling, pushing detached residential development into neighbouring conurbations. With natural barriers to the east, development corridors are now extending to the north east and south west, hastened by upcoming infrastructure and improved connectivity, such as the ring roads.

There are well-situated large scale land banks that will offer clean development potential. Several of these are to the immediate west of Ho Chi Minh City proper that will offer the possibility for well-planned urban development,” said Troy Griffith of Savills Vietnam.

Gamuda Land’s upcoming and 5th QTP, Springville is in the pipeline to be launched by end 2024. Springville presents a compelling opportunity in the growing Nhon Trach District, Dong Nai province, strategically located near key existing and upcoming infrastructure developments. It is close to the future USD16 billion Long Thanh International Airport, the 3,300-ha Nhon Trach Industrial Park – the largest in Dong Nai — the Long Thanh-Dau Giay Expressway, National Road 51, and the Ring Road 3, which is set to be completed in 2025.

Spanning 18.2-ha, Springville is an integrated mixed-use township with a GDV of USD393 million. It features 426 townhouse/shophouse units and 2,504 high-rise apartments, as well as a clinic, kindergarten, market/neighbourhood centre, public park, social housing, and transportation facilities.

In addition to its thriving prospects in Vietnam, Gamuda Land remains dedicated to enhancing its township developments in Malaysia. By Q4 this year, the company anticipates to introduce a new innovative home design to the Malaysian market, that will cater to the evolving needs of home purchasers done through a nationwide survey to better understand their lifestyle preferences. Furthermore, Gamuda Land is committed to fostering vibrant communities in its townships through placemaking initiatives.

FunPark, located in Gamuda Luge Gardens, features attractions like the Eye of Gardens, Malaysia’s tallest Ferris wheel, Big Bucket Splash, and Malaysia’s only Skyline Luge Kuala Lumpur. FunPark is set for its grand opening in July this year.

These vibrant spaces will ensure residents have a place to connect and build meaningful relationships with one another, fostering a strong sense of community and belonging in all of its township developments.

With a robust pipeline of projects in both Malaysia and Vietnam, Gamuda Land is poised for continued success and sustainable growth, driven by its unwavering commitment to innovation and to capitalise on emerging opportunities in Vietnam.

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