Developer CapitaLand has bought a prime site in Ho Chi Minh City for US$51.9 million (S$70 million).
The 0.5ha site in the Cau Kho ward of District One could yield 302 units across a 17-storey residential tower and a 22-storey serviced residence tower, it said yesterday.
The developer acquired the site through its wholly-owned subsidiary CapitaLand Vietnam.
"This is CapitaLand's third acquisition in Vietnam since June 2015, a testament of our confidence in Vietnam's positive economic outlook," said Mr Chen Lian Pang, CEO of CapitaLand Vietnam.
The 200-unit serviced residence, which will have a range of two-and three-bedroom apartments and penthouses, will be managed by CapitaLand unit The Ascott under the Somerset brand.
Vietnam is The Ascott's largest market in South-east Asia with 19 properties and about 4,000 rooms in six locations.
There will be 102 luxury units in the new residential tower - expected to be launched before the end of the year - offering two- to four-bedders and penthouses.
CapitaLand said it will be the first residential project in Vietnam to offer concierge services, which will be provided by the serviced residence next door. This latest project will bring CapitaLand's total residential portfolio in Vietnam to about 9,100 homes.
Mr Chen added: "Our residential sales continued to perform well in the first half of 2016 with 470 units worth about $80 million sold, which translates to an increase of about 20 per cent in the sales value and volume on a year-on-year basis."
The firm sold 1,321 apartments, with a total value of $226.5 million, in Vietnam last year.
The easing of rules on foreign ownership of property in Vietnam last July is seen as helping spur demand.
CapitaLand said it has launched three of its Vietnam residential projects - The Vista, Vista Verde and Seasons Avenue (Summer Suites tower) - for sale in Singapore, following Vietnam's legislative changes to allow foreign investment and ownership of real estate.
Its project on the prime site in District One is estimated to be worth US$106 million when it is completed by 2018. It will be CapitaLand's ninth residential project and 19th serviced residence in the country - anchoring Vietnam as its third largest market in South-east Asia, after Singapore and Malaysia.
The developer had total assets of $748 million in Vietnam as at the end of June.