Property firm Keppel Land has entered into two conditional sales and purchase agreements to acquire prime sites in Ho Chi Minh City that could yield about 1,550 homes in total.
The two sites will have a total development cost of US$297 million (S$407 million). One plot is in the city south with easy access to the central business district.
Keppel Land, a unit of Keppel Corp, plans to develop about 220 landed homes and a 1,029-unit high-rise condominium spanning a gross floor area of about 36,110 sq m and 141,540 sq m respectively. The project on the 13ha site will cost about US$235 million to develop, including land.
Keppel Land will develop a further 300 landed homes on the second site, which is in District 9. The total development cost for the 6ha site, including the land cost, will be about US$62 million.
Keppel Land chief executive Ang Wee Gee said: "Vietnam's housing demand is expected to continue its upward momentum, supported by the country's young population, growing middle-class as well as rising urbanisation... We are confident that these two developments will be well sought after, given the limited supply of upper middle-end gated landed homes and condominiums close to the CBD."
He added that the two projects would boost the firm's pipeline of over 20,000 homes in Vietnam.
Consultants CBRE said that 23,200 condominium units were sold in Ho Chi Minh City in the first three quarters of this year, up 2 per cent year on year. There were 2,300 landed homes moved in the same period, "almost equivalent" to the total units sold last year.
In the first three quarters of this year, Keppel Land sold 1,010 homes in Vietnam, four times the number it sold for the corresponding period in 2016.
It said it had received positive response for Tilia Residences, Phase 2 of Empire City, which had sold over 90 per cent of the 472 launched units as at Sept 30. The project was launched in July.
Keppel Land has a portfolio of properties in Hanoi, Ho Chi Minh City, Dong Nai and Vung Tau, including Grade A offices, residential property, retail centres, integrated townships and serviced apartments.
Keppel Corp shares closed down one cent at $7.52 yesterday.
Correction note: An earlier version of the story said that Keppel Land plans to develop about 220 landed homes and a 1,029-unit high-rise condominium spanning a gross floor area of about 3 141,540 sq m. This is incorrect. The landed homes and condominium will span a gross floor area of about 36,110 sq m and 141,540 sq m respectively. We are sorry for the error.