Gamuda Land to ride on Vietnam’s growth potential

PETALING JAYA: Gamuda Bhd’s property arm Gamuda Land has set aside some RM3.7bil over the next five years to expand its landbank in Vietnam.

This will enable it to ride on Vietnam’s growth over the next few years, backed by strong demand, limited supply of new properties in the market and acquiring land in upcoming prime areas.

Angus Liew, the chairman of Vietnam operations for Gamuda Land, said the team in Vietnam has been given a mandate to acquire more land, with a budget of US$800mil (RM3.7bil) over the next five years for the whole of Vietnam.

“Among areas being considered are the provinces of Binh Duong and Dong Nai, both of which are in close proximity to Ho Chi Minh City.

“Liew also highlighted strong prospects in Hanoi, which has seen an escalation in property prices due to the lack of supply. Gamuda’s strategy in Vietnam is to build high-end properties, which appeals to the younger generation, most of whom are purchasing their first homes,” MIDF Research said.

The research house said among Gamuda Land’s upcoming launches in Vietnam are The Meadow and Springville.

The Meadow is a rare landed residential project featuring 212 townhouses and villas in the Binh Chanh District in Ho Chi Minh City.

“A landed residential project is considered rare in Ho Chi Minh City, where developers are forced to build high-rise buildings due to the cost of land,” it added.

Springville is located in the Nhon Trach District in Dong Nai, about 35km from Ho Chi Minh City. It is an integrated mixed-use township with residential and commercial developments totalling 426 townhouse and shophouse units and 2,504 high-rise apartments.

Gamuda Land has had a string of successful launches in Vietnam and is recognised among the top five foreign real estate developers.

MIDF Research is maintaining its target price of RM6.83 with a “buy” recommendation given its good growth prospects and bulging order book of about RM25bil.

“We continue to like Gamuda for its exposure and being a front runner of crucial infrastructure projects in the country and its strong overseas expansion plan, especially in Australia.

“It has also carved its name in the data centre space in what we deem as a premium builder, due to its speed in completing the AIMS Cyberjaya Block 2 in only eight months.

“The group’s strong performance in the property development scene in Vietnam is the cherry on top of the cake as it stands to benefit from the strong demand amid limited supply of new properties,” it said.

The research house expected more positive news to come from Vietnam, backed by its US$800mil war chest to secure more landbank.