Gamuda Land Vietnam chairman Angus Liew.
PETALING JAYA: Gamuda Land, the property arm of Gamuda Bhd
, plans to invest RM7.1bil over the next five years in Vietnam, with a targeted gross development value (GDV) of RM14.3bil.
According to Gamuda Land Vietnam chairman Angus Liew, Vietnam continues to serve as a cornerstone of the land developer’s regional expansion strategy, given its robust housing demand.
“As a major player in this thriving market, we remain optimistic about Vietnam’s prospects and are committed to creating long-term value in its booming real estate landscape.
“Vietnam has three times the population of Malaysia, with over 100 million people compared to Malaysia’s 34 million.
“However, the supply of residential houses in Vietnam is only half that of Malaysia,” Liew told reporters at the Eaton Park sales gallery in District 2 in Ho Chi Minh City.
The limited supply of new homes in the last few years was mainly due to stricter regulatory measures by the government, which had stalled the approval process of new developments.
He said Gamuda Land was fortunate to secure a shovel-ready site in a prime location, which would later on be known as Eaton Park, enabling the company to quickly sell in-demand products in a supply-constrained market.
“According to a report, Ho Chi Minh City only saw 5,000 new condominium units launched last year, out of which 1,200 units came from our projects.
“In comparison, during typical market conditions in 2019, the city averaged around 30,000 new condominium units annually.
“Meanwhile, for landed properties, only 500 units were launched citywide in the previous year, of which we contributed 230 units, accounting for about 50% of the market supply,” Liew added.
The property market in Vietnam, particularly in major cities such as Hanoi and Ho Chi Minh City, has shown notable signs of recovery following a period of sluggishness.
“For instance, in Ho Chi Minh City, the overall trend points to a recovery, with analysts forecasting a 5% to 10% rise in apartment prices in the city by the end of 2024.
“This anticipated growth is driven by a combination of high demand and limited supply, as well as a gradual improvement in market conditions,” Liew said.
Looking ahead, the implementation of new real estate laws, including the Land Law, Housing Law and Real Estate Business Law, is expected to positively impact the property market, although the effects may take time to fully materialise.
These developments are expected to help stabilise the market and further support the upward price trend.
Liew added that while property prices are rising in Vietnam, it is unlikely to mirror the situation in China, which is still experiencing a property market slump.
“In China, while an apartment might be fully sold, there is low occupancy. It was more of a speculative investment. In contrast, in Ho Chi Minh City, once a project is handed over, occupancy reaches nearly 100% within a year. This reflects genuine demand unlike the situation in China,” he said.
Over the past three financial years, Gamuda Land has achieved record-breaking performances with all-time-high sales year-on-year (y-o-y), and is on track to meet its targeted RM12bil sales by the financial year ending July 31, 2028 (FY28).
For FY24, Gamuda Land achieved a GDV of RM2.3bil.
“FY22 closed with property sales of RM4bil, followed by RM4.1bil in FY23. By FY25, we reached another milestone, with sales of RM5bil and record revenue and earnings of RM4.2bil and RM411mil, respectively. This represents 28% of group revenue and 45% of group earnings,” Liew said.
This was largely due to the developer’s quick turnaround project (QTP) strategy which has been yielding positive results.
Liew shared that the firm’s strategic focus on growing its business in familiar territories, balancing township developments with QTPs has enabled it to strategically forecast returns sustainably, and achieve its desired business goals for investors and shareholders alike.
“Aligned with this strategy, we project a 30% growth in earnings by FY27 (compared with FY24) driven by current acquired projects, which are expected to contribute 90% of our earnings during this period,” he said.
Gamuda Land’s QTP strategy prioritises projects with a high internal rate of return, allowing the group to generate returns within five years and reinvest into new projects.
This approach complements the company’s township development model by focusing on projects with a GDV of at least RM1bil.
This ensures strong value creation while significantly shortening the return-on-investment timeline compared to the longer 10 to 20 years typically required for township developments, which involve substantial placemaking and infrastructure investments.
On the whole, Gamuda Land has 12 QTPs across Vietnam, the United Kingdom and Australia with RM6.9bil in unbilled sales as of the first quarter of FY25 (1Q25). There are six, four and two QTPs in Vietnam, the United Kingdom and Australia respectively.
Since venturing into the Vietnam market in 2007, the company has achieved a cumulative investment of RM18bil, which include infrastructure projects and property development.
Moving forward, Vietnam will continue to account for 60% of Gamuda Land’s international sales, underpinned by Vietnam’s robust economic growth and the firm’s deep local expertise.
The launch of Phase 1 and 2 of Eaton Park, a mixed-use development located in District 2 of Ho Chi Minh City, in 2024 has received an overwhelmingly positive response. Phase 3, featuring two towers with a total of 670 units, is slated to launch in 2Q25 and has a total GDV of RM1.5bil.
Following the success of Eaton Park, the company is building on its momentum with other high-profile developments.
Located in Binh Chanh District, the second phase of The Meadow is set to launch between February and April this year. The first phase has been fully sold out.
Additionally, Gamuda Land’s upcoming and fifth QTP, Springville is targeted to be launched this year. Strategically positioned near the upcoming Long Thanh International Airport, it is a 44.9-acre township, comprising 2000 units and has a GDV of RM1.8bil. The new airport is expected to be ready by 2026.
“Moreover, we are also excited to announce our latest acquisition of a 2.7-acre parcel of land in Hai Phong, Vietnam’s third largest city. This marks our first venture into Hai Phong.
“We plan to build high rise apartments in the area, with an estimated GDV of RM1bil. The site, located in the Le Chan district, is 1.5 hours from Hanoi, 2 km from Hai Phong’s central business district, and is near Cat Bi International Airport,” Liew said.
He added this prime location benefits from excellent infrastructure and close proximity to government agencies, malls, universities, and hospitals.
“With limited future supply in the Hai Phong centre, the Le Chan district presents an attractive opportunity with reduced competition from new developments,” Liew noted.
Most of the Gamuda Land’s projects in Vietnam are Grade A and B which are in the middle to upper high end developments.
Liew said while the top 10 percentile of Vietnam’s ultra-rich represents a small percentage of the population, it still constitutes a substantial market of about 10 million people.
“Ho Chi Minh City and Hanoi remain the preferred locations where this elite group chooses to invest their wealth,” he said.
Some of Gamuda Land’s other flagship developments include Gamuda City in Hanoi, launched in 2007, and Celadon City in Ho Chi Minh City which was launched in 2012.
The company’s land banking strategy focuses on establishing a strong presence in key areas like Hanoi and Ho Chi Minh City.
“We maximise the potential of “borrowed landscapes,” leveraging nearby rivers, parks, or lakes, and prioritise locations with existing or planned infrastructure, such as airports, highways, and metro systems,” Liew said.
Looking ahead, Gamuda Land plans to invest RM10.5bil over the next five years, with a total GDV of RM26bil, focusing on growth corridors such as Vietnam, Malaysia and the UK.
By 2030, the company aims to achieve a balanced sales contribution of 40% from Malaysia, 45% from Vietnam, and 15% from the UK, Australia, and other regions.
