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Monday, March 10, 2008

Perdana ParkCity wants to replicate success in Vietnam

PERDANA ParkCity Sdn Bhd is keen to replicate its success of the Desa ParkCity integrated township in other parts of the Klang Valley and in emerging markets in the region, notably Vietnam.

“We are looking for the right piece of land of at least 800 acres to build another signature development for the middle to upper-middle-class population,” said group chief executive officer Lee Liam Chye.

The company is also eyeing Vietnam's robust property market and believes its range of products will be a big hit with the Vietnamese.

According to Lee, the property market in Hanoi and Ho Chi Minh City are bustling with activities as demand has outstripped supply by at least three to four times.

“As a developer of quality medium to high-end residential properties, we see Vietnam as a good platform to expand our brand outside Malaysia,” Lee said.

Lee Liam Chye

Perdana ParkCity recently signed a tripartite joint-venture agreement with Singaporean and Vietnamese partners to undertake its maiden overseas project in Hanoi.

The development, to be located in Hadong, a suburb about 13km from the city centre of Hanoi, is scheduled for launch in August and will take between eight and 10 years.

“We will be developing a 200-acre site near the city's main thoroughfare into an integrated township for the medium-end market,” he said.

The project will comprise 7,000 housing units and 1.5 million sq ft of commercial space, including shop offices.

“We are looking at 5,000 condominium units and 2,000 more units of terrace house, semi detached home and bungalow for the middle class and affluent group of buyers in Hanoi.

“Like Desa ParkCity, there will be gated enclaves, parks, lakes and walkable neighbourhoods.”

Lee said Vietnam was a “very under-served” market and property prices were generally twice those in Malaysia.

While projects in Malaysia have average margins of 20%, developments in Vietnam can have higher margins.

The favourable demographics in Vietnam included the fact that 80% of its population of 85 million comprise people aged 40 years and below.

Its fast-growing economy, at an average growth of 7.5% per annum, has also raised the people's disposable income and demand for more quality housing.

“We are encouraged by the Vietnam government's policies to allow foreign developers to partake in the country's development. There is no restriction on foreign ownership and foreigners can own up to 100% in property development companies,” he added.

Being a township developer with a good track record of building well-designed master planned property products, Perdana ParkCity would provide its management expertise for the design, planning and building of the Hanoi project, Lee said.

“We have the tested solutions that are relevant to the needs of the Vietnamese market that is growing in sophistication.

“The master planned community of Desa ParkCity has the same characteristics as a village environment like those in Vietnam,” he noted.

Lee said the company had also been approached by other Vietnamese land owners to undertake joint developments with them.

“There is potential for other joint ventures that may include equity participation in Vietnam. The market will remain robust for quite a number of years,” he added.

By The Star

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