Keppel records zero Vietnam real estate sales in first half of 2023

Keppel Corporation recorded no sales of home units in Vietnam in the first half of this year, according to the Singaporean firm’s financial results.

In H1/2022, Keppel’s home sales in Vietnam reached 40 units, or 4% of Keppel’s global sales of 1,010 units.

Globally, the real estate division of the Singaporean conglomerate posted a sales revenue of SGD1 billion ($744.4 million) from 2,170 units sold in Singapore, China, Indonesia, and India, in H1/2023, up 47.1% and 115% year-on-year, respectively.

Keppel expects overseas sales to reach 5,710 units worth SGD2 billion ($1.49 billion) from the third quarter of 2023 to 2026.

Overall, Keppel’s remaining residential landbank stood at 39,384 units as of June 30, of which 9,080 (23%) were in Vietnam. Regarding its commercial portfolio, in terms of gross floor area, the figure in Vietnam was 401,210 square meters, or 24% of Keppel’s total figure of 1.68 million square meters. Both Vietnam figures are Keppel’s second-highest, only behind China.

Reviewing its total residential landbank, Keppel's seven projects in Vietnam are all in Ho Chi Minh City, with 14,930 units and a total gross floor area of 2.68 million square meters. The remaining units for sale number 9,080 with a total area of 1.01 million square meters.

Saigon Sports City and an unnamed six-hectare residential comlex have yet to launch any units for sale. Keppel said the Saigon Sports City will launch units for sale in 2025, while the six-hectare residential project will start in 2024 towards completion in 2025.

Keppel also expects the completion of projects and sub-projects, namely Narra Residences, The Infiniti, Celesta Rise, Celesta Heights, and Celesta Avenue from H1/2024 to H2/2026.

Keppel also highlighted key moves in Vietnam in H1/2023, including the acquisition of a 49% stake in two adjacent residential projects in Ho Chi Minh City from Vietnamese property developer Khang Dien for VND3.18 trillion ($135.42 million), and the acquisition of a 65% stake in a joint venture that holds a retail property in Hanoi.

Louis Lim, CEO, real estate division of Keppel, said Vietnam's market has “quite a bit of demand” and new projects are being “taken up quite well, even those outside central districts”.

He pointed out “the issue is getting construction and sales permits to get the projects going” and “we have been working closely with the government to progress on these and we look forward to announcing new projects in the future.”