Mulberry Lane on track to open despite sad market

June 25, 2012 | 12:58
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Singapore’s CapitaLand will complete construction of Hanoi’s Mulberry Lane residential apartment project on schedule, despite the gloomy property market.

Mulberry Lane’s structure was completed this month and developer CapitaLand will conduct a topping ceremony in August.

Mulberry Lane is located in Mo Lao new urban area of Ha DOng district and developed by CapitaLand and its Vietnamese partner  Hoang Thanh Investment and Infrastructure Development and comprises five towers, 1,500 units, offering more than 50 indoor and outdoor facilities. It is CapitaLand’s first residential project in Hanoi and the developer is expecting to open its doors at the end of 2014.

 “We are proud to build the project on schedule, notwithstanding the current challenging economic situation in the country,” said Yip Hoong Mun, deputy chief executive officer of CapitaLand in Vietnam.
He added this is a testament for CapitaLand’s strong delivery track records and the developer’s commitment to build quality homes for the local communities and expatriates in Vietnam.

The ailing market has forced many domestic and foreign developers to stall their construction plan with the attitude of wait and see. But for CapitaLand, it is still confident in the success of Mulberry Lane and the future projects in this contextThe average prices of residential apartments in Hanoi in 2012’s first quarter dropped 7.1-12.8 per cent year-on-year, according to property consultancy CBRE, and the ailing market forced many domestic and foreign developers to stall their projects.

“Reducing interest rates helps homebuyers. This will help and move sales rates in the real estate market. Given Vietnam’s strong economic growth coupled with rapid urbanisation and a substantially large group of young and aspiring middle income earners, the underlying demand for housing needs will remain strong, especially in the mass market housing segment,” said Mun.

“To ensure good value and keep prices attractive for our homebuyers, we will acquire sites that reasonably priced and are supported by good transportation network and enjoy easy access to the city centres.

The apartments will be affordable to the genuine buyers whose mortgage repayments pegged at around 40 per cent of their average household income. We will also work with the banks on home financing for our purchasers,” he added.

By Ngoc Linh

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