CapitaValue Homes, the low-cost housing unit of CapitaLand, has entered into a joint venture (JV) agreement with Vietnamese real estate company Khang Dien House Trading and Investment to develop a 29,000 sq m land site in Ho Chi Minh City, Vietnam.

The land site will be developed into 974 low-cost homes, with a total development cost of approximately US$70 million.

CapitaValue Homes will hold a 70 percent interest in the JV project, while Khang Dien will hold the remaining 30 percent.

The “value” housing project will be CapitaValue Homes' third low-cost housing development in Asia, as well as CapitaLand's sixth residential project in Vietnam. 

Last year, CapitaLand launched CapitaValue Homes to enhance its low-cost residential portfolio in China and Vietnam. The property company also paid S$360 million last month for a 40 percent interest in HDB's former building and development unit, Surbana Corp, in a move to speed up the growth of its low-cost housing business.

CapitaLand plans to develop between 10,000 and 15,000 value homes in Vietnam and China per year over the next three to five years.

The JV project is situated in Binh Trung Dong Ward, nine km away from Ho Chi Minh City's central business district.

“Our third value housing project will comprise six mid-rise blocks and a park by the river as well as other basic amenities within the development,” said Mr. Chen Lian Pang, CapitaValue Homes’ Chief Executive.