This article first appeared in City & Country, The Edge Malaysia Weekly on November 11, 2019 - November 17, 2019

Winner | Gamuda Gardens in Gamuda City, Hanoi, Vietnam | Gamuda BHD - Property division

Amid the chaotic sounds of trade and traffic, Hanoi is visual poetry. Influenced by its French, Chinese and Southeast Asian heritage, the capital city of Vietnam is an amalgamation of the old and new, with centuries-old architecture and scattered parcels of land fit for new developments.

Banking on its potential, Gamuda Bhd (property division) is charting unfamiliar territory with the rehabilitation and development of a once derelict wasteland in southern Hanoi. It has been transformed into a lush, 185ha integrated megatownship known as Gamuda City Vietnam that includes the 65ha Yen So Park.

“When we first came here in 2006, Yen So Park was in a dilapidated and unkempt state. Yen So was the main confluence area where the sewage canal networks meet before discharging into the Red River. Thus, it was infamously known to local Hanoians as a foul and undesirable location,” says Gamuda Land Vietnam chairman Cheong Ho Kuan.

“But we saw great potential in this piece of land. It is very much in line with our town-building principles. One of them is to listen to what the land tells us, and we could not turn away from its ‘cry’ to rehabilitate this contaminated land,” he says in an email interview.

After seven years of reclamation works and development, Gamuda Gardens of Gamuda City in Vietnam, comprising parks, lakes, rivers and homes, has earned the The Edge Malaysia Outstanding Overseas Project Award. Introduced for the first time this year, this award acknowledges impressive projects undertaken solely by Malaysian private property developers in other countries.

Gamuda City in Vietnam, with a total gross development value of US$3.1 billion (RM12.9 billion), comprises residential, commercial and mixed-use developments and is segregated into three precincts; Gamuda Central, Gamuda Lakes and Gamuda Gardens.

“We began developing Gamuda Gardens in 2012. From the beginning, our intention was to introduce a unique way of living to Hanoians, moving them away from their accustomed high-density dwellings,” says Cheong.

Gamuda Gardens forms part of the township, with a mix of freehold and leasehold developments (depending on ownership and land use) and an allocated GDV of US$847 million. First launched in 2012, this phase comprises 1,177 landed residential homes, 2,101 high-rise residential units and 114 shophouses. Facilities include a children’s playground, community hall, clubhouse, swimming pool, fitness centre, tennis courts, spa, management office, restaurant and event hall.

With property types ranging from semi-detached homes, small terraced houses, small villas and shophouses, the built-ups at Gamuda Gardens range from 174.9 to 486.1 sq m, with prices between US$47,244 and US$1.64 million. To date, Gamuda Gardens is 85% completed, and is 90% taken up.

“The project has been very well received, with an average of 90% sales achieved on all products launched to date. We are humbled by the reception of the products launched so far, and it motivates us to continue our commitment to our town-making principles and to deliver carefully designed master plans with high-quality products,” says Cheong.

The target market for Gamuda City Vietnam is mostly owner occupiers, he adds. “Our properties have been designed as an upgrade from existing properties in the area. Some 30% of our landed products and 5% of our high-rise products are purchased by investors.”

Quite a number of investors come from Hong Kong, he adds. The township attracts the middle to upper segment of the Vietnam market due to its premium products.

In terms of connectivity, it is accessible via Ring Road 3, which is one of the main access routes in Hanoi. The township is adjacent to the National Highway 1A and 1B. As for public transport, there will be a mass rapid transit (part of the Hanoi Metro master plan) and local bus network.

Nearby amenities include Le Parc. Developed by Gamuda Land Vietnam, Le Parc comprises six zones of shophouses with different themes. Other nearby amenities are AEON Mall, podium retail units and supermarkets, Bach Mai Hospital and the Singapore International School.

“Malaysia and Vietnam are different in many ways, from language to culture and social habits, laws and governance ideology, to state a few. Venturing into that foreign market was a calculated risk and we were well prepared to overcome our shortcomings (in cultural differences) and the challenges with sheer determination, perseverance and innovate thinking. We are glad our

efforts have paid off so handsomely,” says Cheong.

An uphill but worthwhile task

During our site visit to Gamuda Gardens in late August, we were pleasantly surprised by the

serenity and the vast green, manicured parks and lakes of Gamuda City. While taking a stroll in the Yen So Park, we saw a number of activities taking place including an outdoor children’s birthday party and wedding photo shoots. It was hard to believe that the once abandoned wasteland is now restored, revived and full of life.

Cheong tells us more about the rehabilitation process. “Our first action was to turn this place from an unwanted site into a desirable address, which led us to the idea of building Yen So Sewage Treatment (STP) to treat more than 40% of Hanoi’s sewage production.”

Cheong says there were challenges in developing and restoring the site. “There are challenges in every property development, but we do not see them as obstacles but rather a motivation for us to go above and beyond.

“As the city had no budget to fund the project, we privately financed and delivered it. It was not our intention to take on such a risky project, but it had to be done as we had a bigger vision for this part of Hanoi; to transform it and restore the livelihood of the land.

“With the STP and clean water discharged after seven years, it eventually led to the rejuvenation and rehabilitation of Yen So Park. Thereafter, it became the central community gathering place of Gamuda City, and is now Vietnam’s largest privately funded public park.” Yen So Park also received the FIABCI World Prix d’ Excellence Award in the Environmental (Rehabilition/Conservation) category.

“More importantly, our efforts have delivered an immense socioeconomic turnaround that has benefitted not only the local community but also the municipality and the city of Hanoi. It has given Hanoi a livable landmark while drawing in population and investment revenues,” Cheong adds.

After touring the park, the City & Country team was taken around Gamuda Garden’s completed residential units. The homes were uniquely crafted to suit the needs of the local market; the units were mostly multi-storey with compact and cleverly utilised spaces and high, spiral staircases.

“The township is both new and unique to

Vietnam, yet befitting the local preferences, culture and lifestyle,” says Cheong, adding that the group intends to build “resort homes” where residents can enjoy modern living in lush greenery.

Market performance, future plans

“Gamuda Gardens is gated and guarded and is designed after the Crime Prevention through Environmental Design (CPTED) model, which features sufficient street and back lane lighting, clear boundaries between public and private areas, natural buffers between pedestrian pathways and roads to segregate pedestrians from moving vehicles, cul-de-sacs and innovative street patterns in order to reduce crime,” Cheong says.

It provides a touch of exclusivity and enhanced security while ensuring the pleasant aesthetic of the street, he says. The developer also emphasises the importance of community. “Public spaces such as the parks [at Gamuda Gardens] are common grounds for people to get to know one another, to live and play together and, ultimately, to form a [strong] community.”

Meanwhile, the property market in Vietnam is seeing better days. According to global real estate services firm JLL Vietnam, the market performance has been promising. As at 1Q2019, prices had grown 6.8% year-on-year. In addition, the Vietnamese economy has seen a strong performance with 7.1% gross domestic product growth last year, according to the International Monetary Fund. This year, the Vietnamese government has projected a GDP growth rate of 6.9%.

Last year, Vietnam’s urbanisation rate reached 38% and is expected to increase more than 3% per year until 2020, according to the World Bank. “The rapid growth rate shows that the Vietnamese population is migrating to the urban centres, resulting in a strong market demand for real estate in urban settings [such as Gamuda City Vietnam],” says Cheong.

“As the demand continues to grow, we have our business plans to provide a stream of supply to cater for the demand in a suburban setting,” he adds. “Our plan is to continue to increase our existing presence in Hanoi and Ho Chi Minh City. We are working towards making Gamuda City [hopefully] the first choice of living for Hanoians while creating new landmarks in Vietnam,” says Cheong. “In Hanoi, we have two upcoming parcels; Gamuda Central [with a GDV of US$650 million] and Gamuda Lakes [with a GDV of US$1.6 billion].

“We are definitely seeking more development opportunities in Vietnam. Our overseas projects contribute an average of 67% to Gamuda’s total sales, and we would like to continue to ride this momentum.

“We are committed to our efforts to continue developing sustainable townships and, as is our vision for all Gamuda developments, we would like to create places for people to call home, where they want to be a part of the community to grow up and grow old in.”

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