Documente Academic
Documente Profesional
Documente Cultură
A71
Vietnam Real Estate Week 4, February
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MARKET SITUATION
Supply of office buildings blooms According to a recent study, the growth of the supply for the office market within the next 3 years will
reach 122% per year. The dramatically increasing supply will save a considerable cost due to leasing
Thoi bao Kinh te Viet Nam – 24 Feb, 2009 premises with low prices.
The current difficult economic situation has made many companies reduce their areas or switch to other
places to save costs. Therefore, the occupancy rates in many office buildings in the city are decreasing
and the rents are also going down. When the demand has dropped, office buildings that have just come
on to the market have suffered heavy pressure. And to compete, the owners of office premises for lease
have offered prices that have decreased by about 30% as compared to last year. Grade-A offices have
ranged from 48 to 60 USD/m2, grade-B offices have ranged from 28 to 40 USD and grade-C offices
have ranged from 14 to 25 USD. The price competition has made the goods on the market drawn up in
ranks, which has created the increasing distance between office grades. If following the progress
properly, until the end of 2009, the office market in Ho Chi Minh City including the existing areas and
newly completed areas would be 1,250,000 m2. In which, the area of grade-C offices is 555,000 m2 and
the area of grade-A and B offices is 695,000 m2. As compared to the end of 2008, the premise areas for
office space have increased by over 340,000 m2.
Before the boom of the supply of office buildings, consultants advised investors of office buildings to
have a plan to actively change the use of buildings, tightly following the market situation to timely and
flexibly adjust the signing of lease contracts, the increases and decreases of the rents and providing the
high quality services to attract and keep customers. The experts have also predicted that the year 2009
is a suitable time for those who lease offices because they have more time and products to choose.
Meanwhile, they also can request and be offered many more facilities than before.
HCMC: Is the real estate market’s Last week many investors released a program of reducing the price of apartment projects by from 40 –
42% and the attached programs of supporting finance for purchasing products. At first sight, the above
recovery true or just imagination? figures are very impressive but when putting them in comparison with the general decreases of 50 –
Lao Dong – 25 Feb, 2009 70% on the whole market, the above reductions have still been inconsiderable. Therefore, it is easy to
understand why the price of projects offered for sale has still been higher than the current prices of the
retransferred apartments. Currently, the market for retransferring completed apartments has been at the
low level. In the meanwhile, the segment of the project land at some areas such as District 2, 9, etc has
seen the signs of heating up because people that receive the support for damages and compensation for
the site clearance in the project of Thu Thiem new urban area have required price increases.
The experienced real estate market analysts have not been sure to assess whether the real estate
market’s recovery true or just imagination. According to them, although the manifestations of the market
has shown that the market has had seen the signs of recovery, in the general context of the whole
economy, it can not be defined whether these conditions are stable and last long or not. On the other
hand, the investment in the real estate market needs to have at least from 2 to 3 years to stabilize.
Ha Noi: The real estate market has Hanoi real estate market has warmed up gradually. It is the general judgment of the local real estate
brokers for the past two weeks. The projects that have attracted many customers include Van Phu urban
warmed up area, Xa La residential area - Ha Dong - Ha Tay, Van Khe close to Van Phuc silk village - Ha Dong.
Lao Dong – 27 Feb, 2009
While the gold and USD prices are dancing, the deposit interest rate is low and the amount of people
that withdraw money to invest in real estate has increased significantly. Those who have pursued real
estate brokerage for many years has said that the difficulties in this field have just been temporary and
the opportunities for the long-term development has still remained good, especially when the real estate
prices have declined by 30 - 50% as of now.
Signs of switching to the investment Most of the real estate experts have shown that although banks have begun to lend for the real estate
field and the interest rates have dramatically decreased in 2009, the real estate investors will not be able
in low-price houses to warm up the market if they just rely on bank capital. Even they have to suffer heavier pressure
Thoi bao Kinh te Viet Nam – 26 Feb, 2009 because the banks will selectively offer loans to projects that are committed to properly follow the
progress and have good outputs. Therefore, each real estate enterprise is obliged to build the
investment and business strategy that is suitable for the new situation.
According to VietRees, the trend of switching to investing and developing low-price and common houses
has attracted a lot of clients and an increasing number of real estate enterprises have set up their
investment plans for this trend because the medium-price projects can be sold quickly and investors can
take back capital quickly. And then they can continue to reinvest in serving clients with real demands.
Because the demand of this customer group has still drawn little attention and has been exploited rather
limited, it is promising that the real estate market in 2009 due to an increasing number of properties with
competitive prices and various sizes.
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Nam Cuong raises selling prices Nam Cuong Group has shown that the apartment project Hoang Quoc Viet Residential in Co Nhue, Tu
of Tay Do villa Liem district, Ha Noi has been started to be sold.
VietRees – 24 Feb, 2009 Previously, the corporation also informed that it would increase the selling price of Tay Do villa, terraced
houses in Do Nghia trade center - new urban area Duong Noi by 5 - 20%, which is applied on 1st March
2009. The contracts signed before 01/03/2009 have still applied the old prices and payment methods.
ACBR opens real estate market Real Estate JSB belonging to Asia Commercial Bank (ACBR) held an opening ceremony for ACB real
at Ha Noi estate transaction center and Asian One Member Real Estate Valuation Company Limited (AREV) on
the morning of 26th February 2009 at 365 - 367 Hoang Quoc Viet Street, Cau Giay District, Hanoi on a
Ha Noi Moi – 26 Feb, 2009 site of over 190m2.
In addition to the services such as advertising, brokerage, project marketing, legal formalities of land law,
market research and real estate investment consulting in Vietnam, transaction center ACB - Hanoi,
another function of ACB – Hanoi transaction center is to communicate the information of projects in Ho
Chi Minh City to customers in the North. This is the sixth transaction center of ACBR in the country.
Sponsor:
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CBRE markets BIDV tower On 26th February, 2009, BIDV Tower Joint Venture Co., Ltd and CB Richard Ellis Vietnam held a
Kinh Te Do Thi – 26 Feb, 2009 ceremony to sign the exclusive marketing contract and introduce the office tower BIDV of 25 storeys on
Tran Quang Khai street, Hanoi city.
Besides the office area for lease at the ground floor, the tower also has a bank, coffee shop, meeting
room at the 25th storey and the basement that is a large car park. It is expected that BIDV towers will
come into operation in November, 2009 with the rent of about 70 USD/m2 (including VAT and service
charge).
Vina House real estate transaction On the morning of 26th February 2009, Joint Stock Commercial real estate and Binh Chanh District has
center opened opened the real estate transaction center in the Vina 270 - 272 Lanh Binh Thang, Ward 13, District 11,
Ho Chi Minh City.
VietRees – 26 Feb, 2009
Because the transaction center is a member of Saigon real estate corporation should fully distribute the
real estate products of most of the members belonging to the corporation. In addition, Vina officially
distributes the products of many real estate business companies such as BCCI, Lu Gia mechanical
electric Co.
Phu My Hung offers the 2nd stage According to Phu My Hung Corporation, on 1st March 2009, the company will continue to offer the
of Riverside Residence for sale second-phase apartments of Block A, Riverside Residence project, District 7, HCM City.
Ha Noi Moi – 27 Feb, 2009 The 18-storey building including 158 apartments will be sold at the prices of from 37 million VND/m2 and
upwards. It is expected to hand over the houses at the end of 2010. There have now been 11 banks that
will support the customers when they buy Riverside Residence apartments.
Clearly write down public or On 25th February, 2009, Ministry of Construction promulgated the circular on granting the certificates of
private ownership when buying house ownership and providing the guidelines on the contract samples of buying and selling apartment
buildings in projects of organizations trading in dwelling houses.
and selling apartments
Accordingly, the contracts of buying and selling apartments must include the following contents: fully
Tuoi Tre – 26 Feb, 2009 state the areas belonging to private ownership of the buyers, the areas belonging to the ownership of the
apartment buildings; clearly write down the maintenance and operation costs of the apartment buildings,
the estimates for the costs paid for the management activities of the apartment buildings, the principles
of adjusting costs, etc. The area of the apartment is written following the apartment floor area, including
the area of balcony and loggia of the apartment building (if any); the floor area of apartment and how to
calculate the floor area shall be clearly stated in the contract of buying and selling apartments.
The agencies that grant the certificates of house ownership are responsible for completing the
procedures for granting the certificates of apartment ownerships and apartment buildings within 30 days
after receiving the valid documents.
In HCMC: land area after being On 25th February 2009, HCM City People's Committee promulgated the Decision 19 on the minimum
separated should be at least 36m2 land areas after separation. In the inner areas (including districts 1, 3, 4, 5, 6, 8, 10, 11 and Go Vap,
Binh Thanh, Phu Nhuan, Tan Binh districts), the land area for living on which there has been no house
Phap Luat – 26 Feb, 2009 shall be at least 50m2 after being separated and substracting the building lines and its frontage shall not
be below 4m in width. The land area with existing houses shall be at least 45m2 (at the roads having
building lines of over 20m) and at least 36m2 (at the roads having building lines of below 20m) after
separation.
With regard to the outskirts (including district 2, 7, 9, 12 and Tan Binh, Tan Phu, Thu Duc districts and
the towns and areas of the suburban districts planned for the urbanization), the land area after
separation shall be 80m2 (for the areas without houses) and at least 50m2 (for the areas with houses)
and the width of their frontages shall not be below 4m. As for the remaining suburban districts (Binh
Chanh, Cu Chi, Hoc Mon, Nha Be, Can Gio, excepting the towns and areas of the suburban districts
which are planned for the urbanization), the land areas for living on which there has been no house shall
be at least 120m2 after separation and the width of their frontages shall not be not less than 7m. The
land area with existing houses shall be at least 80m2 after separation and the width of their frontages
shall not be less than 5m.
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Ha Noi: Building 400 low-price The management board of Xa La new urban area, Ha Dong, Hanoi has just started the construction of
apartments at Xa La urban area, the trade center and apartments with 25 storeys for low-income people. In which, there are 45
apartments with the sizes of 40 - 60 m2 and the average prices of 400 - 600 million VND/unit.
Ha Dong
The project is invested by the Lai Chau No. 1 Construction Company and is expected to be completed in
VietRees – 24 Feb, 2009
the middle of 2010.
Ha Noi: One more housing complex Infrastructure Construction and Transport Investment JSC has said that it would start the project of office
at Trung Van commune, Tu Liem area, public services and houses in Trung Van Commune, Tu Liem District, Hanoi City at the beginning
of March, 2009.
suburban district
The project has a total investment of 523 billion and is located on a site of 23,829 m2. This is a multi use
Kinh Te Do Thi – 25 Feb, 2009
complex including an office area, public services, a housing area including 11 storeys to serve the
resettlement need, a housing area of 25 storeys and the low-rise housing area. Each building has an
area for public and trading services. It is expected that the low-rise housing area will be completed and
handed over at the end of 2009. In 2010 the high-rise apartment block will be completed and handed
over. In the middle of 2011, the entire project will be completed.
Ha Noi: Works start on housing On the morning of 26th February 2009, the urban area Bac Linh Dam, Hanoi Department of Construction
policy at Bac Linh Dam urban area Hanoi has started the project of building houses serving the site clearance and the other objects
belonging to Hanoi city policy.
VietRees – 27 Feb, 2009
The project is located on a site of 6,000m2, including 3 bay blocks of 12 - 15 storeys with a total of 185
apartments. Floor 1 is used for public services, floor 2 is for parking and from floor 3 upwards are 185
apartments with the sizes of from 48 to 87m2/unit. The total investment is 144 billion VND.
In January, 2009, the prices of the The price change level of high-grade apartments in HCMC
high-grade apartments in HCM City
to light
VietRees – January, 2008
Other cities Apartment area for low-income people (Da Nang) The trade center & apartments with 25 storeys (Ha Noi)
Van Tuong ecological urban area (Quang Ngai) The complex in Trung Van Commune (Ha Noi)
Vietnam Delverton resort (Binh Thuan) HA in the urban area Bac Linh Dam (Ha Noi)
Xuan Dam golf course (Hai Phong)
Lang Viet 5-star tourism area (Hue)
* Note: RA=Residential Area, AP=Apartment Building, HA=Housing Area, RuA=Reurban Area, TA=Tourism Area, IA=Investment Area, UA=Urban Area, ReA=Resettlement area
Sponsor:
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1
Kien A Investment & Services Co., Ltd. - An Phu Ward, District 2, HCMC - Tel: (84.8) 3740 6688, Fax: (84.8) 3740 6949
Danang: 225 Huyen Tran Cong Chua - T: (84) 511 836 216 * HCMC: 390 Nguyen Cong Tru, D.1 - T: 8 821 7509 * Hanoi: No.6-1D Trung Yen New Town, Caugiay - T: 4 783 1598
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Social welfare houses for worker * Saigon Construction Corporation investor two apartment blocks high 5-storey for workers in Quarter 1,
VietRees Linh Trung Ward, Thu Duc Dist, HCMC.
* Hung Vuong JSC has just put a 5-storey apartment building into use for cadres and workers. The
company continues to petition Tien Giang Provincial People’s Committee to grant a 5.000m2 land area to
construct more apartment buildings for workers with an investment of 100 billions VND.
* Saigon Paper JSC has put an apartment building into use for workers at My Xuan Commune, Tan
Thanh suburban district, Ba Ria - Vung Tau province. The stage 2 of the apartment building is about to
be implemented with a scale of 8 storey.
th
* Morning of August 28 , 2008, the Ministry of Construction has signed a memorandum for the
cooperation in the field of welfare housing with Korean Ministry of Land-Traffic and Marine.
* Ha Noi Construction Investment JSC (Hancic) has finished 4/10 units of the 5-storey house which
belongs to the housing project for workers at Kim Chung Commune (Dong Anh).
* Construction and Import-Export JSC (Vinaconex) has transferred and put into use 4 blocks of houses
among the total 16 blocks of the housing project for the workers at Thang Long industrial zone.
* The housing area of 7,000 m2 (380 rooms) for 1,500 workers of Dong Quang Knit Limited Company at
Hai Son industrial cluster (Duc Hoa Ha commune, Duc Hoa suburban dist., Long An province) has just
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been put into use. The total investment cost of this housing area is 20 billion VND. (2 Oct,2008)
* The 4-storey apartment building at cluster 5, ward 8, Vinh Long town that serves the cadres,
employees, professional serviceman and etc has been ratified by Vinh Long Provincial People's
rd
Committee with a total investment of over 37 billion VND. (3 Oct,2008)
* Hiep Phuoc accommodation and 1 apartment block in District 9 is reserved for over 1,600 workers in
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Hiep Phuoc industrial zone and hi-tech zones - Directed by HCMC People’s Committee (22 Jan, 2009).
* 4 three-storey apartment blocks (204 rooms) reserved for nearly 1,000 workers in Ha Quang export
garment factory and Tay Bac Dong Hoi industrial zone with the rent of 100,000 VND/ month/ person have
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been put into use after Lunar New Year – Quang Binh - Dai Phong Co., Ltd (4 Feb, 2009)
Real estate for the low income * Sai Gon – Gia Dinh Real Estate Company and Hoa Binh Phu Yen Company build Thoi An Apartment
VietRees Building in District 12 with 1,000 apartments.
* Construction Co. No.8 (CIC8) will invest in construction of 10,000 Keppel Land apartments & Tien
Phuoc Co. will build a resettlement area including 1,900 apartments at An Phu, Binh Khanh, District 2.
* HCM City People’s Committee will advance 50.5 billion to carry out the project of Vinh Loc B, Binh
Chanh residential area for resettlement with hundreds of townhouses and 40 apartment blocks.
* Construction Co. No.5 will invest in construction of 500 apartments at Ward 22, Binh Thanh District.
* HCM City Cooperative Alliance has developed its construction investment project of housing area at Le
Minh Xuan Commune, Binh Chanh Suburban District on a site of 67.49 hectares.
* 50% of the house reserve at The Splendor apartment area (Go Vap Dist.) will be intended to serve
resettlement demand in the district.
* Dat Lanh Co. will offer 1,500 apartments to the market with the prices of 500 - 700 millions VND/unit.
* People‘s Committee of HCMC has approved the project of the resettlement area on a site of 55.24
hectares at Dong Nam Cu Chi industrial - residential area in Cu Chi.
* House management of D.1 is assigned to construct the resettlement area at 7/4ª Kha Van Can, TD D.
* In early 2010, Hai Thanh company will complete 352 apartments of Hai Thanh 1 resettlement area
project, Binh Tan District for the civil servants at Binh Tan District.
* People’s Committee of Binh Chanh has just cooperated with Hung Vuong university Investment &
Development JSC to construct resettlement area at Tan Kien commune, Binh Chanh suburban district.
* People’s Committee of HCM City has just licensed Cho Lon Real Estate JSC to invest in the
construction of the apartment building at No. 99 Ben Binh Dong, ward 11, district 8 in order to make the
house reserve at the social welfare housing program.
* People’s Committee of HCM City has promulgated the decision about reclaiming the land areas at
Phuoc Kien, Nhon Duc and Phuoc Loc communes, Nha Be suburban district for the construction of the
resettlement area in order to serve the project of Nhon Duc - Phuoc Kien new urban area.
* The HCM City Union of Housing Co-operatives has prepared to commence the construction of Thanh
Loc apartment building with 238 apartments on a site of 6.600 m2 in District 12. The Union intends to
construct another apartment building with over 200 apartments at Truong Tho ward, Thu Duc district.
* HCMC People’s Committee has ratified the planning of Binh Khanh residential area (Dist.2) which is
built on a site of 384,019 m2 to serve the resettlement of the locals in Thu Thiem new urban area.
* Dat Xanh has cooperated with Truong Son Vanguard Youth General Squad to build apartments for low-
income people at Dist.12
* Go Vap People’s Committee and Go Vap Public Benefit Service Co. have bought back the house
reserve belonging to Phu Gia Hung high-end apartments, Duong Quang Ham Street, Ward 15, Go Vap
Dist. and Dong Hung Thuan 1, 2 apartment buildings, Dist. 12 to serve the resettlement of the locals at
Tham Luong project - Ben Cat - Nuoc Len ditch.
* Approximately 184,000 apartments belonging to the investment program in the construction of the
social welfare houses in the stage of 2009 – 2015 with the total investment of about 49,000 billion VND
th
have been submitted to the government for approval. (30 Sep, 2008)
* 800 social welfare houses for lease - lease to purchase will be built at 19A and 21A plots, Viet Hung
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urban area in 2009, which have been ratified by The People’s Committee of Ha Noi City. (16 Oct, 2008)
* 462 units of Khang Gia 3 apartment building (Go Vap Dist.) invested by Khang Gia Real Estate
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Investment – Development JSC will be used for the resettlement demands. (27 Oct, 2008).
* Replacing 0.3 million m2 floor of the old apartment buildings in District 1, 4, 5, 11, Binh Thanh, Tan
Binh, Tan Phu and building 4 apartment buildings: 107 Truong Dinh (Dist. 3), Soai Kinh Lam ( Dist. 5),
Building B (plot Q), Nguyen Kim apartment building, Building B (plot B, C), Ngo Gia Tu apartment building
- Department of Construction (Jan, 2009).
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STOCK MARKET
Two bourses increase, * At the opening time of the market last week, the downward
trend has still continued on the HCM bourse. Fairly many
VN-Index adds 3.21 points, selling orders and floor-price matching have been
HASTC-Index adds 1.86 points implemented right from this stage, VN-Index has lost 2.78
Edited by VietRees points to close at 239.75 points. The total trading volume
Chart Source: Vietstock has reached over 1.2 million units. However, entering the
Up to date: 27 Feb, 2009 consecutive order-matching phase, the transaction situation
has become eventful. Since this is the last week, many
investors have bravely collected shares and this has helped
the transaction volume increase. VN-Index has also
reversed it direction to increase by 1.82 pm points as
compared to the previous session and close at 244.35 points. During the periodical trading time to
determine the closing price, the situation has been very exciting. Ending the session, VN-Index has
added a total of 3.21 points to close at 245.74 points. The total trading volume on the whole market has
reached 11.3 million units worth 147.6 billion VND.
After one trading week, VN-Index has had 2 upward sessions and 3 downward sessions. As compared
to the last week, VN-Index has lost 6.83 points. The trading volume has averaged 10 million units per
session.
* At the Hanoi bourse, HASTC-Index has maintained the upturn when adding 1.86 points to close at
83.96 points. The total trading volume on the whole market has reached 4.6 million units worth 85.6
billion VND.
After one trading week, HASTC Index has had 4 upward sessions and 1 downward session. As
compared to the last week, HASTC-Index has lost 0.24 points (from 84.2 points down to 83.96 points).
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General trends on the HCMC market The situation of real estate transactions of apartments, town houses and project ground bases in
January 2009 has continued to be gloomy although the prices have slightly decreased as compared to
the previous months and some projects have even stopped reducing the prices.
According to VietRees, the real estate prices in January have slightly declined because the bank interest
rate has dropped and the construction materials prices have gradually become stable. The psychology
of the market expects that the low interest rates will stimulate the individual investors to come back and
this will somewhat impact on the prices listed on the market
However, according to the analysis of VietRees, (1) Currently, most of the investors have lost the
confidence in the stability of the market. (2) The prices of some apartment projects have still been very
high. (3) Investors have been more experienced in assessing the projects and analyzing the market. (4)
The market has had many choices and (5) been more careful in the transactions, as a result, surely, the
prices will continue to decrease with the low amplitude in a short time.
Apartment market The supplies of the apartments belonging to the medium and low market segment have been fairly
limited, there is almost no new product and the market has seen almost no changes as compared to the
previous month. Most of the successful transactions focus on the customers with the real needs not the
investment purposes.
The prices of the high-grade apartments has only fallen by 1%, however they have had relatively few
customers, especially in the Lunar New Year people take little interest in buying the high-grade
apartments in this stage. It is predicted that the prices of the high-grade apartments may continue to
slightly decrease in the next few months.
Project ground base market Although the prices of the ground bases have dropped, they have been so high to the people who have
the real housing demand; so, the transactions are very few. If they have the real housing demand, they
will choose to buy the apartments or town houses, not ground bases, therefore the transaction of ground
bases has still been in dribs and drabs and even visibly stopped.
Real estate agents Through the survey of the real estate business marketing agents in the past time, VietRees has realized
that these agents has cut down on staff and the marketing budget substantially due to the sluggishness
of the market. However, at present, according to the latest observations, some agents have actually
become aware of the importance of the marketing and the stiff competitions in the market. As a result, in
the near future they will focus on strengthening, streamlining the structure and continue to invest in
training personnel, improving the customer service, marketing the brand image with the more focused,
strategic and methodical plans than before. This is the praiseworthy sign of the market.
According to VietRees, the agents that have a tight budget for marketing, they should focus on exploiting
online media channels properly to reduce the costs and still reach efficiency as expected. They should
not completely stop the activities marketing the brand images and products. This is the trend of the
sectors in the current economy.
Forecast in 2009 Under the growing impacts of the financial crisis and economic recession, the real estate market in
Vietnam seems to be gloomier. VietRees has judged there is a faint possibility for the recovery of the
market in 2009. In 2009 the market will have more difficulties than in 2008. Many real estate investors
and speculators will cope with paying the bank debts but the property prices have seen no signs of
recovery.
According to VietRees, after Lunar New Year 2009, the real estate market will become an attractive
playground for the investors with large capital and long-term investment strategies. The downward
market will minimize the speculation situation and the market is in the hands of the buyers not the sellers
as before. As a result, the potential real estate enterprises need to build long-term development
strategies and positively work on the research and development, especially, seriously invest in the
market research and research the customers; steadily develop step-by-step and avoid spreading the
investment in this current difficult situation.
The coming investment trends The trend of switching to investing in the development of the cheap and common houses to attract the
majority of the customers is becoming more perceptible. Many enterprises are planning to promote their
for Vietnamese real estate investment in the market segment. It is very promising that the people with the low & medium income will
enterprises have many opportunities to get access to this supply.
According to the studies of VietRees, the enterprises should invest in the apartments with the relative
sizes of about 40 – 60 m2, good structure, relatively good materials and equipments (not need to be the
high-grade ones) and the maximum selling price of 10 million VND/ m2. The apartment’s worth from
400,000 to 600,000 million VND/ unit will be able to attract more customers. The customers should be
aimed at newly married couples, students, staff and civil servants who are living and working in HCMC.
In fact, some foreign investors have been interested in this market segment. Therefore, the domestic
investors should take quicker actions because according to VietRees, Vietnamese enterprises are likely
to have more advantages than the foreigners in this market segment.
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