Documente Academic
Documente Profesional
Documente Cultură
A53
Vietnam Real Estate Week 3, October
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VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A53 Page 2
MARKET SITUATION
Vietnam real estate market Many delegates attending the International Real Estate Federation (FIABCI) at the area of Asia - Pacific
on the seventh time that has just been held in Ho Chi Minh City have assessed that the real estate
still very attractive and full market in Viet Nam still is full of potential and is very attractive.
of potential A total area of 150,000 m2 at 15 centers and commercial areas is too small as compared with the
SGGP – 13 Oct, 2008 current demand, especially when the retail market is very hot with an increasing number of international
tourists. Additionally, in Ho Chi Minh City, there are only about 6,950 hotel rooms that meet 3 - 5 star
standards and the number of serviced apartments in Ho Chi Minh City are also limited. Therefore,
according to many opinions, the investment opportunities in the real estate industry in Viet Nam in
general and in Ho Chi Minh City in particular for the foreign enterprises are still quite good, especially
when the policies of the government is becoming easier and the investment growth is good. In addition,
Ho Chi Minh City still needs a large number of welfare apartments and housing areas.
Although the real estate market is full of potential, Vietnam is facing many challenges. According to
some experts’ prediction, the real estate market can recover with its quickest speed in late 2009
because the current housing demand of people is very high. However, most of them have to rely on the
support of the banks. In addition, the legal system in the management and development of the real
estate market has not yet completed; the administrative procedures are too complicated; the
implementation of the projects takes a long time and the increase in expenses lead to the price
increases of the properties. Although the real estate market has currently remained at unchanged prices,
investors and customers are still expecting further price decreases. As a result, it is difficult for the
market to recover in the near future.
Bankruptcy risks of real estate According to a survey of VietRees at the brokerage centers and transaction centers in Ho Chi Minh City,
all of them have seen the state of few customers and the substantial reduction in the volume and the
enterprises scope of activities. Most of them have only operated moderately. In the past, although many trading
Vneconomy – 17 Oct, 2008 centers changed into trading floors, the transactions have still had no sign of prosperity. The transaction
situation of apartments, townhouses and project land continues to drop (the price decrease has been
over 50% as compared with before) and the prices for sale are leveling off.
In fact, currently, the capital source of the enterprises investing in the real estate business has been
unchanged. The basic reason is the current capital sources have been mobilized with the maximum
capacity. Even so, in order to limit the negative impacts of the financial crisis towards VN’s economy, the
government has directed the State Bank of Viet Nam to have measures of closely supervising the loans
for investment, especially the investments in the high-risk fields such as real estate. The housing
demand of people is still high, but most of them still need the support of the banks. Therefore, the fact of
maintaining the policies that tighten the management of the real estate market together with the high
interest rate is not only the difficulty of enterprises but also the barrier in their accessing the bank loans
for the people who have real demands to buy homes.
With the current context, according to experts’ prediction, the enterprises will have to try to manage
themselves and wait in the short term. However, many real estate enterprises must face the actual risks
of bankruptcy in the long term.
Mapletree to construct a MapleTree Investments Pte. Ltd. (Singapore) signed a land lease agreement with Becamex IDC Corp.
on October 14th, 2008 to develop a technology zone for business & production on a site of 75 hectares
technology city in Binh Duong in Binh Duong industrial - urban area with a total investment of 400 million USD.
TheSaiGonTimes, 14 Oct, 2008 The project is used for the enterprises operating in the fields of processing software, developing high-
tech software, researching and developing products etc. The project is expected to commence in 2009.
One more resort in Hue invested On October 14th, 2008, Thua Thien - Hue Provincial People's Committee licensed Dream Palace
by Korea company (Korea) to invest 32 million USD in the construction of Dream Palace Resort at Chan May-
VietRees, 15 Oct, 2008 Lang Co economic zone.
The project is built on a site of approximately 27 hectares, including villa type motel areas, service areas,
sport areas and entertainment areas with the criterion of being friendly with the environment.
Sponsor:
VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A53 Page 3
In the morning of October 13th, 2008, Thu Duc Housing Development JSC (ThuducHouse) showed that
Hoa Binh Corporation wins Hoa Binh Corporation (HBC) was chosen as the contractor of the bid package No.3 with the contents as
many contracts in succession follows: executing the construction & erection, completing the body part of TDH - Truong Tho apartment
VietRees – 16 Oct, 2008 building project at Truong Tho ward, Thu Duc district, Ho Chi Minh City.
Previously, Hoa Binh was also chosen as the main contractor to execute CR5 and CR8 plots located in
the project of Semicircle Lake area, Phu My Hung with the height of 7 stories, the value of nearly 460
billion VND and the construction time of 12 months.
Binh Dinh: One more tourism In the morning of October 16th, 2008, Investment Promotion Center of Binh Dinh province showed that
Tan Nghia Construction - Investment Co., Ltd. (HCMC) was licensed to develop the construction
project of 70 billion VND investment project of the tourism site at No.3, Song Cau - Quy Nhon tourism service line.
SGGP – 16 Oct, 2008 Tan Nghia Quy Nhon service-tourism site owns an investment of 70 billion VND, including types of
resort-tourism areas and introducing the cultural features of Binh Dinh together with eco-tourism,
camping, relaxing, eating and drinking.
Bitexco Group and Huyndai E&C Co. signed a main bid package contract worth 93 million USD (which
Starting the project of Bitexco belongs to the project of Bitexco Financial Tower) on the evening of October 16th, 2008.
68-storey tower Bitexco Financial Tower is located at No.1 Ho Tung Mau street, district 1, Ho Chi Minh City. The tower is
Thanh Nien – 17 Oct, 2008 262.5m high, including 68 storeys and 3 basements, built on a site of approximately 100,000 m2. It is
expected to be completed in 2010.
BIDV provides credit facilites On October 17th, 2008, PFV Investment and Commerce JSC (the investor), Bank for Investment and
Development of Vietnam (BIDV) – Quang Trung branch (the agent providing credit services), CBRE
for the tenants of apartments estate investment and consulting company (the agent marketing and trading) – have officially signed a
Dan Tri – 17 Oct, 2008 contract for cooperation to support the customers in borrowing loans to pay for leasing apartments which
belongs to the project of trade center and Vincom Park Place high-end apartments for lease at 114 Mai
Hac De Street, Le Dai Hanh ward, Hai Ba Trung District, Ha Noi city.
CBRE has been mandated to be the business agent for leasing the apartments of the project. The
branch of BIDV at Quang Trung will lend its capital to the customers who have registered for leasing the
properties in the projects with the loans of up to 70% of the total expense of leasing an apartment and
the maximum duration for the loans is 15 years. It is expected that on October 23rd, 2008, PVF will
officially introduce and receive the registrations of leasing Vicom Park Place apartments.
Sponsor:
VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A53 Page 4
Sponsor:
VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A53 Page 5
Ha Noi about to have one more The People's Committee of Ha Noi City has decided to transform the old racecourse area and the green
new urban area tree park at Dai Kim, Hoang Mai, Thanh Liet commune, Thanh Tri into a functional-urban area of 196
hectares, bordering Cau Buou new urban area.
Ha Noi Moi – 15 Oct, 2008
The project includes high-rise building areas, offices, green-tree parks, religious works, national security
works and a 32 hectares air-conditioning lake.
Thanh Hoa: Constructing an eco- In the morning of October 15th, 2008, the Management Board of Nghi Son economic zone announced
the detailed planning of Nghi Son island eco-tourism site - Nghi Son economic zone, Thanh Hoa
tourism site in Nghi Son island province with a total area of 100 hectares.
Kinh Te Do Thi – 16 Oct, 2008 The project includes: central areas (4 blocks of high-rise motels, 23 low-rise motels with swimming pools
and garden yards, health care centers, restaurants, conference houses, swimming pools and etc); ethnic
culture villages; forest planning area for mountain climbing, camping; green tree park areas, seaside
resorts and etc.
Constructing a complex trade Binh Tien - Bits's Consumer Good Production Co., Ltd (HCMC) has been licensed by Dak Lak Provincial
People’s Committee to construct the complex trade center in Buon Ma Thuot.
center in Buon Ma Thuot
The project owns a total investment of over 30 million USD, including: multi-functional trade areas, bank
Thanh Nien – 17 Oct, 2008 - finance areas, offices for lease, 5-star hotels. The project is expected to be commenced in the first
quarter of 2009.
High-grade apartment prices at
HCMC are not changed compared
with September, 2008
Edited by VietRees – Oct, 2008
Office, commercial Tan Thanh Ward complex building (Tan Phu), C6/27 Pham Complex of Vietnam – Japan cultural park (Dist.2)
Hung commercial center (Binh Chanh), Tan Binh
commercial – service center (Tan Binh)
* 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) 740 6688, Fax: (84.8) 740 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
Sponsor:
VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A53 Page 7
Real estate for the low income * Sai Gon – Gia Dinh Real Estate Company and Hoa Binh Phu Yen Company build Thoi An Apartment
Building in District 12 with 1,000 apartments.
VietRees
* 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 Dist.1 is assigned to construct the resettlement area at 7/4ª Kha Van Can, Thu
Duc district.
* 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 buiding 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 Lanh 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
have been submitted to the government for approval. (30/09/2008)
* 800 social welfare houses for lease - lease to purchase will be built at 19A and 21A plots, Viet Hung
urban area in 2009, which have been ratified by The People’s Committee of Ha Noi City. (16/10/2008)
Dwellings for overseas Vietnamese The Committee for overseas Vietnamese in HCMC has showed that there have been 130 overseas
Vietnamese buying houses, mainly in HCMC.
and foreigners
Those who brought houses are those who come back to the country for their long term and direct
VietRees investment, scientists, culture researchers invited to come back to the country to become experts and
repatriating overseas Vietnamese. To buy houses, beside documents verifying priority subjects, the buyer
must present their passport (issued in Vietnam). In the case that house buyers bring foreign passports,
they must have certificates of Vietnamese nationality or documents confirming their losing Vietnamese
nationality, or certificate of citizenship registration.
Sponsor:
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The Central Steering Committee The Prime Minister has made a decision to change the name “The Central Steering Committee on
dwellings policy” into “The Central Steering Committee on dwelling policy and real estate market”. In
on dwellings renamed addition, the committe has also added some functions, missions and powers during its operation.
Vneconomy – 17 Oct, 2008 The Steering Committee is responsible for helping the Prime Minister to research, guide and coordinate
in order to solve the crucial and interdisciplinary problems relevant to the real estate market; unifying the
implementation of real estate business laws and the policies relevant to the development and
management of the real estate market on the whole country.
The board is also responsible for researching, periodically summarising and assessing the real estate
market situation to learn from the experiences, propose the amendments and supplement to the
mechanism and policies relevant to the real estate market in accordance with the socio - economic
development situation of the country.
In addition, the Steering Committee is responsible for providing guidelines on the management and
operation of the real estate market activities of the Steering Committees of centrally-controlled
municipalities. Meanwhile, it checks the implementation of the mechanism and policies towards the real
estate market of the ministries, departments and localities.
Real estate brokers not need Ministry of Construction has promulgated the documents to guide some Departments of Construction
about granting certificates of real estate brokerage and assessment.
qualifications
Accordingly, considering granting certificate of real estate brokerage to individuals does not depend on
Nguoi Lao Dong – 17 Oct, 2008 their education level. Regarding the jobs of real estate assessment, certificates of real estate
assessment only need to be granted to the individuals of at least intermediate levels.
The laws on real estate business do not regulate the valid duration of real estate brokerage &
assessment.
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VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A53 Page 9
General trends on HCM market In general, the situation of real estate transactions in August is slowler than July due to the psychology
of keeping off buying houses in lunar July. However, selling prices have come back to the uptrend.
Customers have more and more options to buy the properties whose prices are getting closer to their
real values.
According to the surveys of VietRees at the brokerage centers and transaction centers in HCMC, most
of them have had only fews customers in HCMC. However, the prices of the real estate advertised for
sale have levelled off or seen a slight decrease of 2 - 5% as compared with the last month. This reason
of this price increase has been explained that construction materials prices in the past period have gone
up dramatically, inflation has risen, the actual incomes of the people have dropped and most importantly,
the sellers have been expecting the recovery of the market; as a result; the prices have become higher.
Increasing prices have been recorded at the projects in good locations and ensure the progresses of the
construction (the investors are continuing construction) and especially at the projects in which the
houses are about to be handed over or the infrastructures have been somewhat completed and the
construction speed is prompt.
Apartment market The sale and purchase of apartments or house on an installment plan in August, 2008 has drawn
interest from the buyers with real demands. Due to the fact that the banks have tightened real estate
loans, many investors have flexibly implemented the way of selling houses on installment plans for many
years to raise the capital for their projects.
According to the recent market surveys of VietRees, in addition to the previous factors such as location,
prices and convenient traffic; payment method and the money to pay in the first installment when
purchasing project houses are also drawing a lot of interest from buyers.
The apartments with small areas of 50 - 80 m2 and the value of below 600 - 800 million VND are seeing
a sign of decreasing attraction. The reason is that the supply is significantly increasing while the inflation
and the bank interest rates are rising sharply, therefore, the rent is not as high as the bank interest.
Tenants now have more options than before. As a result, many apartments are left vacant because there
is no tenant.
The market of project land plots Similarly to July, on the whole, land prices have seen no decline and in some cases increased. The
sellers think that the situation has become less difficult and they will not accept any more loss.
Therefore, they will not try to sell properties at all costs like before. Land prices of some projects located
in Nha Be, Dist.2, Dist.7 have risen by 0.5 to 2 million VND/m2. Transactions have appeared on the
market although they are much less than in the beginning of the year.
STOCK MARKET
Two bourses happen contrariwise, The fact of U.S stock market increasing fairly
significantly in the ending session at the dawn of 17 Nov
the market still sees many risks (Vietnam time) & the information about the petrol prices
Edited by VietRees being reduced have not yet been able to to encourage
the investors to join the market more drastically.
Chart source: Vietstock
Opening the session this morning, VN-Index has slightly
Up to date: 17 Oct, 2008 increased by 1.16 points (or 0.3%), adding 385.77 points
with the trading volume of over 3.5 million units. Only
some minutes later when entering the consecutive order
matching phase, the red color has flooded the electronic
board with a high volume of selling orders, quickly dragging the market index down to 838.65 points,
dropping by 0.96%. Ending the session, Vn-Index has closed at 382.52 points after losing 2.1 points (or
0.54%). Over 11.6 million shares and fund certificates (fund stocks) have been traded sucessfully with
the value of 365.117 billion VND (a decrease of over 10% in volume and 5% in value).
After one trading week with 3 downward sessions and 2 upward session, VN-Index has still increased by
3.45 points (or 0.91%) against the last week.
Contrary to HOSE, HaSTC-Index today has reversed the direction to increase by 1.04 points (or 0.84%)
& close at 125.32 points. The total trading volume of the whole market on HaSTC has reached over 6.1
million shares, worth nearly 125.32 points. Ending one trading week, HaSTC has had 2 downward
sessions & 3 upward sessions, increasing by a total of 5.45 points against the sessions of 10 Nov, 2008.
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