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VietRees Newsletter 66 Week3 Month1 Year09
VietRees Newsletter 66 Week3 Month1 Year09
VietRees Newsletter 66 Week3 Month1 Year09
A66
Vietnam Real Estate Week 3, January
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MARKET SITUATION
HCMC real estate association The Ho Chi Minh City real estate association has officially requested the State Bank to reconsider the
petitions for reconsidering the period for bank loan payment for the enterprises in the association. Accordingly, the Bank will not fine
the enterprises for violating the time for payment; will adjust the old loan interest to be equal to the
payment time current level (for the enterprises taking out loans in the time of the high loan interest rate); consider to
Sai Gon Giai Phong – 13 Jan, 2009 reduce the interest rates reasonably and give the enterprises the loans to make the business investment
with the interest rate of below 10% per year.
According to the forecast, 2009 will continue to be a difficult year for enterprises trading properties due to
a series of reasons, in which the primary reasons are the economic crisis and the frozen market. Most of
the real estate enterprises in the city are the small and medium enterprises. Therefore, if they receive
support from the banks, they will be hard to operate. However, the small and medium enterprises should
also have plans of combining their forces such as joint venture, switching to houses for the low-income
people because the demand is still very high. And to activate this market, the city should have favorable
credit policies for the low-income people who have the real housing demands.
2 development trends on the According to some experts, the real estate market in 2009 will continue to develop in two types including
market: low-price and high- the high-price houses worth millions of US dollars and the low-price houses of about a few hundred
millions, which are two market segments having many relative demands of a part of the rich and those
price houses who have real housing demands, but low incomes.
TheSaiGonTimes – 14 Jan, 2009
The parallel development of two types of houses that are quite different in that the prices have originated
from the fact that the foreign investors in the real estate field have continued to pour their capital into the
high-grade housing projects and lacked the supply of the low-price houses.
In the field of the high-grade houses, according to some experts, the market will restructure. Instead of
investing on the large scale, the investors will re-select and only invest in the projects that offer the
products within the next one to three years. In addition, kicking the demands of the low-price houses in
the current market situation will stimulate the demands for the low-price houses because it is also the
real demand of the majority of the people.
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HUD to build 500,000m2 housing The Housing & Urban Development general company (HUD) has shown that the investment procedures
for the 5 projects of new urban areas in Ha Noi (including Nam An Khanh, Vietnam Linh Dam, Mai Trai -
area in 2009 Son Tay and Thanh Lam - Dai Thinh 2) are being implemented. These projects meet enough
Ha Noi Moi – 12 Jan, 2009 requirements to continue being implemented after the Ministry of Construction and People's Committee.
Hanoi has conducted the review at the time of the administrative border being expanded.
In 2009, the corporation plans to build about 500.000m2 floor, in which the priority is offered to the
programs of building apartments in Hanoi.
CEN Group – Megastar: signing Megastar Corporation and Century Real Estate JSC MegaStar (Cen Group) have signed a contract of
exclusively marketing and distributing the project of MegaStar Tay Ho Tay apartment project, which will
the contract of exclusively be started at the end of January 2009.
marketing MegaStar apartment block mainly serves the subjects who have the medium and fair income, including
VietRees – 12 Jan, 2009 the apartment areas of from 65 - 100m2 and full of the public utilities. The apartment block is estimated
to be completed by 2011.
Eximland opens its standard real On January 13, 2009, Exim real estate company (Eximland) opened its standard real estate transaction
center at 55A Nguyen Chi Thanh Street, Ward 9, District 5, Ho Chi Minh City in accordance with the
estate transaction centre regulations of the Ministry of Construction.
Nguoi Lao Dong – 14 Jan, 2009
The center provides the services relevant to real estate such as consulting, market research, advertising,
brokerage, etc. Kien Tan apartment project in Binh Chanh is the first product that the transaction center
has conducted on the occasion of the inauguration. In addition, Eximland has also established E-XIM
Assessing company specializing in the the field of assessing real estate, movables, investment projects,
etc.
PFV supports the loan interest On January 14, 2009, PFV Company – the investor of the project Vincom Park Place and the real estate
management and consulting company CB Richard Ellis announced the program of supporting the
of Vincom Park Place apartments customers who registered for leasing the houses of the project. Accordingly, if the customers registering
Lao Dong – 15 Jan, 2009 for renting the apartments of the project from February 2009 until August 2010 have the demands for
bank loans to pay the rent of the apartments, they only pay the interest of 3% per year and the
remainder will be paid to the banks by the investors.
The trading center of the building is expected to be opened on August 8, 2009 and the apartments will
be handed over to the customers at the beginning of September, 2009.
Some projects of C.E.O in 2009 According to C.E.O Investment JSC, the company has now designed 16 house templates for the new
urban area CEO Quoc Oai in Sai Son commune with many different sizes. 330 villas are expected to be
VietRees – 16 Jan, 2009
offered for sale in February, 2009. In addition, the project of the C.E.O 27 storey office tower project on
Pham Hung Street, Hanoi has completed the structural works and in the finishing process. According to
the plan, the building will be put into use in the second quarter, 2009 at the rent of 33 USD/m2.
In addition, the company has also said that the urban area CEO Me Linh has completed the investment
procedures and the construction is expected to be implemented in 2009 and completed in 2014.
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Investor supports customers to The project investor of An Cuu new urban area - Viet Long Hue JSC - has said the company would have
a program of supporting the customers in the purchasing houses from the project on the occasion of
buy houses of An Cuu city completing the first phase with 90 houses and the first 90 houses will be handed over in January 2009.
VietRees – 10 Jan, 2008
Accordingly, 5 - 30% discount will be offered to the individual or collective clients (depending on the type
and area). It is expected to start the second phase in March, 2009 with the construction of 28 villas in the
K zone, 36 town villas in the A zone and 54 terraced houses in the C zone.
Techcombank support finance Vinh Tuong JSC has implemented the sale of 80 apartments at C plot, Tan Tao apartment project on Lo
Te road, Tan Tao A Ward, Tan Binh District, Ho Chi Minh City.
when buying Tan Tao apartment
The average price is below 10 million dong/m2 (including 2% maintenance fee) and the payment form is
Ha Noi Moi – 11 Jan, 2009
flexible. In addition, Techcombank will support the customers up to 70% of the value of the property, with
a loan period of up to 20 years and the interest rates following the time if they have requirements.
Opening the biggest trade center Intimex Import – Export JSC (Intimex Hochiminh) has just been opened and put Intimex - Fuso trade
center into operation in the city in Buon Ma Thuot city, Dak Lak province. The project has an investment
in Tay Nguyen of 70 billion and the scale of 5 stories.
Dau Tu Chung Khoan – 15 Jan, 2009
With a total business area of over 7500 m2, the biggest trade center in Tay Nguyen includes full of
shopping services such as the electrical appliance center, the same-price supermarket Daiso-Japan, the
supermarket for self-selecting high-grade products, entertainment areas and cinemas.
In general, the prices of the high- The price change level of high-grade apartments in HCMC
grade apartments in HCM City VietRees has recorded that in 2008, April and May had the highest decreases with 15% and 10% respectively.
continue to decline
VietRees – January, 2008
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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:
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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 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
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)
* 462 units of Khang Gia 3 apartment building (Go Vap Dist.) invested by Khang Gia Real Estate
Investment – Development JSC will be used for the resettlement demands. (27/10/2008)
The Committee for overseas Vietnamese in HCMC has showed that there have been 130 overseas
Dwellings for overseas Vietnamese Vietnamese buying houses, mainly in HCMC. Those who brought houses are those who come back to
and foreigners the country for their long term and direct investment, scientists, culture researchers invited to come back
VietRees 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.
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Can Tho: chairman of People’s To decentralize the decisions on the construction investment for projects of works for socio-economic
infrastructure, national defense and local security by using the state-owned budget which is managed by
Committee of district allowed to the localities, the People's Committee of Can Tho city has shown that the chairman of the People's
make decisions on the projects Committee at the district and suburban district level are allowed to make decisions on the investment in
of below 5 billion VND projects with the value of below 5 billion.
Phap Luat – 14 Jan, 2009 Based on the long-term investment plan, annually, the People's Committee at the suburban district level
sets up the construction investment plan for the localities to ensure the investment structure and require
that the socioeconomic development at the localities follow the ratified planning in the budget scale of
the localities, etc. Regarding the works at the places that there is no planning should have the approval
of the management organizations or authorized agencies on the planning.
Three types of projects have According to the Resolution 33/2008/NQ-CP, the government will pilot some reformations to the
administrative procedures in the construction investment for three types of projects including new urban
administrative procedures areas, housing areas and the industrial technology infrastructure.
reduced in construction In the case that the investment policies are available but the detailed planning for the construction at the
investment 1:2000 scale has not been ratified yet, the People's Committees at the provincial level are allowed to
Kinh Te Do Thi – 14 Jan, 2009 assign the investors to set up the planning and submit them for approval according to the regulations.
The organizations assessing the planning will consider and respond in terms of the full and the validity of
the documents within 5 working days. In case, the documents are not enough, the assessment agencies
should provide the guidelines in written for the investors so that they can finish the documents. The
complement of the documents should be conducted for only one time. The time for assessing & ratifying
the detailed planning for the constructing at the 1/2,000 scale does not exceed 30 working days.
For the detailed planning at the scale of 1/500; the local government should complete the assessment
and ratification of the planning and grant the ratified decisions to the investors within 30 working days
from the date of the investor submitting the full documents. For the regions that have had the detailed
planning at the scale of 1/2,000 and raised the newly-ratified proposals different from the 1/2,000-scale
planning when setting the detailed planning at the scale of 1/500 of the project, the authorized agencies
should consider and assess those proposals. If they are suitable, the agencies should send the decision
in written on approving the planning at the scale of 1/500. The time for the approval should not exceed
15 working days.
STOCK MARKET
Vn-Index backs to the upturn, * At HCMC bourse, at opening time on January 16,
optimistic signs have appeared, VN-Index has swum
HASTC-Index continues to decline upstream when adding 1.71 points to close at 305.72
Edited by VietRees points. Entering the consecutive order-matching phase,
Chart Source: Vietstock VN-Index has continued to maintain the upturn due to the
Up to date: 09 Jan, 2009 stable price increases of the blue-chip stock on the
market. At the end of the session, although the
transaction situation was not really exciting, VN-Index
has added 2.11 points as compared to the previous
session to record at 306.12 points. The total trading
volume on the whole market has reached 6.8 million units worth over 165 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 a total of 7.28 points.
* On the contrary to the situation on HCMC bourse, HASTC-Index has still continued to decrease when
losing an extra 0.27 points today to close at 102.84 points. The total trading volume on the whole market
has reached nearly 2.7 million units worth 58 billion.
This week, HASTC-Index has seen the decreases in the 5 sessions, losing 3.33 points as compared to
the last week (from 106.17 points down to 102.84 points).
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VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A66 Page 9
RESEARCH – CONSULTING
Solutions to enhancing the competitive abilities of the Vietnamese real estate enterprises
1. Why should the Vietnamese real estate 4.1. Enhance the management ability and train In addition, the enterprises should combine with
enterprises enhance their competitive abilities? the leaders of the enterprises. universities and colleges to recruit excellent
Enhancing the competitive abilities of the To develop the above abilities, the decisive factors undergraduates in order to build the active young
Vietnamese real estate enterprises is an are the activeness and positive striving of every team to undertake the important professional
indispensable thing in the process of integration businessman. positions in the near future.
especially in the difficult situation of the current real According to VietRees, firstly, the leaders of the
estate market and the decline of the economy, enterprises should pay attention to enhancing the 4.7. Build up a good image to the public.
helping the real estate enterprises stand firm on essential skills and update the modern knowledge. Any enterprise understand clearly that if it wants to
their feet & develop in the coming years. Thereby, Some knowledge and skills should be updated and have a good public image, firstly, it has to win the
it has contributed to enhancing the competitive systematized. If the basic skills are combined with customers’ trust by the quality of its service
power of the whole economy. On the other hand, the effective management knowledge, there will be products, the marketing business activities and
in the current situation of the market, if the the decisive impacts on the managers of the real after-sales service, etc.
competitive abilities are not enhanced, the estate enterprises. Thereby, this contributes to Through the marketing and after-sales strategies
enterprises will be able to suffer the losses, close improving the competitive abilities of the real estate to promote the enterprises’ own brands, if this
down and go bankrupt. According to VietRees, to enterprises. work is well implemented by real estate
assess the competitive ability of one real estate enterprises, it would be very convenient for them
enterprise, firstly the real estate enterprises need 4.2. Improve the quality of service products and to raise the capital through issuing their shares
to identify the internal factors and external factors the diversity of the provided services and bonds to the public.
impacting on their competitive abilities. When the source of real estate products is However, the real estate marketing activities on
According to VietRees, the essential internal growing, the quality of service products is getting the current market have not received the proper
factors that the enterprises need to use to assess more attention of the customers. The quality of the investment from the investors, including the big
the competitive ability of one real estate enterprise real estate service products should deserve the real estate investors. When the market was
include: money that customers have paid. The enterprises eventful as in 2006 - 2007, the investors mainly
• The quality of service products have to rearrange the structure of the products in focused on the phase of organizing the sales, the
• The diversity of provided services many segments, direct the products at the current events and introducing the products and the
• Human resources needs of the customers and take the quantity to marketing activities through media took place very
• The ability to develop the market offset the profits (for example: investing in the incoherently and inconsistently.
• Trademarks and the prestige of the real estate housing segment for the medium - income and The investors have not created the difference or
enterprises low-income people). prominence for their real estate products besides
• Financial ability the architectural design elements. Many investors
4.3. Build up the market information have had many large real estate projects and
• Organizational and management ability of the
department; regularly follow and fully update traded products on their own but they have not had
real estate enterprises
the movements of the market through the mass the marketing/business departments, marketing
• The real estate information system media channels and the actual surveys. departments or the professional staff that are in
• The level of using the information technology This is not work that any enterprise can also well charge of marketing.
The external factors influencing the competitive perform while the real estate market information In the current difficult situation, a few real estate
abilities of the real estate enterprises can include has become less transparent as now. When there companies have had many new marketing ways,
the macroscopic policies of the government – the have not been State agencies that can organize, aiming at the real customers.
law factor, the domestic and foreign competitors, collect and analyze the market information, the real
the capital market, the psychology of the subjects estate enterprises should choose the prestigious
joining the market, etc. For these external factors, 4.8. Expand the channels of raising capital for
units to agree on providing suitable and essential the real estate enterprises.
the real estate enterprises are very hard to information for their enterprises. In fact, according
intervene, change or adjust. Therefore, the The current capital source of the real estate
to the VietRees, it has been so hard for many enterprises has mainly come from the commercial
enterprises only need to thoroughly study and businesses to carry out this work on their own. In
understand the external factors and focus more on banks. Although the banks have reduced the loan
the case that they cannot build up and effectively
the internal factors. interest rates, the loan conditions have become
operate a team to handle this work, they can more difficult than before. As a result, only a few
perform this through professional units that real estate enterprises can borrow money from this
2. How to enhance the competitive abilities of specialize in researching, providing the market
the Vietnamese real estate enterprises main capital channel. A few companies have
information and consultancy in terms of real estate.
issued the shares on the stock market but they
To enhance the competitive abilities, one of the
could not raise much capital because the stock
things that the enterprises need to do is to actively 4.4. Expand the business investment market
market has been freely falling.
evaluate their real ability and find out the most following the specific routes depending on the
In addition to the capital borrowed from the banks
basic strength in order to promote the flexibility in scientific results of the market research
and mobilized from the stock market, the
each economic period. surveys. enterprises should expand issuing the enterprise
According to VietRees, only when the real estate
bonds and real estate bonds from the real estate
enterprises possess, construct and promote their 4.5. Build up the legal department in each
projects that they invested, meanwhile, promoting
key competitive abilities in comparison with other enterprise having the function of offering legal
the works of the joint-venture, cooperation and
competitors, they can have the sustainable and consulting to the managers and hold the works
merger for development.
long-term development. of preventing the crisis risks.
This definition will help the enterprises build the
4.6. Improve the real estate knowledge of the Summary:
effective development and competitive strategies.
current employees and attract the good In the current market situation, if the competitive
abilities have not been enhanced and there have
3. The weaknesses in the competitive abilities employees.
This is the weakness of most of the Vietnamese not been the basic strategies, the enterprises will
of most of the current real estate enterprises
be able to suffer the loss, close down and go
• The quality and competitive abilities in terms of enterprises in general and the real estate bankrupt. To ensure the objectivity in assessing
management are poor. enterprises in particular. To have highly
the competitive abilities, VietRees would like to
• The human resources are not methodically professional staff, the enterprises need to have the advise the enterprises to perform this work
trained in terms of the real estate field. strategies for holding and attracting talents. To
enhance the work effect, every enterprise should seriously and probably need the help of the
• The real estate information lacks transparency. prestigious consultants on the market.
offer professional training courses to the key staff
• The quality of work is bad. in order to suit its requirements in each period. On the other hand, no matter how they assess,
• The financial ability is low. Therefore, the effective training programs and they also need to have the bases to compare with
• The weakness in terms of brand. plans have been one of the methods that the other enterprises that are in the same operation
• Not really aiming at their right customers. enterprises have used to enhance the competitive field, market segment and directly and indirectly
• Not understanding and strictly execute the law. abilities. Meanwhile, the enterprises should pay compete with them.
attention to building up the reasonable treatment
4. Solutions to enhancing the competitive policies such as salary policy, bonuses to keep the
abilities stability in their volume of staff, especially the
excellent staff. VietRees – December 2008
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Apartment market The supplies of the apartments belonging to the medium and low segment have been quite limited;
therefore the market belonging to this segment has also seen no changes as compared to the previous
month. Many high-grade apartments with low prices (mainly belonging to those who sell out their
properties) are hunted for. Meanwhile, the situation of checking the prices of the sellers has appeared on
the market through the self-listed selling prices that are quite low. The sellers have really not wanted to
sell because they will suffer considerable losses if they do so. However, if they offer the high prices
(though suffering little losses), it will be very hard for their properties to be sold at this time.
The high-grade apartments have seen few customers, especially many apartments in Phu My Hung and
many other areas in District 2 and 7. Although the prices have dramatically declined (over 50%), there
have been few buyers. With the movements of the current market, according to VietRees, the prices of
the high-grade apartments will continue to go down after Lunar New Year.
Project ground base market Although the prices of the project ground bases have considerably dropped, they have still been too high
to those who have real housing demands. As a result, the transactions have been are also very low. If
these people have real housing demands, they will choose the apartments or townhouses, not buying
ground bases. Therefore, the transactions have still been very slow.
The prices of many ground base projects in some areas of District 7, Nha Be have declined by 60% but
the successful transactions have still been very scarce. Many investors are worried about the ability of
selling their real estate in the current difficult situation of the economy and the frozen market.
Real estate companies Many previous companies that expanded their real estate business investment have now come back to
their main business fields. Many secondary investors have faced many difficulties such as no cash and
no customers. If this situation continues, the real estate investors who lack the capital will face
bankruptcy risk; have to sell the projects at low prices and withdraw from the market in 2009. In fact,
according to VietRees, there are a lot of middle-ranking and senior managers have withdrawn or
temporarily withdrawn from this field or reciprocally convert their assignments between the real estate
companies.
According to VietRees, the real estate investors should switch to the apartment projects with suitable
prices for the medium-income people, instead of aiming at the projects with the high prices like before.
The medium-price projects can be sold quickly; help turn over the capital and take back the capital
quickly. Then, the capital has been continued to be used for reinvesting in serving the customers who
have the real demand because the demand of this group of customers has still drawn little attention and
not been properly exploited yet.
Forecast in 2009 The real estate market with the current movements under the growing impacts of the financial crisis and
global economic recession, the Vietnamese real estate market has seemed to be gloomier. VietRees
has shown that there is a faint possibility that the market will recover in 2009. The market in 2009 will
have more difficulties than in 2008. Many real estate investors and speculators will face the bank
payments while the real estate prices have still not seen any signs of the recovery.
According to VietRees, after Tet holidays, the real estate market will be an attractive playground and
opportunity for the investors with the large capital and long-term investment strategies. The decline of
the market will minimize the speculation. The market will be under the control of buyers, not sellers like
before. For this reason, the potential real estate enterprises should build the long-term development
strategies and actively work in the research and development, especially seriously investing in
researching the market and customers; sustainable developing and avoiding the investment on a large
scale in the current difficult situation.
The coming investment trends The tendency of switching to the investment and development of the low-and-popular-price houses to
for Vietnamese real estate attract the majority of customers is getting clearer. Many enterprises are planning to promote their
investments in this market segment. It is expected that those who have medium and low incomes have
enterprises many opportunities to approach this supply in the future.
According to VietRees, enterprises should invest in the apartments with the relative areas of 40 – 60 m2,
good structure, relatively good materials and equipments – (not need to be high-level ones), the selling
prices of nearly 10 million/m2. The apartments with the value of around 400 – 600 million VND/flat will be
likely to attract many customers. The customers that should be aimed at include the young families,
students, workers and civil servants in Ho Chi Minh.
In fact, some foreign investors are interested in this market segment. Therefore, the domestic investors
should be quicker because, according to VietRees, Vietnamese enterprises can have more advantages
than other foreign enterprises in this market segment.
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