Vietnam Real Estate Newsletter A30

VietRees – Vietnam Real Estate – Web: www.VietRees.com – Email: Info@VietRees.com Week 2 – May, 2008
A member of:
NEWS BULLETIN FOR PROFESSIONAL REAL ESTATE INVESTORS, PLANNERS, DEVELOPERS AND MARKETERS

English Edition - Weekly Issued On Next Tuesday Editorial Board: VietRees - Market Information Department

Page 1

A1-HOT NEWS
1. Dizzy upsurge of housing rents in
Hochiminh City
Increasingly large demand coupled with a scarce supply, office
rents have recently surged 20 to 40% up. This has driven many
small and medium-sized companies to move out and find new
place in buildings in the outskirt districts such as Tan Binh, Tan
Phu and run office from there. And now even large enterprises also
follow, as the rental difference in an out of the central area could
be as much as 20 - 40 USD/sq. m/month. Street-side buildings are
no more the “only choice” for an enterprise’s pocket. The best
economy of today is to move the office into alley streets, provided
their cars can reach there too, knowing that a lot more
inconveniences are waiting there… no more grandeur and less
parking grounds.
This intensifying search for office housing in alleys by a lot many
companies has led to more unbalance in the house leasing market,
and caused further price surges since mid-2007.
Source: Dan Tri 2. Housing prices sinking, but the bottom Source: Lao Dong
is not yet reached
04 May, 2008 05 May, 2008
Last week, project land prices have seen long and continuing
slides. Apartment house market also showed strong fluctuations.
Customers were coming to housing agencies mainly for queries
and information. In just three month, housing prices has lost 50%
of its value, causing many a great misfortune to a lot of people:
houses that cannot be sold and loans that are nearing maturity. In
recent times, most capitals invested in real estate were bank loans,
and the next 1 or 2 months will be the time most credit contracts
reach maturity. If a client cannot pay in due time, the bank will put
on sale the mortgaged asset, which are again real estate property.
Experts suggest that if the real estate market does not recover in
next 2 months, both the mortgagor and the bank will come to the
same crisis, which. in fact, is the worst thing of the real estate
“bursting balloons”. This may foreshadow further depression in the
time ahead.

3. Da Nang is attracting more Source: TheSaiGonTimes
capital into real estate investment
06 May, 2008
Professional investors tried to decode the current out-burst of
capital investment in Da Nang, especially the markets for office
housing, hotels and tourist resorts. The explanation is in the city
excellent infrastructure, with well-concerted planning; the city
enjoys a fair economy growth and meets investors’ expectations,
home and abroad.
However, professional opinions consider the business for high-rise
building is by no means a piece of cake, as the market is still in its
rudimentary stage. The “intercepting” investment is the common
explanation for many. And for the present, no more first-class land
lots for commercial centers and hotels can be found in the center
of the city.
In another 10 years time, investors to Da Nang must please
themselves with areas away from the City’s center
4. Vietnam’s real estate market still Source: Ha Noi Moi
“sucks” foreign investors
07 May, 2008
Despite the fact that Vietnam’s economy is facing a lot of difficulties
due to high inflation, many experts and foreign real estate investors
still maintain it’s a very good time now to invest in Vietnam’s real
estate market. They pointed out that such concepts as “bubbling”
or “market collapse” were not relevant, arguing that demands for
various categories of real estate were still enormous.
Many current features of Vietnam’s real estate market suggest that
demand for office space, commercial centers and high-end homes
in the upcoming years will keep going high while supply source will
remain limited. This explains the motive with which investors,
foreign and home alike keep pouring funds into several major
projects across the country. The difficulties ahead are simply
temporary, and to withstand in Vietnam real estate market,
investors should act in a truly consistent and professional way.

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This is a weekly newsletter issued by VietRees – Vietnam Real Estate. This is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning or
interested in Vietnam real estate market changes. Although the information is selected, synthesized from all reliable sources, this newsletter is only for reference and VietRees is not responsible for
the occurring damage. Please visit the website www.VietRees.com for further Vietnam Real Estate information. VietRees states clearly the original sources and dates for your convenient tracking or
getting full information. Should you need any queries or register to receive the newsletter, please contact via marketnews@VietRees.com.
 Vietnam Real Estate Newsletter A30
VietRees – Vietnam Real Estate – Web: www.VietRees.com – Email: Info@VietRees.com Week 2 – May, 2008
A member of:
NEWS BULLETIN FOR PROFESSIONAL REAL ESTATE INVESTORS, PLANNERS, DEVELOPERS AND MARKETERS

English Edition - Weekly Issued On Next Tuesday Editorial Board: VietRees - Market Information Department

Page 2

A2-FOREIGN INVESTMENT TO PROPERTY

5. Eco-urban area in Dong Nai Source: TheSaiGonTimes
02 May, 2008
On May 01, 2008, DonaCoop (Dong Nai Co-operatives United for
Agricultural Services) together with An Phu Dong JSC, Keppel
Land Group and VinaCapital started construction of the Long Hung
ecological urban area (671 hectare large), in Long Hung hamlet,
Long Thanh district, Dong Nai province, with an investment capital
of 1.2 billion USD.
The project includes ecological urban area, relocation center and
cluster of hotels, tourist services, and public works. The whole
project is expected to be completed after 15 years.
6. Woongjin Group to invest 350 Source: VietRees
million USD into Binh Duong
09 May, 2008
Afternoon May 08, 2008, Woongjin Group – a Korean popular
multi-national corporation specializing in investment for upscale
apartments, constructions of schools, highway routes etc…- signed
a contract to hire 15 hectares of land in the Thoi Hoa industrial
urban area (Binh Duong province) to develop a complex project
with high-end services.
The project includes commercial centers, apartments and offices
for lease, plus an international school with an investment capital of
350 million USD.

A3-REAL ESTATE COMPANY EVENT

7. Hodeco launches 6 real estate projects
Hodeco (Ba Ria - Vung Tau Housing Development JSC) is
preparing procedures for the investment of 6 real estate projects in
the province. The projects include: new urban residential area in
ward 12 Vung Tau City; upscale resort villas cluster “Hodeco-
Seavillage”; 4-star hotel, 21-level high-end apartment building for
lease; Eco-urban area “Vung Tau Wonderland”, Dong Bac Long
Son Urban Area and high-rise apartment building on Thong Nhat
street, Vung Tau.
Source: VietRees 8. Hoa Binh JSC to develop Source: TheSaiGonTimes
05 May, 2008 various real estate projects 05 May, 2008
Hoa Binh Real estate and Construction JSC is going to launch their
4 projects: Hoa Binh Office Building in district 7, Nhi Thanh
Industrial Zone (in Long An province), Annatara Lang Co Resort
Area (in Hue) and Hai An Bridge BOT project (in Phu yen
province). At the same time, the company is also preparing the
investment procedures for another 8 projects in Hochiminh City,
Nha Trang and Da Nang. The total investment capital of 12
projects amounts to nearly 600 million USD.

9. Pilot construction project for home of 30
- 40m2 floor area proposed
Service of Construction has just submitted a proposal letter to the
People’s Committee of Hochiminh City’s requesting approval for a
pilot construction project by Dat Lanh Real estate Ltd. Company to
build apartment units of 30 – 40 sq. m reduced floor area. In Thai
An residential , ward Dong Hung Thuan, district 12.
Given that the eligible buyers proposed by the Company are not
the categorized subjects for social housing programs, these people
reflect a great demand for housing accommodation.
Source: VietRees 10. Hai Thanh SacomReal JV introduces Source: Tuoi Tre
06 May, 2008 Phu Loi 1 apartment houses 08 May, 2008
Hai Thanh SacomReal JV (between Saigon Thuong Tin and Hai
Thanh Trading and Production) is presenting the Phu Loi 1
apartment houses project, in district. 8, Hochiminh City.
According to plan, on May 24, 2008 the joint venture will organize a
lucky draw for the apartment units. And an opening ceremony for
apartment models is scheduled to be held by May 31, 2008.

Sponsors:

This is a weekly newsletter issued by VietRees – Vietnam Real Estate. This is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning or
interested in Vietnam real estate market changes. Although the information is selected, synthesized from all reliable sources, this newsletter is only for reference and VietRees is not responsible for
the occurring damage. Please visit the website www.VietRees.com for further Vietnam Real Estate information. VietRees states clearly the original sources and dates for your convenient tracking or
getting full information. Should you need any queries or register to receive the newsletter, please contact via marketnews@VietRees.com.
 Vietnam Real Estate Newsletter A30
VietRees – Vietnam Real Estate – Web: www.VietRees.com – Email: Info@VietRees.com Week 2 – May, 2008
A member of:
NEWS BULLETIN FOR PROFESSIONAL REAL ESTATE INVESTORS, PLANNERS, DEVELOPERS AND MARKETERS

English Edition - Weekly Issued On Next Tuesday Editorial Board: VietRees - Market Information Department

Page 3

A4-PROPERTY PROJECT
11. Condominium for low-income people
The People’s Committee of Kien Giang province has recently
approved a project for the construction of social housing to service
low-income people in Ngo Quyen street, Vinh Lac ward, Rach Gia
City by the Kien Giang’s Housing Development Company as the
main investor. The project, encompassing an area of 4,000 sq.
meters, is designed with a 5 level condominium (housing grade II),
containing 80 apartment units. The total investment capital
amounts to 23.8 billion VND.
Construction is scheduled to launch early in Quarter 3, 2008
Source: Tuoi Tre 12. Binh Dinh: An Phu Thinh urban area Source: Thanh Nien
ready to start construction
06 May, 2008 06 May, 2008
An Phu Thinh Tourism & Construction Investment & Development
JSC is preparing to start construction for the An Phu Thinh Urban
Area on a surface of 155 hectares, with a investment capital of
over 1,150 billion VND. The urban area will encompass 2 wards of
Dong Da and Nhon Binh of Quy Nhon province, and consist of a
residential quarter (adjoining houses, villas and apartment homes),
a commercial center (supermarket, bank, office building, hotel..)
and social facilities (school, hospital, culture ground).
The project is expected to begin partial operation by 2010.

13. Construction of 82 billion Source: DienDanDoanhNghiep
VND eco-tourist urban area
06 May, 2008
Phu Gia Company Ltd. has just started construction for the Phu
Gia eco-tourist urban area in Anh Dung ward, Duong Kinh district,
Hai Phong City with an investment capital of 82 billion VND,
expected to complete by 2010.
The eco-tourist urban area encompassing an area of over 35,000
sq. meters is designed after international eco-tourist hotspots. The
place will include a management and control center, a sightseeing
rest-hill, relax castle, upscale hotels, recreational quarter, and
Thais garden network, gymnasium & boat games on the He River.
14. Vinh Long: 37 million VND for social Source: VietRees
housing
09 May, 2008
The People’s Committee of Vinh Long province has just approved
the investment project for the construction of a 4 level
condominium in hamlet 5, ward 8, Vinh Long province.
The condominium contains 82 apartment units for government
officials and cadres, army officers, soldiers and workers. The
project’s total investment is over 37 million VND, using support
capitals from state budget, as well as funds generated from the
sales, leases, and hire-purchases of various state-owned housing.
The implementation period is from 2008 to 2010.

A5-LAW INFORMATION
15. Transfer of right of purchase Source: Thanh Nien
subject to income tax
05 May, 2008
The People’s Committee of Hochiminh City has submit a proposal
to the Minister of Finance, suggesting inputs to a draft decree to
stipulate and provide detailed guideline for the implementation of a
number of articles in the Law on individual income tax. The
People’s Committee of Hochiminh City remarked that the current
draft has 4 articles for 4 types of income associated with the
transfer of real estate, but none to approach incomes in
transferring the “right to purchase of an apartment/ land floor” or
“right to capital contribution into real estate projects”.
Economic experts, however, suggest that this new taxation should
need careful considerations, and any taxation on individual
incomes should require a rigid legal framework, otherwise it will be
unfeasible.
In the prevailing practice, those transactions are mostly done by
hand notes and mutual trust, from which the risk is always high.
16. New rental pricing for state-owned Source: Dan Tri
housing imminent
06 May, 2008
May 05, 2008, The Ministry of Construction promulgated the
Circular No 11/2008/TT-BXD, providing the guideline for some
contents in Decision on "the issuance of the list of standard rental
prices applicable to houses belonging to state-ownership” (Decree
No 61). According to this, housing rents each specific province will
be based on the standard prices as stipulated in Decision No 17,
computed with 4 groups of coefficients: urban coefficient, location
coefficient, (considering different zones of the urban area),
elevation coefficient, and infrastructure coefficient.
A unit price for one sq. meter of living floor will be calculated by the
formula: Price / sq. meter = rental price (depending on housing
grade) x ( 1+ the respective coefficients).
The implementation of this new policy should in no event cause
disproportionate disturbance in the management of the housing
funds under the sate-ownership.

Sponsors:

This is a weekly newsletter issued by VietRees – Vietnam Real Estate. This is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning or
interested in Vietnam real estate market changes. Although the information is selected, synthesized from all reliable sources, this newsletter is only for reference and VietRees is not responsible
for the occurring damage. Please visit the website www.VietRees.com for further Vietnam Real Estate information. VietRees states clearly the original sources and dates for your convenient
tracking or getting full information. Should you need any queries or register to receive the newsletter, please contact via marketnews@VietRees.com.