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VietRees Newsletter 60 Week1 Month12 Year08
VietRees Newsletter 60 Week1 Month12 Year08
VietRees Newsletter 60 Week1 Month12 Year08
A60
Vietnam Real Estate Week 1, December
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VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A60 Page 2
MARKET SITUATION
Can Tho real estate manages to According to investors of the residential area project in Can Tho city, from the beginning of November,
2008 until now, the number of transactions has increased due to the fact that the real estate enterprises
stimulate demands have applied many flexible payment methods to stimulating the demands.
TheSaiGonTimes – 02 Dec, 2008
Currently, the clients just need to prepay 35% - 50% of the house value and pay the rest on a 2 - 10 year
installment plan with an interest rate of at least 1.35% in order to own the property. In addition to the
programs of selling houses on installment plans and the reduced interest rates etc, the enterprises have
also invested in the infrastructures and community amenities in order to attract the customers.
Some experts have shown that this is the suitable time for those who have real housing demands to
think of settling. Because the market formerly saw the price fever due to the involvement of many
speculators until now, when the market is quiet they have to sell out to reduce their losses, causing the
decreases in the property prices. Additionally, in the past, the real estate prices have decreased
significantly and many real estate enterprises have applied flexible payment plans to attract buyers.
The rent of offices down and the The larger supply and the difficult economic situation have made the market of offices for lease cool
down. The rent in the big cities is decreasing while the demand of the retail premises is significantly
retail premises up increasing.
Nguoi Lao Dong – 04 Dec, 2008
In Ho Chi Minh City, as compared to the beginning of 2008, the rent of grade A offices at the end of the
year has declined by 14% from 70 to 60 USD/m2; the rent of grade B office has declined by 22% from
45 to 35 USD/m2 and the rent of grade C offices has declined by 17% from 39 USD/m2 to 25 USD/m2.
Although the prices have dramatically dropped, many signals have shown that the rents of offices in Ho
Chi Minh City have still been quite high as compared to many countries in the region. According to an
expert, the competitive rents of offices will be the base and promote the economic development. Viet
Nam has to quickly seize the competitive advantages that will help enterprises reduce the operation
costs including the rents of offices in the current economic situation. Although the demands for grade A
offices will remain high in the near future because of the limited supplies. Meanwhile, grade B and C
office buildings have just completed are entering the period of greater competition.
While the market of offices for lease starts to go down, the demand for the premises for lease at the
retail areas is predicted to greatly increase in the next year when Vietnam performs the open-door policy
completely and allows the foreign retailers enter in Vietnam according to the WTO commitment. Some
main retail centers in the city offer about 150.000m2 but all of them now are occupied. The average rent
of the retail premises in the central areas is about 85 USD/m2, neighborhoods are about 65 USD/m2
and the premises farther from the center are about 40 USD/m2. The highest rent is up to 250 USD/m2.
The stable situation of political economy and the expenditure potential of the domestic consumers are
the factors attracting the foreign investors. The competition for the good retail premises will be able to
push the rent up in the near future. However, many signs are showing that the rent of the retail premises
can decrease in the next year because of global economic difficulties.
Opening Korean high-grade On 5th December 2008, Ha Tay Hyundai RNC Co., Ltd (belonging to RNC Hyundai Construction Co.
Ltd., Korea) will officially introduce the project of Starclass Hanoi housing area and high-grade trade
housing area in Hanoi center located in the heart of Ha Dong city.
VietRees – 05 Dec, 2008
With an area of over 46,000 m2, the project has 5 high-rise apartment blocks of 26 -32 floors with 885
apartments, 100 villas and a 21-storey complex building. The first sale phase is expected to be
implemented in the middle of December, 2008 with the average price of about 1,500 USD/m2. RDL Vina
Real Estate Investment Consulting Co. will exclusively sell the products of the project.
Sheraton builds the 3rd hotel After two hotels, Sheraton Hanoi Hotel (Hanoi) and the Sheraton Saigon Hotel & Towers (HCM City),
Sheraton Group is implementing to build Sheraton International Hotel & Spa in Nha Trang and this
in Vietnam project is expected to be put into use in mid-2009.
VietRees – 05 Dec, 2008
With 30 storeys and over 280 rooms, Sheraton Hotel & Spa Hotel Nha Trang is a complex hotel system
including the rooms, modern meeting rooms, spa services, restaurants and sports services to meet
every need of the guests.
Sponsor:
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Hoa Binh wins the contract for Hoa Binh Real Estate Business and Construction JSC has won the contract in the category of armored
concrete structure from the mezzanine floor to the roof floor of the area B of the Vincom Trade center -
building one part of Vincom complex Service - Hotel - Office - High-grade apartment - underground parking with a total of 29 floors (excluding
TheSaiGonTimes – 04 Dec, 2008 the basement), located in District 1, Ho Chi Minh City. The total value of the contract is 257 billion and
the time for the implementation is 345 days from the date of starting the construction.
At the end of November, Hoa Binh Company also signed the contracts for some large projects such as:
completing the Kumho Asiana Plaza project, constructing and finishing the body of Truong Tho
apartment building invested by Thuduc House, completing Nam Long building invested by Nam Khang
JSC.
New services of ACB real estate ACB Real Estate JSC (ACBR) has shown that ACB standard real estate transaction center (upgraded
from the real estate supermarket ACB) was officially opened at the end of November, 2008 at 29 Ter
transaction center Nguyen Dinh Chieu Stress, District 1, Ho Chi Minh City.
VietRees – 05 Dec, 2008
In addition to the implemented services such as advertising, brokerage, project marketing,
assessment… ACB real estate transaction center also introduces 9 more new services: property
advertising videos, advertising the projects at the transaction center, 24 hour electronic real estate
transaction floor, marketing properties of the investors on Northern market, ACBR real estate newsletter,
24/7 call center, real estate consulting over the network, real estate exploitation and management and 7
working days.
On this occasion, ACB also officially signed the contract of exclusively consulting and marketing Ba Ria
Vung Tau Housing Development JSC in Ho Chi Minh City (HODECO) and the contract of exclusively
marketing and trading the projects of Hoa Binh House company (HBH) through ACB real estate
transaction center.
Sponsor:
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Sponsor:
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Building the first apartment block Bach Nien Gia JSC, the member of the housing cooperative Bach Nien Gia, has started the construction
of Truong Tho apartment block at Truong Tho Ward, Thu Duc, Ho Chi Minh City. It is the first project for
of housing cooperative system the low-income people, belonging to the housing cooperative system. The project has a total area of
VietRees – 03 Dec, 2008 3.165m2, including15 floors with 220 apartments of 48 - 68m2 with the total initial investment of 150
billion. The apartment block is expected to be put into use with the price of about 10 million VND/m2.
Building the first 5-star resort in On the afternoon of 1st December 2008, Tan Phu Tourism JSC started the construction of Ana Mandara
Ninh Binh high-grade resort at Gia Van commune, Gia Vien district, Ninh Binh. The project has a total
Ninh Binh area of over 16 hectares with an initial capital of 15 million USD. This project includes 2 subdivisions:
Lao Dong – 03 Dec, 2008 resort and recreational services. The recreation area is expected to welcome guests in late 2009. The
rest of the project will be completed on the occasion of Thang Long 1000-year anniversary.
Works start on Golf Hotel My Tho, Mekong My Tho Tourism JSC held a groundbreaking ceremony for the construction of Golf My Tho hotel
in Ward 4, My Tho City on 28th November 2008.
Tien Giang
The hotel is built on a site of 14,812 m2, including 9-storeys with 108 rooms, swimming pool, tennis
VietRees – 03 Dec, 2008 court, a 500-seat hall and some sub-projects with a total construction cost of about 300 billion. Golf My
Tho hotel is expected to be complete and put into use at the end of 2010.
Hanoi to have 300 more high-grade At the beginning of December 2008, the construction of Hanoi Indochina Plaza complex at 239 Xuan
Thuy Street, Cau Giay District will be officially started. The project includes 1 office towers of 16 stories
apartments and 2 high-grade apartment towers of 32 and 36 stories (more than 300 units) which are connected by a
Kinh Te Do Thi – 03 Dec, 2008 modern 5 storey shopping center.
Savills Vietnam Company Limited is the company that exclusively sells the apartments in the project.
In general, the price of high-class
apartments in Ho Chi Minh City have
tended to keep going down after the
slight increase in August
Edited by VietRees – Nov, 2008
Other Areas N04 AP in the South Eastern urban area (Ha Noi) Tam Dao 2 tourism area (Vinh Phuc)
Best Western Premier Hotel Nha Trang Plaza (Khanh Hoa) My Tho golf hotel (Tien Giang)
Ana Mandara Resort (Ninh Binh)
Hanoi Indochina Plaza Complex (Hanoi)
Sheraton Hotel & Spa (Nha Trang)
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:
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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 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)
* 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 construction of 1,844 resettement apartments at An Phu Ward and Binh Khanh Ward, District 2 invested
by Nam Rach Chiec Center Ltd., Co have been started.(28/11/2008)
* 220 apartments for the low-income peope belong to Truong Tho apartment block (Thu Duc Dist.) constructed
by Bach Nien Gia housing cooperative.(03/12/2008)
The Committee for overseas Vietnamese in HCMC has showed that there have been 130 overseas Vietnamese
Dwellings for overseas Vietnamese buying houses, mainly in HCMC. Those who brought houses are those who come back to the country for their
and foreigners long term and direct investment, scientists, culture researchers invited to come back to the country to become
VietRees 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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Announcing the planning of The Ministry of Construction has just promulgated the circular to provide the guidelines on setting up,
assessing and managing the construction planning of industrial zones.
industrial zone within 30 days
The construction planning of the industrial zone should be suitable for the general planning to develop the
Phap Luat – 02 Dec, 2008 national industrial zones, the regional construction planning and the general planning of constructing
urban areas.
The general planning of the industrial zones should clearly determine the functions of the land areas used
for constructing the industrial works, public service centers; regulate the preservation and embellishment
of the natural landscapes, ensure safety and prevent fire and explosion, protect the environment and
connect to the technical works outside the fence.
Within 30 working days from the date of the general planning projects and the detailed planning of the
industrial zones being ratified, the authorized agencies have to announce and publicize the projects.
Unifying the leading agent granting On 4th December 2008, Ministry of Natural Resources & Environment and Ministry of Construction had a
meeting and unanimously agreed that there should be a leading agent that grants the certificates of land
certificate of home ownership/land- use rights (red color) and the certificates of house ownership (pink color). That is the office where the
use right people can register for the land-use rights in the localities.
Nguoi Lao Dong – 05 Dec, 2008 For the above policy, the four forms of the current real estate certificates still remain their values. They
include: certificate of land use rights following the land law; certificates of house ownership and land use
rights; certificate of house ownership (in the case of the house owners being not the owner of the land-
use right); certificates of construction works ownership (for the land plots having the construction works
that are not the dwellings).
The Ministry of Construction and Ministry of Natural Resources & Environment will also cooperate
together to construct the project of developing the real estate market. The project will be submitted to the
political bureau in late March 2009.
General trends on HCM market The transaction situation of apartments, townhouses and project land in October has continued to go
down compared to September and the previous months, the offered prices for sale have fallen after
leveling off in October. The decrease in the land prices (- 5%) is somewhat higher than that of apartment
prices (-1%, -2%) compared to the previous month. Generally, regarding the market situation in the third
quarter and the fourth quarter, the prices seem more stable but the rate of successful transactions has
still not seen any sign of prosperity and appeared to be worse to some extent. The number of successful
transactions has been on the downturn.
According to the surveys of VietRees, in many trading floors (transformed from the previous center
transaction) and the newly born trading floors, the transactions have almost mainly focused on
properties with low values such as projects of apartments and ground bases in the areas around HCMC.
The townhouse transactions in the existing urban area have also significantly decreased as compared to
many previous months due to the difficult situation of the real estate field and the whole economy.
According to the forecasts of VietRees, many transaction centers will close down from now until late
2008 and early 2009.
Apartment market The supply of apartments belonging to the average and low segment is quite limited, so the market of
this segment has also not seen any movement compared to the previous month. The successful
apartment transactions do mainly belong to this segment. The investors are beginning to implement the
new apartment projects of the average low segment, but in at least 2 years, the new market will have
more supplies of the new apartments of this type. According to VietRees, the construction material
prices in the past 2 months have declined, which has created favorable conditions for the investors to
implement or speed up the construction progress of the projects, especially for this segment.
The high-grade apartment prices have slightly decreased in the past month. According to VietRees, the
prices have fallen down by approximately 2% as compared with September 2008. The domestic
customers of this segment are gradually scaling down.
The investors are looking for the new directions aiming at the Vietnamese overseas who are in need of
buying houses in Vietnam. However, according to VietRees, there are many difficulties in approaching
as well as successfully trading with this group of customers in the short term (1 - 2 years).
The market of project land plots According to VietRees, the land market has continued to decline as compared with September, 2008
and the average decrease is recorded at -5%. The price fluctuations are explained that the project land
has a special connection with the ups and downs of the stock market and the interest of the investors
when most of the project land is being held by the investors and there are few of the people who have
real demands. Similarly to September, the successful transactions of the project land are much lower
than that of the apartments which is currently quite limited.
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Confidence in Vietnamese real Every expert has his own arguments to judge the market. However, according to 100% of the experts,
the current market is facing many difficulties but they are still confident and optimistic about the future
estate market market. According to Mr. Jean Chretien, former Canadian prime minister and the advisor of Asian Coast
Development Ltd. “Although Vietnamese real estate market is having difficulties, it is only temporary.
The market still has a lot of potential and foreign investors are aiming at the long-term investment here".
In fact, there are some experts that have not clearly expressed their confidence in the market. However,
they have still believed that "the real estate market does not have a big problem, in the near future the
market will change according to the stability of the financial market as well as other stable indexes of the
economy”.
More particularly, nearly 90% of the experts are still optimistic and confident in the development of the
Vietnamese real estate market in the near future because in the so-called current recession of the
market, some other real estate segments are still developing.
According to the Chairman of Viet Nam Real Estate Association, Le Hoang Chau "Although the real
estate market is leveling off, it only affects the segments of ground bases and apartments. The offices
and industrial zone land for rent are still in the situation of “the supply not meeting the demand”. With the
same opinion, Matthew Koziora, the director of the Vinaland company (VinaCapital Group) states: “The
interesting fields are attracting foreign investors, including houses, industrial zones, hotels, high rise
office buildings for rent, tourism sites".
Forecasting the time of Vietnamese As of now, many individuals and units take interest in the time that the real estate market begins to
recover and develop stability. The result of these statistics will answer these queries to some extent.
real estate market recovering According to the result, 70% of the experts have not yet determined the specific time when the market
will be up and about again.
The reason for having not yet determined the time of the real estate market recovering is that the real
estate market has still been much affected by other economic factors, shown by these experts.
30% of the experts’ opinions determine that the exact time for the recovery of the market is in 2009 or
after 2009 (in which, 12% of the opinions determine that the market will recover in 2009 and 18% of the
ideas determine that the market will recover after 2009).
Summarizing all of the opinions of the experts, we can see that it is very difficult to determine the time for
the recovery of the market. The recovery of the market depends on many factors. Only when we fully
analyze the factors and economic indexes, combining with statistical prediction science, we can
somewhat determine the exact time of the market recovering. Forecasting the time for the recovery of
the market is only exact to some extent. Because the forecast does not just look at some expressions of
the economy or not base itself on the opinions of some people but it needs to base itself on many
different researches and scientific analyses.
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VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A60 Page 10
STOCK MARKET
VN-Index leaves 300-point threshold, Unlike the hope of investors for the upturn of the market
after the slight upward session yesterday, right at the
HASTC-Index loses 3.09 points opening of the market, at Ho Chi Minh bourse, the codes
Edited by VietRees that had significantly increased in the previous session
Chart Source: Vietstock have almost gone down and the selling orders have
covered most of the electronic transaction board. VN-
Up to date: 05 December, 2008 Index lost 4.77 points to close at 303.83 points. Entering
the consecutive order-matching phase, VN-Index has
continued on the downturn. At the end of this phase, the
300-point threshold has been broken when VN-Index has
lost 9.21 points to close at 299.39 points. The total
trading volume of this phase has reached 8.47 million units.
The decrease has been almost remained the same until the end of the transaction. VN-Index has lost a
total of 8.92 points (or 2.91%) as compared to the previous session, closing at 299.68 points. The total
trading volume of the whole market has reached 10.2 million units worth nearly 240.4 billion.
Vn-Index has been nearly back to the time of 13th November 2005 when the VN-Index has kept the
298.74-point level. After one trading week, VN-Index has had 4 downward sessions and 1 upward
session. As compared to the last week, VN-Index has lost 14.41 more points (decreasing from 314.09
points to 299.68 points).
At Ha Noi bourse, HASTC-Index has also backed to the downturn after 2 upward sessions at which it
lost 3.08 points to close at 103.54 points. The total trading volume of the whole market has reached 6.4
million units worth 151.7 billion.
After one trading week, HASTC-Index has had 2 upward sessions and 3 downward sessions. As
compared to the last week, HASTC-Index has lost 2.66 more points (decreasing from 106.2 points to
103.54 points).
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