Vietnam Real Estate Week 2, January
The first weekly electronic newsletter issued to registered members, approximately 100,000 reads per month
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Market situation (p.2)
Real estate foreign investment (p.2)
Vietnam in the world (p.3)
Real estate agents (p.3)
Websites of real estate companies in Vietnam (p.4)
Real estate projects and prices (p.5)
Real estate supply for customer groups (p.7)
Real estate Legislation (p.8)
Construction material market last week (p.8)
Stock market last week (p.8)
Research - Consulting (p.9)
Market forecast, statistics expert opinions (p.10)
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VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A65 Page 2
The decreasing real estate prices, an inconsiderable number of transactions and the period for paying
Ice still not thaw on the real
the capital and interests have created the most difficult situation for investors. The previous loan
estate market contracts have also mortgaged the properties. When the investors have no money to pay the debts, the
Vneconomy – 05 Jan, 2009 banks will put on sale of the collateral. As a result, the real estate supply on the market increases and
the decreases in the real estate prices are more likely to happen.
The real estate market will be caught in a vicious circle and the market is less likely to heat up within the
next year. The main cause is that the market lacks the capital for further developments. Therefore, the
solution that attracts most interest and can save the market is the capital. The solutions to rescuing the
market such as transferring the projects, cooperating with the foreign investors or using the State-owned
capital are very hard to implement due to the decline of the global economy.
To intensify the market, the essential solution is encouraging the development of the investment trusts
and the joint stock companies to mobilize the investment of the public and the domestic and foreign
investments for the market. The investment institutions will play the intermediary role between the
unprofessional investors (public, kinds of insurance funds, etc) and the professional investors on the real
2008 was a successful year for the owners of grade A office buildings for rent in Hanoi and Ho Chi Minh
Pressures for price decreases
City when the rents and occupancy rate has continued to be the highest until now. The early 2007, the
Nhip Cau Dau Tu – 05 Jan, 2009 rent of grade A buildings was 35 USD/ m2/ month in Ho Chi Minh City. One year later, the rent exceeded
60 USD/ m2/ month. Until the second quarter of 2008, a new threshold was set to be 75 USD/ m2/
month. And at the approach of New Year’s End, the record price was set when there was a lease
accepting the rent of nearly 100 USD/ m2/ month (calculated following the real rental area). Although
Hanoi did not have the great leaps like HCMC, the average rent of the grade-A office buildings also went
up accordingly. The average rent exceeded 50 USD/ m2/ month and the highest rent was 68 USD/ m2/
The fact that the prices of grade A buildings dramatically increased while the new supplies have not yet
appeared has pushed the rent of grade B and C buildings higher. However, in Ho Chi Minh City, the
grade-B office market has started to reverse its direction when the economic difficulties clearly appeared
in March 2008. The rent also leveled off and tended to decrease. The main reason was that the new
supply rapidly increased in the year while the demand started to saturate and the difficulties in the
business also forced the companies to review the rent of offices. According to consultants, in 2009, the
market of offices for rent will reverse its direction as compared to the year 2008. The total office space
for lease will increase by about 60.000 m2, which will make the investors obliged to reduce the prices to
attract and hold the tenants in 2009.
However, the majority of the small and medium companies, especially the domestic ones, have tended
to choose cheap offices. Especially houses, apartments or other types of real estate were converted
from the other purposes into the offices with the rents of below 15 USD/ m2/month. Regarding the
companies that cannot afford the rent in the CBDs, the buildings in the environs can be a reasonable
solution with the prices of 20 - 30 USD/ m2/ month.
The project of investment in building welfare houses in the period of 2009 - 2010 which is one of the
35 million invested in building
solutions to kicking the demand and dealing with the economic decline has been completed.
welfare houses Accordingly, the total capital of this solution is 35,000 billion.
VietRees – 06 Jan, 2009 In which, it includes an investment of 15,000 billion in the welfare houses, the capital for kicking the
housing demand of the people with the medium and low incomes and 20,000 billion VND for socialized
The project is targeted at the people with the medium & low income and housing demand, including the
workers in the industrial zone, export processing zone; the staff, civil servants and officers that are
working at the enterprises; contributing to increasing the house supply and stabilizing the property
market and meeting the social security. Financial supports aim at attracting the economic sectors to
investing in building the houses for the people with medium and low income.
REAL ESTATE FOREIGN INVETSMENT
According to the Ministry of Planning and Investment, within 3 years (from 2006 - 2008), there are 63
HCMC leads the top 10 localities
localities attracting the FDI, in which Ho Chi Minh City has leaded the list of 10 localities attracting most
in attracting FDI in 3 years FDI, with 13.7% of the total registered capital. Ba Ria-Vung Tau has come second with 13.2%, the next
Sai Gon Giai Phong – 07 Jan, 2009 include Ninh Thuan and Ha Tinh, Ha Noi, Thanh Hoa, Phu Yen, Dong Nai, Binh Duong and Kien Giang.
The recent foreign investments have dramatically moved to the central coastal provinces and The
Total FDI in Vietnam in 2008 FDI record in 2008
Source: General Statistics Office
Until the end of 2008, the
implementation capital has
The FDI in 2008 has continued to reach a high reached 11.5 billion USD, which
result. The average registered capital in this is the highest figure within 21
year has reached 51.5 million USD, increased years.
by 39 million USD as compared to the year
2007. From the beginning of the year to 19th
The registered capital in 2008
December, 2008, the whole has had 1,171
has exceeded 60 billion USD,
projects licensed with the total registered capital
which has also been a record
of 60.3 billion USD which is 3.2 times bigger
figure until the current time.
VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A65 Page 3
VIETNAM IN THE WORLD
Vietnam is one of the countries Grant Thornton International Corporation has announced the global ranking board in terms of the
prospects for the economic development and clearly indicated the reduction in the positive signals in the
seeing the positive signs
private enterprises through the observations of over 7,000 enterprises at 36 countries. Grant Thornton
Sai Gon Giai Phong – 06 Jan, 2009 has come to the conclusion that the decreasing demand is the biggest threat to the private companies.
According to Grant Thornton, while the big economies such as the United States, Japan, the European
Union have fallen into the economic crises, Vietnam has still maintained the strong growth rate in 2008.
The main reason for the decline is the impact of the inflation and the global financial crisis. This has
made the positive signal of the enterprises drop from 87% (in 2008) to 32% in 2009. With this result,
Vietnam has ranked 7th in terms of optimism level in 2009.
The private companies have been more advantageous in the time of the economic recession because
the management board of the companies can make the decisions quickly due to the simple system and
flexible policies. Therefore, these companies will operate more effectively than the organizations with the
bureaucratic management style.
REAL ESTATE AGENTS
Joint Stock Investment - Real Estate Business Hung Thinh has shown that it would start the construction
Hung Thinh to build a high-grade
of Hung Thinh Apartment invested by the company in the second quarter, 2009.
apartment The project is located in the heart of District 10, Ho Chi Minh City, including 49 apartments with a total
BDS & TS – 05 Jan, 2009 investment of 150 billion VND. The project is estimated to be completed in 2010.
Ministry of Construction has said that 20 enterprises of the total company of the company and 5 shares
20 enterprises join building welfare
of real estate register for investment projects to develop social housing for rent to buy.
houses To participate in the development program in the society, the business must be clean and the land fund
Tuoi Tre – 06 Jan, 2009 has invested infrastructure. Projects in the society must meet certain conditions on the type, scale
apartments, the object is leasing and principles refund loans and the cost for leasing the regulations of
On 5th January, 2009, 135 Investment and Construction JSC held a opening ceremony for the property
Opening a real estate transaction
transaction center at 31/21 Kha Van Can, Quarter 5, Hiep Binh Chanh Hiep Ward, Thu Duc Distric, Ho
center at Thu Duc Chi Minh City.
VietRees – 07 Jan, 2009 The transaction center is 450 m2 in size and 2 floors in height, including the departments such as:
customer care, legal procedures, making transactions, property transfer and land procedures to provide
all-in services real estate.
Construction Joint Stock COTEC (CoteCons) held a ceremony to rule in the project by Tower Vinamilk
CoteCons starts building two projects
Milk Joint Stock Vietnam (Vinamilk) on 05/01/2009 past. The project is located at Lot C6A - 02, KDT Phu
VietRees – 07 Jan, 2009 My Hung, Tan Phu, Q.7, HCM City, including 2 basements and 14 floors high, built area 2500 m2.
Previously, the company also has the rule in construction and factory warehouse of Vinamilk on 9,000
m2 area in the industrial zone in Tien Son, Tien Du district, Bac Ninh province.
VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A65 Page 4
Websites of real estate companies in Vietnam
Property developers Brokerage Evaluation
Ho Chi Minh Ho Chi Minh AREV - www.arev.com.vn
Hoang Quan - www.thamdinhgia.com
Company 585 - www.585.com.vn An Gia - www.angia.com.vn
Vietland - www.thamdinhgia.com.vn
Company 584 - www.congty584.com.vn ACBR - www.acbr.com.vn
VVFC - www.valuation.vn
An Phu - www.anphugroup.vn Dat Xanh - www.datxanh.com.vn
BCCI - www.bcci.com.vn Dia Loi - www.nhadatdialoi.com.vn
Daewon - www.daewon.vn Dat Cat - www.datcat.com.vn Construction
Him Lam - www.himlam.com FICO - www.ficohome.com.vn
Ho Chi Minh
Hoang Anh Gia Lai - www.hagl.com.vn Kim Son - www.kimson.com.vn
CIC8 - www.cic8.com
Linh Phong Conic - www.conic.com.vn Phuc Duc - www.phucduc.com
Coteccons - www.coteccons.com.vn
Nam Long - www.namlongvn.com Hung Phu - www.hungphunhadat.com
Cosaco - www.cosaco.com.vn
Phu Long - www.phu-long.com.vn Hung Thinh 2 - www.diaochungthinh.com.vn
Hoa Binh - www.hoabinhcorporation.com
Phu Quoc Land - www.phuquocland.net Hoang Quan - www.hoangquan.com.vn
Hai Thanh - www.haithanh.com.vn
SacomReal - www.sacomreal.com Intresco - www.intresco.com.vn
Toan Thinh Phat - www.toanthinhphat.com.vn
Sadeco - www.sadeco.com.vn Loc Dien - www.nhadatld.com
Resco - www.rescovn.com Nova - www.novahomes.com.vn
Thai Thinh Capital - www.richlandhill.com.vn Phat Hung - www.phathung.com.vn
Constrexim - www.constrexim.com.vn
Thu Duc House - www.thuduchouse.com SacomReal - www.sacomreal.com
Cavico - www.cavicovn.com
Phu My Hưng - www.phumyhung.com.vn Tan Dien - www.tandien.com.vn
HANCIC - www.hancic.com.vn
Van Phat Hưng - www.vanphathung.com.vn
HUD - www.hud.com.vn
Vietnam Land SSG - www.saigonpearl.com.vn Ha Noi
Incomex - www.incomex.vn
Cland - www.cland.com.vn
Ha Noi Dong Do - www.dongdobds.com
Architect and Interior Decoration
Phu Thai Group - www.phuthaigroup.com
FPT Land - www.fpt-land.com
Ho Chi Minh
Petrowaco - www.petrowaco.vn
C.E.O - www.ceoholdings.com.vn
Petrolimex – www.pland.com.vn A2 Visualization - www.a2viz.com.vn
Gia Tue - www.giatue.com.vn
Cat Moc - www.catmoc.com.vn
HUD - www.hud.com.vn
Other cities Nha Vui - www.nhavui.com
HDB Viet Nam - www.hdbgroup.com.vn
Nha Viet - www.nhavietdecor.com
Keangnam - www.eng.kne.co.kr Dieu Hien - www.dieuhien.com.vn
Nha Dep - www.nhadep.com.vn
Nam Cuong - www.namcuong.com.vn Thien Loc - www.thienlocnhadat.com.vn
Pho Xinh - www.phoxinh.com.vn
Song Hong Land - www.songhongland.com.vn
Vinaconex - www.vinaconex.com.vn Research
Vincom - www.vincom.com.vn Ha Noi
CBRE - www.cbrevietnam.com
Viet Hung - www.ecopark.com.vn Savills Viet Nam - www.savills.com.vn ACT - www.act.com.vn
VietRees - www.VietRees.com ADKientruc - www.adkientruc.com
Other cities Ashui – www.ashui.com
Consulting Kien Truc Ha Noi - www.kientruchn.com
Becamex IDC - www.becamex.com.vn
Biconsi - www.biconsi.com.vn CBRE - www.cbrevietnam.com
Tuan Chau - www.tuanchau-halong.com.vn Dong Duong - www.indochina-consulting.com
GNSVINA - www.cozyvill.com Eden Real - www.edenreal.com Architects 61, Sing - www.a61.com.sg
Company 579 - www.cecico579.com.vn Hop Nhat - www.uniland.com.vn DP Architects, Sing - www.dpa.com.sg
Duc Manh - www.ducmanhco.com Indochina Land - www.indochinacapital.com SWA, USA - www.swavietnam.com
Long Gia Khang - www.longgiakhang.com Ong&Ong, Sing - www.ong-ong.com
Savills Viet Nam - www.savills.com.vn RSP Vietnam, Sing - www.resp.com.sg
Vina Capital - www.vinacapital.com Surbana Vietnam, Sing - www.surbana.com
VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A65 Page 5
REAL ESTATE PROJECT AND PRICES
On 6th January 2009, Tan Binh Construction and Investment JSC held the groundbreaking ceremony for
Works start on Tan Mai high-rise
the construction of Tan Mai high-rise apartment block for the customers with the above – medium
apartment block incomes in Tan Tao Ward, Binh Tan District.
TheSaiGonTimes – 06 Jan, 2009
The project consists of 5 apartment blocks ranging from 18 to 21 floors with a total of 752 apartments. In
addition, it also includes the commercial area, the general activity room, nursery and tennis courts. The
project is expected to be completed in the end of 2011 and the apartments will be offered for sale on the
first phase in the end of February 2009 with the price of 12 million VND/m2.
The project of Nguyen Cu Trinh quadrangular has a total area of 8.2 hectares, bounded by Nguyen Cu
Nguyen Cu Trinh quadrangular
Trinh - Tran Dinh Xu - Nguyen Trai - Cong Quynh in Nguyen Cu Trinh ward, in district 1. A complex will
area to be a modern complex be built in the Nguyen Cu Trinh quadrangular area, including many works with multi functions such as:
VietRees – 08 Jan, 2008 offices, trade-service, apartments, hospitals, schools and large scale entertainment areas.
Vietcombank and Agribank will support 2.650 billion VNDs for Bitexco group (the investor of the project).
In general, the prices of the high- The price change level of high-grade apartments in HCMC
grade apartments in HCM City
continue to decline
VietRees – January, 2008
According to the statistics of VietRees, the prices of the high-grade apartment in December continued to
decrease by about 6% as compared to November 2008. This has been considered to be the highest
decrease from June 2008 until now. VietRees has recorded that in 2008, April and May had the highest
decreases with 15% and 10% respectively.
Announced prominent real estate developments during the last 2 weeks*
Week 1, January 2008 Week 2, January 2009
Comeco Building (Dist.3) Hung Thinh Apartment (Dist.10)
Ho Chi Minh City
Ngoc Lan apartment block (Dist.7) Vinamilk Tower (Dist.7)
Tan Mai (Binh Tan)
Cuu Long trade center (Ca Mau)
Viettel Building (Hue)
5-star The Westin Resort & Spa (Khanh Hoa)
Complex building (Hue)
Approved prominent real estate developments in HCM City*
Truong Tho apartment building (Thu Duc)
Housing, apartment, residential area
ReA building An Phu – Binh Khanh (Dist.12)
Cecico 135 apartment building (Thu Duc)
* 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
Websites of properties in Vietnam
Ho Chi Minh Ha Noi Other cities
Blooming Park - www.bloomingpark.com Viglacera Tower - www.viglaceraland.vn Cozyvill - www.cozyvill.com
Saigon Paragon - www.saigonparagon.com My Dinh – Me Tri RA - www.sudicosd.com Flamingo Dai Lai - www.flamingodailai.com
Dragon City - www.dragonland.com.vn Bac An Khanh RA - www.vinaconex.com.vn Van Phu township - www.dothivanphu.com
Preche - www.preche.com Ha Noi Plaza Hotel - www.charmvit.co.kr Dam Vac Golf - www.damvacgolf.com
SaigonPearl - www.saigonpearl.com.vn Phap Van – Tu Hiep RA - www.hud.com.vn Sanctuary - http://sanctuary.com.vn
V-Star - www.v-star.com.vn Ho Tram Strip - www.hotramstrip.com
Time Square - www.timessquare.com.vn Sai Gon Sunbay - www.ctc-corp.vn
The Everrich - www.theeverrich.com Eden Lagi Resort - www.edenreal.com
Tan Da Court - www.tandacourt.com Van Quan – Yen Phuc township - www.hud.com.vn
Furama Resort - www.furamavietnam.com
Lancaster - www.lancaster.com.vn Quoc Te Do Son - www.vietlandgroup.com
Sai Gon – Mui Ne Resort - www.saigonmuineresort.com
The Vista - www.thevista.com.vn Sunspa ResortVietnam - www.sunsparesortvietnam.com
VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A65 Page 6
Property Retail Price
Updated on information from ACBR, Van Phat Hung, Hung Thinh, Phuc Duc, Tuoi Tre Newspaper and developers (VietRees gathered by direct surveys), listed prices can be
original prices or transfer prices at current or at one week prior from the date this newsletter is issued.
Typical apartments in HCM city Other apartments and land lots
Area Price (million
Apartment building – HCMC
BMC – Ben Chuong Duong 1 101 24.5 -
Central Garden 1 81.9 28.5 -
Binh Minh 2 108 16.3 +
Screc Tower 3 89.5 24
V- star, Dist.7 Sky Garden , Dist.7
Orient Apartment 4 71.72 20 +
* 85m2 – 16 million VND/m2 * 71m2 – 29million VND/m2
* 75m2 – 1,717 USD/m2
Hung Vuong Plaza 5 121.6 28.5
* 110m2 – 15.5 million VND/m2 * 81m2 – 27.7 million VND/m2
Tan Thinh Loi 6 73.5 13.5
Carina Plaza 8 78 15
An Suong 12 75 8.5 +
Tan Kien BC 112.6 7.3 -
Le Thanh BT 72 9
PN Techcons PN 133 23.9 +
Sacomreal 584 TP 81.9 14.5 -
Phuc Yen TB 106 15
The Everich, Dist.11
Blooming Park, Dist.2 Phu My, Dist.7 Development land lots – HCMC
* 115m2 – 1,750 USD/m2
* 85m2 – 19.1 million VND/m2
Area: 95 – 398m2 Thanh My Loi 2 100 13.5 +
Price: 1,800 – 2,400 USD/m2 * 117m2 – 19.45 million VND/m2 * 150m2 – 1,600 USD/m2
Phu Thuan – VPH 7 220.5 22.5
Direct contact with the investor1
ADC – Phu My 7 100 14.5 -
Gia Hoa 9 100 11
Khang An 9 132 6.6 +
Tan Kien BC 100 6.5
Lang Viet Kieu BC 100 12.2 +
Phu Xuan - VPH NB 120 6.9
Sai Gon Moi NB 138 7.6
Apartment building - Ha Noi
Preche, Dist.2 Panorama, Dist.7 Saigon Pearl, B.Thanh
M5 – Nguyen Chi Thanh BD 133 28.5
* 147m2 – 2,222 USD/m2 * 166m2 – 36.7million VND/m2 * 89m2 – 2,100 USD/m2
Nam Trung Yen CG 88 17.5 -
* 133m2 – 2,000 USD/m2
Dich Vong CG 62 19 +
Thai Ha DD 70 23
Thai Thinh DD 68 26 -
Bac Ha TX 85 15.3 -
Vuon Dao TH 126 23.4
Development land lots – Other provinces
My Phuoc 3 BD 300 1.25
Viet – Sing BD 300 2.9
The Manor, B.Thanh
New SaiGon, Nha Be
The Vista, Dist.2 Tay Nam BR-VT 100 1.8
* 74m2 – 1,810 USD/m2
* 101m2 – 1,575 USD/m2 * 99m2 – 17 million VND/m2 Licogi 16 DNI 240 3.6
* 135m2 – 1,650 USD/m2 * 113m2 – 2,050 USD/m2
* 126m2 – 16.8 million VND/m2 Samco DNI 230 4.5
HUD DNI 300 1.4 -
Lang chuyen gia Tan Do LA 130 3.5 +
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
VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A65 Page 7
PROPERTY SUPPLY FOR DIFFERENT TARGETS OF CUSTOMERS
* Saigon Construction Corporation investor two apartment blocks high 5-storey for workers in Quarter 1,
Social welfare houses for worker
Linh Trung Ward, Thu Duc Dist, HCMC.
* Hung Vuong JSC has just put a 5-storey apartment building into use for cadres and workers. The
company continues to petition Tien Giang Provincial People’s Committee to grant a 5.000m2 land area to
construct more apartment buildings for workers with an investment of 100 billions VND.
* Saigon Paper JSC has put an apartment building into use for workers at My Xuan Commune, Tan
Thanh suburban district, Ba Ria - Vung Tau province. The stage 2 of the apartment building is about to
be implemented with a scale of 8 storey.
* Morning of August 28 , 2008, the Ministry of Construction has signed a memorandum for the
cooperation in the field of welfare housing with Korean Ministry of Land-Traffic and Marine.
* Ha Noi Construction Investment JSC (Hancic) has finished 4/10 units of the 5-storey house which
belongs to the housing project for workers at Kim Chung Commune (Dong Anh).
* Construction and Import-Export JSC (Vinaconex) has transferred and put into use 4 blocks of houses
among the total 16 blocks of the housing project for the workers at Thang Long industrial zone.
* The housing area of 7,000 m2 (380 rooms) for 1,500 workers of Dong Quang Knit Limited Company at
Hai Son industrial cluster (Duc Hoa Ha commune, Duc Hoa suburban dist., Long An province) has just
been put into use. The total investment cost of this housing area is 20 billion VND. (02/10/2008)
* The 4-storey apartment building at cluster 5, ward 8, Vinh Long town that serves the cadres,
employees, professional serviceman and etc has been ratified by Vinh Long Provincial People's
Committee with a total investment of over 37 billion VND. (03/10/2008)
* Sai Gon – Gia Dinh Real Estate Company and Hoa Binh Phu Yen Company build Thoi An Apartment
Real estate for the low income
Building in District 12 with 1,000 apartments.
* Construction Co. No.8 (CIC8) will invest in construction of 10,000 Keppel Land apartments & Tien
Phuoc Co. will build a resettlement area including 1,900 apartments at An Phu, Binh Khanh, District 2.
* HCM City People’s Committee will advance 50.5 billion to carry out the project of Vinh Loc B, Binh
Chanh residential area for resettlement with hundreds of townhouses and 40 apartment blocks.
* Construction Co. No.5 will invest in construction of 500 apartments at Ward 22, Binh Thanh District.
* HCM City Cooperative Alliance has developed its construction investment project of housing area at Le
Minh Xuan Commune, Binh Chanh Suburban District on a site of 67.49 hectares.
* 50% of the house reserve at The Splendor apartment area (Go Vap Dist.) will be intended to serve
resettlement demand in the district.
* Dat Lanh Co. will offer 1,500 apartments to the market with the prices of 500 - 700 millions VND/unit.
* People‘s Committee of HCMC has approved the project of the resettlement area on a site of 55.24
hectares at Dong Nam Cu Chi industrial - residential area in Cu Chi.
* House management of Dist.1 is assigned to construct the resettlement area at 7/4ª Kha Van Can, Thu
* 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
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.
VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A65 Page 8
REAL ESTATE LEGISLATION
HCM City People's Committee has had a document on dealing with the difficulties of some procedures
Foreign-owned companies allowed
for land lease, purpose converting and the relevant financial obligations for the enterprises.
to pay annual rent
Accordingly, the organizations and individuals in the country (including equitized State-owned
Sai Gon Giai Phong – 05 Jan, 2009 enterprises) are allowed to select the forms of transferring the land (that include paying for land using or
leasing and paying the annual rent) when converting the purpose of using the land that is directly
managed by the State to build the office buildings, commercial – service centers, hotels ... except for
building houses. The foreign-owned enterprises are allowed to choose the forms of paying the rent for a
period of land leasing or paying the annual rent.
On 31st December, 2008, the Ministry of Finance has decided to promulgate one standard of classifying
5 More methods of assessment
the properties and 5 methods of assessment that are applied for real estate, movables, enterprises and
VietRees – 06 Jan, 2009 property rights. The decision will take effect after 15 days since its publication in the Official Gazzttee.
The methods of price assessing including: comparison, costs, income, surplus and profit. The assessing
enterprises, price assessor, customers and the third parties using the certificates of assessment should
follow the regulations of the standards in the process of assessing the properties. The surplus method is
applied for the land that is used for farming or building or has the works able to be improved or
renovated. The profit method is mainly applied for cinemas, theaters, hotels, restaurants, gas stations,
golf courses, entertainment centers, discos, parks ...
The criteria for classifying the properties associated with the property rights in the assessment include 4
types of real estate, movables, enterprise and property rights.
The Center of Environment & Resources Information and the land registration branch of Natural
From 19th Jan onwards, transferring
Resources - Environment has shown that from 19th Jan 2009 and later, the district and suburban
ownership and mortgaging properties districts will receive the documents registering for transactions and correcting and editing the changes of
executed at districts and suburban the properties (transferring the ownership) for the property owners that include households, individuals,
districts overseas Vietnamese allowed to buy houses together with the land-use rights.
In the meantime, the districts and suburban districts will deal with the documents for all types of
Nguoi Lao Dong – 06 Jan, 2009
ownership certificates for the properties that were granted periodically.
On 19th January, if the customers want to register for deleting mortgages, capital contribution in the
previous transactions and the properties that were formerly registered for the secured transactions at the
Center of Environment & Resources Information, they should submit the documents to the Department
of Natural Resources and Environmenl or the offices in charge of registering for land use rights in
CONSTRUCTION MATERIAL MARKET
In the previous year, at the time of Chinese New Year, the steel consumption and prices often strongly
Steel industry overcomes the difficult
fluctuate but in this year, the market is very quiet. According to many construction materials stores in
period – Cement will be sufficient for HCMC, only in September and October, the steel consumption and prices slightly increased as
the market compared to the time of previous dramatic decreases. Currently, the retail prices of steel range from
11.5 to 11.8 million VND/ ton, dropping by 300,000-500,000 VND per ton. In general, some steel
Edited by VietRees
enterprises are about to consume the steel inventory bought at the high prices and start the new cycles
of the product. Many steel enterprises have shown that in 2009, the steel industry remains difficult due to
the economic declines in the countries. The global steel output in 2009 may decrease by 5 - 10% as
compared to 2008 and the steel industry is expected to recover completely in 2012.
According to the Ministry of Construction, until now, the Ministry has carried out checking the cement
projects implemented and invested following the plan of developing the cement industry in Vietnam by
2010 and the orientations until 2020. By the end of 2009, the total designed capacity of the cement
factories of the whole country will reach 60 million tons which will be sufficient for the consumption
demand nationwide (forecasted to be 45 million tons). Ministry of Construction is continuing to review,
guiding the implementation of the project that will be completed in 2011, 2012 and later.
By the end of 2008, the prices of construction materials such as cement, steel, sand and stone in Ho Chi
Minh City had significantly decreased which has somewhat helped the investors to speed up the
progress of the unfinished projects.
The trading volume at the beginning of the session is very
Contrary movements: VN-Index down
gloomy. In the first order-matching phase, only 978,700
and HASTC-Indez slightly up shares are traded, equivalent to over 21 billion. VN - Index
has lost 0.4 points to close at 313.75 points. Entering the
Edited by VietRees
second order-matching phase, a series of shares with the high
Chart Source: Vietstock capital value have decreased points, pulling many other share
codes down. VN-Index has dropped more dramatically, losing
Up to date: 09 Jan, 2009
1.13 points to close 313.02 points. Closing the week on 9th
January, VN-Index has slightly slid by 0.75 points to record at
313.4 points. The trading volume has been low with 7.58
million shares worth 179.94 billion VND.
In sum, after 2 upward sessions and 3 downward sessions in the week, VN-Index has increased by 0.06
points (or 0.02%) as compared to the last week.
At the Hanoi bourse, in spite of the slight decreases in the session, HaSTC-Index has closed the week
with the slight increase of 0.5 points (or 0.47%) to record at 106.17 points. The trading volume on the
whole market has reached 4845 million shares worth 143.28 billion.
After a trading week, with 3 upward sessions, HaSTC - Index has added1.7 points as compared to the
session on 2nd January.
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VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A65 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
many segments, direct the products at the current
• The diversity of provided services events and introducing the products and the
needs of the customers and take the quantity to
• Human resources marketing activities through media took place very
offset the profits (for example: investing in the incoherently and inconsistently.
• The ability to develop the market
housing segment for the medium - income and The investors have not created the difference or
• Trademarks and the prestige of the real estate
low-income people). prominence for their real estate products besides
the architectural design elements. Many investors
• Financial ability
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 4.8. Expand the channels of raising capital for
joining the market, etc. For these external factors, 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 The current capital source of the real estate
intervene, change or adjust. Therefore, the 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
banks. Although the banks have reduced the loan
understand the external factors and focus more on the case that they cannot build up and effectively
interest rates, the loan conditions have become
the internal factors. 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
main capital channel. A few companies have
the Vietnamese real estate enterprises 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
effective development and competitive strategies.
In the current market situation, if the competitive
current employees and attract the good
abilities have not been enhanced and there have
3. The weaknesses in the competitive abilities employees.
not been the basic strategies, the enterprises will
This is the weakness of most of the Vietnamese
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
enterprises in particular. To have highly
management are poor. 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
strategies for holding and attracting talents. To
trained in terms of the real estate field. seriously and probably need the help of the
enhance the work effect, every enterprise should
• 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. On the other hand, no matter how they assess,
in order to suit its requirements in each period.
• The financial ability is low. they also need to have the bases to compare with
Therefore, the effective training programs and
other enterprises that are in the same operation
• The weakness in terms of brand. plans have been one of the methods that the
field, market segment and directly and indirectly
• Not really aiming at their right customers. enterprises have used to enhance the competitive
compete with them.
abilities. Meanwhile, the enterprises should pay
• Not understanding and strictly execute the law.
attention to building up the reasonable treatment
4. Solutions to enhancing the competitive policies such as salary policy, bonuses to keep the
stability in their volume of staff, especially the
VietRees – December 2008
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VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A65 Page 10
REAL ESTATE MARKET FORECAST
* Note: Information on market forecast is only updated every 4 periods (after one month) by VietRees – January, 2009
The transaction situation of apartments, townhouses and project ground bases in December has
General tendency of Ho Chi Minh
continued to decrease. According to VietRees’s forecast, the real estate prices can continue to go down
City market with the decrease of approximately 5% per month in December and before Lunar New Year. The
property prices in 2009 are hardly likely to be on the upturn.
The successful transactions at the end of December last year was a little bit higher than the previous
months. However, the transactions have just focused on the segment of low-value townhouses and
apartments. For the group of the high-grade apartments, the rate of the successful transactions was
quite low and inconsiderable. The amount of overseas national currency exchange at the end of this
year has dramatically dropped and not been invested in the real estate field as in the previous years but
it has been used for the production or paying the debts.
The difficulties in the credit situation, the deflation of the economy and the coming maturity of the
contracts mortgaged by the properties have made many properties to be sold out at the prices that are
quite low, even lower than the initial selling prices of the investors. The total outstanding real estate
loans have accounted for nearly 10% of the debts of the whole the banking system, therefore, the banks
demand payment of the debts. And as a result, many investors have to sell their projects and products at
the low prices. Many real estate enterprises have lacked the cash to maintain their business and it is
very hard to borrow more money from banks. On the other hand, currently, some banks have consigned
the mortgaged high-grade properties of the customers for sale and extended the debts so that the
customers have more time to sell their properties in order to pay the loan contracts.
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
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
attract the majority of customers is getting clearer. Many enterprises are planning to promote their
for Vietnamese real estate
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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