Transcript of "Vietnam Real Estate Newsletter - No. 69, Week 2 Feb, 2009"
Vietnam Real Estate Week 2, February
The first weekly electronic newsletter issued to registered members, approximately 100,000 reads per month
VietRees, a member of
joining to develop the newsletter
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 A69 Page 2
The banks have begun to lend; the interest rates and the real estate prices have dramatically dropped
Da Nang: prepare to buy houses
which has helped the Da Nang real estate market to warm up. Transactions have mainly focused on
to live in people with real demands and houses with moderate prices. According to a real estate brokerage
Tuoi tre – 09 Feb, 2009 center, in the past six months, the center has just mainly focused on buying, selling and brokering
houses rather than ground bases. Most of the buyers have real demands, but because their capital
resources are limited, as a result, the houses with the maximum prices of about 500 million VND have
attracted the customers and the houses of over 1 billion VND have been difficult to sell. The land prices
on some big streets such as Nguyen Van Linh, Nguyen Huu Tho, Pham Van Dong and many residential
areas in Son Tra district, etc have decreased by 20 - 30%. Currently, the real estate prices in Da Nang
have been close to their real values, therefore, they are easier to be bought and sold. Additionally, the
bank interest rate that has fallen by 8 - 10% per year is an encouraging solution to promote the real
estate market. In addition, the mobilized interest rate that has dramatically slided has made the rich
people calculate and seek other investment channels with a higher rate of profitability, including the real
Many banks have shown that they have still created favorable conditions for those who have real
demands, stable incomes and good abilities of payment or those who are cadres, civil servants to
borrow money. It is also one of the reasons that have made the real estate market quickly prosper.
Currently, the real estate transaction situation on the market has seen dramatic movements. Many real
Low interest rate, the real estate
estate business companies have launched the goods for sale and the banks have reduced the loan
recover? interest rates, which has activated the real estate market.
Phap Luat – 09 Feb, 2009 After a quite long time with no movement, the real estate investors have now bravely released the goods
and attracted a large number of customers. After Tet holidays, the real estate transactions have
dramatically increased. According to a real estate expert, the real estate has attracted customers at the
beginning of the year due to the too low bank interest rate. The bank deposit has currently not been
effective. The stock has continuously recorded new lows; as a result, the only investment channel that is
most attractive at this time is the real estate field. In addition, one more reason that attracts the investors
is the real estate prices are unexpectedly low.
However, the experts have also advised the customers to be careful when investing; otherwise, the
customers may easily fall into the traps of the real estate enterprises. Because in fact, the market has
just begun to warm up when the buyers come back to find out the information but the real transactions
have still been a modest number. They should wait until the end of the second quarter of this year in
order to determine whether the market really warms up or not. Because at this time, the policies such as
constructing 10,000 low-price apartments (promulgated by of the Ministry of Construction) or
rescheduling, delaying tax, reducing interest rates, etc will be somewhat clearer. Therefore, it is still too
soon to say that the real estate will warm up because in fact, there have still been many customers
losing the confidence in the market.
The statistics at the real estate transaction centers have shown that one month after the resolution on
Despite being allowed to buy houses
piloting the program of allowing the foreigners to buy and own houses in Vietnam takes effect (1st
in Vietnam, most foreigners have just January 2009), the number of the foreign customers that has studied the information on the projects has
started to learn about information increased as compared to before but there have not been any foreigners directly buying houses. Most of
them have still bought houses through the old methods in which they buy the property under the name of
Tuoi Tre – 05 Feb, 2009
local Vietnamese in order to avoid the troubles caused by red tape and bureaucracy procedures. In
addition, although the resolution took effect since 1st January, the government has not promulgated the
specific regulations on the implementation. Therefore, there is a strong possibility that foreigners are still
waiting for a clearer policy and following the market situation and have not rushed to make their
decisions. Another important reason is that the global financial crisis has also discouraged the foreigners
from buying houses in Vietnam.
According to the real estate business enterprises, the purchasing power of the foreigners working and
living in Vietnam has potential. However, selling houses to these customers is not easy because the
high-grade apartment prices in Vietnam have still been pretty high. Those who want to buy houses have
to have high incomes and a plan for long- term living in Vietnam. Additionally, foreigners have the habit
of buying houses on installment plans with bank loans. But, in fact, the barriers ahead come from the
bank, that is, because the policies allowing the foreigners to buy houses have just been promulgated,
the banks have not yet had the appropriate loan products.
However, experts have also shown that they need to have more time in order that the policies may
penetrate into the life. And then, the foreigners will switch to buying houses and this market will soon be
REAL ESTATE FOREIGN INVETSMENT
The number of projects receiving FDI
The Foreign Investment Bureau
in January, 2009 against the same
forecasts in 2009 and 2010 will be a
period of last year difficult year for attracting FDI in
Source: The Foreign Investment Bureau Vietnam due to the impacts of the
global financial crisis.
Until January, 2009 the whole country has
However, the prospects for mid-
attracted 62 projects with foreign investment
term and long-term investment in
(including the projects have investment
Vietnam still are considered to be
increased) as compared to 45 projects in
good by investors.
VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A69 Page 3
VIETNAM IN THE WORLD
Vietnam is ranked 3rd in terms of development prospect in the mid-term, which is one of the surveying
Vietnam ranked 3rd in middle-term
results of the operation situation of 620 Japanese companies in foreign countries in 2008 conducted by
development Japanese International Cooperation Bank (JBIC) and presented at the Ministry of Planning and
Kinh Te Do Thi – 12 Feb, 2009 Investment on 11th February.
Despite being ranked 3rd in terms of the development prospect for the business & production activities in
the middle term (after China and India), the rate of supporting Vietnam has decreased as compared to
2007. The reasons why Vietnam has been highly appreciated include the good location for investment
diversification, the low labor cost, the good development ability of the domestic market and the available
supplies for the assembling industry. However, the problems that have still hindered the investment into
Vietnam include the poor infrastructure development, difficulties in keeping the leaders of the companies
and technicians / engineers, increasing labor costs, and the weak system of law enforcement. The fields
that Japanese companies have been interested in when investing in Vietnam includes electrical /
electronics appliances, automotive, general machinery and chemicals.
REAL ESTATE AGENTS
The Vietnam House JSC held an opening ceremony for the real estate transaction center based at 40 Le
Vietnam House open real estate
Van Viet Street, Hiep Phu ward, District 9, Ho Chi Minh City on the morning of 6th February.
The real estate transaction center provides the full services relevant to the real estate field such as: sale
BDS & TS – 09 Feb, 2009
& purchase, transferring, brokerage, pricing and marketing the projects invested by the Company (The
Boat Club Residences residential area, Truong Thanh 1 residential area...).
On 10th February, 2009, Tin Nghia real estate transaction center officially offered the second phase of
Dong Nai: Thanh Phu project
Thanh Phu residential area project (Vinh Cuu district, Dong Nai) for sale. This project has drawn the
ground bases have many clients attention of a large number of customers including both customers with real demands and customers
VietRees – 11 Feb, 2009 buying houses for their investment due to the reasonable prices. Only within 10 days before Lunar New
Year, the whole first phase ground bases (200 in total) were registered by customers to purchase. This
is one of the projects aiming at the majority of customers who have medium incomes of about 110 to
less than 200 million VND / base which is divided into several installments. The deposit of below 15
million VND is the level many people can afford. In the first day, over 90% of the ground bases at the
second phase offered for sale have been ordered by the customers.
Thanh Phu residential area project is invested by Tin Khai Joint Stock Company with an area of 64
hectares, planned to be the complete urban area. It includes chains of 70 - 120m2 row houses, 180-250
m2 garden houses, the public works such as the administrative centers, education, health, culture,
service trade. In addition, the project also designs the green spaces such as parks, flower gardens and
sport courts. The complete system of the technology infrastructure includes traffic, water supply,
drainage, electricity, communication, etc.
After over 3 months in operation, Tin Nghia transaction center has served over 500 customers visiting it
to make transactions, in which over a half of the customers who have the demand for buying real estate.
According to many customers coming to make transactions at the center, real estate is still the essential
demand associated with the lives of individuals, families and it is the first priority if they can find valuable
products to invest in. With the positive signals such that banks have consecutively reduced the interest
rates and gradually extended the real estate loans, the real estate transactions will tend to increase and
On 10th January, No.3 Construction JSC (of Total Company Investment and Development of Hanoi)
Inaugurating Sunrise Building –
inaugurated and operated Sunrise Building at the D11 land plot, Nguyen Phong Sac Street, Cau Giay
Cau Giay District. The project was started in 2006 with a total area of over 3000 m2 including the services and the
Kinh Te Do Thi – 11 Feb, 2009 housing area.
Following the success of the contract on executing the reinforced concrete construction and completing
Hoa Binh enjoys many projects
two 23-storey buildings G and H of the Kenton Residences projects, Hoa Binh Real Estate Business and
at the beginning of the year Construction JSC has been selected as the contractor for the project of Tan Hoang Minh building office
VietRees – 13 Feb, 2009 invested by Trade Company Limited Service Hotel Tan Hoang Minh as investors.
The project is located at 290 Nam Ky Khoi Nghia Street, District 3, Ho Chi Minh City with 14 storey and 2
basements, built on a site of 5,648.7 m2. The bidding of quot;Structure and finishingquot; worth 29.5 billion VND
will be executed within 12 months.
Vietnam real estate investment JSC - Vinaland has issued 100 Certificates of house savings (worth 5
Enterprises borrow money to
million/ certificates) to execute the two projects Vinaland Tower and Saigon South Center on Nguyen
build the project Luong Bang Street, District 7, Ho Chi Minh City. Because this is the pilot program for mobilizing new
Thoi bao Kinh Te Viet Nam – 11 Feb, 2009 capital, the certificate is mainly for the staff of the company and some regular customers.
In fact, certificates of housing savings are a civil relationship in lending. In particular, Vinaland is the
borrower and those who buy the certificates are the lenders in the form of saving every month. Each
certificate will be converted into the right of buying 1m2 of the apartment floor area with the original price
in the future and those buying certificates monthly will submit the savings following the face value of the
certificates within 60 months (5 years).
The Total Joint Stock Import-Export and Construction of Vietnam - has just opened Vinaconex real
Vinaconex real estate transaction
estate transaction center VITR based at the first floor of the building 17T5, Trung Hoa - Nhan Chinh
center opened urban area, Hanoi city. The transaction center is established and operated by Vinaconex ITC - the
member of Vinaconex. Besides the functions including floor trading other property VITR will contribute to
promoting the image, brand and product of real estate Vinaconex.
VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A69 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 A69 Page 5
REAL ESTATE PROJECT AND PRICES
Binh Duong: works start on On 8th January, 2009, Becamex IDC Corp has started the construction of Becamex urban center
(Becamex City Center) 6.1 hectares in Phu Hoa ward, Thu Dau Mot Town, Binh Duong province.
Becamex urban center
The project has the total investment of 2,500 billion and is implemented following three stages; including
Tuoi Tre – 09 Feb, 2009
the items of the high-grade houses, the complex of business - services - office and hotel. It is expected
to be completed in 5 years.
Build Cai Gia – Cat Ba tourism Vinaconex Tourism Investment and Development is implementing the construction of Cai Gia - Cat Ba
tourism urban with the investment of 600 million USD.
The urban area is over 172 hectares, located in the Cai Gia Bay, Cat Ba island district, Hai Phong city
Thoi bao Kinh Te Sai Gon – 10 Feb, 2009
including villas, the hotels of from 3 to 5 stars, the business services - business and the public works and
infrastructure. It is expected that until 2010 the entire technical infrastructure of the project will be
Hemisco 30-storey high-grade On 11th February 2009, Ha Tay Machine & Construction JSC and Song Da 1.01 JSC (project investor)
held a ceremony to announce the decision approving the detailed plan for the construction of the high-
housing area at Ha Dong
grade housing area Hemisco at People's Committees of Phuc La Ward, Ha Dong city.
VietRees – 12 Feb, 2009
The housing area including 30 floors and 1 basement is planned with a total area of nearly 4.500m2. The
project is expected to be completed by the end of 2011.
In January, 2009, the prices of the The price change level of high-grade apartments in HCMC
high-grade apartments in HCM City
VietRees – January, 2008
Announced prominent real estate developments during the last 2 weeks*
Week 1 February 2009 Week 2 February 2009
Ho Chi Minh City
Crown Land Long Hai tourism site (BR-VT) High-grade housing area Hemisco (Ha Dong)
Vietnam hotel - oil Complex Vietnam (Hanoi)
Wellnesss Life Resort Ninh Binh (Ninh Binh)
Nhon Trach City Center (Dong Nai)
La Perla Resort (Quang Nam)
Approved prominent real estate developments in HCM City*
Nguyen Cu Trinh Complex (Dist.1)
Housing, apartment, residential area
* 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
Furama Resort - www.furamavietnam.com
Tan Da Court - www.tandacourt.com Van Quan – Yen Phuc township - www.hud.com.vn
Sai Gon – Mui Ne Resort - www.saigonmuineresort.com
Lancaster - www.lancaster.com.vn Quoc Te Do Son - www.vietlandgroup.com
Sunspa ResortVietnam - www.sunsparesortvietnam.com
The Vista - www.thevista.com.vn
VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A69 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
Central Garden 1 81 28.3 -
Sailing Tower 1 104.6 71.4 +
Binh Minh 2 108 15.8
Riverview Thao Dien 2 138 23.5 +
Cantavil, Dist.2 V- star, Dist.7 Sky Garden , Dist.7 Khanh Hoi 2 4 86.65 21.5
* 150m2 – 1,700 USD/m2 * 119m2 – 15 million VND/m2 * 71m2 – 28.2 million VND/m2 Hung Vuong Plaza 5 132 27.5 +
* 89m2 – 28.6 million VND/m2 Canh Vien 2 7 118 32.9
Carina Plaza 8 100 14 -
Hiep Phu 9 97 13
An Lac BT 76.6 11.8
Botanic PN 109 27.1 -
Bau Cat TB 56 15.2 -
Sunview 1 TD 71 12.9 +
Development land lots – HCMC
Blooming Park, Dist.2 Phu My, Dist.7 An Phu – An Khanh 2 200 23 -
The Everich, Dist.11
Dong Thu Thiem 2 176 11.5
* 83.6m2 – 19.6 million VND/m2 * 112m2 – 1,550 USD/m2
Area: 95 – 398m2
ADC Phu My 7 100 16 +
* 114.2m2 - 21.9 million VND/m2 * 150m2 – 1,650 USD/m2
Price: 1,800 – 2,400 USD/m2
Kim Son 7 100 24
Direct contact with the investor1
Khang An 9 168 6.3 -
Phu Nhuan 9 300 5.7 -
Gia Hoa 2 BC 100 11.25
Tan Kien BC 100 9
Hoang Hai HM 160 7
Apartment building – Ha Noi
Chelsea Park CG 128 24.7 -
Preche, Dist.2 Panorama, Dist.7 Saigon Pearl, B.Thanh Vimexco CG 88 27.7
Thanh Cong DD 172 27
* 147m2 – 2,222 USD/m2 * 121m2 – 35.1 million VND/m2 * 84m2 – 2,323 USD/m2
Kinh Do HBT 125 32
* 166m2 – 39.3 million VND/m2 * 135m2 – 2,050 USD/m2
Linh Dam HM 74 13.9 -
Happy House Garden LB 94 10.5 +
Vuon Dao TH 126 24.3 -
Development land lots – Other provinces
My Phuoc 3 BD 300 1.34 -
Khang Linh BR-VT 225 5.1
Tuan Hung BR-VT 90 3 -
Wind Hill BR-VT 180 3.8
The Vista, Dist.2 The Manor, B.Thanh
New SaiGon, Nha Be Nam Can Tho CT 100 2.4 +
* 101m2 – 1,567 USD/m2 * 98.9m2 – 16.7 million VND/m2 * 38m2 – 1,908 USD/m2 HUD DNI 120 2.1
* 135m2 – 1,650 USD/m2 * 121.4m2 – 17.7million VND/m2 * 139m2 – 1,810 USD/m2 Thanh Phu DNI 100 4
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 A69 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 A69 Page 8
REAL ESTATE LEGISLATION
According to the Decision on collecting the auction fee in the city that has just been promulgated by Ha
Fees of joining auctions for
Noi city People's Committee, the auction fee for the participants is stipulated to correspond to the
the right of using land to build starting prices of the land use rights or the sizes auctioned. In the cases of auctioning the right of using
dwelling houses in Hanoi land to build the dwelling houses with the starting prices of below 200 million VND, the fee is 100,000
VND/document. With the prices of over 200 - 500 million VND, the fee is 200,000 VND/ document and
Bao Xay Dung – 09 Feb, 2009
with the price of over 500 million VND, the fee is 500,000 VND/ document. In the cases of auctioning the
land use right for other purposes, the fee is based on the auctioned land area: the fee is 1 million/
document (for below 0.5 hectares); is 3 million VND/ document (for from over 0.5 to 2 hectares); is 4
million VND/ document (for from over 2 to 5 hectares); is 5 million VND/ document (for over 5 hectares).
For the fee of auctioning assets, those who have auctioned assets have to submit the fee calculated on
the property value if the properties are sold. The fee includes the level of from 50,000 - 18.5 million VND
plus 0% - 5 % of the value of the sold properties. Those who join auctions have to submit the fees
corresponding to the starting prices of the properties at the auctions with the level of 20,000 - 500.000
VND/document. Only the organizations and individuals who have the auctioned properties that are
confiscated to put into the public treasury do not need to submit the auction fee.
Ministry of Construction has proposed that the Law on real estate registration should be urgently
Petitioning for promulgating the
promulgated according to the direction of forming one management office and granting one certificate
law on real estate registration including the right of using land and the properties on the land piece.
Ha Noi Moi – 10 Feb, 2009 According to the Ministry of Construction, because the law has not been promulgated, many localities
have not executed the granting of certificate of house/building works ownership. On the other hand, only
over 20 localities have promulgated the regulations on the process of granting certificates. Therefore, the
granting of the certificates of house/building works ownership has been very slow.
On 10th February, 2009, the representative of the Ministry of Finance has publicized some forms of
Transferring real estate not allowed
incomes and the subjects who are not allowed to extend the time for submitting the personal income tax.
to reschedule the personal income
Specifically, the residents who earn incomes from real estate transferring and award winning shall
tax submit the personal income tax as from 1st January, 2009. For non-residential individuals: the other
Lao Dong – 11 Feb, 2009 types of incomes from business, wages, salaries, real estate transfer; award winning, inheritances & gifts
receiving shall have to execute the obligation to submit the personal income tax on 1st January, 2009.
In terms of the order and the procedures for extending the time of submitting the tax, organizations and
individuals that have temporarily deduct the personal income tax shall be entitled to return the tax to
those who are extended the time of submitting tax.
However, the organizations and individuals should still calculate the tax amount that they have to deduct
and inform the individuals receiving the income. Monthly, organizations and individuals shall have to set
up the declaration form on the tax amount deducted following the current regulations and submit the
declaration form to the tax agencies in order for them to grasp the potential tax amounts which are
allowed to be extended the time of submitting the tax.
CONSTRUCTION MATERIAL MARKET
The volume of steel consumption in January, 2009 is estimated to triple as compared to October, 2008,
Steel and cement consumption
steel prices have been maintained at 11 - 11.8 million VND/ ton, in which the Northern steel price is
go up together with the real 300,000 - 500,000 VND/ ton higher than the Southern. Although the consumption has increased, the
estate market steel price at the domestic market has still been dramatically decreased by the enterprises. The steel
Edited by VietRees price of the Vietnam Steel Corporation at the factories excluding VAT is 10.95 million VND/ ton (rolled
steel) and 11.14 million VND/ ton (bar steel). Cuu Long Steel JSC has reduced the price of all kinds of
the imported steel plate by about 200,000 VND/ ton to be at 9.5 - 9.8 million VND/ ton.
The eventfulness of the real estate market in the past time has helped the cement consumption
increase. In January 2009, the consumption was estimated to reach 3.4 million tons, slightly increasing
as compared to December 2008. Currently, the cement prices have ranged from 810,000 to 1,200,000
VND/ ton. According to the plan in 2009, the Northern enterprises will transport about 3 - 4.6 million tons
of cement and nearly 2 million tons of clinker to the South in order to limit the local shortage that can
push the cement prices up.
The main cause helping the construction materials consumption increase is the construction demand in
the last months of the year has dramatically increased. The real estate market has been gradually
recovering together with the impacts of the policies on supporting the state-owned enterprises such as
reducing the loan interest rate, rescheduling the debts, etc.
* At the starting bell, although the decrease has not been
Two bourses gloomy ,
large, the downturn has played the decisive role. Ending this
VN-Index sets up new bottom, phase, VN-Index has lost 1.88 points to go down to 274.21
HASTC-Index loses 0.44 points points. The total trading volume has reached over 1 million
Edited by VietRees units. Entering the consecutive order-matching phase, the
codes have decreased in price in succession. Until the end
Chart Source: Vietstock
of the session, VN-Index has lost a total of 1.58 points as
Up to date: 13 Feb, 2009
compared to the previous session and closed at 274.51
After one trading week, VN-Index has one upward session and 4 downward sessions. As compared to
the last week, VN-Index has lost 7.12 points (or 2.53%). Since the first session after Tet holidays, VN-
Index has had 2 upward sessions and 8 downward sessions.
* At Hanoi bourse, after slightly increasing in the previous session, HASTC-Index has come back to the
downturn when losing 0.44 points to record at 90.94 points. The total trading volume on the whole
market has reached 2.7 million units worth 52.1 billion VND.
In sum, after one trading week, HASTC-Index has 2 upward sessions and 3 downward sessions. As
compared to the session of last week, HASTC-Index has still lost 1.72 points.
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VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A69 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 A69 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 situation of real estate transactions of apartments, town houses and project ground bases in
General trends on the HCMC market
January 2009 has continued to be gloomy although the prices have slightly decreased as compared to
the previous months and some projects have even stopped reducing the prices.
According to VietRees, the real estate prices in January have slightly declined because the bank interest
rate has dropped and the construction materials prices have gradually become stable. The psychology
of the market expects that the low interest rates will stimulate the individual investors to come back and
this will somewhat impact on the prices listed on the market
However, according to the analysis of VietRees, (1) Currently, most of the investors have lost the
confidence in the stability of the market. (2) The prices of some apartment projects have still been very
high. (3) Investors have been more experienced in assessing the projects and analyzing the market. (4)
The market has had many choices and (5) been more careful in the transactions, as a result, surely, the
prices will continue to decrease with the low amplitude in a short time.
The supplies of the apartments belonging to the medium and low market segment have been fairly
limited, there is almost no new product and the market has seen almost no changes as compared to the
previous month. Most of the successful transactions focus on the customers with the real needs not the
The prices of the high-grade apartments has only fallen by 1%, however they have had relatively few
customers, especially in the Lunar New Year people take little interest in buying the high-grade
apartments in this stage. It is predicted that the prices of the high-grade apartments may continue to
slightly decrease in the next few months.
Although the prices of the ground bases have dropped, they have been so high to the people who have
Project ground base market
the real housing demand; so, the transactions are very few. If they have the real housing demand, they
will choose to buy the apartments or town houses, not ground bases, therefore the transaction of ground
bases has still been in dribs and drabs and even visibly stopped.
Through the survey of the real estate business marketing agents in the past time, VietRees has realized
Real estate agents
that these agents has cut down on staff and the marketing budget substantially due to the sluggishness
of the market. However, at present, according to the latest observations, some agents have actually
become aware of the importance of the marketing and the stiff competitions in the market. As a result, in
the near future they will focus on strengthening, streamlining the structure and continue to invest in
training personnel, improving the customer service, marketing the brand image with the more focused,
strategic and methodical plans than before. This is the praiseworthy sign of the market.
According to VietRees, the agents that have a tight budget for marketing, they should focus on exploiting
online media channels properly to reduce the costs and still reach efficiency as expected. They should
not completely stop the activities marketing the brand images and products. This is the trend of the
sectors in the current economy.
Under the growing impacts of the financial crisis and economic recession, the real estate market in
Forecast in 2009
Vietnam seems to be gloomier. VietRees has judged there is a faint possibility for the recovery of the
market in 2009. In 2009 the market will have more difficulties than in 2008. Many real estate investors
and speculators will cope with paying the bank debts but the property prices have seen no signs of
According to VietRees, after Lunar New Year 2009, the real estate market will become an attractive
playground for the investors with large capital and long-term investment strategies. The downward
market will minimize the speculation situation and the market is in the hands of the buyers not the sellers
as before. As a result, the potential real estate enterprises need to build long-term development
strategies and positively work on the research and development, especially, seriously invest in the
market research and research the customers; steadily develop step-by-step and avoid spreading the
investment in this current difficult situation.
The trend of switching to investing in the development of the cheap and common houses to attract the
The coming investment trends
majority of the customers is becoming more perceptible. Many enterprises are planning to promote their
for Vietnamese real estate investment in the market segment. It is very promising that the people with the low & medium income will
enterprises have many opportunities to get access to this supply.
According to the studies of VietRees, the enterprises should invest in the apartments with the relative
sizes of about 40 – 60 m2, good structure, relatively good materials and equipments (not need to be the
high-grade ones) and the maximum selling price of 10 million VND/ m2. The apartment’s worth from
400,000 to 600,000 million VND/ unit will be able to attract more customers. The customers should be
aimed at newly married couples, students, staff and civil servants who are living and working in HCMC.
In fact, some foreign investors have been interested in this market segment. Therefore, the domestic
investors should take quicker actions because according to VietRees, Vietnamese enterprises are likely
to have more advantages than the foreigners in this market segment.
VietRees, in January, 2009
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