Published on

Published in: Business, Real Estate
  • Be the first to comment

  • Be the first to like this

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide


  1. 1. Weekly Newsletter A48 Vietnam Real Estate Week 2, September The first weekly electronic newsletter issued to registered members, approximately 100,000 reads per month joining to develop the newsletter VietRees, a member of 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) Real estate market forecast (p.9) Construction material market last week (p.9) Stock market last week (p.9) This weekly newsletter is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning or interested in Vietnam real estate market changes. Although the information is selected, synthesized from all reliable sources, this newsletter is only for reference and VietRees is not responsible for the occurring damage. Please visit the website for further Vietnam Real Estate information. When individuals and organizations quote or publish the information from our newsletter, please cite the source VietRees. According to the statistics on registration for the newsletter, the subjects making reference to the newsletter includes real estate investors; companies or units of government performing management tasks, business marketing, consulting, broking, assessment, real estate finance, construction, banking, architecture, interior decoration; domestic and foreign press agencies; and full of professional investors or individuals who have demand for real estate throughout provinces and cities nationwide; typically Ho Chi Minh, Ha Noi, Da Nang, Can Tho, Hue, Nha Trang, BRVT, Binh Duong, Dong Nai, Ha Tay… We would like to say thanks to the sponsors and all of the readers. We expect to continue to receive your support as well as your comments to improve our newsletter. Free register for weekly newsletter: Please send your email to Sponsor and advestising: T: (08) 948 5574 - E:
  2. 2. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A48 Page 2 MARKET SITUATION st Welcoming the policy that real estate enterprises are obliged to trade through trading centers as of 1 Real estate transaction centers: January 2009, many companies and enterprises have promptly followed. Many real estate transaction the market will make a selection centers (including real and virtual centers) in accordance with new standards have been established in succession. Vneconomy – 10 Sep, 2008 However, the transaction centers have operated ineffectively, therefore, many newly established transaction centers have been waiting for more effective activities in the future. The transaction centers have not operated as required and the decisive method has still been “classified ads”. Additionally, the investors of big projects also want to establish their own real estate transaction centers in order that they can take a direct control over implementation of the laws. These reasons have unintentionally made the real estate transaction centers focus on formalism rather than the real value. But if we take the role of the transaction centers into consideration, we will see it as the way of the future. With the function of connecting sellers with buyers, the transaction centers will help make every transaction safe, quick and make the real estate market transparent and public. These real estate transaction centers can reduce the “sluggishness” of projects and push the property prices down close to the real value. When one transaction center does not have enough information about real estate or other supporting services, the effectiveness will decline, causing the market to reject transaction centers. Those who have requirements will come to the transaction centers with more sufficient information and more supporting services. It is the real estate market that puts pressure on the transaction centers amd forces them to self-perfect. The real estate market has had limited movement since the beginning of the year until now. This has Enterprises seek to adapt made many investors attempt to adapt to the market situation that will still continue with few prospects in TheSaiGonTimes – 11 Sep, 2008 future. According to HCM City Real Estate Association, the recent successful transactions are mainly the houses with the prices of below 1.5 billion VND/unit and the number of transactions is not high. This shows that the property prices have become more reasonabe but there has been enough grounds to say that the market is thawing out. The policy of tightening credit has made the intermediary investors withdraw from the market. As for those who buy homes to live, they are not in a hurry because there are many conditions to consider while the products that suit the majority’s needs are too few. The gap in the transactions has made many investors feel like the market will stay buoyant in the short term. The situation of scarce sources of capital has covered the project market, especially the projects whose construction progress cannot be slackened. The enterprises who have invested in these projects are making every effort to deal with this situation in diversified ways depending on realistic conditions. The current trend is to intensify the mutual cooperation to untie the difficulties together. Some investors have sought foreign enterprises with capital potential to share the equities, and the others have strengthened their relationships with customers by applying many flexible payment methods in accordance with the financial ability of every group of customers. REAL ESTATE FOREIGN INVETSMENT th Petrovietnam cooperates with On the morning of September 9 , 2008, the National Oil and Gas Group (PetroVietnam) inked a Memorandum of Understanding on strategic partnership with the China Merchants Group Ltd. in Hanoi. a Chinese group The two sides are committed to sharing investment opportunities in the fields such as seaports, industrial parks, real estate development, finance and stock market. Additionally, CMG also has pledged to help Vnagency – 09 Sep, 2008 Petrovietnam to promote its business in China and other parts of the world. th Investment in the construction On September 9 , 2008, Berjaya - D2D joint-venture (Malaysia) held a ground-breaking ceremony for the project of Bien Hoa City Square complex in Bien Hoa City, Dong Nai Province. of Bien Hoa City Square The project is built on a site of 2.5 hectares, including a 5-star hotel, Bien Hoa City Mall trade center, one Tien Phong – 10 Aug, 2008 20-storey office building and three high-class apartment building areas with a total investment of 230 million USD. Real estate continues to lure Regardless of the difficulties of the economy, the statistics in the first 8 months of 2008 has shown that the FDI in the real estate market has remained at the high level of 22.2 billion USD, occupying nearly foreign capital 50% of the total newly-registered FDI, excluding the projects with the scales of from hundreds of million USD to billions USD which have just been proposed to be invested, not yet been officially granted VietRees – 11 Sep, 2008 investment license. In addition to heavily investing in the “hot” market segment such as hotels, resorts or trade centers, foreign investors have also implemented many housing projects – the market segment has frozen since the middle of the first quarter of 2008. Furthermore, many big-scale projects made public before 2008 have been continuing to be implemented. The above reality shows that the real estate market has still attracted foreign investors despite the fact that the year 2008 is a year of many difficuties. Sponsor:
  3. 3. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A48 Page 3 Total FDI until August, 2008 Source: General Statistics Office Until August, 2008 the whole nation has atracted the FDI of over 47 billion USD with an increase of 4.5 times over the same period in 2007, although the number of projects have been equal to only 80% as compared with the last year. VIETNAM IN THE WORLD Vietnam is one of the top 10 According to the ranking of United Nations Conference on Trade and Development, Vietnam stands in the top 10 countries that attracted the most investment by multinational companies in the period of 2007- countries in attracting FDI 2009. In a special report on Vietnam in August of this year, BCA (Bank Credit Analyst), a prestiged Edited by VietRees – Sep, 2008 independent Canadian organization judged that Vietnam is gaining the market share from China, Thailand and India in the fields of textiles, footwear and electrical components due to low costs. BCA also told that this would be a good time to invest in Vietnam. Price Water House Coopers – an international auditing and consulting organization – has put Vietnam first in the top 20 emerging countries and it has also shown that Vietnam held a great attraction to investors, especially manufacturing industries including auxiliary ones. Therefore, in the context of inflation and gloomy global financial market, Vietnam has still attracted record foreign direct investment inflows. Indirect investment has also come back with 46 foreign investment funds specializing in investing in Vietnam and mainly aimed at real estate and securities market. The next thing to do is to improve administrative procedures; hasten the FDI disbursement and make the real estate and securities market transparent and wholesome in order to consolidate the confidence of investors. REAL ESTATE AGENTS The first Union of Housing The HCM City Union of Housing Co-operatives (UHC) has just been officially established on September 7th, 2008 by 4 founders including: Gia Phu Co-operative, Bach Nien Gia Co-operative, Phuoc An Thinh Co-operatives in HCMC Co-operative and Loc Phu Gia Co-operative. Tuoi Tre – 08 Sep, 2008 UHC is the organization that will manage the program of saving houses and campaign for the member development of this program. At present, UHC and its member co-ops are preparing to start the construction of Thanh Loc apartment building at Thanh Loc ward, district 12 and Truong Tho apartment building at Truong Tho ward, Thu Duc district, HCMC. th Huu Lien Investment Joint - On September 5 , 2008, Huu Lien JSC (a member of Asia Huu Lien JSC) located at C10/8D Nguyen Van Linh, Binh Hung ward, Binh Chanh suburban district, HCMC has officially operated in the main fields Venture Company inaugarated including real estae broking, business and investment. BDS & TS – 08 Sep, 2008 The company shows that a complex building will be constructed on a site of 6 hectares at Tan Kien commune, Binh Chanh suburban district, including trade centers, offices and apartments for lease with the total investment of approximately 2.500 billion VND. Meanwhile, a standard real estate transaction center will be prepared to be inaugarated in late 2008. The company has also signed the contracts with some partners such as ACBR, Nha Viet Nam, Dat Lanh, etc for business cooperation, product and services exchange and etc. One more real estate Homecare JSC (HMS Property) has just opened HMS Property real estate transaction center ( at Trung Yen 7 Street, Trung Yen - Trung Hoa new urban area, Cau Giay transaction center operates district, Ha Noi. KTDT– 09 Sep, 2008 At HMS Property, customers will be offered the consultancy, guidelines and assistance in terms of the legal formalities, contracts and fields relevant to real estate. A standard real estate VPBank is promtly completing the last works in order to inaugurate a standard real estate transaction center in Ha Noi in late September, 2008. transaction center to be The transaction center is 400 m2 wide, located at Kinh Do building, 292 Tay Son, Ha Noi. Professional inaugurated in the North support will be provided by the House Management Department of the Ministry of Construction. The Vneconomy – 10 Sep, 2008 main operation fields of VPBank transaction center include assessement, auction services, consulting, brokerage, legal services and mangagement in terms of real estate. Vinaconex builds homes Viet Nam Construction & Import-Export Joint Stock Corporation (Vinaconex) has handed over 4 blocks of houses among the total 16 blocks of houses located in the residential area for the workers at Thang for workers Long Industrial Zone. Ha Noi Moi – 12 Sep, 2008 Vinaconex is also the investor. The next 10 blocks of houses ( with the total floor area of 42,500 m2) will be transferred by the corporation in 2008, supplying the accomondation for about 4,500 more workers. Sponsor:
  4. 4. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A48 Page 4 Websites of real estate companies in Vietnam Property developers Brokerage Evaluation Ho Chi Minh Ho Chi Minh AREV - Company 585 - An Gia - Hoang Quan - Company 584 - ACBR - Vietland - An Phu - Dat Xanh - VVFC - BCCI - Dia Loi - Daewon - Dat Cat - Construction Him Lam - FICO – Ho Chi Minh Hoang Anh Gia Lai - Kim Son - CIC8 - Linh Phong Conic - Phuc Duc - Coteccons - Nam Long - Hung Phu - Cosaco - Phu Long - Hung Thinh 2 - Hoa Binh - Phu Quoc Land - Hoang Quan - Hai Thanh - SacomReal - Intresco - Toan Thinh Phat - Sadeco - Loc Dien – Resco - Nova - Thai Thinh Capital - Phat Hung - Ha Noi Thu Duc House - Tan Dien - Constrexim - Phu My Hưng - Van Hung Phu - Cavico - Van Phat Hưng - HANCIC - Vietnam Land SSG - Ha Noi HUD - Incomex - Cland - Ha Noi Dong Do - FPT Land - Phu Thai Group - Architect and Interior Decoration C.E.O - Petrowaco - Ho Chi Minh Gia Tue - Petrolimex – A2 Visualization - HUD - Cat Moc - HDB Viet Nam - Research Le Do - www.model& Keangnam – CBRE - Nha Vui - Nam Cuong – Savills Viet Nam - Nha Viet - Song Hong Land - VietRees - Nha Dep - Vinaconex – Pho Xinh - Vincom - Consulting Viet Hung - CBRE - Ha Noi Dong Duong - ACT - Other cities Eden Real - ADKientruc - Becamex IDC - Indochina Land - Ashui – Biconsi - Long Gia Khang - Kien Truc Ha No - Tuan Chau - Savills Viet Nam - GNSVINA - Vina Capital - Company 579 - VietRees - Duc Manh - Sponsor:
  5. 5. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A48 Page 5 REAL ESTATE PROJECT AND PRICES Bien Cat private enterprise is preparing to open Allezboo resort of 4-star standards on a site of 1.5 Allezboo resort to be opened th hectares at Mui Ne, Binh Thuan province on September 20 , 2008. The total investment of the resort is at Mui Ne about 5 million USD, including 55 hotel - rooms, 2 close-to-sea villas, swimming pools, restaurants, TheSaiGonTimes – 09 Sep, 2008 conference rooms and etc. Spa and beauty salons will be inaugurated in October, 2008. Quang Ngai Provincial People’s Committee has ratified the detailed planning project of tourism zone and The planning of tourism zone Vina Universal Film Studio with a total area of 2,569 hectares at Duc Pho suburban district. and Vina Universal film studio This is the general tourism service and commercial center in the area with many forms: cultural tourism, ratified sea travel, ecotourism and etc in combination with the urban residential areas and the rural residential VietRees – 10 Sep, 2008 areas. It is also a film studio area of regional and international stature. Quang Ngai Provincial People’s Committee has approved the planning project of Son Tinh modern The planning project of Son residential area. This project is invested by 577 Investment Corporation. The residential area is also Tinh residential area ratified called NBB New City and located on a site of 104 hectares in the North-East direction of Son Tinh town. VietRees – 11 Sep, 2008 The project includes many areas with full functions such as service center areas, housing areas, entertainment areas, commercial areas and etc. Vimeco JSC has been licensed by People’s Committee of Ha Noi City to transfer the using purpose of Constructing a complex the 5,672 m2 area at Trung Hoa ward, Cau Giay district in order to implement the construction of the building in Ha Noi complex project of housing – office – commerce. Hà Nội Mới – 11 Sep, 2008 Currently, Vimeco is completing the relevant legal procedures in order to commence the project in the fourth quarter of 2008. High-grade apartments in HCMC, the percentage increases and decreases in apartment prices over the previous period (month) Prices are forecasted to see a slight increase of 2% in August, 2008 as compared with July, 2008 VietRees – Aug, 2008 Announced prominent real estate developments during the last 2 weeks* Week 1, September 2008 Week 2, September 2008 Ho Chi Minh City Petroland complex building (Dist.7), Complex building at Tan Thanh Loc Apartment Building (Dist.12), Truong Tho Thanh ward (Tan Phu), Binh An House 1 (Phu Nhuan), Binh Apartment Building (Thu Duc) An House 2 (Dist.3) Other Areas Sao Mai high class UA (Ben Tre), My Hung modern UA (Can Tourism zone & Vina Universal film studio (Quang Ngai), Tho), Vinpearl Hoi An ecotourism area (Hoi An), Lieu Giai Son Tinh tourism zone (Quang Ngai), Vimeco Complex Office building (Hanoi) (Ha Noi), Allzeboo resort (Phan Thiet) Approved prominent real estate developments in HCM City* August September Housing, apartment, residential area Truong Thanh Ward – VietNam House HA (Dist.9), 7/4A Kha Phu Thuan Ward HA (Dist.7), Tan Kien Town ReA (Binh Van Can ReA (Thu Duc), 13E Phong Phu RA (Binh Chanh) Chanh), Thanh My Loi B RA (Dist.2), Phuoc Thien RA (Dist.9), 99 Ben Binh Dong AP (Dist.8), Nhon Duc –Phuoc Kien RA (Nha Be) Office, commercial Hiep Phu Ward – Hiep Phu Gia Co. office building, 34-35 Tan Thanh Ward complex building (Tan Phu), C6/27 Pham Ben Van Don complex (Dist.4), 89A Nguyen Dinh Chieu Hung commercial center (Binh Chanh) office building (Dist.3) * 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 - Viglacera Tower - Cozyvill - Saigon Paragon - My Dinh – Me Tri RA - Flamingo Dai Lai - Dragon City - Bac An Khanh RA - Van Phu township - Preche - Ha Noi Plaza Hotel - Dam Vac Golf - SaigonPearl - Phap Van – Tu Hiep RA - Sanctuary - V-Star - Ho Tram Strip - Time Square - Sai Gon Sunbay - The Everrich - Other cities Eden Lagi Resort - Tan Da Court - Furama Resort - Van Quan – Yen Phuc township - Lancaster - Sai Gon – Mui Ne Resort - Quoc Te Do Son - The Vista - Sunspa ResortVietnam - Sponsor:
  6. 6. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A48 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 District (m2) VND/m2) +/- Apartment building – HCMC Central Garden 1 76 28 An Thinh 2 130 23 + Cantavil 2 150 29.2 - Van Do 4 100 21.9 Estella, Dist.2 V- star, Dist.7 Sky Garden 3, Dist.7 Hung Vuong Plaza 5 130 35 - * 124.6m2 – 2,100 USD/m2 * 85.5m2 – 22 million VND/m2 * 88m2 – 33 million VND/m2 Canh Vien 7 119 36.1 * 161m2 – 31.1 million VND/m2 Phu My 7 117 23 - My Phuoc BTH 88 25 Le Thanh BTA 80 8.5 Botanic PN 175 31.5 New SaiGon NB 100 20.7 Phu My Thuan NB 95.6 9.5 - River Side TD 73 16.5 - Development land lots – HCMC Blooming Park, Dist.2 Phu My, Dist.7 The Everich, Dist.11 An Phu – An Khanh 2 80 20.5 - * 115m2 – 29 million VND/m2 * 82m2 – 21 million VND/m2 * 115m2 – 2,500 USD/m2 * 135m2 – 31million VND/m2 Dong Thu Thiem 2 120 18 + * 117.7m2 – 23 million VND/m2 * 160m2 – 2,000 USD/m2 Direct contact with the investor1 The Ky 21 2 160 24.5 ADC 7 100 23 + Him Lam – Kenh Te 7 200 38.5 + Gia Hoa 9 200 13 + Hung Phu 9 120 10 Hai Yen BC 100 7.8 - Lang VK Phong Phu BC 140 15.8 - Apartment building - Ha Noi Doi Nhan BD 85.9 19 Preche, Dist.2 Panorama, Dist.7 Saigon Pearl, B.Thanh M5 BD 149 28.5 * 147m2 – 2,445 USD/m2 * 121m2 – 40.5 million VND/m2 * 133.3m2 – 3,125 USD/m2 Lang QT Thang Long CG 116 25 * 154.5m2 – 2,290 USD/m2 * 164m2 – 45.7 million VND/m2 * 135m2 – 2,900 USD/m2 Trung Hoa – Nhan Chinh CG 115 27.4 + 25 Lang Ha DD 172 28 The Manor TL 290 68.5 CT5 Van Khe TX 62 11.7 Development land lots – Other provinces Hiep Thanh 3 BD 100 6 My Phuoc 3 BD 300 1.7 - Khang Linh BR-VT 80 5.4 BMC Hung Long, Dist.7 The Manor, B.Thanh Lan Anh 1 BR-VT 95 2.8 The Vista, Dist.2 * 135m2 – 1,575 USD/m2 * 162m2 – 20 million VND/m2 * 101m2 – 2,550 USD/m2 HUD DNI 108 2 * 142.2m2 – 1,900 USD/m2 * 113m2 – 3,400 USD/m2 Licogi 16 DNI 117 3 + Long Kim 2 LA 100 4.5 1 Kien A Investment & Services Co., Ltd. - An Phu Ward, District 2, HCMC - Tel: (84.8) 740 6688, Fax: (84.8) 740 6949 Danang: 225 Huyen Tran Cong Chua - T: (84) 511 836 216 * HCMC: 390 Nguyen Cong Tru, D.1 - T: 8 821 7509 * Hanoi: No.6-1D Trung Yen New Town, Caugiay - T: 4 783 1598 Sponsor:
  7. 7. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A48 Page 7 PROPERTY SUPPLY FOR DIFFERENT TARGETS OF CUSTOMERS Social wefare houses for worker * Saigon Construction Corporation investor two apartment blocks high 5-storey for workers in Quarter 1, VietRees Linh Trung Ward, Thu Duc Dist, HCMC. The is . * 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 storeys. th * Morning of August 28 , 2008, the Ministry of Construction has signed a memorandom 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. Real estate for the low income * Sai Gon – Gia Dinh Real Estate Company and Hoa Binh Phu Yen Company build Thoi An Apartment VietRees 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 Duc district. * In early 2010, Hai Thanh company will complete 352 apartments of Hai Thanh 1 resettlement area project, Binh Tan District for the civil servants at Binh Tan District. * People’s Committee of Binh Chanh has just cooperated with Hung Vuong university Investment & Development JSC to construct resettlement area at Tan Kien commune, Binh Chanh suburban district. * People’s Committee of HCM City has just licensed Cho Lon Real Estate JSC to invest in the construction of the apartment buiding 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. Dwellings for overseas Vietnamese The Committee for overseas Vietnamese in HCMC has showed that there have been 130 overseas Vietnamese buying houses, mainly in HCMC. and foreigners Those who brought houses are those who come back to the country for their long term and direct VietRees 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. Sponsor:
  8. 8. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A48 Page 8 REAL ESTATE LEGISLATION The Ministry of Construction has sent the Prime Minister the petition requesting the localities to abrogate Proposing revoking 8 illegal 8 illegal procedues relevant to the State management in the field of construction. construction procedures The procedures that are petitioned to be revoked include: confirming the boundaries of the land that has Tuoi Tre – 09 Sep, 2008 no dispute or complaint; agreement of People’s Committee at the levels of suburban district/commune on the locations of the projects; approving the draft of the assignments for the detailed planning project on a scale of 1/500; approving the establishment of assignments for the detailed construction planning on a scale of 1/500; the approval of Department of Architecture-Planning (or Department of Construction), People’s Committee at the levels of district and suburban district on the boundaries, the landmarks and the land size to set up the detailed construction planning on a scale of 1/500 and to set up the projetcs; approving the red road (landmark) and the figures of the technological infrastructure; approving the architectural projects; requesting investors to consult many specialized agencies in terms of supplying water, electricity, environment, firefighting and etc when assessing the detailed construction planning on a scale of 1/500 and assessing the basic designs. The Ministry of Construction shows that at present, many administrative procedures in the construction investment, especially for the projects of new urban areas and residential areas, the technological infrastructure at the industrial zones have still been “tangled” and time-consuming. The official document No.70/BXD-QLN has just been promulgated by Ministry of Construction on Civil servants banned from real th September 8 , 2008. According to the regulation at point A, item 1, clauses 14 and 15 of the Decree estate broking and pricing th No.153/2007/NĐ-CP promulgated by the government on October 15 , 2007, the individuals who are civil VietRees – 09 Sep, 2008 servants will not belong to the subjects licensed the certificate of the real estate brokerage or pricing. For the individuals who have had the applications for issuing the certificates with the confirmation of People’s Committee at the level of commune, they need to specify clearly in the applications that they are not civil servants. Regarding those whose applications for issuing the certificates include the confirmation of their organizations or offices, their organizations or offices must specify clearly whether they are civil servants or not. Additionally, the necessary condition for granting the certificate of pricing is that the individuals applying for the certificates should have qualifications of college degree and above in any field. th On September 10 , the Ministry of Construction has submitted to the Prime Minister a draft decree that Extending the subjects of overseas amends and supplements article No.126 of the housing law on home ownership in Vietnam for overseas Vietnamese eligible to own houses Vietnamese. Vnagency – 11 Sep, 2008 Those of Vietnamese origin who have retained or lost their Vietnamese nationality will be allowed to own an unlimited number of houses in Vietnam if they are married to a Vietnamese citizen living in the country, have made significant contributions to the country or are university graduates who are working in Vietnam ’s socio-economic sectors. Those of Vietnamese origin (losing Vietnamese nationality) who have been staying in Vietnam for at least six months or hold a visa-exemption certificate will be permitted to own a single residence in the country. In comparison with the regulation at the article No.126 of the housing law, the subjects of overseas Vietnamese allowed to own house have been extended in order to make the equality of the home ownership in Vietnam between every citizen. Free register for weekly newsletter: Please send your email to * Sponsor and advestising: T: (08) 948 5574 - E:
  9. 9. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A48 Page 9 REAL ESTATE MARKET FORECAST * Note: Information on market forecast is only updated every 4 periods (after one month) by VietRees General trends on HCM market In general, the situation of real estate transactions in August is slowler than July due to the psychology of keeping off buying houses in lunar July. However, selling prices have come back to the uptrend. Customers have more and more options to buy the properties whose prices are getting closer to their real values. According to the surveys of VietRees at the brokerage centers and transaction centers in HCMC, most of them have had only fews customers in HCMC. However, the prices of the real estate advertised for sale have levelled off or seen a slight decrease of 2 - 5% as compared with the last month. This reason of this price increase has been explained that construction materials prices in the past period have gone up dramatically, inflation has risen, the actual incomes of the people have dropped and most importantly, the sellers have been expecting the recovery of the market; as a result; the prices have become higher. Increasing prices have been recorded at the projects in good locations and ensure the progresses of the construction (the investors are continuing construction) and especially at the projects in which the houses are about to be handed over or the infrastructures have been somewhat completed and the construction speed is prompt. Apartment market The sale and purchase of apartments or house on an installment plan in August, 2008 has drawn interest from the buyers with real demands. Due to the fact that the banks have tightened real estate loans, many investors have flexibly implemented the way of selling houses on installment plans for many years to raise the capital for their projects. According to the recent market surveys of VietRees, in addition to the previous factors such as location, prices and convenient traffic; payment method and the money to pay in the first installment when purchasing project houses are also drawing a lot of interest from buyers. The apartments with small areas of 50 - 80 m2 and the value of below 600 - 800 million VND are seeing a sign of decreasing attraction. The reason is that the supply is significantly increasing while the inflation and the bank interest rates are rising sharply, therefore, the rent is not as high as the bank interest. Tenants now have more options than before. As a result, many apartments are left vacant because there is no tenant. The market of project land plots Similarly to July, on the whole, land prices have seen no decline and in some cases increased. The sellers think that the situation has become less difficult and they will not accept any more loss. Therefore, they will not try to sell properties at all costs like before. Land prices of some projects located in Nha Be, Dist.2, Dist.7 have risen by 0.5 to 2 million VND/m2. Transactions have appeared on the market although they are much less than in the beginning of the year. CONSTRUCTION MATERIAL MARKET As of now, the volume of stock cement and klinke at factories is going up. Along with the actual Supply of steel and cement production capacity, it is forecasted that the supply is sufficient for the construction market during the 4 is still sufficient remaining months of 2008. Edited by VietRees Steel prices at factories of Northern and Southern enterprises have seen an average decrease of 200,000 VND/ton as compared with the last week. In the North, the current prices of rolled steel in the North range from 15.4 - 16.2 million VND/ton and the prices of bar steel range from 15.8 - 16.5 million VND/ton. In the South, steel prices have gone down to nearly the same prices of steel in the North and remained at 16.05 - 16.2 million VND (for rolled steel), 16.4 - 16.5 million VND/ton (for bar steel). Meanwhile, a series of ingot steel producers in Hai Phong city have been worried “like a cat on hot bricks” due to an inventory of hundreds of ingot steel over the past month. The steel consumption in domestic market and export market has been “caught in a dilema”. Many enterprises have stopped production or maintained their production at an indifferent level. Three main causes of the stockpile of steel and steel ingots are as follows: steel prices on the world market has gone down, the progress of domestic constructions is slackedned or delayed and export tax rate on steel ingots is high. Vietnam Steel Association shows that Ministry of Industry and Trade officially petitioned the Ministry of Finance to reduce the export tariff on steel ingots to 5% from the current 20% in order to help untie the difficulties of the enterprises. STOCK MARKET Ending the last session of the week, VN-Index “Goods” are intensively released, has lost 21.01 points and HASTC has lost 8.67 both bourses have declined points. Edited by VietRees At HCM transaction centre, selling orders have been launched in mass, which made VN-Index Chart source: Vietstock see a sharp decrease of 19.65 points to close at Up to date: 12 Sep,2008 477.36 points. The total trading volume of the first phase was over 4.3 million units worth more than 153 billion VND. Until the continuous order- matching phase, investors have continued to “release goods” while there is almost no buyer. The total trading volume of this phase has reached 13.8 million units. Ending the session, VN-Index has lost a total of 21.01 points (or 4.23%) to stay at 476 point-level. The total trading volume on the whole market has reached over 15 million units worth more than 574.93 billion VND. Over five consecutive sessions of decline in the week, VN-Index has lost a total of 70.66 points. At Hanoi transaction centre, HASTC-Index has dropped 8.67 points to close at 160.62 points. The total trading volume on the whole market has only gained over 6.3 million units worth more than 267 billion VND. Also ending the week with 5 downward sessions, HASTC-Index has lost a total of 28.54 points (from 189.14 point-level to 62 point-level). Free register for weekly newsletter: Please send your email to * Sponsor and advestising: T: (08) 948 5574 - E: