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)
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VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A48 Page 2
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
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
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
REAL ESTATE FOREIGN INVETSMENT
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.
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
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.
VietRees – Vietnam Real Estate www.VietRees.com 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.
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
(www.homecare.com.vn) 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.
VietRees – Vietnam Real Estate www.VietRees.com 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 - www.arev.com.vn
Company 585 - www.585.com.vn An Gia - www.angia.com.vn Hoang Quan - www.thamdinhgia.com
Company 584 - www.congty584.com.vn ACBR - www.acbr.com.vn Vietland - www.thamdinhgia.com.vn
An Phu - www.anphugroup.vn Dat Xanh - www.datxanh.com.vn VVFC - www.valuation.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 Ha Noi
Thu Duc House - www.thuduchouse.com Tan Dien - www.tandien.com.vn Constrexim - www.constrexim.com.vn
Phu My Hưng - www.phumyhung.com.vn Van Hung Phu - www.vanhungphu.com Cavico - www.cavicovn.com
Van Phat Hưng - www.vanphathung.com.vn HANCIC - www.hancic.com.vn
Vietnam Land SSG - www.saigonpearl.com.vn Ha Noi HUD - www.hud.com.vn
Incomex - www.incomex.vn
Cland - www.cland.com.vn
Ha Noi Dong Do - www.dongdobds.com
FPT Land - www.fpt-land.com Phu Thai Group - www.phuthaigroup.com Architect and Interior Decoration
C.E.O - www.ceoholdings.com.vn Petrowaco - www.petrowaco.vn Ho Chi Minh
Gia Tue - www.giatue.com.vn Petrolimex – www.pland.com.vn A2 Visualization - www.a2viz.com.vn
HUD - www.hud.com.vn Cat Moc - www.catmoc.com.vn
HDB Viet Nam - www.hdbgroup.com.vn Research Le Do - www.model&more.com
Keangnam – www.eng.kne.co.kr CBRE - www.cbrevietnam.com Nha Vui - www.nhavui.com
Nam Cuong – www.namcuong.com.vn Savills Viet Nam - www.savills.com.vn Nha Viet - www.nhavietdecor.com
Song Hong Land - www.songhongland.com.vn VietRees - www.VietRees.com Nha Dep - www.nhadep.com.vn
Vinaconex – www.vinaconex.com.vn Pho Xinh - www.phoxinh.com.vn
Vincom - www.vincom.com.vn Consulting
Viet Hung - www.ecopark.com.vn CBRE - www.cbrevietnam.com Ha Noi
Dong Duong - www.indochina-consulting.com ACT - www.act.com.vn
Other cities Eden Real - www.edenreal.com ADKientruc - www.adkientruc.com
Becamex IDC - www.becamex.com.vn Indochina Land - www.indochinacapital.com Ashui – www.ashui.com
Biconsi - www.biconsi.com.vn Long Gia Khang - www.longgiakhang.com Kien Truc Ha No - www.kientruchn.com
Tuan Chau - www.tuanchau-halong.com.vn Savills Viet Nam - www.savills.com.vn
GNSVINA - www.cozyvill.com Vina Capital - www.vinacapital.com
Company 579 - www.cecico579.com.vn VietRees - www.VietRees.com
Duc Manh - www.ducmanhco.com
VietRees – Vietnam Real Estate www.VietRees.com 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
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*
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 - 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 Other cities Eden Lagi Resort - www.edenreal.com
Tan Da Court - www.tandacourt.com Furama Resort - www.furamavietnam.com Van Quan – Yen Phuc township - www.hud.com.vn
Lancaster - www.lancaster.com.vn Sai Gon – Mui Ne Resort - www.saigonmuineresort.com Quoc Te Do Son - www.vietlandgroup.com
The Vista - www.thevista.com.vn Sunspa ResortVietnam - www.sunsparesortvietnam.com
VietRees – Vietnam Real Estate www.VietRees.com 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
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
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 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.
* 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
* 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.
Those who brought houses are those who come back to 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 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
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.
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VietRees – Vietnam Real Estate www.VietRees.com 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
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.
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).
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