Vietnam Real Estate Week 4, October
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 A54 Page 2
Construction material prices down, From the end of 2007 until the middle of 2008, there has been many contractors seeking to extend the
construction progress due to the dizzy increases in the construction material prices and labour costs.
enterprises speed up construction Brick prices have tripled, the steel prices have doubled and labour costs have also risen by 35 – 40%
Tien Phong – 22 Oct, 2008 etc. Basing on the contracts whose prices have been adjusted, the contractors have increased the bid
prices of the projects in progress and the investors have also put up the prices of the products for
However, in the recent 2 months, the situation has a tendency to reverse its direction, the construction
material prices have plummeted, especially the prices of steel and cement. The reduction in the
construction costs of the projects has urged the contractors to speed up the construction progress with
the purpose of ensuring that the projects would closely follow the contracts signed with the customers.
With a judgment that the Vietnamese real estate market will soon become eventful in the late 2009, this
period is a good opportunity for the projects and works to accelerate and complete. In addition, the
stability and the development future of the real estate market also play an important role. According to
some experts’ prediction, the construction unit price may be adjusted to increase in the early 2009.
Because some input materials will be gradually removed from the state’s subsidization as from January
1 , 2009, the government will allow some adjustments to some commodities for a long term such as
electricity, coal, water etc. This will be one of the factors that push the prices of many kinds of other input
Hanoi real estate prices continue After standing at the high level for a long period of time, the Ha Noi real estate market has seen signs of
price decreases, especially the suburban areas and the expanded area in Hanoi.
Although the prices have fallen by about 30% as compared with the beginning of the year and drawn the
Thanh Nien – 23 Oct, 2008 attention of those who have real housing demands, but the successful transactions are still
inconsiderable. The main reason is due to customers are still expecting further price decreases,
especially in the context of banks still tightening loans and the impact of the financial crisis in the world.
According to some real estate brokers’ assessment, currently, apartment prices in Hanoi are at the
reasonable level of 15 - 17 million VND/m2. Construction prices have been approximately 12 - 13 million
VND/m2. However, due to the transactions at this time are mainly buying and selling of those who have
real demands for dwellings, the old apartment buildings in Hanoi still have many more advantages. This
includes the appropriate areas, convenient traffic and close to centers, although prices are only 14 - 15
This is a very difficult time for the real estate transactions and it is more difficult for the projects starting
to come on sale, especially the products with quot;high-gradequot; brand. Currently, the customers are tending to
seek the apartments and land lots of below 1.5 billion VND for the housing demands. Accordingly, the
market of buying and selling high-end apartments for speculation or for lease is extremely limited by the
shortage of the support from the banks.
Real estate: many favorable factors According to the previous forecast of experts, the construction market will grow negatively from -0.8 to -
1.0% within this year. But at present, when the prices of construction materials are plummeting, bank
for the recovery loans are increasing and interest drops; opportunities for the recovery of real estate and construction
Ha Noi Moi – 24 Oct, 2008 industry are coming.
In the beginning of 2008, when the monetary policies was tightened and the bank loans involved in real
estate were limited temporarily; the real estate projects lost their credit sources, the progress got
sluggish and construction services were also affected. Moreover, material prices and labor cost spiked
and the State cut down its investment, which caused difficulties for the construction industry. Normally,
construction materials always soar in accordance with the demand in the end of the year. However, after
a long time of dramatic increases, the construction material prices in the end of 2008 are sliding sharply.
Additonally, during the recent month, the loan interests has kept going down, the capital sources has
been abundant and the banks are getting ready to restart the real estate loan programs.
Through the fluctuations in the construction material prices and the dynamics of banks in the recent time,
some experts think that the investors and contractors will promptly speed up the construction progress to
complete the projects and have the capital for the new projects. Therefore, the real estate market will
soon become evenful at the end of 2009 and reach its peak in 2010.
REAL ESTATE FOREIGN INVETSMENT
One more 4 star hotel in Quang Ninh The Novotel 4-star hotel that is located on Ha Long street, Bai Chay ward, Ha Long city and invested
and managed by Accord International Hotel Group (France) has been put into operation. The Novotel
VietRees – 20 Oct, 2008
with 12 storeys is designed following European architecture, including 214 hotel rooms, high-class
restaurants, swimming pools, Ha Long Bay and Bai Tu Long tours. The rental prices for the rooms at the
Novotel is about 110 USD/room/ day.
Brand name of Mercure hotel enters The international hotel management group Accor has shown that Mercure Hue Gerbera Hotel would be
opened in the first quarter of 2009. Mercure Hue Gerbera Hotel has 107 rooms, located on Le Loi street,
Vietnam including restaurants, bars, spa rooms, outdoor swimming pools, gyms and other conference facilities.
TheSaiGonTimes – 22 Oct, 2008 The two hotels Mercure Ha Noi La Gare and Mercure Hanoi Hado are expected to be opened in 2009
Constructing a trade center along The joint-venture between Thanh Danh Production - Trading Company Ltd. and Titanium Management
Company (Malaysia) has submitted to the People's Committee of Ho Chi Minh City the building plan of 6
the subway line railway stations along the subway line (from Bach Dang Wharf, District 1 to the West coach station, Binh
Tuoi Tre – 24 Oct, 2008 Tan District). The stations will include trade centers, supermarkets, entertainment areas, hotels, office
buildings, car parks and etc to meet the demands of traveling, shopping and the activities of the locals.
VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A54 Page 3
List of fields attracting most FDI
until September, 2008
Source: General Statistics Office
Until the third quarter of 2008, the
heavy industry has still been the field
attracting the great attention of the
foreign investors. In addition, all of
the remaining fields have increased
in the project number as well as the
VIETNAM IN THE WORLD
Vietnam ups 6 grades in the global According to the board ranking business environments worldwide (including 82 countries) announced on
business rankings 19th Nov, 2008 by a US-based branch of Economic Intelligence Unit, Vietnam has moved up 6 ranks
from the rank 71st for the 2004 - 2008 to the rank 65th for the 2009 - 2013 period.
Edited by VietRees
The main cause that has helped Vietnam’s ranking increase is that the business environment has been
improved after Vietnam joins WTO. Additionally, the company writes that in 2009 - 2010, Vietnam will
improve the operation environment for private enterprises in line with the implementation of new
legislation and until the 2011 - 2013 period, many state-owned enterprises will be privatized. In the
meantime, the reformed personal income tax system will come to effect in January, 2009.
The company forecasts that the real GDP growth of Vietnam in 2009 will drop to 5.3%. However,
according to the company, foreign investors are still confident about the business future in Vietnam.
REAL ESTATE AGENTS
Opening the service of searching On October 20th, 2008, DiaOcOnline network opened the service of quot;Mobile search housequot; in order to
serve the people who have the demands of buying properties. The service supports all of the
houses via messages subscribers who are using the mobile networks of Mobile, Vina and Viettel.
Tuoi Tre – 20 Oct, 2008 This is the tool of seeking houses via messages with the purpose of helping customers save time and
effort in their searching process. Customers can select the requests on the website and receive the
search results in their mobile phones when there is a suitable property updated on the page of real
The City ratifies some new projects Saigon Construction Corporation has ratified the value of the using rights for the land plot No.79B Ly
Thuong Kiet Street, Ward 8, Tan Binh District by People's Committee of Ho Chi Minh City to implement
Thanh Nien – 21 Oct, 2008 the construction investment project of the apartment building. The total value of the land use right and
the construction work on the land plot of the project is over 252 billion VND.
In addition, the People's Committee of the City has also approved the project of planning the
quadrangular area Le Loi - Nguyen Hue - Dong Khoi - Nguyen Thiep, District 1 into the trade centers –
offices for lease and high-class hotels which are invested and constructed by Saigontourist.
Petrowaco opens its real estate Petrowaco Property JSC is completing the legal formalities, material facilities and personnel matters in
order to open Petrowaco standard property transaction center on December 1st, 2008.
The transaction center is located at No.52 Quoc Tu Giam Street, Hanoi. It will operate in the fields of real
VietRees – 22 Oct, 2008 estate sale and purchase, brokerage, transfer, lease, assessment, consulting, auction, advertising and
management; exploitation etc.
Prudential offers loans for house Prudential Finance company will apply 2 programs including quot;loans for buying houses” and “borrow by
house mortgagesquot; since October, 2008 in Ho Chi Minh City. Customers can borrow a maximum of 75%
purchase in Ho Chi Minh City of the property value within 5 - 20 years for the program of quot;loans for buying housesquot; and the loan is 160
VietRees – 22 Oct, 2008 million VND - 8 billion VND. For quot;borrow by house mortgages”, the loan does not exceed 50% of the
property value and the loan period does not exceed 7 years, in which the loan is allowed to be from 160
million VND to 3.2 billion VND and the mortgaged property must have an area of over 40m2 and legal
Tin Nghia opens its real estate Tin Nghia One Member Ltd. Company has held the opening ceremony for Tin Nghia standard real estate
transaction center in Bien Hoa city, Dong Nai province in accordance with the regulation of the Ministry
transaction center of Construction. The center mainly operates in the fields of real estate assessment, investment
Phap Luat – 23 Oct, 2008 consulting, advertising, management, brokerage and etc. On this occasion, Tin Nghia company will
receive the tasks of introducing the projects of Sacomreal and Green Land through its real estate
It is expected that in November, 2008, the training courses for getting the certificates of real estate
brokerage, assessment, management, etc will be opened here.
CBRE introduces Vincom Park On the morning of October 23rd, 2008, CB Richard Ellis Vietnam officially introduced the model
apartments on the 7th storey of the Vincom Park Place project, located at 114 Mai Hac De Street, Hanoi
Place model apartments for the customers registering for buying or leasing apartments. The payment plan is divided into 5
Ha Noi Moi – 23 Oct, 2008 phases from the time of signing contracts until the time of apartment handovers. BIDV Bank (Quang
Trung branch) will support the customers leasing the apartments with the maximum credit support of
70% from BIDV within 15 years.
VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A54 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 SacomReal - www.sacomreal.com Constrexim - www.constrexim.com.vn
Phu My Hưng - www.phumyhung.com.vn Tan Dien - www.tandien.com.vn 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 Other cities Nha Vui - www.nhavui.com
Keangnam - www.eng.kne.co.kr Dieu Hien - www.dieuhien.com.vn Nha Viet - www.nhavietdecor.com
Nam Cuong - www.namcuong.com.vn Thien Loc - www.thienlocnhadat.com.vn Nha Dep - www.nhadep.com.vn
Song Hong Land - www.songhongland.com.vn Pho Xinh - www.phoxinh.com.vn
Vinaconex - www.vinaconex.com.vn Research
Vincom - www.vincom.com.vn CBRE - www.cbrevietnam.com Ha Noi
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
Becamex IDC - www.becamex.com.vn Consulting Kien Truc Ha Noi - www.kientruchn.com
Biconsi - www.biconsi.com.vn CBRE - www.cbrevietnam.com
Tuan Chau - www.tuanchau-halong.com.vn Dong Duong - www.indochina-consulting.com Other Countries
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 A54 Page 5
REAL ESTATE PROJECT AND PRICES
Ratifying the project of Phuoc Thien The construction project of Phuoc Thien residential area and park in Long Thanh My and Long Binh
wards, Dist.9 with an area of over 310 hectares has just been approved by the City’s People's
residential area Committee and temporarily assigned to Green City Developing JSC and The University of Architecture
Phap Luat – 18 Oct, 2008 to construct the urban area and universities.
In the project, the housing area is 187 hectares (accounting for 58.80%), service – work area is 60.91
hectares, the area for green tree parks is over 52 hectares, the area for traffic is 18.12 hectares and etc.
The two above units will cooperate with the People's Committee of District 9 to implement the
compensation and site clearance.
Constructing the largest tourism On the morning of October 23rd, HCM city’s Tan Tao Group announced the detailed planning of building
Vina Universal largest tourist site – film studio in Viet Nam with a total investment of 50 million USD.
site – film studio in Viet Nam
The project was built in Duc Pho suburban district, Quang Ngai province with an area of nearly 2,570
Vnagency – 23 Oct, 2008 hectares. This will be the general service of trade and tourism in the region with many forms such as
cultural tourism, sea travel and ecotourism combining with the urban residential areas and the rural
Preparing for the construction of People's Committee of Hoan Kiem District has shown that 19-12 market will be moved in the early
October, 2008 to serve the construction of the complex of 19-12 trade – service Center.
19-12 trade – service center
The project includes 2 blocks of houses with 17 storeys and 3 basements, 1 technical-storey on a total
Ha Noi Moi – 24 Oct, 2008 area of over 3.000 m2. The project is expected to be completed before October 10th, 2010.
High-grade apartment prices at
HCMC are not changed compared
with September, 2008
Edited by VietRees – Oct, 2008
Announced prominent real estate developments during the last 2 weeks*
Week 3, October 2008 Week 4, October 2008
Ho Chi Minh City Phuoc Thien residential area (Dist.9)
Other Areas RAAS eco-tourism site (Nha Trang) Vina Universal tourism site – film studio (Quang Ngai)
Dream Palace Resort (Thua Thien-Hue) 19-12 trade – service center (Hanoi)
Thanh Tri functional urban area (Ha Noi)
Nghi Son island eco-tourism site (Thanh Hoa)
Biti’s complex trade center area (Dak Lak)
Approved prominent real estate developments in HCM City*
Housing, apartment, residential area Phu Thuan Ward HA (Dist.7) Apartment building No.1 – No.31 Calmette Street (Dist.1)
Tan Kien Town ReA (Binh Chanh) Resettlement area at Phu My Ward (Dist.7)
Thanh My Loi B RA (Dist.2) 79B Ly Thuong Kiet apartment building (Tan Binh Dist.)
Phuoc Thien RA (Dist.9) Binh Chieu apartment buidling (Thu Duc Dist.)
99 Ben Binh Dong AP (Dist.8) Binh Tri Dong apartment building (Binh Tan Dist.)
Nhon Duc –Phuoc Kien RA (Nha Be) Tan Kien apartment buidling (Binh Chanh)
Office, commercial Tan Thanh Ward complex building (Tan Phu) Complex of Vietnam – Japan cultural park (Dist.2)
C6/27 Pham Hung commercial center (Binh Chanh)
Tan Binh commercial – service center (Tan Binh)
* 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 A54 Page 6
Property Retail Price
Updated on information from ACBR, Van Phat Hung, Hung Thinh, Phuc Duc, Tuoi Tre Newspaper and developers (VietRees gathered by direct surveys), listed prices can be
original prices or transfer prices at current or at one week prior from the date this newsletter is issued.
Typical apartments in HCM city Other apartments and land lots
Area Price (million
Apartment building – HCMC
BMC – Ben Chuong Duong 1 105 30 +
The Lancaster 1 120 75 +
An Thinh 2 140 21
Binh Minh 2 104 15.5
Cantavil, Dist.2 V- star, Dist.7 Sky Garden 3, Dist.7 Orient 4 71.72 28 -
* 80m2 – 31.7 million VND/m2 * 97.5m2 – 16.8 million VND/m2 * 81m2 – 27.2 million VND/m2 Hung Vuong Plaza 5 121 35
* 100m2 – 35 million VND/m2 * 119.2m2 - 17.5 million VND/m2 * 91m2 – 29.6 million VND/m2 An Phu 6 91 18
Bong Sao 8 59.8 12 -
E.Home 9 48 10
Tan Tao BT 91 9
Dat Phuong Nam BTH 141 23.7 +
Phuc Yen TB 122 13.9
Riverside Garden TD 81 17
Development land lots – HCMC
Blooming Park, Dist.2 Phu My, Dist.7 The Everich, Dist.11 Gia Hoa 2 140 9
* 115m2 – 29 million VND/m2 * 85m2 – 22 million VND/m2 * 111m2 – 1,750 USD/m2 An Phu Hung 7 88 23.5
* 135m2 – 31million VND/m2 * 91m2 – 23 million VND/m2 * 161m2 – 2,000 USD/m2 ADC 7 95 17
Direct contact with the investor1
Ung Thanh 8 88 8.6
Khang An 9 144 7.5 -
Hai Yen BC 85 8
Trung Son BC 100 31 -
Sadeco – Phuoc Kieng NB 100 11
Hong Linh NB 100 11
Apartment building - Ha Noi
Trung Van CG 71.2 15.5 -
Preche, Dist.2 Panorama, Dist.7 Saigon Pearl, B.Thanh
Yen Hoa CG 61 19.5 -
* 147m2 – 2,300 USD/m2 * 140m2 – 34.7 million VND/m2 * 98m2 – 2,050 USD/m2
Dich Vong CG 61 19
* 154m2 – 2,500 USD/m2 * 146m2 – 36.8 million VND/m2 * 122m2 – 2,250 USD/m2
Hacinco ĐĐ 114 26.5
Viet Hung LB 234 30.5 +
Ciputra TH 126 30
Nang Huong TX 68 13.7 +
Development land lots – Other provinces
My Phuoc 3 BD 300 1.27 -
Viet – Sing BD 100 4.4 +
Long Dien BR-VT 135 2.8
The Vista, Dist.2 BMC Hung Long, Dist.7 The Manor, B.Thanh Barimex BR-VT 300 2.2
* 140m2 – 1,636 USD/m2 * 98.9m2 – 18.6 million VND/m2 * 67m2 – 1,800 USD/m2 Licogi 16 DNI 240 5.3
* 126m2 – 19.5 million VND/m2 * 100m2 – 2,000 USD/m2 HUD DNI 285 2.2 +
Tan Do LA 105 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 A54 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,
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 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.
* 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)
Real estate for the low income * Sai Gon – Gia Dinh Real Estate Company and Hoa Binh Phu Yen Company build Thoi An Apartment
Building in District 12 with 1,000 apartments.
* 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 Lanh has cooperated with Truong Son Vanguard Youth General Squad to build apartments for low-
income people at Dist.12
* Go Vap People’s Committee and Go Vap Public Benefit Service Co. have bought back the house
reserve belonging to Phu Gia Hung high-end apartments, Duong Quang Ham Street, Ward 15, Go Vap
Dist. and Dong Hung Thuan 1, 2 apartment buildings, Dist. 12 to serve the resettlement of the locals at
Tham Luong project - Ben Cat - Nuoc Len ditch.
* Approximately 184,000 apartments belonging to the investment program in the construction of the
social welfare houses in the stage of 2009 – 2015 with the total investment of about 49,000 billion VND
have been submitted to the government for approval. (30/09/2008)
* 800 social welfare houses for lease - lease to purchase will be built at 19A and 21A plots, Viet Hung
urban area in 2009, which have been ratified by The People’s Committee of Ha Noi City. (16/10/2008)
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
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.
VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A54 Page 8
REAL ESTATE LEGISLATION
Only write down floor area of Housing and Real Estate Market Management Bureau has just promulgated a document providing the
apartment in certificate guidelines on the way of calculating the area of the apartments when producing the certificates of house
ownership and land use rights.
Ha Noi Moi – 20 Oct, 2008
Accordingly, for the units in the apartment buildings, just the floor area of the apartment should be
written down (except the area of the walls and general column frames) and the total usable area of the
apartment building should not be written in the certificate of apartment ownership.
In the case of investors and house buyers having the commitments and specific agreements on drawing,
measuring and writing down the areas of the apartments in the certificates of house ownership when
signing contracts of sale and purchase, the implementation should follow those commitments and
In the case that there is no specific agreements and yet, the real usable area of the apartment at the
time of handover has no change as compared with the design drawings, the real area of the apartment
should be written in the certificate of house ownership.
People from outside provinces The individuals who do not have permanent residences or long-term temporary residences in Ho Chi
Minh City and yet are trained and provided the knowledge of real estate brokerage and assessment at
also qualify to be granted the training centers in the city (including the branches of the training centers at the provinces) qualify to
certificates of real estate be considered for the granting of the certificates of real estate brokerage and assessment.
brokerage It is one of the main articles in the Guiding document that was sent to the Department of Construction by
Phap Luat – 22 Oct, 2008 Ministry of Construction, providing the guidelines on the granting of the certificates of real estate
brokerage and assessment. This guiding document also clearly shows that those who ask to be granted
or re-issued the certificates of real estate brokerage and assessment should submit the standard
registration forms for the granting of these certificates with the confirmation of the People's Committee at
the communes or wards where they are residing or at the organizations where they working.
According to the Ministry, there will be specific guidelines on the granting of the certificates of real estate
brokerage and assessment for the foreigners and Vietnamese people abroad in the near future.
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.
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VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A54 Page 9
CONSTRUCTION MATERIAL MARKET
Construction material prices down, Unlike the eventfulness of the months in the beginning and middle of the year 2008, the construction
material market is now plummeting.
yet demand does not soar
The steel prices have dropped by 6.5 – 7 million VND/ton, down to 13 million VND/ton. In September,
Edited by VietRees
the consumption was only 110,000 tons and the inventory of steel was nearly 500,000 tons. Until now,
the cement prices have dramatically declined as compared with the fever at the middle of 2008. The
cement prices have ranged from 850,000 – 900,000 VND/ton in the North and from 1.2 – 1.25 million
VND/ton in the South. Although the prices have gone down, the consumption has still been in dribs and
drabs. The prices of enamelled tile of all types have decreased by 5,000 VND/m2 as compared with
July. The price of yellow sand has fallen by 7,000 VND/m3. The price of construction brick has slid by 50
In order to take back the capital, enterprises are obliged to reduce the selling prices, even they have to
suffer losses to pay the bank interest. Addionally, the decline in the steel ingot prices in the world has
made the prices of the domestic products go down. On the other hand, many trade enterprises formerly
held on to the products to wait for the further price increases, but now they have to sell off to pay the
bank interests. As a result, the supply on the market has dramatically risen. In addition, currently, the
Southern provinces are in the rainy season, which makes the construction sluggish. Another reason is
that the implementation of 8 groups of solutions limiting the inflation suggested by the government has
made many investment projects delay or extend the progress or stop the construction.
In the current context, the price reduction or the implementation of the promotion program kicking the
demand of the enterprises is considered as the most optimal thing.
Setting new bottom, VN-Index At HCM bourse, right at the opening time, the trend of
losing points continues, the electronic transaction board
loses 15.32 points, HASTC-Index has been flooded with selling orders. VN-Index has
loses a further 3.76 points plummeted below the threshold of 350 points to record at
Edited by VietRees 346.51 points in this phase after losing 13.92 points. The
total trading volume has reached 2.9 million units.
Chart source: Vietstock Entering the consecutive order matching, the transaction
Up to date: 24 Oct, 2008 situation on the market is very gloomy. The volume of
matched shares is inconsiderable, VN-Index has slid a
further 1.13 points as compared with the first phase and
closed at 345.38 points. Ending the session, VN-Index
has lost a total of 15.32 points (or 4.25%) and closed at 345,11 points. The total trading volume on the
whole market has reached 13.1 million units worth over 450.8 billion VND.
After one trading week, VN-Index has 4 downward sessions and 1 upward trading. As compared with the
last week, VN-Index has dropped by 37.40 points, from 381.51 points (on 17th Nov) to 345.11 points.
At Hanoi bourse, HASTC-Index has lost a further 3.76 points to close at 111.58 points (equivalent to a
3.26% decrease). The total trading volume on the whole market has reached over 8.7 million units with a
value of nearly 216.85 billion VND. In this week, HASTC-Index has seen 4 downward sessions and 1
upward session. HASTC-Index has lost a total of 13.74 points against the last week (from 125.32 points
down to 111.58 points).
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