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  1. 1. Weekly Newsletter A57 Vietnam Real Estate Week 2, November 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.3) 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.8) 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. Readers can print or save this newsletter on your computers to review when needed or transfer it to others. However, think of environment when you want to print it out. Free register for weekly newsletter: Please send your email to Sponsor and advestising: T: (84 8) 3948 5574 - E:
  2. 2. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A57 Page 2 MARKET SITUATION Real estate still in eye-shot According to the real estate experts, although the Vietnamese real estate market has still had certain difficulties, the market will recover within the next 6 -12 months because the demand of the market is still of foreign investors there. This is considered to be a good period for seeking opportunities to invest in effective projects, Lao Dong – 12 Nov, 2008 especially projects that are hungry for capital to be completed. According to the forecast, the construction expense will continue to decrease in the first quarter of 2009. In addition, the capital of the banks onto real estate will be opened up and the interest rate at that time will be lower than at present. This is a good condition for the investors to complete the unfinished projects as well as develop some more new projects to stimulate demand. Additionally, the field of hotel & tourism of Viet Nam has drawn the special interest of foreign investors. According to them, the supply in the market has not yet met the growing demand. The trade and shopping centers have also been located in an eye-shot of foreign investors. Foreign investors have shown that the Vietnamese real estate industry could pick up at the end of the next year. If any investor accepts the current risks, the gained profit will be very high in the future. The tendency of the Vietnamese real estate industry will be stable and on the significant upturn when the crisis passes by. The Vietnamese real estate market will continue to receive the capital from the foreign investment funds. Real estate market: both regions According to Ho Chi Minh City weekly real estate price survey of Sacomreal and Vinaland in the recent time, the prices of most projects in the city have seen no movement or an average decrease of 5 - 7%. go down In addition, the real estate enterprises and investors have forecasted that the real estate projects are VietRees – 14 Nov, 2008 likely to see further decreases in the last few months of this year. The “remedy” for reducing the loan interest of the credit organizations from 18 - 19.5% down to 15 - 16% has not solved the price decreases of Ho Chi Minh City real estate market. In spite of the attractive prices and the lower interest rate, the market has not seen any satisfactory movement. At the transaction centers in district 2, 6, 7, etc, there have been some phone calls a week. The volume of successful transactions in the real estate projects has drawn almost no interest. According to the real estate experts, the real estate business cannot take effect with the interest rate of 15 - 16% per year. The greatest wishes of the real estate industry at this moment in time are greater options to refinance debt and an applied interest rate that is more feasible. In Hanoi city, currently, the volume of transactions at the transaction centers as well as the brokerage centers is now very weak. The expectation of the new price decreases of the buyers, property owners are holding up the sale price of their property, which has made the rate of successful transactions on the market dropped dramatically. The main reason is that although the apartment building prices in Hanoi have declined as compared to the peak of 2007, they have not yet met the expectations of those who have real housing demands. Some people have invested in buying the real estate in the period of high prices. Until now, although the apartment prices have fallen, they have kept the goods and kept the prices in order to avoid profit reductions. According to a report of CBRE on Hanoi housing market, in the third quarter, the prices have slid by 10% as compared to the period before Tet holidays of 2008, but the buyers have been waiting for the projects with more competitive prices. Regardless of the fact that the associations and enterprises have suggested the greater options to refinance debt and the capital subsidization, but according to the State Bank, although the real estate prices have go down, they have still turned around the value axis and needed to develop more slowly and directly towards stability. It is forecasted to have a competition wave in the reduction of bank interest rates in the near future. Hunting for buyers When Ho Chi Minh City real estate market enters the fever, many people have had to scramble for apartment purchases. And then, transferring the contracts of apartment sale & purchase also earns from Lao Dong – 14 Nov, 2008 several thousands to tens thousands of USD. Many investors flock into mortgaging their assets to trade in real estate. Until now, the rule and order of supply and demand on the real estate market is being reestablished: the sellers seek the buyers. The investors have been looking for many ways to sell goods, from promotions to discounts. The simple ways are applying the program of “buy apartment, get LCD” or drawing the winners of motorbikes, overseas tours, etc. More complicated ways are supporting bank interest rates, adding more options, etc. In addition, the investment companies are studying to adjust the apartment prices more reasonably to improve the output. The level of price adjustment has been calculated based on the price decrease of some key construction material products such as iron and steel, cement, etc. According to some enterprises, to exist in the frozen market situation, enterprises have to aim at those who have real housing demands. However, these people consider and make careful comparison when buying houses, unlike those who buy houses to invest. As a result, they have to apply many promotion programs to attract customers. Once the order on the real estate market is reestablished, the biggest benefit for customers is that they have been returned their important position, that is, they have right to choose. In addition, the prices of the new ground bases and apartment buildings on the market have been adjusted to the level at which the investors cannot make any more adjustment. Sponsor:
  3. 3. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A57 Page 3 REAL ESTATE FOREIGN INVETSMENT Completing documents of 8 billion The construction project of Dragon Beach ecotourism zone with the total estimated investment of 8 billion USD in Quang Nam has continued to complete the documents after receiving the feedback from USD project in Quang Nam the authorized departments and branches. TheSaiGonTimes – 12 Nov, 2008 The project is invested by Dragon Beach Company (the joint-venture between 2 American companies are Global C & D Inc. and Tano Capital, LLC). The project is expected to be constructed on a site of 400 hectares in Dien Duong commune, Dien Ban suburban district, including the items such as hotels, resorts, international fair centers, entertainment areas with many games & prizes for foreign visitors. Total FDI in Viet Nam until October, 2008 Source: General Statistics Office Until October, 2008, the whole country had 953 newly licensed FDI projects with a total investment of over 58 billion USD. VIETNAM IN THE WORLD Vietnam ranked 3rd in attracting According to the documents announced by Asia Business Council (ABC), Vietnam has been ranked Asian businessmen third, before USA and only behind China and India in attracting Asian businessmen. Kinh Te Do Thi – 14 Nov, 2008 In 2006, nearly 80% of the consulted businessmen stated that they invested in the Chinese market. But until 2007, this percentage has decreased by 64% and it has been only 61% in 2008. Conversely, the number of Asian businessmen investing in Vietnam in 2008 has increased by 28% as compared to 2007. ABC’s businessmen have explained that Vietnam and India have still maintained the attractively cheap salaries. In addition, after joining WTO in 2007, the Vietnamese economy has been much more open. Asia Business Council, established in 2001, locates the headquarters in Hong Kong and gathers nearly 70 businessmen representing for the industrial and commercial companies that mainly operate in Asia. Although ABC is an unofficial organization, the ideas that it has offered have drawn the considerable attention from businessmen. REAL ESTATE AGENTS CB Richard Ellis Vietnam, the exclusive marketing agent of Plaschem Plaza project has shown that Adding a 16,000 m2 office area Plaschem Plaza office tower on Nguyen Van Cu street, Long Bien district, Ha Noi has finished the phase for rent in the North of Ha Noi of building ridge and been completing the final works. Ha Noi Moi – 10 Nov, 2008 The Plaschem Plaza is 16 storeys high with an area of 16,000 m2 for lease. Currently, the rent of the office is expected to be about 25 USD/m2 (including service tax). VinaCapital Group plans to raise from 300 – 500 million USD to establish one more new fund, focusing VinaCapital establishes one on the real estate field called VinaLand Partners which is expected to be opened in the early 2009. The more real estate fund new fund will follow a limited model of shareholders, focusing on investing in the real estate projects. TheSaiGonTimes – 11 Nov, 2008 This fund will not be listed on the stock market. Vinaland Partners will not invest in the “hot” fields such as high-class apartments or offices because this market is leveling off. Instead of this, it will invest in the projects that are easy to develop and in high demand of the market such as high-class hotels, resorts, etc. Eden Real introduces new Eden Real Estate One-Member Co. Ltd (Eden Real) has opened the operation management services for the projects of apartment buildings, offices, trade centers in order to increase the life expectancy as well services as the value of real estate, meeting the demands of the customers who are the residents of high-rise Thanh Nien – 11 Nov, 2008 apartments. This helps increase the brand name value of the projects and investors. The management services of Eden Real also aim at reducing the unnecessary operation costs, creating the advantages in competing with other high-rise apartments and limiting the complaints about the residence in the apartment buildings. DETECH Land Real Estate JSC (DETECH Land) has carried out upgrading and improving the real DETECH Land opens its real estate transaction center located at 107 Nguyen Phong Sac street, Cau Giay district into the standard estate transaction center DETECH Land real estate transaction center with the professional support of and Housing and Real Kinh Te Do Thi – 12 Nov, 2008 Estate Market Management Bureau (Ministry of Construction). It is expected to be opened on November 14th, 2008. This will be the real estate transaction center with a highly professional scope and level, focusing on the service networks of buying, selling, leasing and leasing-to-lease in urban areas, residential areas, trade centers, etc. Meanwhile, it also supports the legal services relevant to real estate. Opening Samland real estate Sacom Real Estate JSC (Sacom Group) official opened Samland real estate transaction center at 61 Nguyen Huu Canh street, ward 22, Binh Thanh district, Ho Chi Minh city on November 10th 2008. transaction center. The main works are introducing the projects invested by the company and seeking the opportunities for VietRees – 13 Nov, 2008 cooperation, joint venture and investment association with the domestic and overseas enterprises. In addition, the transaction center also serves the demands in terms of real estate business, consigning, assessment, etc. Sponsor:
  4. 4. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A57 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 - SacomReal - Constrexim - Phu My Hưng - Tan Dien - 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 - Other cities Nha Vui - Keangnam - Dieu Hien - Nha Viet - Nam Cuong - Thien Loc - Nha Dep - Song Hong Land - Pho Xinh - Vinaconex - Research Vincom - CBRE - Ha Noi Viet Hung - Savills Viet Nam - ACT - VietRees - ADKientruc - Other cities Ashui – Becamex IDC - Consulting Kien Truc Ha Noi - Biconsi - CBRE - Tuan Chau - Dong Duong - Other Countries GNSVINA - Eden Real - Architects 61, Sing - Company 579 - Hop Nhat - DP Architects, Sing - Duc Manh - Indochina Land - SWA, USA - Long Gia Khang - Ong&Ong, Sing - Savills Viet Nam - RSP Vietnam, Sing - Vina Capital - Surbana Vietnam, Sing - Sponsor:
  5. 5. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A57 Page 5 REAL ESTATE PROJECT AND PRICES The largest construction project Hai Phong city has prepared the final conditions to start the construction of the urban complex project and the industrial zone in the Northern of Cam River in 2009 in Thuy Nguyen suburban district. The in Hai Phong project is invested by Vietnam – Singapore industrial zone and urban development SJC. SGGP – 08 Nov, 2008 A 1,600-hectares area and an investment of 1 billion USD are used for constructing the infrastructure system of the industrial zones, urban areas and the completed services at the communes along the North of Cam River. The first phase is expected to be completed in 2015. Investing in retail industry in The People's Committee of Da Nang city has licensed Bai Tho SJC (Bai Tho Group) to invest 20 billion Da Nang VND in renovating and completing the area A - Da Nang trade and supermarket center in order that this project can be put into operation in January 2009. Tuoi Tre – 13 Nov, 2008 With an area of 14,000 m2, the Da Nang trade and supermarket center will plan approximately 150 kiosks and the complexes in order to operate the services of eating and drinking, entertainment, etc. One more large-scale project The trade – service – urban area on Nguyen Van Cu street (from the Rach Ngong bridge to provincial road 923), Can Tho city has just been ratified by the People's Committee of Can Tho city. in Can Tho The service-commerce development is built on a site of 73 hectares, including a system of commercial VietRees – 14 Nov, 2008 buildings, high-class apartments, offices for lease, supermarkets, etc. In general, the price of high-class apartments in Ho Chi Minh City have tended to keep going down after the slight increase in August Edited by VietRees – Nov, 2008 Announced prominent real estate developments during the last 2 weeks* Week 1, October 2008 Week 2, November 2008 Ho Chi Minh City Apartment building - offices at Binh Quoi (Binh Thanh) Apartment building at Phu Thuan Ward (Dist.7) Other Areas Thanh Nien Detesco office building (Hanoi) Industrial - urban area North of Cam river (Hai Phong) The Oil & Gas - Finance Trade Center (Da Nang) Complex on Nguyen Van Cu Street (Can Tho) The urban area of Gia Hung Company (KonTum) The tourism site of Sai Gon-Tay Nguyen Co. (KonTum) Approved prominent real estate developments in HCM City* October November Housing, apartment, residential area Apartment building No.1 – No.31 Calmette Street (Dist.1) Apartment building - offices at Binh Quoi (Binh Thanh) Resettlement area at Phu My Ward (Dist.7) Apartment building at Phu Thuan Ward (Dist.7) An Phu Ward residential area (Dist.2) Apartment building at Thao Dien Ward (Dist. 2) Housing area at Nhon Duc Province (Nha Be) Housing area at Dong Hung Thuan Ward (Dist.12) Office, commercial Complex of Vietnam – Japan cultural park (Dist.2) * 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 A57 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 Dist. (m2) VND/m2) +/- Apartment building – HCMC The Avalon 1 104 86.4 The Lancaster 1 165 75.2 + B27 2 62 13.5 Binh Minh 2 109 17 + Cantavil, Dist.2 V- star, Dist.7 Sky Garden , Dist.7 Orient Apartment 4 72.72 28 - * 150m2 – 2,450 USD/m2 * 119m2 – 20 million VND/m2 * 68.66m2 - 26.9 million VND/m2 Hung Vuong Plaza 5 121 27 + * 88m2 – 29.5 million VND/m2 An Phu 6 83 15 Phu Loi 1 8 70 12.6 Hoang Thap – Trung Son BC 97.5 18.5 The Mansion BC 84 13.5 Phu My Thuan NB 95.6 9.1 + Phuc Yen TB 77 13.7 - SunView TD 73.5 10.5 Khang Phu TP 79 13.5 - Blooming Park, Dist.2 Phu My, Dist.7 The Everich, Dist.11 Development land lots – HCMC * 115m2 – 29 million VND/m2 * 91m2 – 23 million VND/m2 * 115m2 – 1,700 USD/m2 An Phu – An Khanh 2 200 26 + * 135m2 – 31million VND/m2 * 114m2 – 25 million VND/m2 * 161m2 – 1,900 USD/m2 An Phu Hung 7 110.2 30 + Direct contact with the investor1 Him Lam 8 95 10.5 Hung Phu 9 180 7 Long Thanh My 9 100 7 Hai Yen BC 100 8.2 Lang Viet Kieu Phong Phu BC 140 16 Hong Linh NB 251 6.5 Phu Xuan – Van Phat Hung NB 132 8 - Apartment building - Ha Noi Preche, Dist.2 Panorama, Dist.7 Saigon Pearl, B.Thanh M5 BD 149 30 * 154.56m2 – 2,560 USD/m2 * 138m2 – 37.6million VND/m2 * 135m2 – 2,450 USD/m2 Dich Vong CG 123 21.5 + * 146m2 – 39.7 million VND/m2 * 141m2 – 2,300 USD/m2 Trung Hoa – Nhan Chinh CG 75 22.5 - Trung Yen CG 134.5 25 - Thai Thinh DD 146 25 - My Dinh 1 TL 124 18.5 + Nang Huong TX 68 13.8 + Development land lots – Other provinces Bau Bang High Land Park BD 450 25 Hiep Thanh 3 BD 140 2.8 The Vista, Dist.2 New SaiGon, Nha Be The Manor, B.Thanh My Phuoc 3 BD 300 1.28 - * 101m2 – 1,700 USD/m2 * 100m2 – 20 million VND/m2 * 86m2 – 2,530 USD/m2 Khang Linh BR-VT 87.5 7.5 * 142.2m2 – 2,180 USD/m2 * 121m2 – 18.2 million VND/m2 * 156.15m2 – 2,800 USD/m2 Wind Hill BR-VT 180 4.2 HUD DNI 232 2 - Licogi DNI 144 2.5 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 A57 Page 7 PROPERTY SUPPLY FOR DIFFERENT TARGETS OF CUSTOMERS Social welfare 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. VietRees * Hung Vuong JSC has just put a 5-storey apartment building into use for cadres and workers. The company continues to petition Tien Giang Provincial People’s Committee to grant a 5.000m2 land area to construct more apartment buildings for workers with an investment of 100 billions VND. * Saigon Paper JSC has put an apartment building into use for workers at My Xuan Commune, Tan Thanh suburban district, Ba Ria - Vung Tau province. The stage 2 of the apartment building is about to be implemented with a scale of 8 storey. th * Morning of August 28 , 2008, the Ministry of Construction has signed a memorandum for the cooperation in the field of welfare housing with Korean Ministry of Land-Traffic and Marine. * Ha Noi Construction Investment JSC (Hancic) has finished 4/10 units of the 5-storey house which belongs to the housing project for workers at Kim Chung Commune (Dong Anh). * Construction and Import-Export JSC (Vinaconex) has transferred and put into use 4 blocks of houses among the total 16 blocks of the housing project for the workers at Thang Long industrial zone. * The housing area of 7,000 m2 (380 rooms) for 1,500 workers of Dong Quang Knit Limited Company at Hai Son industrial cluster (Duc Hoa Ha commune, Duc Hoa suburban dist., Long An province) has just been put into use. The total investment cost of this housing area is 20 billion VND. (02/10/2008) * The 4-storey apartment building at cluster 5, ward 8, Vinh Long town that serves the cadres, employees, professional serviceman and etc has been ratified by Vinh Long Provincial People's Committee with a total investment of over 37 billion VND. (03/10/2008) 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. VietRees * 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 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) * 462 units of Khang Gia 3 apartment building (Go Vap Dist.) invested by Khang Gia Real Estate Investment – Development JSC will be used for the resettlement demands. (27/10/2008) The Committee for overseas Vietnamese in HCMC has showed that there have been 130 overseas Dwellings for overseas Vietnamese Vietnamese buying houses, mainly in HCMC. Those who brought houses are those who come back to and foreigners the country for their long term and direct investment, scientists, culture researchers invited to come back VietRees 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 A57 Page 8 REAL ESTATE LEGISLATION Announcing policy before Ha Noi city People's Committee has just promulgated the new regulations on land reclamation, handover, leasing and transferring the land use purposes to invest in the housing projects at the rural reclaiming land residential areas. VietRees – 14 Nov, 2008 Accordingly, before reclaiming the land, the People’s Committee of the district – suburban district has taken responsibilities for directing and popularizing the policy, the regulations on land reclamation, compensation, support and resettlement. The People's Committees at the commune level take the responsibility for publicizing the documents on the policy of land reclamation at the headquarters of the People's Committees and the residential areas whose land is reclaimed on the radio communication system at the commune level. According to the new regulations, before announcing the land reclamation to the people, the overall project on compensation, support and resettlement must be ratified. After 20 days from the date of receiving the reclamation information, the Department of Natural Resources - Environment has submitted the People's Committee to decision on land reclamation, handover and leasing. 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 The transaction situation of apartments, townhouses and project land in October has continued to go down compared to September and the previous months, the offered prices for sale have fallen after leveling off in October. The decrease in the land prices (- 5%) is somewhat higher than that of apartment prices (-1%, -2%) compared to the previous month. Generally, regarding the market situation in the third quarter and the fourth quarter, the prices seem more stable but the rate of successful transactions has still not seen any sign of prosperity and appeared to be worse to some extent. The number of successful transactions has been on the downturn. According to the surveys of VietRees, in many trading floors (transformed from the previous center transaction) and the newly born trading floors, the transactions have almost mainly focused on properties with low values such as projects of apartments and ground bases in the areas around HCMC. The townhouse transactions in the existing urban area have also significantly decreased as compared to many previous months due to the difficult situation of the real estate field and the whole economy. According to the forecasts of VietRees, many transaction centers will close down from now until late 2008 and early 2009. Apartment market The supply of apartments belonging to the average and low segment is quite limited, so the market of this segment has also not seen any movement compared to the previous month. The successful apartment transactions do mainly belong to this segment. The investors are beginning to implement the new apartment projects of the average low segment, but in at least 2 years, the new market will have more supplies of the new apartments of this type. According to VietRees, the construction material prices in the past 2 months have declined, which has created favorable conditions for the investors to implement or speed up the construction progress of the projects, especially for this segment. The high-grade apartment prices have slightly decreased in the past month. According to VietRees, the prices have fallen down by approximately 2% as compared with September 2008. The domestic customers of this segment are gradually scaling down. The investors are looking for the new directions aiming at the Vietnamese overseas who are in need of buying houses in Vietnam. However, according to VietRees, there are many difficulties in approaching as well as successfully trading with this group of customers in the short term (1 - 2 years). The market of project land plots According to VietRees, the land market has continued to decline as compared with September, 2008 and the average decrease is recorded at -5%. The price fluctuations are explained that the project land has a special connection with the ups and downs of the stock market and the interest of the investors when most of the project land is being held by the investors and there are few of the people who have real demands. Similarly to September, the successful transactions of the project land are much lower than that of the apartments which is currently quite limited. Free register for weekly newsletter: Please send your email to * Sponsor and advestising: T: (08) 3948 5574 - E:
  9. 9. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A57 Page 9 CONSTRUCTION MATERIAL MARKET Construction material prices At this same time every year, the construction material prices were often high because the construction continue to slide down, season began. However, currently, this market has been rather gloomy. The construction material prices have plummeted. construction situation still gloomy According to the store owners in HCMC, the construction material prices have been sliding down. In which, the largest decreases have happened to the construction steel of all types. The prices of rolled Edited by VietRees steel and bar steel have now declined by over 11 million VND/ton. The retail prices of rolled steel 6 - 8 have slid a further 4 million VND, down to 10 million VND/ton. The prices of streaked steel 12 - 16 have ranged from 110,000 - 199,000 VND/bar, fallen by 31,000 - 56,000 VND/bar. According to Vietnam Steel Association’s estimation, the total volume of consumed steel on the market was 120,000 tons in October 2008, which is the fourth month of decrease since the end of the second quarter. The prices of steel and iron have decreased due to the dramatical price reduction in the world. In addition, the consumption has been slow; many producers have to reduce the selling prices to preserve the capital. Not only steel, and iron but also construction materials of all types such as brick, sand, stone have also plunged. Hollow brick is only 500 VND/brick, the price of sand and stone is only 200,000 VND/truck and the cement prices are only about 70,000 VND/sack, decreasing by 20,000 VND. According to a contractor, as compared with 2007, the construction season of this year has seen the signs of cooling down. In addition, the labor cost has increased by 40% as compared to the last year. This is the reason that has made many people who have the demands for house construction hesitant and are waiting for further price decreases. Moreover, because the purchasing power has now been so weak, the real estate companies have not yet developed new projects. STOCK MARKET Prospering along with US stock Before the opening time of the morning session 14th, Nov, the positive signals of US stock market has made the market, VN-Index adds 5.43 points transaction situation more evenful. and HASTC-Index ups 2.43 points In the first order-matching phase, VN-Index has added Edited by VietRees 11.51 points, reaching 357.75 points. Until the consecutive Chart Source: Vietstock order-matching phase, although a large volume of selling orders was launched, VN-Index has still kept the decrease Up to date: 14 Nov, 2008 of 6.38 points, up to 352.62 points. The total trading volume has reached nearly 11.5 million units. Ending the session, VN-Index has added a total of 5.83 points (or 1.84% increase) to close at 352.07 points. The total trading volume of the whole market has reached 14.1 million units worth over 447.5 billion VND. In sum, after one trading week, with 3 upward sessions and 2 downward sessions, VN-Index has lost 13.9 points (3.8%) as compared to the last week. At Hanoi bourse, HASTC-Index has come back on the upturn when adding 2.43 points, up tp 113.07 points. The total trading volume of the whole market has reached nearly 8 million units worth over 212.76 billion VND. HASTC-Index has also seen 3 upward sessions and 2 downward sessions after one trading week. As compared to the last week, HASTC-Index has lost 3.29 points (down from 116.36 points to 113.07 points). Free register for weekly newsletter: Please send your email to * Sponsor and advestising: T: (08) 3948 5574 - E: