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  1. 1. Weekly Newsletter A59 Vietnam Real Estate Week 4, 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.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) Market forecast, statistics expert opinions (p.8) Real estate market forecast (p.9) Construction material market last week (p.9) Stock market last week (p.9) This weekly newsletter is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning or interested in Vietnam real estate market changes. Although the information is selected, synthesized from all reliable sources, this newsletter is only for reference and VietRees is not responsible for the occurring damage. Please visit the website for further Vietnam Real Estate information. When individuals and organizations quote or publish the information from our newsletter, please cite the source VietRees. According to the statistics on registration for the newsletter, the subjects making reference to the newsletter includes real estate investors; companies or units of government performing management tasks, business marketing, consulting, broking, assessment, real estate finance, construction, banking, architecture, interior decoration; domestic and foreign press agencies; and full of professional investors or individuals who have demand for real estate throughout provinces and cities nationwide; typically Ho Chi Minh, Ha Noi, Da Nang, Can Tho, Hue, Nha Trang, BRVT, Binh Duong, Dong Nai, Ha Tay… We would like to say thanks to the sponsors and all of the readers. We expect to continue to receive your support as well as your comments to improve our newsletter. 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 A59 Page 2 MARKET SITUATION A series of real estate brokerage The sluggish situation of the real estate market during the past year has made the transactions of real estate brokerage agents in the quot;hotquot; spots in Ho Chi Minh City fall into the gloomy situation. Many agents agents close down are obliged to close down because they cannot cover their costs. Nguoi Lao Dong – 22 Nov, 2008 Many brokerage companies have closed down because of the sluggish situation. In the current market, if the companies continue to operate, “doing nothing” is not the solution to save management costs for the companies. ”From 30% - 40% of the brokerage places have closed down”, that is the number that the real estate experts have estimated about the decrease level of the enterprises operating in this field. It can be said that the recession storm of the market has destroyed many brokerage agents who have little capital or previously opened in the way of quot;instant noodlesquot;. One of the areas affected most by the frozen market may be the western areas of Ho Chi Minh City (District 2, 9, etc). According to the reports, among every 10 transaction places established in 2007, about 3 - 4 places have to close down. The remaining ones have had few customers and operated perfunctorily. Regarding the brokerage companies, the transaction centers have also seen no better signs. Most of them are perfunctorily operating with a few switchboard employees. 90% of the transaction centers have worked in the office hours and had 2 weekend days off. Previously, the weekend is the time that many people inspect the properties. The fact has shown that many transaction centers that had formerly mushroomed have mainly served the demand for investing in the high-end apartments and ground bases. When the market goes down, these centers obviously have to close down. The transaction centers focusing on those who have real housing demands will have much fewer difficulties because they are not affected much by the “virtual increases” in the past time. Seeking to buy villas instead of According to the real estate experts in Hanoi, the volume of customers requiring villas has increased because in the current situation, the prices of many villa projects have not been much different from the high-grade apartments high-grade apartment buildings. Vneconomy – 26 Nov, 2008 Some real estate brokerage specialists in Hanoi have estimated that a high-grade apartment in projects with great locations in Hanoi has the average selling price of approximately 4 - 6 billion/ unit, excluding transfer fees. Previously, the clients of the high-grade apartment projects were mainly the secondary investors. At this time, they could use their names to buy many apartments under construction. However, these clients are now depressed due to the sluggish business situation and the difficulties in borrowing bank loans. Meanwhile, the villas that are 2 - 3 times larger than the high-grade apartments have not so much difference in prices. Clients can own a villa with an average price of 4 - 5 billion in great locations. However, in inner Hanoi, the villa prices are double as high as the high-grade apartments. In return, the villas have larger usable area, separate spaces and many attached facilities such as garden yards, swimming pools, etc. The tendency of investing in the villas is not new, but in the sluggish transaction situation of high - grade apartments, the secondary investors start to switch to this segment. Because this market segment has an inconsiderable volume but it is highly profitable. REAL ESTATE FOREIGN INVETSMENT Constructing MGM resort MGM MIRAGE group and Asian Coast Development Ltd. (ACDL) have made an announcement about the plan of developing the resort complex MGM Grand Ho Tram, which is the first item of the resort complex – Grand Ho Tram complex Ho Tram along the coast located in Ba Ria - Vung Tau. Dien Dan Doanh Nghiep – 26 Nov, 2008 This project is invested 4.2 billion USD by ACDL - the investor. MGC MIRAGE will support the development, promote the brand and operate the resort complex after completing the construction. The resort complex MGM Grand Ho Tram is expected to be finished and opened in 2011. FDI until Nov has exceeded According to Bureau of Foreign Investment (Ministry of Plan and Investment), including the new-level capital and extra capital during the first eleven months of the year 2008, the total foreign direct 60 billion USD investment of the whole country has reached 60.09 billion USD. In November, 2008, the whole country Kinh Te Do Thi – 27 Nov, 2008 has a total of 106 licensed projects with the total registered investment of 726 million VND. The FDI registered in November has focused on the fields of industry and construction with the total registered investment of 32.5 billion USD, accounting for 53.7% in terms of the number of projects and 55.7% in terms of the registered capital. Malaysia has been leading with 49 projects and the registered capital of 14.9 billion USD. Ninh Thuan has still been leading with one joint venture project of steel production between Lion Malaysia and Vinashin with the total registered capital of 9.79 billion VND. Sponsor:
  3. 3. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A59 Page 3 Total FDI in real estate field until Oct, 2008 Source: General Statistics Office The field of constructing infrastructure of Industrial - export processing zone has not seen any increase in the number of projects as compared to the last month. The total capital and the total projects in the remaining fields have increased. In which, the service field has had the largest number of projects and the field of Hotel-Tourism has still been leading in attracting FDI. 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 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 28 million USD invested in real In commemoration of the 16th anniversary of the foundation of Nam Long Investment Company, the company has announced the two foreign strategic shareholders: Aseana Properties Limited Investment estate Fund (ASPL) managed by Ireka Development Management Sdn Bhd and Nam Viet Ltd. belonging to Vneconomy – 22 Nov, 2008 Goldman. The total investment is estimated to be about 28 million USD. ASPL and Nam Viet will join the Board of Director and Executive Committee with the purpose of supporting Nam Long in terms of experiences in project management and finance management in the next real estate projects. Opening model apartments of On 22th November, 2008, Hung Thanh Production - Trading - Construction Ltd., Co (member of Nam Bay Bay Investment JSC - NBB) held the opening ceremony for the model apartments Carina Plaza at Carina Plaza project the site plan of the project, Ward 16, District 8, Ho Chi Minh City with two types of apartments. Tien Phong – 22 Nov, 2008 The apartments are equipped with full modern facilities: Dong Tam namelled tile, Inax hygiene equipment, Hoa Binh door, Itavina window, Casta kitchen cupboard, Picenza sink, Dulux ICI paint. The selling prices are offered by Hung Thanh company, ranging from 18 - 24 million VND/m2, depending on the locations and the number of floors. The company has also shown that the fundament of the project Carina Plaza is about to complete the first period and the project is expected to be put into operation in 2010. Opening An Nhan Real Estate JSC An Nhan Real Estate JSC has officially opened and come into operation with the initial charter capital of 80 billion VND, based at No.10, provincial road 25B, Binh Trung Tay Ward, District 2 , Ho Chi Minh City. BDS & TS – 24 Nov, 2008 Besides the functions of investing and trading in the projects, An Nhan performs many services relevant to real estate such as consulting, design, work execution, real estate brokerage... Hong Quang contributes capital Ministry of Plan and Investment has officially granted the investment permit to the project of exploiting and processing minerals, gold and ores in Chom Mani village, Say Set Tha suburban district, Vientiane to exploit gold in Laos city, Lao. Vnagency – 27 Nov, 2008 The project is invested 25 billion USD by Sa Kay Mineral Exploitation Joint Venture (joint venture between Work Construction JSC and Hong Quang - Vietnam Real Estate Investment and Trading - Mineral Ltd., Co). The project is expected to be executed for 10 years on a site of 385 heactares. Works start on Sacomreal Hoa Binh On 27th November, 2008, Sai Gon Thuong Tin Real Estate Co. has officially started the construction of Sacomreal Hoa Binh apartment building at Tan Thoi Hoa Ward, Tan Phu district, HCMC. high-grade apartment The total area of the project is 1.078m2. In which the ground floor and the mezzanine are used as the Tuoi Tre – 27 Nov, 2008 trading – office for lease, the second floor is reserved for the community activity room and from the 3rd floor to 11th floor are apartments. The project is expected to be finished and put into use in the second quarter, 2010. Sponsor:
  4. 4. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A59 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 A59 Page 5 REAL ESTATE PROJECT AND PRICES Breaking the ground of complex The joint venture between 4 companies including General Company of Urban Infrastructure Development, International Trade - Investment Consulting JSC, Hanoi Urban Architecture Consulting of high-rise apartment-service and Industrial Construction JSC has held the groundbreaking ceremony for the complex of high-rise building apartment - service building N04 Dong Nam urban area on 23rd November, 2008. Kinh Te Do Thi – 24 Nov, 2008 The complex includes 3 buildings which each features 29 floors and 3 basements with a total area of 10,279m2 on Tran Duy Hung Street, Hanoi. In which, from the 1st floor to the 6th floor are used for the office service area, from the 7th floor to 29th floor are reserved for the apartment area with 90 - 154 per unit. As for penthouse apartment, every unit is 208 - 257 m2 in size. Works start on 40-storey hotel at On 23rd November, 2008, the project of Best western Premier Nha Trang Plaza which is invested by Hai Van Nam JSC has been started the construction of the fundament and the prefabricated concrete body Nha Trang by Coteccons. VietRees – 24 Nov, 2008 Located on 38 Tran Phu Street, Nha Trang City, Khanh Hoa province, the hotel includes 40 stories with 90,000m2 floor area, designed following American standards. The project will be managed and operated by Best Wester Group. In addition, the project also includes the smart swimming pool, restaurant and Astronomical telescope system. Building golf course at Tan Son The people’s Committee of Tan Binh district has ratified the detailed plan (at the scale of 1/2,000) of the golf course and Tan Son Nhat services at Tan Son Nhat airport managed by Ministry of Defense. Nhat airport With an area of 162.26 hectares, the planning area borders the defense area and the runway of Tan Son Nguoi Lao Dong – 24 Nov, 2008 Nhat airport. In which, the area for golf court and the auxiliary works such as golf club, golf room and halting-place accounts for 136.5 - 137.5 hectares. In addition, about 9 - 10 hectares are reserved for constructing houses for rent with the construction density of nearly 30 - 35% and the maximum height of 12 floors. The remaining area is for civil works such as: hotels, restaurants, golf training school, key infrastructures, traffic... 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 3, November 2008 Week 4, November 2008 Ho Chi Minh City Resettlement Area at Linh Xuan ward (Thu Duc) Sacomreal Hoa Binh complex building (Tan Phu) Other Areas Yen Phong Housing Area (Bac Ninh) N04 AP in the South Eastern urban area (Ha Noi) Vipco Tower Office Building (Hai Phong) Best Western Premier Hotel Nha Trang Plaza (Khanh Hoang Cau Resettlement Area (Ha Noi) Hoa) Approved prominent real estate developments in HCM City* October November Housing, apartment, residential area Apartment building No.1 – No.31 Calmette Street (Dist.1) AP - offices at Binh Quoi (Binh Thanh) Resettlement area at Phu My Ward (Dist.7) AP at Phu Thuan Ward (Dist.7) An Phu Ward residential area (Dist.2) AP 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 A59 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 BMC – Ben Chuong Duong 1 81.8 26 The Lancaster 1 120 67.2 - Binh Minh 2 109 17 + Screc Tower 3 69.5 24.5 Cantavil, Dist.2 V- star, Dist.7 Sky Garden , Dist.7 Orient Apartment 4 71 26.5 + * 120m2 – 2,150 USD/m2 * 97.56m2 - 15.8 million VND/m2 * 88m2 – 30.6 million VND/m2 Hung Vuong Plaza 5 121.6 28.5 - * 150m2 – 1,950 USD/m2 * 119m2 – 16 million VND/m2 * 91m2 – 28.5 million VND/m2 Tan Thinh Loi 6 74 12.5 - Carina Plaza 8 87 14 Thai An 12 73.7 10 Dat Phuong Nam BT 158 19.7 Le Thanh BT 65 8.3 Botanic PN 109.5 28 - SunView 1 TD 73.5 9.6 Khang Phu TP 79 13.75 - Blooming Park, Dist.2 Phu My, Dist.7 The Everich, Dist.11 Development land lots – HCMC * 115m2 – 29 million VND/m2 * 83.28m2 - 19.7 million VND/m2 * 115m2 – 1,500 USD/m2 An Phu – An Khanh 2 200 24.5 - * 135m2 – 31million VND/m2 * 88m2 – 20 million VND/m2 * 151m2 – 1,780 USD/m2 Thanh My Loi 2 100 11.5 Direct contact with the investor1 Him Lam Kenh Te 7 100 28.8 - Phu Loi 8 90 8.2 Nam Long 9 90 9.6 Binh Hoa BTH 206 11.5 Lang Viet Kieu Phong Phu BC 250 11 - Thai Son NB 250 11 Phu Xuan – Van Phat Hung NB 138 7.5 Preche, Dist.2 Apartment building - Ha Noi Panorama, Dist.7 Saigon Pearl, B.Thanh Hancom BD 124 25.6 * 154.56m2 – 2,560 USD/m2 * 138m2 – 37.6million VND/m2 * 86m2 – 2,100 USD/m2 M5 – Nguyen Chi Thanh BD 149 29 - * 139m2 – 2,000 USD/m2 Trung Hoa – Nhan Chinh CG 65 19 - Trung Yen CG 70 15.8 - Tay Son Complex DD 84 30.4 My Dinh 2 TL 109 22 + Bac Ha TX 145 13.3 Development land lots – Other provinces My Phuoc 3 BD 100 1.6 - Rach Bap BD 136.02 1.07 The Vista, Dist.2 New SaiGon, Nha Be The Manor, B.Thanh Lan Anh 1 BR-VT 100 2.75 * 101m2 – 1,700 USD/m2 * 98.9m2 – 17 million VND/m2 * 80.89m2 – 1,700 USD/m2 Wind Hill BR-VT 180 4.15 * 100m2 – 19 million VND/m2 * 100m2 – 2,400 USD/m2 HUD DNI 120 1.8 - Tam Phuoc DNI 250 2.2 Tan Do LA 130 4.8 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 A59 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 A59 Page 8 VIETNAM REAL ESTATE MARKET Under View Of Expert – Statistics and edited by VietRees Statistics from VietRees Over 90% of the experts are confident in the future of Vietnamese real estate market. 30% of the opinions show that the market will recover in 2009 or after 2009 (according to statistical data of VietRees in November, 2008). Before the movements of the current real estate market, VietRees has collected the real estate experts’ opinions in order to determine the confidence in the development potential of the market in the future and concurrently, determine when Vietnamese real estate market will recover. This statistical result gathers the opinions of 33 leading real estate experts working for the state agencies, the senior leaders of some big famous prestigious real estate corporations operating in the real estate field. These comments have been publicized in the media such as newspapers, magazines, big and reputable websites from March 2008 to October 2008. Confidence in Vietnamese real Every expert has his own arguments to judge the market. However, according to 100% of the experts, the current market is facing many difficulties but they are still confident and optimistic about the future estate market market. According to Mr. Jean Chretien, former Canadian prime minister and the advisor of Asian Coast Development Ltd. “Although Vietnamese real estate market is having difficulties, it is only temporary. The market still has a lot of potential and foreign investors are aiming at the long-term investment herequot;. In fact, there are some experts that have not clearly expressed their confidence in the market. However, they have still believed that quot;the real estate market does not have a big problem, in the near future the market will change according to the stability of the financial market as well as other stable indexes of the economy”. More particularly, nearly 90% of the experts are still optimistic and confident in the development of the Vietnamese real estate market in the near future because in the so-called current recession of the market, some other real estate segments are still developing. According to the Chairman of Viet Nam Real Estate Association, Le Hoang Chau quot;Although the real estate market is leveling off, it only affects the segments of ground bases and apartments. The offices and industrial zone land for rent are still in the situation of “the supply not meeting the demand”. With the same opinion, Matthew Koziora, the director of the Vinaland company (VinaCapital Group) states: “The interesting fields are attracting foreign investors, including houses, industrial zones, hotels, high rise office buildings for rent, tourism sitesquot;. Forecasting the time of Vietnamese As of now, many individuals and units take interest in the time that the real estate market begins to recover and develop stability. The result of these statistics will answer these queries to some extent. real estate market recovering According to the result, 70% of the experts have not yet determined the specific time when the market will be up and about again. The reason for having not yet determined the time of the real estate market recovering is that the real estate market has still been much affected by other economic factors, shown by these experts. 30% of the experts’ opinions determine that the exact time for the recovery of the market is in 2009 or after 2009 (in which, 12% of the opinions determine that the market will recover in 2009 and 18% of the ideas determine that the market will recover after 2009). Summarizing all of the opinions of the experts, we can see that it is very difficult to determine the time for the recovery of the market. The recovery of the market depends on many factors. Only when we fully analyze the factors and economic indexes, combining with statistical prediction science, we can somewhat determine the exact time of the market recovering. Forecasting the time for the recovery of the market is only exact to some extent. Because the forecast does not just look at some expressions of the economy or not base itself on the opinions of some people but it needs to base itself on many different researches and scientific analyses. 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 A59 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 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. CONSTRUCTION MATERIAL MARKET Steel prices back to upturn due Last week, many steel enterprises increased the selling prices of the steel products because the steel ingot prices in the world and the steel demand in the domestic market is tending to go up. to price increases of steel ingots The steel prices have increased by 400,000 - 700,000 VND/ton, the rolled steel prices at factory range in the world from 10.6 million VND/ ton & the bar steel price is 11.75 million VND/ ton. However, the steel prices in Edited by VietRees the Southern provinces have been 500,000 - 700,000 VND/ton lower than in the Northern provinces. Anyway, the experts have said that it is hard for the construction steel prices to increase more sharply. Because when the steel ingot prices in the world grow, it will stimulate the steel ingot production, as a result, the supply will go up. Meanwhile the domestic steel consumption has been difficult to dramatically increase, especially from now until the end of the year. The current sources of the finished steel & the steel ingots in stock are sufficient for the domestic market until the end of the first quarter of 2009. In addition, the risk of the steel from China being poured into Vietnam has been very large due to many reasons since the beginning of January 2009. China will reduce the export tax on the steel products down to 0%. If this happens, there is a strong possibility that Chinese steel of all types will flood the Vietnamese market, pushing down the domestic steel prices. To protect the domestic steel producers, Vietnam Steel Association has also petitioned the authorized offices to increase the import taxes on the steel products from 8% up to 20% and the imported steel ingots from 2%, up to 5% or 10%. STOCK MARKET Stock back to upturn, In the last week of Novemeber, at HCMC bourse, the transaction situation has seen many positive signs. Closing VN-Index adds 11.2 points and the first phase, VN-Index has almost regained the number HASTC-Index surpasses 100 points of points lost in yesterday session. The total trading Edited by VietRees volume has reached over 3 million units. Entering the consecutive order-matching phase, the transaction Chart Source: Vietstock situation on the market has been rather dramatic. VN- Up to date: 28 Nov, 2008 Index has added 2.73 points as compared to the first phase, up to 314.09 points. The total trading volume has reached nearly 10.8 million units. Closing the session, the upturn has been maintained, VN-Index has added a total of 11.2 points (or 3.68%), up to 314.74 points. After one trading week, VN-Index has 2 upward sessions and 3 downward sessions. As compared to the last week, VN-Index has lost 4.22 points (down from 318.96 points to 314.74 points). At Hanoi bourse, HASTC-Index has added 6.59 points to close at 104.2 points. The trading volume has reached 9.66 million units worth 252.41 billion VND. After one trading week, HASTC-Index has 3 upward sessions and 2 downward sessions. As compared to the last week, HASTC-Index has added 0.3 points (going up from 103.9 points to 104.2 points). In sum, ending Nov, 2008 two bourses have 9 upward sessions & 11 downward sessions. As compared to the last closing session of October, VN-Index has lost 32.31 points (down from 347.05 points to 314.74 points) and HASTC-Index has also lost 10.68 points (down from 144.88 points to 102.2 points). Free register for weekly newsletter: Please send your email to * Sponsor and advestising: T: (08) 3948 5574 - E: