Published on

Published in: Travel, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide


  1. 1. Weekly Newsletter A62 Vietnam Real Estate Week 3, December The first weekly electronic newsletter issued to registered members, approximately 100,000 reads per month VietRees, a member of joining to develop the newsletter 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) Research Report (p.9) Real estate market forecast (p.10) Construction material market last week (p.10) Stock market last week (p.10) 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 A62 Page 2 MARKET SITUATION Although the market continues to be frozen, the ground base prices have significantly dropped, close to Collecting ground bases on the bottom. the projects that have good locations in District 2, 9, South Saigon area and the neighboring the time of price decreases provinces have been sought and bought by some investors with their dormant capital. In the past month, Thanh Nien – 15 Dec, 2008 the transaction situation at the brokerage centers and transaction offices has also been less gloomy. According to one expert, the price decreases of the real estate market have created opportunities for potential investors. Many projects with good locations and more attractive liquidity have prices that have fallen down to 30% - 40% compared to one year ago when these projects drew great attention of the real estate investors. Buying land at the time of the lowest prices is the strategic investment. In addition, according to the opinions of the finance industry, the people’s amount of money has still been great. The numbers of overseas national currency exchanges received at the end of the year are usually used to invest in the real estate by the domestic market. Additionally, the fact that interest rate loans are decreasing has also stimulated the growth of the real estate market. Therefore, the purchase of low-price properties at this time is also an effective investment channel and will earn the higher profits when the real estate market prospers. According to the report of Hotel Department belonging to General Department of Tourism, the average Few customers but the rent rents of the hotel rooms in Viet Nam have been 20 - 30% higher than the rents in the regional countries of hotel rooms still high in the first months of year 2008. Currently, many hotels have reduced their prices because there have TheSaiGonTimes – 16 Dec, 2008 been few customers but the average rents have still been 10% - 15% higher. Some travel enterprises have shown that only hotels in the big cities such as Hanoi or Ho Chi Minh City have now reduced their rents. Some other tourism centers have not yet had any changes or just reduced their rents a little bit. According to the above report, the average occupancy rates of the hotels in Vietnam are decreasing. Especially in Ho Chi Minh City and Hanoi, the current occupancy rates have declined by 10% - 20% over the same period last year. While the amount of booking rooms for the coming months has continued to go down. The average occupancy rate of hotels in Viet Nam this year has reached about 49%, decreasing by 2% as compared to year 2007. According to the Hotel Department, the whole country has about 10,400 accommodations for tourists with over 207,000 rooms. Among them, there are 31 five-star hotels with nearly 8,200 rooms, 90 four- star hotels with nearly 11,000 rooms, 175 three-star hotels with over 12,500 rooms and 710 two-star hotels with 27,000 rooms and the other kinds of hotels. The information about the real estate transactions in Ho Chi Minh City having dramatically increased as HCMC: Have the real estate compared to November 2008 has made many people eagerly hope that this market will quot;heat upquot; again. transactions dramatically However, the transactions have only increased slightly in the segments of townhouses and project increased? ground bases with low prices. The high-level apartments and the high-price project ground bases have still dropped. According to many opinions, the real estate market in the city would have chances of Tien Phong – 18 Dec, 2008 recovery until the end of 2009. Only high-grade apartments and the project ground bases with high prices will have slower levels of recovery. According to the experts, we should not have great expectations of the overseas national currency exchanges or bank interest rates or even when the stocks drop, etc because there are many barriers. Due to the fact that the world has suffered the impacts of the economic recession, the real estate prices in many countries have also plummeted as in Viet Nam. Many overseas Vietnamese have been facing unemployment risks and the income decrease. Therefore, there are fewer possibilities for them to buy high-grade properties in Viet Nam as compared to the previous years. In addition, the stocks decreases have made many investors suffer losses which have made the amount of money from this market insufficient to switch to the real estate field. Currently, customers have bought more townhouses than high-grade apartments and project land because their psychology as well as the reality has shown that that real estate prices will see further decreases. According to an analysis of the experts, many projects have been only 30% - 40% as compared to the time of the price fever. Their prices are hard to decrease more but the customers are still afraid to buy them because they do not identify the outputs. Everyone also knows that buying houses at present will get greater profits when the market becomes quot;hot”. However, no one is sure when the market will heat up. REAL ESTATE FOREIGN INVETSMENT On 15th December, 2008, the corporation specializing in high-grade real estate investment & brokerage Sotheby opens its first office Sotheby's International Realty Affiliates LLC (USA) made an announcement about opening its first in Vietnam representative office in Viet Nam with the name of quot;Vietnam Sotheby's International Realty.quot; Nguoi Lao Dong – 16 Dec, 2008 Indochina Land Company is the owner of this office and also exclusively provides high-grade real estate of Sotheby’s Corporation for the local clients and foreigners in Vietnam for 25 years. On the morning of 18th December, 2008 VinaCapital Group held a groundbreaking ceremony for the Works start on Times Square construction of Times Square Hanoi Complex in My Dinh, Ha Noi. The project is expected to be Hanoi complex completed in 2011. Ha Noi Moi – 18 Dec, 2008 The complex is built on a site of 4 hectares, including a grade-A office tower, a 5-star hotel with 300 rooms and a high-grade retail center. The total investment of the project is 50 million USD, in which, VinaCapital accounts for 65% and the rest belongs to Thang Long GTC Company (a member of Hanoi Tourist). Sponsor:
  3. 3. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A62 Page 3 List of countries/territories investing most in Vietnam until November, 2008 Source: General Statistics Office Among 44 countries and territories investing in Vietnam in the last month, Malaysia has taken the lead with 14.9 billion USD, accounting for 25.3% of the registered capital. Taiwan has been ranked 2nd with 8.6 billion USD and this country has the highest number of projects. VIETNAM IN THE WORLD HCMC real estate shows the leading According to the latest report of PricewaterhouseCoopers Group (PwC) and Urban Land Institute, Ho Chi Minh City. Ho Chi Minh of Viet Nam is one of the cities that have shown the most prospects for potential in Asia development in Asia - Pacific in the real estate field. Vnagency – 17 Dec, 2008 Ho Chi Minh city has gained 5.25 points in the assessment of the prospects for the development in 2009, ranked second after Bangalore (India) with 5.27 points and coming before the 17 other Asian cities in the ranking board. In the specific real estate fields, Ho Chi Minh City has also reached a very high number of points, ranked 1st in trading offices, retailing real estate and leasing apartments, ranked 3rd in the hotel transaction, ranked 2nd among the markets showing potential for the industrial works and distribution. Assessing the general situation of Asian real estate market, PwC has shown that most of the real estate market in Asia - Pacific until now has not yet been greatly affected by the global financial crisis. According to PwC, the profit in this area at this region is still very high, creating a big attraction to investors. REAL ESTATE AGENTS With an area of approximately 1,200 m2, the real estate transaction center (belonging to the Real Estate Adding the biggest-scale real Office 2 of the Nam Cuong Group) located on the first floor, Licogi 13 building, Khuat Duy Tien street, estate transaction center in Thanh Xuan district, Ha Noi is valued to be the biggest-scale transaction center in the North. It has just the North officially been put into operation. The transaction office is equipped with the computer system connected to the Internet, the mock-up Kinh Te Do Thi – 15 Dec, 2008 system, maps, and the price list for ground bases, model houses... introducing the projects invested by Nam Cuong Group together with the staff that are professional and highly-experienced in real estate investment and business... In addition, transaction center offers the service of leading the customers to the project location free of charge. On 16th December, 2008, Keppel Land Watco I company (Singapore) received the official permission Implementing the 2nd phase from the Office of Government to continue the implementation of the phase 2 of Saigon Center project of Saigon Center project that is located at the corner of Le Loi and Nam Ky Khoi Nghia, District 1, Ho Chi Minh City. Ha Noi Moi – 18 Dec, 2008 However, to continue implementing the project, it is necessary to re-structure the company. In the joint venture with Keppel Land, the Vietnamese side should transfer its rights and obligations to the foreigners in accordance with the market principles. The foreign side should switch to lease the land to continue investing in the project with its own capital. Rang Dong Group has just held a meeting for the customers including 300 owners of the villas at Over 300 villas Sealinks Mui Ne Sealinks Mui Ne, Ham Tien Ward, Phan Thiet City. sold Each villa (depending on the positions) has the price of $150,000 – $350,000. All of the villas have been Thanh Nien – 18 Dec, 2008 bought before the project has been completed. These villas are close to the sea, on a site of 153 hectares including one 5-star hotel, one 18-hole golf course on the sand dune that is valued to be the most beautiful in Asia. On this occasion, Rang Dong Group organized the first golf tournament at the golf course Sealinks with the participation of 144 competitors including the Sealinks members, embassy officials and the general consuls of the countries in Viet Nam. Nam Long ADC Company (belonging to Nam Long Real Estate Group) has shown that the 2nd phase of Starting to sell the 2nd phase of the apartments of Ehome Dong Sai Gon 1 project was officially offered for sale on the opening time of E.home Saigon East 1 project Nam Long real estate transaction center on 20th December, 2008. VietRees – 19 Dec, 2008 The customers will receive the credit support from Housing Development Fund in Ho Chi Minh City, Vietnam Asia Commercial Join-Stock Bank and Techcombank with the loan period of 7 - 10 years and the interest rate of 16.5% per year. Sponsor:
  4. 4. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A62 Page 4 Websites of real estate companies in Vietnam Property developers Brokerage Evaluation Ho Chi Minh Ho Chi Minh AREV - Hoang Quan - Company 585 - An Gia - Vietland - Company 584 - ACBR - VVFC - An Phu - Dat Xanh - 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 - Ha Noi Thai Thinh Capital - Phat Hung - Constrexim - Thu Duc House - SacomReal - Cavico - Phu My Hưng - Tan Dien - HANCIC - Van Phat Hưng - HUD - Vietnam Land SSG - Ha Noi Incomex - Cland - Ha Noi Dong Do - Architect and Interior Decoration Phu Thai Group - FPT Land - Ho Chi Minh Petrowaco - C.E.O - Petrolimex – A2 Visualization - Gia Tue - Cat Moc - HUD - Other cities Nha Vui - HDB Viet Nam - Nha Viet - Keangnam - Dieu Hien - Nha Dep - Nam Cuong - Thien Loc - Pho Xinh - Song Hong Land - Vinaconex - Research Vincom - Ha Noi CBRE - Viet Hung - Savills Viet Nam - ACT - VietRees - ADKientruc - Other cities Ashui – Consulting Kien Truc Ha Noi - Becamex IDC - Biconsi - CBRE - Other Countries Tuan Chau - Dong Duong - 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 A62 Page 5 REAL ESTATE PROJECT AND PRICES Vinaconex Construction & Import-export JSC held a groundbreaking ceremony to start the construction Mo market to be the grade-1 trade of Cho Mo trade center project on 16th December 2008. center With a total investment of 1,500 billion VND and an area of nearly 15,000 m2, the project includes two TBKTVN – 16 Dec, 2008 blocks of 15 and 25 floors sharing the 5-floor base. In which, the basement is used as a vehicle parking lot, the half-basement is for organizing the traditional markets and 5 floors are for the commercial services. From the 6th floor and upwards, the outside block is used for offices – services and the inside block is used as apartments for rent. It is expected that the structure works will be completed in October, 2010 and the project will be put into use in August, 2011. Phu My Hung Joint Venture has shown that the company is now implementing the project of the housing Implementing the highest-complex complex Riverside Residence that is considered the highest building in Phu My Hung. project in Phu My Hung The project includes 5 blocks of from 9 to 29 floors with over 670 apartments and the construction Ha Noi Moi – 16 Dec, 2008 density of only 22.87%. The project is built on a site of over 4.5 hectares and designed by Arkitekooi Company (Malaysia). On 15th December 2008, Novaland Investment Company and Bachy Soletache Viet Nam Company Novaland starts construction of the started the construction of the pile foundation of Sunrise City urban area project in District 7, Ho Chi urban area Sunrise City Minh City with the total investment of approximately 500 million USD. This will be the big-scale complex of high-grade apartment and trading on a site of 5 hectares located in the new urban area Him Lam - VietRees – 17 Dec, 2008 Tan Hung (58.4 hectares in size), including 2 basements and 14 towers of 35 floors with the functions of apartments, trade centers and services. The phase 1 of the project lasts from year 2008 to 2009 and will construct 6 towers of 31-34 floors and two basements with 752 apartments. The phase 2 lasts from year 2009 to 2012 and will complete the remaining items of this project. 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 – Dec, 2008 Announced prominent real estate developments during the last 2 weeks* Week 2, December 2008 Week 3, December 2008 Cecico 135 apartment building (Thu Duc) Riverside Residence housing complex (Dist.7) Ho Chi Minh City Sunrise City UA (Dist.7) Pho Phong Industrial – Residential area (Quang Ngai) Cho Mo Trade Center (Hanoi) Other Areas Hattoco office building (Ha Dong) Times Square Hanoi (Hanoi) Indochina Plaza Hanoi Complex (Hanoi) Approved prominent real estate developments in HCM City* November December AP - offices at Binh Quoi (Binh Thanh) Truong Tho apartment building (Thu Duc) Housing, apartment, residential area AP at Phu Thuan Ward (Dist.7) Resettlement AP An Phu – Binh Khanh (Dist.12) AP at Thao Dien Ward (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 - Other cities The Everrich - Eden Lagi Resort - Tan Da Court - Van Quan – Yen Phuc township - Furama Resort - Lancaster - Quoc Te Do Son - Sai Gon – Mui Ne Resort - The Vista - Sunspa ResortVietnam - Sponsor:
  6. 6. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A62 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 An Phu – An Khanh 2 62 12.9 Thinh Vuong 2 130 17.4 Screc Tower 3 104 25 - Orient Apartment 4 71.72 20 V- star, Dist.7 Sky Garden , Dist.7 Cantavil, Dist.2 Van Do 4 84 18.5 * 119m2 – 15.5 million VND/m2 * 88m2 – 25.9million VND/m2 * 120m2 – 2,000 USD/m2 Binh Phu 6 83 16 - * 91m2 – 26.5 million VND/m2 * 150m2 – 1,800 USD/m2 Nam Long 7 55 17.5 + Carina Plaza 8 98 13.5 - Bong Sao 8 68 12.5 An Suong 12 55 6.9 - The Mansion BC 84 12 - Phu My Thuan NB 94 7.6 - Sunview 1 TD 88 9.5 Trung Dong Plaza TP 60 15 The Everich, Dist.11 Blooming Park, Dist.2 Phu My, Dist.7 Development land lots – HCMC * 115m2 – 29 million VND/m2 * 83.65m2 - 18.5 million VND/m2 * 115m2 – 1,650 USD/m2 An Phu – An Khanh 2 100 24 * 135m2 – 31million VND/m2 * 117.7m2 - 19.8 million VND/m2 * 150.13m2 – 1,610 USD/m2 The ky 21 2 160 20 Direct contact with the investor1 Phu Thuan 7 90 17 Sadeco ven song 7 100 26 Khang An 9 132 6.6 - Gia Hoa 9 100 9 13C BC 85 10 - Hoang Hai HM 200 9 Long Hau 2 NB 95 4.4 Apartment building - Ha Noi Preche, Dist.2 Panorama, Dist.7 Saigon Pearl, B.Thanh M5 – Nguyen Chi Thanh BD 133 28.5 - * 147m2 – 2,222 USD/m2 * 166m2 – 43.3million VND/m2 * 135m2 – 1,725 USD/m2 Chelsea Park CG 128 24.7 * 194m2 – 39.1million VND/m2 * 140m2 – 1,800 USD/m2 Dich Vong CG 62 19.1 Dong Nam Tran Duy Hung CG 130 26 25 Lang Ha DD 172 27.4 - Usilk City DD 100 7.5 Happy House LB 94 10.8 - Development land lots – Other provinces Rach Bap BD 100 0.85 - My Phuoc 3 BD 300 1.4 The Manor, B.Thanh New SaiGon, Nha Be The Vista, Dist.2 Lan Anh 2 BR-VT 100 1.8 - * 98.9m2 – 16.5 million VND/m2 * 74m2 – 1,820 USD/m2 * 101m2 – 28 million VND/m2 Wind Hill BR-VT 180 3.95 - * 139m2 – 32 million VND/m2 * 126m2 – 17.2 million VND/m2 * 115m2 – 2,150 USD/m2 Nhon Trach DNI 120 2.5 HUD DNI 300 1.6 Tan Do LA 130 2.1 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 A62 Page 7 PROPERTY SUPPLY FOR DIFFERENT TARGETS OF CUSTOMERS * Saigon Construction Corporation investor two apartment blocks high 5-storey for workers in Quarter 1, Social welfare houses for worker 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) * Sai Gon – Gia Dinh Real Estate Company and Hoa Binh Phu Yen Company build Thoi An Apartment Real estate for the low income 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 Xanh 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 to the country to become experts and repatriating overseas Vietnamese. To buy houses, beside VietRees 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 A62 Page 8 REAL ESTATE LEGISLATION According to the Resolution on the price list for all types of land promulgated by the HCM City People's New price list for land in Council, the price list for land in Ho Chi Minh City will be announced and applied on 1st 2009. The whole HCMC to be applied on city has 2,740 stretches of streets and routes whose prices are fixed. 1st Jan, 2009 Accordingly, the city keeps the prices of 675 streets unchanged; adjusts the prices of 1899 streets; add the prices of 166 new streets and reduce the prices of 8 streets. The land price list in 2009 has built the Nguoi Lao Dong – 15 Dec, 2008 highest price of 81 million VND/m2 (for Dong Khoi, Le Loi and Nguyen Hue Streets, District 1) and the lowest price of 110,000 VND/m2 (for Thieng Lieng residential area, Can Gio District). The Ministry of Natural Resources - Environment has set a basic target to complete the granting of the Complete the granting of certificates of land use rights for the first time to all types of land and complete the land surveys to serve ownership certificates for the management of the State in terms of land in 2010. all types of land in 2010 Accordingly, from now to the second quarter of year 2009, the districts, towns and cities of the provinces will finish the establishment of the offices for land-use rights registration. The Ministry requests the local Tuoi Tre – 17 Dec, 2008 authorities to attach more importance to reforming the administrative formalities following the form of quot;one-stop shopquot; and the land users do not have to submit any additional papers that are not stipulated. Instead of passively waiting for the people to perform the procedures as they do now, the local authorities will actively enumerate the procedures for land-use rights registration in order to avoid dragging out. The farm and plantations are using the land areas that have not been granted the certificates of land- use rights in accordance with the regulations should also complete the review, arrangement and renovation. After re-arrangement, the redundant areas are handed over to the local authorities in order that they can manage and implement the land allocation, land lease and grant the land-use rights certificates to the households and individuals in 2010. The Ministry of Natural Resources and Environment has shown that, in 2015 at the latest, the model of Until 2005, real estate certificates the property certificate registration for the people and the state agencies will be conducted over the will be granted over the network network in many provinces and cities all over the country. All registering activities will use the bar codes and software for the land registration combining with the house registration on the basis of improving the Vnagency – 17 Dec, 2008 systems of local maps and land survey records on the national scale. With the plan of implementing the granting of the property certificates over the network and simplifying the registration agency, the Ministry of Natural Resources and Environment hopes to minimize the disadvantages and complaints from the citizens in terms of properties in the near future. In addition, the coexistence of the two registration systems for land-use rights and house ownership as of now has caused many difficulties and inconvenience for the people and the management agencies. Therefore, the Ministry of Natural Resources & Environment and the Ministry of Construction have also agreed to establish the only registration agency for real estate transaction certificates. It is expected to set up the registration offices at the localities. 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 A62 Page 9 RESEARCH REPORT Overview of the marketing activities of Vietnamese real estate enterprises in 2008 - VietRees - Dec, 2008 During the process of discussing and working with many real estate investors, according to the Weak points in the current marketing interactions between the real estate marketing and consulting department of VietRees and the activities of Vietnamese real estate Vietnamese real estate enterprises together with the records and analyses of the real estate marketing enterprises, experiential lessons, activities took place on the market in the past, we can briefly present some main ideas as follows: necessary warnings for real estate The marketing activities of the domestic real estate investors including the big real estate investors in the enterprises in the competitions while past years have not paid proper attention to investment as well as reached the necessary methodologies, especially when the market was eventful in 2006 – 2007. The investors have almost they do not pay the proper attention focused on the sale organization or event organizations and introducing the products. The activities of to these activities. What are the communication and marketing took place desultorily and lacked the consistency and flexibility. The orientations of these activities in the images, messages, colors, etc of many units and projects were nearly the same. Some enterprises did near future? not have plans and just worked perfunctorily. The real estate investors have hardly created the differences or outstanding features for their products besides the architectural design aspect of some real estate projects. Although many units and investors had many big real estate projects, they just marketed to sell their products on their own, they did not have any marketing department or qualified specialists in marketing. The marketing activities have mainly been undertaken by the business departments. Even some investors at the leading level of the units misunderstood the terminologies of advertising or marketing. They thought the marketing activities did merely mean offering for sale or introducing the products to buyers, etc. Some investors thought that the market was under the control of the sellers as in 2007, so they did not need to make any investment in marketing activities, particularly in surveying the market and learning about the needs and tastes of the buyers. In addition, VietRees has also acknowledged the fact that investors have not really focused on building their own image and brand name. They have only paid attention to the images of each project. They have just tried to build and polish the images of their projects yet lacked the proper concern for the actual images of the investors behind the projects. When the market becomes eventful, many investors are only interested in the quick sale and taking back the capital promptly to implement the next real estate projects, etc. After Lunar New Year 2009, when the real estate market starts to level off, it is difficult for the projects to be sold out and the rate of successful transactions will decrease significantly, especially in the second quarter of 2009. On the market, two tendencies relevant to marketing matters for the projects have started to appear. Firstly, investors have completely stopped the activities of marketing, communication and implementing the projects or operated perfunctorily. Secondly, some units have begun to pay much more attention to advertising/marketing activities for their projects. Though the market has leveled off, they have still continued to implement the projects and carried on with marketing activities to preserve and protect their images and prestige, including spending more on marketing activities. However, it has still lacked the most important thing that is to learn about the customers’ needs before implementing the project. Here are some ways that are considered to be good and suitable for the current market conditions and VietRees acknowledges the current they should be considered to be implemented in the near future when the supply increases and the difficult situation, some real estate competition between the investors becomes more and more intensive. companies have now had many new 1. Investors have been more active in approaching the customers, creating the opportunities and possibilities of buying marketing methods to aim at the houses for the customers. For example, some investors have sold the houses on the installment plans, not via the banks as in the recent time. Pay much more attention to the customer care services. Attach special importance to the real customers reputation, images and brand names of the investors. Offer more commitments to ensure the financial rights as well as the properties’ value for the customers. 2. Research the customers’ needs, identify the target customers and how to approach the customers suitably; actively approach the customers through channels and means of communication or approach appropriately and do not passively wait until the customers find out by themselves like before. 3. Research the competition between the other projects in the region; carefully learn about them before deciding the selling prices and the product features that match the target customers. 4. Have companies specializing in real estate marketing media carry out the marketing instead of executing this by yourself like before. The professional companies will help the investors create the extra values for their products and ensure the effective distribution for the projects in accordance with the progress. 5. Pay more attention to the advertising on multimedia than before. In addition to the ads on the papers, the investors have expanded into the other channels of communication such as online advertising, advertising through electronic newsletters, magazines, directories together with the other means of outdoor advertising such as billboards, etc. The communication messages should be suitable and consistent - aiming at the target customers. 6. In the difficult market situation, many investors have had new changes that are replacing or reducing the advertising costs on the expensive media and turned into the cheap media such as websites and electronic newsletters. In addition, create the contact channels and direct transactions between the investors and the customers, not only through the brokerage activities or distributing the projects of other companies as compared to before. 7. Apply many promotion forms, offer household equipment, furniture, electrical appliances as gifts when customers buy properties, including offering the discounts or reducing the profit as compared to before. 8. In the advertisements or message and the style of customer services, investors are more interested in the elements that create many emotions for the customers, which has created the desire and stimulated the customers’ to buy the real estate. In short, VietRees has acknowledged that some real estate investors have been more dynamic, adapted, operated more methodically and paid more attention to the rights and benefits of the customers in 2008 than before. The market is gradually forming many classes of investors with the difference levels of professionalism that are easy to realize. However, on the market, there have still been many investors that have lacked the professionalism and methodologies. Many investors have still lacked the concern for thoroughly learning about the demands of the customers as well as how to approach and serve the customers professionally and methodically. Free register for weekly newsletter: Please send your email to * Sponsor and advestising: T: (08) 3948 5574 - E:
  10. 10. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A62 Page 10 REAL ESTATE MARKET FORECAST * Note: Information on market forecast is only updated every 4 periods (after one month) by VietRees The transaction situation of the apartments, townhouses and project ground bases in November General tendency of HCMC market continued to decrease more dramatically as compared to the previous months. According to VietRees’s forecast, the real estate prices can continue to decline with the level of 2%- 5 % in December and before Lunar New Year holidays after each month. The prices of the high-grade apartments in November will see the larger decreases as compared to the October and the rate of the successful transactions has still been low, even there are the transaction centers that do not have any successful transaction within 1 week. The buyers are still waiting for the further price decreases. A series of the real estate brokerage agents and centers have stopped operating. The transaction center systems of many companies with the relative scales have been narrowed because they cannot cover their costs and have no customers. According to VietRees, about 40% of the brokerage centers and agents have closed down until the end of November and this number will continue to rise after Lunar New Year holidays. Most of the closed brokerage centers and agents have been located in the districts 2, 9, 7, Nha Be and Binh Chanh. These centers can be the transaction offices of the companies that have many offices and transaction agents scattered in many districts in the city. The remaining centers have not yet closed down but according to the surveys of VietRees, they have only operated perfunctorily and many centers are closed on weekends to reduce the operation costs. The supply of apartments belonging to the average and low segment is quite limited, so the market of Apartment market 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). Project ground base market. The market of ground bases has continued to go down by 4% as compared to October, 2008 according to VietRees, Similarly to October, the successful transactions have been very low and much lower than the apartments whose successful transactions are limited. According VietRees, after Lunar New Year 2009, the real estate market will be the attractive field and bring appealing opportunities to the investors with the plentiful investment and the long-term investment strategies. Therefore, the real estate enterprises that have potential need to build long-term development strategies; work actively in researching and developing, especially, seriously invest in the market researches, customer researches; make the sustainable development steps and avoid scattering/ strewing their investment capital in the current difficult situation. CONSTRUCTION MATERIAL MARKET Right after the Ministry of Finance increased the import tax rate on the commodities such as non-metallic Steel prices slightly increases, iron, steel from 2% to 5%. The finished iron and steel suffer the tax rate of from 8% to 12%, etc. The purchasing power also goes up steel prices range from 10.5 to 11.5 million/ ton, increasing by 0,8 – 1.5 million VND/ ton as compared to Edited by VietRees October and November. The steel prices on the market have still been below 12 million VND/ ton. According to the construction material stores, the cause of the slight increases in the steel consumption and prices is that the demand has been improved and the steel prices have now dramatically decreased by 50% as compared to the peak. Viet Nam Steel Association (VSA) has shown that the production has also started to see the good signs. The volume of construction steel produced in November has reached nearly 250,000 tons. The steel consumption has reached 300,000 tons in November, doubling in volume as compared to 3 months ago. It is estimated that in December, 2008 and January 2009, the average increase is over 300,000 tons because many works have to be completed before the Lunar New Year. Although the prices of interior construction materials have considerably decreased as compared to the beginning of 2008, the purchasing power at this time has still not seen any changes in Hanoi. Many shops have used the discount programs to appeal to customers. The consumers have tightened the expenses and most of them only dare to repair and change the essential interiors in their houses. STOCK MARKET At Ho Chi Minh bourse, the transaction situation was very Two bourses happen contrariwise, gloomy, the volume of the selling orders were higher than that VN-Index adds 1.7 points and HASTC- of the buying orders. VN-Index lost 0.13 points to close at Index loses 0.5 points 305.43 points. Entering the consecutive matching order, the market become more eventful and helps the VN-Index back to Edited by VietRees the upturn with an increase of 3.92 points, up to the 309.48 Chart Source: Vietstock point-level. Ending the session, VN-Index has only added a total of 1.7 points as compared to the previous session, up to Up to date: 12 Dec, 2008 the 307.26 point-level. The total trading volume on the whole market has reached 15.5 million units worth 276.4 billion VND. After one trading week, VN-Index has had 4 upward sessions and one downward session. As compared to the last week, VN-Index has increased by 7.72 points (from 299.54 points up to 307.26 points). At Ha Noi bourse, after two slight upward sessions, HASTC-Index today has reversed the direction to go down with a slight decrease of 0.5 points and close at 107.72 points. The total trading volume on the whole market has reached 6.9 million units worth 158 billion. In sum, after one trading week, HASTC- Index has had 3 upward sessions and 2 downward sessions as compared to the last week and HASTC- Index has increased by 1.82 points (from 105.9 points up to 107.72 points ) Free register for weekly newsletter: Please send your email to * Sponsor and advestising: T: (08) 3948 5574 - E: