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Vietnam Real Estate Newsletter - No. 66, Week 3 Jan, 2009

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Vietnam Real Estate Newsletter - No. 66, Week 3 Jan, 2009

  1. 1. Weekly Newsletter A66 Vietnam Real Estate Week 3, January 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.2) 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) Construction material market last week (p.8) Stock market last week (p.8) Research - Consulting (p.9) Market forecast, statistics expert opinions (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 www.VietRees.com 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 marketnews@VietRees.com Sponsor and advestising: T: (84 8) 3948 5574 - E: properties@VietRees.com
  2. 2. VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A66 Page 2 MARKET SITUATION HCMC real estate association The Ho Chi Minh City real estate association has officially requested the State Bank to reconsider the period for bank loan payment for the enterprises in the association. Accordingly, the Bank will not fine petitions for reconsidering the the enterprises for violating the time for payment; will adjust the old loan interest to be equal to the payment time current level (for the enterprises taking out loans in the time of the high loan interest rate); consider to Sai Gon Giai Phong – 13 Jan, 2009 reduce the interest rates reasonably and give the enterprises the loans to make the business investment with the interest rate of below 10% per year. According to the forecast, 2009 will continue to be a difficult year for enterprises trading properties due to a series of reasons, in which the primary reasons are the economic crisis and the frozen market. Most of the real estate enterprises in the city are the small and medium enterprises. Therefore, if they receive support from the banks, they will be hard to operate. However, the small and medium enterprises should also have plans of combining their forces such as joint venture, switching to houses for the low-income people because the demand is still very high. And to activate this market, the city should have favorable credit policies for the low-income people who have the real housing demands. 2 development trends on the According to some experts, the real estate market in 2009 will continue to develop in two types including the high-price houses worth millions of US dollars and the low-price houses of about a few hundred market: low-price and high- millions, which are two market segments having many relative demands of a part of the rich and those price houses who have real housing demands, but low incomes. TheSaiGonTimes – 14 Jan, 2009 The parallel development of two types of houses that are quite different in that the prices have originated from the fact that the foreign investors in the real estate field have continued to pour their capital into the high-grade housing projects and lacked the supply of the low-price houses. In the field of the high-grade houses, according to some experts, the market will restructure. Instead of investing on the large scale, the investors will re-select and only invest in the projects that offer the products within the next one to three years. In addition, kicking the demands of the low-price houses in the current market situation will stimulate the demands for the low-price houses because it is also the real demand of the majority of the people. REAL ESTATE FOREIGN INVETSMENT Hoang Anh Gia Lai licensed to Hoang Anh Gia Lai J.S.C. has been granted the investment certificate by the Ministry of Planning and Investment following the joint venture form to construct the high-grade apartments, hotels and plant the invest in Laos rubber forests in Laos. The total investment of the project is 20 million USD. Vneconomy – 14 Jan, 2009 The joint venture which is named V & H Corporation and based on Tha Dua Highway, WatNak village, Sisattaanak ditch, Vientiane, Laos will build 350 apartments and 150 hotel rooms in Vientiane, 1,500 hectares rubber forest in Attapu province, Champasak, Vientiane and Savannakhet. Total FDI in the real estate fields in 2008 Department of Foreign Investment Source: General Statistics Office (under the Ministry of Planning and Investment) has shown that the total foreign investment in the real estate The number of projects and the investment in field across the country in 2008 is the fields concerning real estate until 23.6 billion USD (accounting for December, 2008 have continued to rise. In 36.8% of the total FDI). which, the construction of office building and apartments is the field that attracts most FDI The top target in 2009 is to ensure and the service sector has attracted the highest that FDI released will be equal to number of projects. 2008 or below 2 billion USD. VIETNAM IN THE WORLD Vietnam is one of the countries Grant Thornton International Corporation has announced the global ranking board in terms of the prospects for the economic development and clearly indicated the reduction in the positive signals in the seeing the positive signs private enterprises through the observations of over 7,000 enterprises at 36 countries. Grant Thornton Sai Gon Giai Phong – Jan, 2009 has come to the conclusion that the decreasing demand is the biggest threat to the private companies. According to Grant Thornton, while the big economies such as the United States, Japan, the European Union have fallen into the economic crises, Vietnam has still maintained the strong growth rate in 2008. The main reason for the decline is the impact of the inflation and the global financial crisis. This has made the positive signal of the enterprises drop from 87% (in 2008) to 32% in 2009. With this result, Vietnam has ranked 7th in terms of optimism level in 2009. The private companies have been more advantageous in the time of the economic recession because the management board of the companies can make the decisions quickly due to the simple system and flexible policies. Therefore, these companies will operate more effectively than the organizations with the bureaucratic management style. Sponsor:
  3. 3. VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A66 Page 3 REAL ESTATE AGENTS On January 10, 2009, Hung Thinh Cuong Corporation JSC opened the first real estate transaction center The first real estate transaction called CHTR in the Central at 25 Tran Ke Xuong Street, Hai Chau District, Da Nang City and the center in the Central electronic commerce portal www.CHTRealestate.vn. Tuoi Tre – 11 Jan, 2009 In addition to providing the information on the real estate market, the center will be the place where the customers trade and receive consultancy on the prices, real estate products, legal procedures, loans, negotiating. The Housing & Urban Development general company (HUD) has shown that the investment procedures HUD to build 500,000m2 housing for the 5 projects of new urban areas in Ha Noi (including Nam An Khanh, Vietnam Linh Dam, Mai Trai - area in 2009 Son Tay and Thanh Lam - Dai Thinh 2) are being implemented. These projects meet enough Ha Noi Moi – 12 Jan, 2009 requirements to continue being implemented after the Ministry of Construction and People's Committee. Hanoi has conducted the review at the time of the administrative border being expanded. In 2009, the corporation plans to build about 500.000m2 floor, in which the priority is offered to the programs of building apartments in Hanoi. Megastar Corporation and Century Real Estate JSC MegaStar (Cen Group) have signed a contract of CEN Group – Megastar: signing exclusively marketing and distributing the project of MegaStar Tay Ho Tay apartment project, which will the contract of exclusively be started at the end of January 2009. marketing MegaStar apartment block mainly serves the subjects who have the medium and fair income, including VietRees – 12 Jan, 2009 the apartment areas of from 65 - 100m2 and full of the public utilities. The apartment block is estimated to be completed by 2011. On January 13, 2009, Exim real estate company (Eximland) opened its standard real estate transaction Eximland opens its standard real center at 55A Nguyen Chi Thanh Street, Ward 9, District 5, Ho Chi Minh City in accordance with the estate transaction centre regulations of the Ministry of Construction. Nguoi Lao Dong – 14 Jan, 2009 The center provides the services relevant to real estate such as consulting, market research, advertising, brokerage, etc. Kien Tan apartment project in Binh Chanh is the first product that the transaction center has conducted on the occasion of the inauguration. In addition, Eximland has also established E-XIM Assessing company specializing in the the field of assessing real estate, movables, investment projects, etc. On January 14, 2009, PFV Company – the investor of the project Vincom Park Place and the real estate PFV supports the loan interest management and consulting company CB Richard Ellis announced the program of supporting the of Vincom Park Place apartments customers who registered for leasing the houses of the project. Accordingly, if the customers registering Lao Dong – 15 Jan, 2009 for renting the apartments of the project from February 2009 until August 2010 have the demands for bank loans to pay the rent of the apartments, they only pay the interest of 3% per year and the remainder will be paid to the banks by the investors. The trading center of the building is expected to be opened on August 8, 2009 and the apartments will be handed over to the customers at the beginning of September, 2009. According to C.E.O Investment JSC, the company has now designed 16 house templates for the new Some projects of C.E.O in 2009 urban area CEO Quoc Oai in Sai Son commune with many different sizes. 330 villas are expected to be VietRees – 16 Jan, 2009 offered for sale in February, 2009. In addition, the project of the C.E.O 27 storey office tower project on Pham Hung Street, Hanoi has completed the structural works and in the finishing process. According to the plan, the building will be put into use in the second quarter, 2009 at the rent of 33 USD/m2. In addition, the company has also said that the urban area CEO Me Linh has completed the investment procedures and the construction is expected to be implemented in 2009 and completed in 2014. Sponsor:
  4. 4. VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A66 Page 4 Websites of real estate companies in Vietnam Property developers Brokerage Evaluation Ho Chi Minh Ho Chi Minh AREV - www.arev.com.vn Hoang Quan - www.thamdinhgia.com Company 585 - www.585.com.vn An Gia - www.angia.com.vn Vietland - www.thamdinhgia.com.vn Company 584 - www.congty584.com.vn ACBR - www.acbr.com.vn VVFC - www.valuation.vn An Phu - www.anphugroup.vn Dat Xanh - www.datxanh.com.vn BCCI - www.bcci.com.vn Dia Loi - www.nhadatdialoi.com.vn Daewon - www.daewon.vn Dat Cat - www.datcat.com.vn Construction Him Lam - www.himlam.com FICO - www.ficohome.com.vn Ho Chi Minh Hoang Anh Gia Lai - www.hagl.com.vn Kim Son - www.kimson.com.vn CIC8 - www.cic8.com Linh Phong Conic - www.conic.com.vn Phuc Duc - www.phucduc.com Coteccons - www.coteccons.com.vn Nam Long - www.namlongvn.com Hung Phu - www.hungphunhadat.com Cosaco - www.cosaco.com.vn Phu Long - www.phu-long.com.vn Hung Thinh 2 - www.diaochungthinh.com.vn Hoa Binh - www.hoabinhcorporation.com Phu Quoc Land - www.phuquocland.net Hoang Quan - www.hoangquan.com.vn Hai Thanh - www.haithanh.com.vn SacomReal - www.sacomreal.com Intresco - www.intresco.com.vn Toan Thinh Phat - www.toanthinhphat.com.vn Sadeco - www.sadeco.com.vn Loc Dien - www.nhadatld.com Resco - www.rescovn.com Nova - www.novahomes.com.vn Ha Noi Thai Thinh Capital - www.richlandhill.com.vn Phat Hung - www.phathung.com.vn Constrexim - www.constrexim.com.vn Thu Duc House - www.thuduchouse.com SacomReal - www.sacomreal.com Cavico - www.cavicovn.com Phu My Hưng - www.phumyhung.com.vn Tan Dien - www.tandien.com.vn HANCIC - www.hancic.com.vn Van Phat Hưng - www.vanphathung.com.vn HUD - www.hud.com.vn Vietnam Land SSG - www.saigonpearl.com.vn Ha Noi Incomex - www.incomex.vn Cland - www.cland.com.vn Ha Noi Dong Do - www.dongdobds.com Architect and Interior Decoration Phu Thai Group - www.phuthaigroup.com FPT Land - www.fpt-land.com Ho Chi Minh Petrowaco - www.petrowaco.vn C.E.O - www.ceoholdings.com.vn Petrolimex – www.pland.com.vn A2 Visualization - www.a2viz.com.vn Gia Tue - www.giatue.com.vn Cat Moc - www.catmoc.com.vn HUD - www.hud.com.vn Other cities Nha Vui - www.nhavui.com HDB Viet Nam - www.hdbgroup.com.vn Nha Viet - www.nhavietdecor.com Keangnam - www.eng.kne.co.kr Dieu Hien - www.dieuhien.com.vn Nha Dep - www.nhadep.com.vn Nam Cuong - www.namcuong.com.vn Thien Loc - www.thienlocnhadat.com.vn Pho Xinh - www.phoxinh.com.vn Song Hong Land - www.songhongland.com.vn Vinaconex - www.vinaconex.com.vn Research Vincom - www.vincom.com.vn Ha Noi CBRE - www.cbrevietnam.com Viet Hung - www.ecopark.com.vn Savills Viet Nam - www.savills.com.vn ACT - www.act.com.vn VietRees - www.VietRees.com ADKientruc - www.adkientruc.com Other cities Ashui – www.ashui.com Consulting Kien Truc Ha Noi - www.kientruchn.com Becamex IDC - www.becamex.com.vn Biconsi - www.biconsi.com.vn CBRE - www.cbrevietnam.com Other Countries Tuan Chau - www.tuanchau-halong.com.vn Dong Duong - www.indochina-consulting.com GNSVINA - www.cozyvill.com Eden Real - www.edenreal.com Architects 61, Sing - www.a61.com.sg Company 579 - www.cecico579.com.vn Hop Nhat - www.uniland.com.vn DP Architects, Sing - www.dpa.com.sg Duc Manh - www.ducmanhco.com Indochina Land - www.indochinacapital.com SWA, USA - www.swavietnam.com Long Gia Khang - www.longgiakhang.com Ong&Ong, Sing - www.ong-ong.com Savills Viet Nam - www.savills.com.vn RSP Vietnam, Sing - www.resp.com.sg Vina Capital - www.vinacapital.com Surbana Vietnam, Sing - www.surbana.com Sponsor:
  5. 5. VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A66 Page 5 REAL ESTATE PROJECT AND PRICES Up until 11:00 am on January 10, 2009, 133 apartments among the total of 671 apartments belonging to 100% Riverside Residence of Riverside Residence project invested by Phu My Hung Company have been registered by customers for the first stage sold out purchase, with a deposit of 100 million VND. Ha Noi Moi – 10 Jan, 2009 This is the number of apartments to be offered for sale in the first phase with a price of 35 million VND/m2. It is expected to start the project at the beginning of the second quarter 2009; finish the as-built proccess of the second phase 1 in the third quarter 2010 and begin to implement the second phase of the third quarter 2011. The project investor of An Cuu new urban area - Viet Long Hue JSC - has said the company would have Investor supports customers to a program of supporting the customers in the purchasing houses from the project on the occasion of buy houses of An Cuu city completing the first phase with 90 houses and the first 90 houses will be handed over in January 2009. VietRees – 10 Jan, 2008 Accordingly, 5 - 30% discount will be offered to the individual or collective clients (depending on the type and area). It is expected to start the second phase in March, 2009 with the construction of 28 villas in the K zone, 36 town villas in the A zone and 54 terraced houses in the C zone. Vinh Tuong JSC has implemented the sale of 80 apartments at C plot, Tan Tao apartment project on Lo Techcombank support finance Te road, Tan Tao A Ward, Tan Binh District, Ho Chi Minh City. when buying Tan Tao apartment The average price is below 10 million dong/m2 (including 2% maintenance fee) and the payment form is Ha Noi Moi – 11 Jan, 2009 flexible. In addition, Techcombank will support the customers up to 70% of the value of the property, with a loan period of up to 20 years and the interest rates following the time if they have requirements. Intimex Import – Export JSC (Intimex Hochiminh) has just been opened and put Intimex - Fuso trade Opening the biggest trade center center into operation in the city in Buon Ma Thuot city, Dak Lak province. The project has an investment in Tay Nguyen of 70 billion and the scale of 5 stories. Dau Tu Chung Khoan – 15 Jan, 2009 With a total business area of over 7500 m2, the biggest trade center in Tay Nguyen includes full of shopping services such as the electrical appliance center, the same-price supermarket Daiso-Japan, the supermarket for self-selecting high-grade products, entertainment areas and cinemas. In general, the prices of the high- The price change level of high-grade apartments in HCMC grade apartments in HCM City VietRees has recorded that in 2008, April and May had the highest decreases with 15% and 10% respectively. continue to decline VietRees – January, 2008 According to the statistics of VietRees, the prices of the high-grade apartment in December continued to decrease by about 6% as compared to November 2008. This has been considered to be the highest decrease from June 2008 until now. Announced prominent real estate developments during the last 2 weeks* Week 2 January 2008 Week 3 January 2009 Hung Thinh Apartment (Dist.10) Ho Chi Minh City Vinamilk Tower (Dist.7) Tan Mai (Binh Tan) Approved prominent real estate developments in HCM City* December January Truong Tho apartment building (Thu Duc) Nguyen Cu Trinh Complex (Dist.1) Housing, apartment, residential area ReA building An Phu – Binh Khanh (Dist.12) Cecico 135 apartment building (Thu Duc) * Note: RA=Residential Area, AP=Apartment Building, HA=Housing Area, RuA=Reurban Area, TA=Tourism Area, IA=Investment Area, UA=Urban Area, ReA=Resettlement area Websites of properties in Vietnam Ho Chi Minh Ha Noi Other cities Blooming Park - www.bloomingpark.com Viglacera Tower - www.viglaceraland.vn Cozyvill - www.cozyvill.com Saigon Paragon - www.saigonparagon.com My Dinh – Me Tri RA - www.sudicosd.com Flamingo Dai Lai - www.flamingodailai.com Dragon City - www.dragonland.com.vn Bac An Khanh RA - www.vinaconex.com.vn Van Phu township - www.dothivanphu.com Preche - www.preche.com Ha Noi Plaza Hotel - www.charmvit.co.kr Dam Vac Golf - www.damvacgolf.com SaigonPearl - www.saigonpearl.com.vn Phap Van – Tu Hiep RA - www.hud.com.vn Sanctuary - http://sanctuary.com.vn V-Star - www.v-star.com.vn Ho Tram Strip - www.hotramstrip.com Time Square - www.timessquare.com.vn Sai Gon Sunbay - www.ctc-corp.vn Other cities The Everrich - www.theeverrich.com Eden Lagi Resort - www.edenreal.com Furama Resort - www.furamavietnam.com Tan Da Court - www.tandacourt.com Van Quan – Yen Phuc township - www.hud.com.vn Sai Gon – Mui Ne Resort - www.saigonmuineresort.com Lancaster - www.lancaster.com.vn Quoc Te Do Son - www.vietlandgroup.com Sunspa ResortVietnam - www.sunsparesortvietnam.com The Vista - www.thevista.com.vn Sponsor:
  6. 6. VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A66 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 Avalon 1 104 74.25 + Sailing Tower 1 104.6 65.8 + An Khang 2 87.5 23.5 - Thinh Vuong 2 130 17.4 + V- star, Dist.7 Sky Garden , Dist.7 Cantavil, Dist.2 Constrexim 4 78.4 18.8 * 119.2m2 - 15.1million VND/m2 * 68m2 – 26 million VND/m2 * 75m2 – 25.3 million VND/m2 Hung Vuong Plaza 5 129 30 - * 71m2 – 28.1 million VND/m2 Kien Thanh 6 75 13.2 + Carina Plaza 8 99 14 - Thanh Nhut 8 69 12.6 The Montana TP 75 16.5 Sunview Building TD 88.5 10 PN Techcons PN 133 23.3 Phu My Thuan - VPH NB 89 8.3 Development land lots – HCMC The Everich, Dist.11 Blooming Park, Dist.2 Phu My, Dist.7 An Phu – An Khanh 2 160 21.3 - * 115m2 – 1,750 USD/m2 * 85m2 – 18 million VND/m2 Area: 95 – 398m2 The ky 21 2 200 15.5 Price: 1,800 – 2,400 USD/m2 * 117m2 – 20.25 million VND/m2 * 150m2 – 1,600 USD/m2 Phu My - VPH 7 126 20.1 Direct contact with the investor1 An Phu Hung 7 140 24 + Khang An 9 132 6.4 - Phu Nhuan 9 258 6.2 Hai Yen BC 160 9 Phu Xuan - VPH NB 120 6.9 Sai Gon Moi NB 120 7 Apartment building – Ha Noi M5 - Nguyen Chi Thanh BD 133 29 + Preche, Dist.2 Panorama, Dist.7 Saigon Pearl, B.Thanh Ngoc Khanh BD 123 33 * 147m2 – 2,222 USD/m2 * 121m2 – 35.5million VND/m2 * 84.56m2 – 2,400 USD/m2 Dich Vong CG 62 18.5 - * 133m2 – 2,150 USD/m2 Nghia Do CG 50 15 Thai Thinh DD 68 26.5 + Nang Huong TX 117 14.3 Vuon Dao TH 126 23 - Development land lots – Other provinces My Phuoc 3 BD 300 1.27 + CocoLand BD 150 1.3 Long Dien BR-VT 100 2 The Manor, B.Thanh New SaiGon, Nha Be The Vista, Dist.2 Thanh Binh BR-VT 200 9 * 35.5m2 – 1,727 USD/m2 * 135m2 – 1,650 USD/m2 * 99m2 – 16.8 million VND/m2 Phuoc An – Long Tho DNI 101.5 3.2 * 113m2 – 2,160 USD/m2 * 121m2 – 17.5 million VND/m2 HUD DNI 300 1.6 + Lang chuyen gia Tan Do LA 162 2.2 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 www.VietRees.com Viet Nam Real Estate Newsletter A66 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 www.VietRees.com Viet Nam Real Estate Newsletter A66 Page 8 REAL ESTATE LEGISLATION The Ministry of Construction has suggested that each corporation should have at least one project Every general company should constructing welfare housing at the localities, aiming at quickly and effectively implementing the welfare have one welfare house project projects presided over by the Ministry in 2009. Vnagency – 13 Jan, 2009 The Ministry of Construction submitted the program of constructing the welfare houses in the period of 2009 - 2015 to Prime Minister in December 2008. In this period, the program will invest in the construction of 184,000 apartments, equivalent to 10 million/m2/floor with a total investment of 49,000 billion VND. In which half of the capital comes from the State-owned budget and is used for investing in the welfare houses for rent. To decentralize the decisions on the construction investment for projects of works for socio-economic Can Tho: chairman of People’s infrastructure, national defense and local security by using the state-owned budget which is managed by Committee of district allowed to the localities, the People's Committee of Can Tho city has shown that the chairman of the People's make decisions on the projects Committee at the district and suburban district level are allowed to make decisions on the investment in of below 5 billion VND projects with the value of below 5 billion. Based on the long-term investment plan, annually, the People's Committee at the suburban district level Phap Luat – 14 Jan, 2009 sets up the construction investment plan for the localities to ensure the investment structure and require that the socioeconomic development at the localities follow the ratified planning in the budget scale of the localities, etc. Regarding the works at the places that there is no planning should have the approval of the management organizations or authorized agencies on the planning. According to the Resolution 33/2008/NQ-CP, the government will pilot some reformations to the Three types of projects have administrative procedures in the construction investment for three types of projects including new urban administrative procedures areas, housing areas and the industrial technology infrastructure. reduced in construction In the case that the investment policies are available but the detailed planning for the construction at the investment 1:2000 scale has not been ratified yet, the People's Committees at the provincial level are allowed to assign the investors to set up the planning and submit them for approval according to the regulations. Kinh Te Do Thi – 14 Jan, 2009 The organizations assessing the planning will consider and respond in terms of the full and the validity of the documents within 5 working days. In case, the documents are not enough, the assessment agencies should provide the guidelines in written for the investors so that they can finish the documents. The complement of the documents should be conducted for only one time. The time for assessing & ratifying the detailed planning for the constructing at the 1/2,000 scale does not exceed 30 working days. For the detailed planning at the scale of 1/500; the local government should complete the assessment and ratification of the planning and grant the ratified decisions to the investors within 30 working days from the date of the investor submitting the full documents. For the regions that have had the detailed planning at the scale of 1/2,000 and raised the newly-ratified proposals different from the 1/2,000-scale planning when setting the detailed planning at the scale of 1/500 of the project, the authorized agencies should consider and assess those proposals. If they are suitable, the agencies should send the decision in written on approving the planning at the scale of 1/500. The time for the approval should not exceed 15 working days. CONSTRUCTION MATERIAL MARKET According to the forecast of Vietnam Steel Association (VSA), the growth of the steel industry this year Steel prices will not increase can remain unchanged or inconsiderably increase (by from 2 - 5%) as compared to 2008 with the in 2009 consumption of about 9 million tons. In which, the production of steel construction of all kinds will reach 4 Edited by VietRees - 4.5 million tons, the import output will reach 5 - 5.5 million tons and the export output will reach 0.5 million tons. The steel prices will not suddenly increase in 2009 because the demand exceeds the supply on the global scale. In this year, the steel industry will suffer another head-on difficulty that from this year, the prices of some key items such as electricity, water, coal have started to be adjusted following the market prices, which will impact on the input cost of the production and the prices of the products. To overcome the difficulties in the steel industry, VSA suggested that the banks should limit the granting of credit to the steel import companies that have had the large inventory or redundant production capacity; raise the steel import tax, reschedule the debts for the enterprises, etc. Additionally, VSA also encourages the steel producers to rearrange the production, restructure the products to reduce prices, release the inventory reasonably to have the capital & continue to import the raw materials. STOCK MARKET * At HCMC bourse, at opening time on January 16, Vn-Index backs to the upturn, optimistic signs have appeared, VN-Index has swum HASTC-Index continues to decline upstream when adding 1.71 points to close at 305.72 Edited by VietRees points. Entering the consecutive order-matching phase, Chart Source: Vietstock VN-Index has continued to maintain the upturn due to the stable price increases of the blue-chip stock on the Up to date: 09 Jan, 2009 market. At the end of the session, although the transaction situation was not really exciting, VN-Index has added 2.11 points as compared to the previous session to record at 306.12 points. The total trading volume on the whole market has reached 6.8 million units worth over 165 billion VND. After one trading week, VN-Index has had 2 upward sessions and 3 downward sessions. As compared to the last week, VN-Index has lost a total of 7.28 points. * On the contrary to the situation on HCMC bourse, HASTC-Index has still continued to decrease when losing an extra 0.27 points today to close at 102.84 points. The total trading volume on the whole market has reached nearly 2.7 million units worth 58 billion. This week, HASTC-Index has seen the decreases in the 5 sessions, losing 3.33 points as compared to the last week (from 106.17 points down to 102.84 points). Free register for weekly newsletter: Please send your email to marketnews@VietRees.com * Sponsor and advestising: T: (08) 3948 5574 - E: properties@VietRees.com
  9. 9. VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A66 Page 9 RESEARCH – CONSULTING Solutions to enhancing the competitive abilities of the Vietnamese real estate enterprises 1. Why should the Vietnamese real estate 4.1. Enhance the management ability and train In addition, the enterprises should combine with enterprises enhance their competitive abilities? the leaders of the enterprises. universities and colleges to recruit excellent Enhancing the competitive abilities of the To develop the above abilities, the decisive factors undergraduates in order to build the active young Vietnamese real estate enterprises is an are the activeness and positive striving of every team to undertake the important professional indispensable thing in the process of integration businessman. positions in the near future. especially in the difficult situation of the current real According to VietRees, firstly, the leaders of the estate market and the decline of the economy, enterprises should pay attention to enhancing the 4.7. Build up a good image to the public. helping the real estate enterprises stand firm on essential skills and update the modern knowledge. Any enterprise understand clearly that if it wants to their feet & develop in the coming years. Thereby, Some knowledge and skills should be updated and have a good public image, firstly, it has to win the it has contributed to enhancing the competitive systematized. If the basic skills are combined with customers’ trust by the quality of its service power of the whole economy. On the other hand, the effective management knowledge, there will be products, the marketing business activities and in the current situation of the market, if the the decisive impacts on the managers of the real after-sales service, etc. competitive abilities are not enhanced, the estate enterprises. Thereby, this contributes to Through the marketing and after-sales strategies enterprises will be able to suffer the losses, close improving the competitive abilities of the real estate to promote the enterprises’ own brands, if this down and go bankrupt. According to VietRees, to enterprises. work is well implemented by real estate assess the competitive ability of one real estate enterprises, it would be very convenient for them enterprise, firstly the real estate enterprises need 4.2. Improve the quality of service products and to raise the capital through issuing their shares to identify the internal factors and external factors the diversity of the provided services and bonds to the public. impacting on their competitive abilities. When the source of real estate products is However, the real estate marketing activities on According to VietRees, the essential internal growing, the quality of service products is getting the current market have not received the proper factors that the enterprises need to use to assess more attention of the customers. The quality of the investment from the investors, including the big the competitive ability of one real estate enterprise real estate service products should deserve the real estate investors. When the market was include: money that customers have paid. The enterprises eventful as in 2006 - 2007, the investors mainly • The quality of service products have to rearrange the structure of the products in focused on the phase of organizing the sales, the many segments, direct the products at the current • The diversity of provided services events and introducing the products and the needs of the customers and take the quantity to • Human resources marketing activities through media took place very offset the profits (for example: investing in the incoherently and inconsistently. • The ability to develop the market housing segment for the medium - income and The investors have not created the difference or • Trademarks and the prestige of the real estate low-income people). prominence for their real estate products besides enterprises the architectural design elements. Many investors • Financial ability 4.3. Build up the market information have had many large real estate projects and • Organizational and management ability of the department; regularly follow and fully update traded products on their own but they have not had real estate enterprises the movements of the market through the mass the marketing/business departments, marketing • The real estate information system media channels and the actual surveys. departments or the professional staff that are in • The level of using the information technology This is not work that any enterprise can also well charge of marketing. The external factors influencing the competitive perform while the real estate market information In the current difficult situation, a few real estate abilities of the real estate enterprises can include has become less transparent as now. When there companies have had many new marketing ways, the macroscopic policies of the government – the have not been State agencies that can organize, aiming at the real customers. law factor, the domestic and foreign competitors, collect and analyze the market information, the real the capital market, the psychology of the subjects estate enterprises should choose the prestigious 4.8. Expand the channels of raising capital for joining the market, etc. For these external factors, units to agree on providing suitable and essential the real estate enterprises. the real estate enterprises are very hard to information for their enterprises. In fact, according The current capital source of the real estate intervene, change or adjust. Therefore, the to the VietRees, it has been so hard for many enterprises has mainly come from the commercial enterprises only need to thoroughly study and businesses to carry out this work on their own. In banks. Although the banks have reduced the loan understand the external factors and focus more on the case that they cannot build up and effectively interest rates, the loan conditions have become the internal factors. operate a team to handle this work, they can more difficult than before. As a result, only a few perform this through professional units that real estate enterprises can borrow money from this 2. How to enhance the competitive abilities of specialize in researching, providing the market main capital channel. A few companies have the Vietnamese real estate enterprises information and consultancy in terms of real estate. issued the shares on the stock market but they To enhance the competitive abilities, one of the could not raise much capital because the stock things that the enterprises need to do is to actively 4.4. Expand the business investment market market has been freely falling. evaluate their real ability and find out the most following the specific routes depending on the In addition to the capital borrowed from the banks basic strength in order to promote the flexibility in scientific results of the market research and mobilized from the stock market, the each economic period. surveys. enterprises should expand issuing the enterprise According to VietRees, only when the real estate bonds and real estate bonds from the real estate enterprises possess, construct and promote their 4.5. Build up the legal department in each projects that they invested, meanwhile, promoting key competitive abilities in comparison with other enterprise having the function of offering legal the works of the joint-venture, cooperation and competitors, they can have the sustainable and consulting to the managers and hold the works merger for development. long-term development. of preventing the crisis risks. This definition will help the enterprises build the Summary: 4.6. Improve the real estate knowledge of the effective development and competitive strategies. In the current market situation, if the competitive current employees and attract the good abilities have not been enhanced and there have 3. The weaknesses in the competitive abilities employees. not been the basic strategies, the enterprises will This is the weakness of most of the Vietnamese of most of the current real estate enterprises be able to suffer the loss, close down and go • The quality and competitive abilities in terms of enterprises in general and the real estate bankrupt. To ensure the objectivity in assessing enterprises in particular. To have highly management are poor. the competitive abilities, VietRees would like to • The human resources are not methodically professional staff, the enterprises need to have the advise the enterprises to perform this work strategies for holding and attracting talents. To trained in terms of the real estate field. seriously and probably need the help of the enhance the work effect, every enterprise should • The real estate information lacks transparency. prestigious consultants on the market. offer professional training courses to the key staff • The quality of work is bad. On the other hand, no matter how they assess, in order to suit its requirements in each period. • The financial ability is low. they also need to have the bases to compare with Therefore, the effective training programs and other enterprises that are in the same operation • The weakness in terms of brand. plans have been one of the methods that the field, market segment and directly and indirectly • Not really aiming at their right customers. enterprises have used to enhance the competitive compete with them. abilities. Meanwhile, the enterprises should pay • Not understanding and strictly execute the law. attention to building up the reasonable treatment 4. Solutions to enhancing the competitive policies such as salary policy, bonuses to keep the stability in their volume of staff, especially the abilities VietRees – December 2008 excellent staff. Free register for weekly newsletter: Please send your email to marketnews@VietRees.com * Sponsor and advestising: T: (08) 3948 5574 - E: properties@VietRees.com
  10. 10. VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A66 Page 10 REAL ESTATE MARKET FORECAST * Note: Information on market forecast is only updated every 4 periods (after one month) by VietRees – January, 2009 The transaction situation of apartments, townhouses and project ground bases in December has General tendency of Ho Chi Minh continued to decrease. According to VietRees’s forecast, the real estate prices can continue to go down City market with the decrease of approximately 5% per month in December and before Lunar New Year. The property prices in 2009 are hardly likely to be on the upturn. The successful transactions at the end of December last year was a little bit higher than the previous months. However, the transactions have just focused on the segment of low-value townhouses and apartments. For the group of the high-grade apartments, the rate of the successful transactions was quite low and inconsiderable. The amount of overseas national currency exchange at the end of this year has dramatically dropped and not been invested in the real estate field as in the previous years but it has been used for the production or paying the debts. The difficulties in the credit situation, the deflation of the economy and the coming maturity of the contracts mortgaged by the properties have made many properties to be sold out at the prices that are quite low, even lower than the initial selling prices of the investors. The total outstanding real estate loans have accounted for nearly 10% of the debts of the whole the banking system, therefore, the banks demand payment of the debts. And as a result, many investors have to sell their projects and products at the low prices. Many real estate enterprises have lacked the cash to maintain their business and it is very hard to borrow more money from banks. On the other hand, currently, some banks have consigned the mortgaged high-grade properties of the customers for sale and extended the debts so that the customers have more time to sell their properties in order to pay the loan contracts. The supplies of the apartments belonging to the medium and low segment have been quite limited; Apartment market therefore the market belonging to this segment has also seen no changes as compared to the previous month. Many high-grade apartments with low prices (mainly belonging to those who sell out their properties) are hunted for. Meanwhile, the situation of checking the prices of the sellers has appeared on the market through the self-listed selling prices that are quite low. The sellers have really not wanted to sell because they will suffer considerable losses if they do so. However, if they offer the high prices (though suffering little losses), it will be very hard for their properties to be sold at this time. The high-grade apartments have seen few customers, especially many apartments in Phu My Hung and many other areas in District 2 and 7. Although the prices have dramatically declined (over 50%), there have been few buyers. With the movements of the current market, according to VietRees, the prices of the high-grade apartments will continue to go down after Lunar New Year. Project ground base market Although the prices of the project ground bases have considerably dropped, they have still been too high to those who have real housing demands. As a result, the transactions have been are also very low. If these people have real housing demands, they will choose the apartments or townhouses, not buying ground bases. Therefore, the transactions have still been very slow. The prices of many ground base projects in some areas of District 7, Nha Be have declined by 60% but the successful transactions have still been very scarce. Many investors are worried about the ability of selling their real estate in the current difficult situation of the economy and the frozen market. Real estate companies Many previous companies that expanded their real estate business investment have now come back to their main business fields. Many secondary investors have faced many difficulties such as no cash and no customers. If this situation continues, the real estate investors who lack the capital will face bankruptcy risk; have to sell the projects at low prices and withdraw from the market in 2009. In fact, according to VietRees, there are a lot of middle-ranking and senior managers have withdrawn or temporarily withdrawn from this field or reciprocally convert their assignments between the real estate companies. According to VietRees, the real estate investors should switch to the apartment projects with suitable prices for the medium-income people, instead of aiming at the projects with the high prices like before. The medium-price projects can be sold quickly; help turn over the capital and take back the capital quickly. Then, the capital has been continued to be used for reinvesting in serving the customers who have the real demand because the demand of this group of customers has still drawn little attention and not been properly exploited yet. Forecast in 2009 The real estate market with the current movements under the growing impacts of the financial crisis and global economic recession, the Vietnamese real estate market has seemed to be gloomier. VietRees has shown that there is a faint possibility that the market will recover in 2009. The market in 2009 will have more difficulties than in 2008. Many real estate investors and speculators will face the bank payments while the real estate prices have still not seen any signs of the recovery. According to VietRees, after Tet holidays, the real estate market will be an attractive playground and opportunity for the investors with the large capital and long-term investment strategies. The decline of the market will minimize the speculation. The market will be under the control of buyers, not sellers like before. For this reason, the potential real estate enterprises should build the long-term development strategies and actively work in the research and development, especially seriously investing in researching the market and customers; sustainable developing and avoiding the investment on a large scale in the current difficult situation. The coming investment trends The tendency of switching to the investment and development of the low-and-popular-price houses to attract the majority of customers is getting clearer. Many enterprises are planning to promote their for Vietnamese real estate investments in this market segment. It is expected that those who have medium and low incomes have enterprises many opportunities to approach this supply in the future. According to VietRees, enterprises should invest in the apartments with the relative areas of 40 – 60 m2, good structure, relatively good materials and equipments – (not need to be high-level ones), the selling prices of nearly 10 million/m2. The apartments with the value of around 400 – 600 million VND/flat will be likely to attract many customers. The customers that should be aimed at include the young families, students, workers and civil servants in Ho Chi Minh. In fact, some foreign investors are interested in this market segment. Therefore, the domestic investors should be quicker because, according to VietRees, Vietnamese enterprises can have more advantages than other foreign enterprises in this market segment. 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