Vietnam Real Estate Newsletter - No. 73, Week 2 Mar, 2009

Weekly Newsletter
A73
Vietnam Real Estate Week 3, March

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.3)

Real estate agents (p.3)

Vietnam in the world (p.3)

Properties on the world (p.4)

Real estate legislation (p.4)

Websites of real estate companies in Vietnam (p.5)

Real estate projects and prices (p.6)

Real estate supply for customer groups (p.8)

Construction material market last week (p.9)

Stock market last week (p.9)

Market forecast, statistics expert opinions (p.10)

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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,
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VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A73 Page 2

MARKET SITUATION
The investors start projects The real estate market in general and office market for lease in particular have suffered the direct
impacts from the instabilities of the economy. From the middle of 2008 until now, the unoccupied area at
to prepare
the offices for lease has increased and the rent has tended to decrease. Although it is judged that in
Kinh Te Do Thi – 11 March, 2009 2009 the office market has had the lowest number of tenants within the past 4 years, the experts have
proved to be optimistic. The prospect of the Hanoi real estate market has still shown that the positive
signs and the demands for offices, residential areas and high-grade apartments are growing day by day.
Therefore, recently, many domestic and foreign investors have restarted or renovated the projects of the
housing, offices and trading complex. According to the plan, the projects will be completed and put into
use within the next 2 - 3 years. It is the time that the world economy in general and Vietnam in particular
are considered to recover after the recession.
According to the enterprises, the real estate market in 2009 would not be able to recover due to the
impacts of the global economic recession. Until 2010, the market will have more positive signs. At that
time, the real estate supply will increase when there are many projects completed and put into operation.

The depressing situation of About two years ago, when the real estate market did not yet speed up, the office buildings fell into the
fever and it still was not affected when the real estate market was frozen. But until now, when the global
office buildings
economy has fallen into the recession, the office buildings have also not been able to avoid the setback.
Sai Gon Giai Phong – 11 March, 2009 The buildings under construction have fallen into the situation of “smile through one’s tears” and the
buildings that are operating have also not shown the better signs when the customers “have fled for their
life”.
According to the recent statistic, until the end of 2008, the occupancy rate of grade-A and B office was
approximately 95 - 96%. However, this figure will dramatically decline when a series of grade-A and B
buildings are about to be completed in the near future. Currently, the whole city has 600,000m2 for office
buildings. However, the speading economic crisis has made the unoccupied areas considerable. If
adding the giant areas from the buildings that will be completed in the next years, the market of office
buildings for lease will fall into the situation of superfluity.
One more time, this fact has demonstrated that the real estate market has developed following the way
of living by makeshifts that has been proved by the stories of high-grade apartments and offices for
lease. Accordingly, the types of welfare houses are very much in demand, however very few investors
have taken interest in them.

What are the real prices of The economy has been facing the crisis and the real estate market has leveled off and gradually gone
down. However, many sellers have reduced the apartment prices. However, the sellers are more than
apartment buildings?
the buyers. Most companies have faced the situation that the goods are large but the buyers are
Bao Xay Dung – 13 March, 2009 inconsiderable. The majority of buyers in the recent time have been those who have the preferential
treatment for buying goods from the companies and relatives.
According to a construction expert, in fact, the price premise for construction has not been high, only
about 4 million VND/m2 because most types of construction materials in Vietnam have nearly had the
same prices and types. The difference is if the areas have more synchronous infrastructure system and
are located closer to the center, their prices will be 10 - 20% higher than the general premises.
Furthermore, grasping some people’s psychology of valuing the “high-grade” goods, the companies
have added English name and the “high-grade” adjective, which has made the buyers secure and trust
those lines of letters, therefore, they think that these goods are certainly worth much. That is the reason
why the prices of the products have been three or four times higher than the original prices when they
are delivered to the consumers.
To account for this problem, the companies have shown that in fact, the costs for lobbying have been
quite considerable (more than 30% of the costs). As a result, when the companies have full documents,
basic infrastructure, etc, they have to collect more money from the buyers to recoup the costs.

The price decrease wave of In 2008, the real estate market seen the significant inversion with the remarkable decrease of 70% in the
prices of many projects on the free-market. Until 2009, after Hoang Anh Gia Lai has reduced the prices
real estate spreading
of the two projects Hoang Anh River View and Phu Hoang Anh by 40%/m2, other enterprises have also
Edited by VietRees reduced the prices. Dat Xanh Company has reduced the selling prices of Sunview Apartment (Thu Duc
District) from $1,300 USD to $764 USD/m2. The following is Thuduc House that offers 10% discount on
the prices of TDH - Truong Tho project and this advertisement will be valid until the end of 30th April,
2009. Hong Ha Company has also launched the promotion of “sharing benefits with customers” by
reducing the prices of The Morning Star project (Binh Thanh District) from $2,000 USD (2008) to $1,200
to $1,500 USD/m2. On 2nd March, Montana project (Tan Phu District) has also offered 2 million VND/m2
decrease for the first 30 customers, etc.
According to the real estate experts, the phenomenon of price reduction is the vital impact of the law of
supply and demand in the market economy facing the crisis of finance and confidence. However, some
opinions have shown that the price reduction of the apartment projects completed in the future has
belonged to the strategy of restructuring and repositioning businesses of the real estate corporations and
joint venture companies in order to overcome the crisis. They have thought that reducing the prices to
get inconsiderable profits or losses is better than suffering the heavy losses or bankruptcy.
In fact, although the purchasing power has gone up when there have been the waves of promotions and
price decreases, the good signs of the real estate market have not been really clear. The opportunities
have mainly focused on those who have much money and the investors. Those who have real housing
demands have still been considered to be the strangers on the real estate market at this time.

Sponsor:


REAL ESTATE FOREIGN INVETSMENT
Build high-grade trade center On 10th March 2009, ECC Group (Netherlands) will announce the development of Trade Center
Promenada @ Canary implemented by the joint venture between the Group ECC and Co. Guocoland
in Binh Duong
Vietnam (Singapore), located in the overall high-grade urban complex The Canary in Binh Duong.
VietRees – 10 March, 2009
The project is located on a site of 82,000m2, including four storeys: big supermarket, high-grade eating
and drinking – entertainment area, sports center and resort ... Promenada @ Canary will be started in
the third quarter, 2009 and it is expected to be completed in the forth quarter, 2012.

REAL ESTATE AGENTS
BCCI to be listed on stock exchange Binh Chanh Investment and Construction JSC (BCCI) is completing the last procedures and will officially
be listed on HoSe with the stock code of BCI on 16th March, 2009.
Dien Dan Doanh Nghiep – 09 March, 2009
BCCI will list 54.2 million shares and the total value of the listed securities is 542 billion VND. The
reference price in the first transaction day is 27,000 VND per share. The price change limit on the first
transaction day is + / - 20% as compared to the reference price.

Thu Duc House officially offers Thu Duc House Development JSC (Thuduchouse) has shown that it would officially offer the remaining
apartments of the project to the customers who have demand on 31st March, 2009 at the prices ranging
Truong Tho apartment for sale
from 18.5 to 21.3 million VND/m2, (inclusive of VAT). Customers can divide their payment into 6
BDS & TS – 09 March, 2009
installments within 15 months and can take out the loans of up to 70% of the apartment value from
banks. The period for payment is 15 years.
Thuduchouse expects to complete & hand over the project to the customers in the second quarter, 2010.

IDICO starts Phu My 2 Industry On 6th March 2009, Vietnam Industrial Zone - Urban Development and Investment Company to develop
urban and industrial areas (IDICO) held a ceremony to start the construction of Phu My Industrial Zone
project
2, in Phuoc Hoa, Tan Thanh district, Ba Ria - Vung Tau province.
Phu My Industrial Zone 2 has an area of 1,023 hectares with the total investment of over 3,000 billion
and has completed the compensation for site clearance, the basic formalities of construction investment
and implementing the construction of technology infrastructure systems. Some investors has registered
for leasing the land in this industrial zone, including: POSCO (Korea), FUCO Steel Co. (Taiwan), Hoa
Sen JSC ...

HAGL prepares to invest in the Hoang Anh Gia Lai JSC (HAGL) will start the three projects in 2009, including two office buildings: 40-
storey buildings at the top of Kenh Te bridge (Dist.7) with a total floor area of 130,000m2; the project
big projects in 2009
apartment An Tien (including 980 apartments) opposite the project Phu Hoang Anh (Nha Be district), the
total floor area is 180.000m2; Hoang Anh Incomex apartment project is located at the crossroad of Le
Van Luong - Tran Xuan Soan (Dist.7) with 450 apartments on the 72,000m2 floor area.
According to Board of Directors of HAGL, from now to 2015, the company will build the 250,000m2 floor
area equivalent to nearly 1,500 apartments.

Open the first stage of Saigon On 12th March 2009, Expo Center and Exhibition in Saigon (SECC) is located in District 7, HCMC has
officially opened the first stage with a lobby exhibition and the total investment of 30 million USD. The
exhibition center
lobby has an area of 9.000m2, no columns, the height of 12m, an outdoor exhibition area of 6.000m2; a
TTXVN – 12 March, 2009
conference room seating 500 and 4 meeting rooms with the capacity of from 20 to 100 guests/room. It is
one of the lobbies meeting the international standards in terms of technology, construction and space for
the exhibition industry in Asia.
SECC has been invested by Saigontourist Joint Venture company and Phu My Hung company. Once
the three stages are completed, the project will be a general type of tourism that combines meetings,
seminars - conferences, resorts, investment (MICE) with fairs - exhibition.

VIETNAM IN THE WORLD
HCMC ranked 5th in Asia in terms According to Cushman and Wakefield Real Estate Brokerage Company (America), when comparing to
the rents of the offices at 202 locations in 57 countries in the world, Hong Kong is the place where the
of office rent
rent is most expensive in the world with $2,214 USD/m2/year. The followings include Tokyo (Japan),
Edited by VietRees – March, 2009 London (England), Moscow (Russia), Dubai (UAE), Mumbai (India), Paris (France), Damas (Xyri), Abu
Dhabi (UAE), Singapore (Singapore) and New York (USA).
Ho Chi Minh City (Vietnam) is ranked 16th in the world (increasing by one rank as compared to the year
2008) and ranked 5th in Asia with the average rent of about 764.5 USD/m2/year. According to the
reports, HCMC is the city where the speed of increasing the rents is fastest in Asia and the average
increase is 46%/year.
Cushman and Wakefield has also shown that the average rents of offices in the big cities in the world
have decreased by 16% due to the significant impacts of the global financial crisis. Among them, London
is the city that has suffered the greatest impact on the office market that has plummeted by
approximately 23% as compared to 2007.

Sponsor:


PROPERTIES ON THE WORLD
Hong Kong real estate market From the beginning of the year up to now, the segment of the high-grade houses at Hong Kong real
estate market has been seeing positive changes. The liquidity of the market has become higher in the
begins to prosper
first months of the year and reached the peak for over half of the last year.
Property-Report
According to Centaline Property Agency Ltd, the enterprises specializing in the high-grade residential
area in Hong Kong, the number of successful transactions has increased by about 31% as compared to
December 2008 and the value of the signed contracts has risen by around 9%, reaching 2.7 billion Hong
Kong dollars (or about 348 million USD). This has been the highest earnings from July, 2008. The price
of a high-class is priced at 10 million Hong Kong dollars.
The analysis specialist at Jones Lang LaSalle consulting company has said that the shortage of supply
and the low prices are the basic reasons behind the positive changes in the segment of high-grade
apartment in Hong Kong. However, it is still too early to determine whether the luxury home segment has
become stable or not.

REAL ESTATE LEGISLATION
The rent of land for constructing In some big cities, many organizations have used the land to construct the underground works.
However, the current law has not had the full regulations on leasing land to construct the underground
underground works is 30 – 50%
works and the regulations on the land use space, land prices and the use management system. The
of the rent of land on the ground Ministry of Natural Resources and Environment has amended and supplemented some new contents in
Thoi bao Kinh te Viet Nam – 01 March, 2009 terms of the land for constructing the underground works in the decree draft adding the regulations on
the land use planning, land prices, land reclamation, compensation and support for the resettlement of
the government and these regulations are about to be submitted to the government.
According to the draft, the rent of land for building the underground works is 30 - 50% of the rent of land
on the ground with the same using purposes. All domestic and foreign organizations and individuals
have the demands for using land to construct the underground works (not the underground parts of the
works on the ground) must carry out the land lease procedures and implement the administrative
obligations following the regulations of the land law and the Ministry shall provide the guidelines on the
order and procedures for leasing land to build underground works.
Another important content in the draft is that the Department shall assess the land or hire the consultants
to assess land price and submit to the provincial People’s Committee for decision. Any re-determination
to the land price in some cases of price changes will help push the land price assessment closer to the
market price.

Danang: the notary offices allowed Da Nang City People's Committee has just had the document on transferring the certification of the
contracts and transactions concerning real estate under the jurisdiction of the People's Committees of
to certify real estate
communes, wards, districts, suburban districts to the notary organizations.
Accordingly, from 1st April, 2009, the certification of the contracts and transactions concerning real
estate ( testaments and documents on refusing the inheritances) that used to belong to the jurisdiction of
People's Committees of districts and wards in Hai Chau, Thanh Khe and Ngu Hanh Son will be
transferred to the notary offices.
The organizations & individuals that have demands for certifying contracts and transactions concerning
real estate are entitled to choose any notary organization in Da Nang.
The organizations and individuals belonging to the areas of Cam Le, Lien Chieu, Son Tra, and Hoa Vang
district are entitled to choose the certification of the contracts and transactions concerning real estate at
any notary organization in the city or at the People's Committee of districts, communes and wards where
there are properties following the regulations.

HCMC: ratifying the selling prices On 9th March 2009, the People's Committee of District 10 has ratified the selling prices of the
resettlement apartments at building A Nguyen Kim (Ward 7) and Ngo Gia Tu (Ward 3). And the price list
of resettlement apartments in
is applied for the households belonging to lot B of Ngo Gia Tu apartment building (Ward 3, District 10).
District 10 Specifically, the prices of 1m2 is 18,076,000 million VND (level 1), 17,571,250 million VND (level 2),
Thanh Nien – 10 March, 2009 17.223.440 million VND (level 3), 16.945.190d (level 4), 16,694,770 million VND (level 5), 16,458,260d
(level 6), 16,221,750d (level 7), 15,971,330 million VND (level 8), 15,720,910 million VND (level 9),
15,470,490 VND (level 10), 15,220,070 million VND (level 11), 14,747,050 million VND (level 12),
14,510,540 million VND (level 13), 14,260,120 million VND (level 14).
For the compensation and support for the resettlement of 184 households living at lot B of Ngo Gia Tu
apartment building, the land unit price for calculating the compensation & support has been determined
to be equal to the prices ratified by the HCM City People's Committee at the time of transferring the real
land use rights on the market. Namely, the locations on the ground floors or frontages of Hoa Hao street
are 28,482,000 million VND/m2; the locations on internal frontages or ground floors are 17,801,000
million VND/m2; the locations on the 1st storey are 14,241,000 million VND/m2, the locations on the 2nd
storey are 12,817,000 million VND/m2; the locations on the 3rd storey are 11,393,000 million VND/m2.
It is expected that on 12 - 3rd March, the People's Committee of District 10 will hold a meeting to
publicize the whole plan for the compensation, support, resettlement and the selling prices of the
resettlement apartments; drawing lots, etc.

Sponsor:


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:


REAL ESTATE PROJECT AND PRICES
HCMC: petitioning for piloting the * According to Ho Chi Minh city Department of Construction, from now until 2010, the city will complete 8
social welfare house projects with the area of 5.5 hectares, including 2,820 apartment buildings. The
low-price welffare houses
Department of Construction has also proposed the People's Committee of the city to offer the
Edited by VietRees – March, 2009 government some mechanisms to encourage the development of the welfare house programs.
* According to the guiding document of the HCM City People's Committee, the departments, branches
and People's Committees of the districts and suburban districts: 2, 9, 12, Thu Duc, Hoc Mon, Binh
Chanh should urgently determine the land use planning to invest in the construction of 4 clusters of
welafre houses at 4 gateways of HCM City. The Real Estate Association of the City has researched the
mechanisms and policies of implementing the welfare house programs and actively call on the real
estate enterprises to register for the participation.
* HCM City People's Committee has proposed that the investment for building welfare house be 1,250
billion VND and 1,200 billion VND be used for setting up the land reserve for constructing the
accommodation and about 3,600 billion VND be used for building dormitories for students .

Phan Thiet: Invest in construction The Hotel Investment project is a 5-star hotel located at Phu Thuy Ward, Phan Thiet city on a site of
11,000m2 with a total investment of 200 billion VND. Phan Thiet Hotel Investment – the investors- has
of 5-star hotel
just been granted the investment certificate by the People's Committee of Binh Thuan province.
Thoi bao Kinh te Sai Gon – 10 March, 2009
The hotel includes 52 rooms modern, high quality facilities and service system entertainment comes: the
restaurants, the spa and massage, the sport, the entertainment area for children ...

Da Nang: 6 more resorts to appear The Department of Culture - Sports and Tourism of Da Nang has shown that from now till the end of the
year there will be 6 more resorts at Da Nang beach opened to welcome the visitors including Silver
Shore - Hoang Dat, Olalani, Ba Na telpher, Tien Sa, Xuan Thieu Son Tra and Spa.
According to the statistics, Da Nang has 46 tourism investment projects with a total investment of over
1.8 billion USD. In which, there are 12 foreign investment projects with the total investment of USD 763
million and 34 domestic investment projects with the total investment of 1.56 billion USD.

The level of changes in the prices of the high-grade apartment in HCMC
High-grade apartment prices
in HCMC slightly increase
(by 1%) in February, 2009
VietRees – Mar, 2009

According to the statistics, the high-grade apartment prices transferred in February increased by 1% as
compared to January and the transactions have still been quite slow. The high-grade apartment prices
are predicted to remain the old prices or slightly decrease in the next months, especially when the
market has more new supplies with the low prices. The general difficulties of the economy have also
made the income of people partly go down and made the bank interest rate low, therefore, they have
contributed to increasing the demand for the low-price properties in the future.

Announced prominent real estate developments during the last 2 weeks*
Week 1 March, 2009 Week 2 March, 2009
Satra Dat Thanh AP (Phu Nhuan Dist.)
Ho Chi Minh City
Dam Sen complex (Dist.11)

Complex at Mai Dong ward, Hoang Mai Dist. (Ha Noi) Hotel 5-star The Hotel Investment (Phan Thiet)
Other cities
Satin Residence apartment building (Ha Noi) Promenada @ Canary Complex (Binh Duong)
NCG Residentials apartment (Ha Noi)
* 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:


Property Retail Price
Updated on information from ACBR, Van Phat Hung, Hung Thinh, Phuc Duc, Tuoi Tre Newspaper and developers (VietRees gathered by direct surveys), listed prices can be
original prices or transfer prices at current or at one week prior from the date this newsletter is issued.

Typical apartments in HCM city Other apartments and land lots
Area Price (million
+/-
Dist.
(m2) VND/m2)
Apartment building – HCMC
BMC – Ben Chuong Duong 1 82 25.5
An Cu 2 140 18.3 -
An Khang 2 90.2 23.4 -
Thinh Vuong 2 130 17.7
Riverside Residences
Cantavil, Dist.2 Sky Garden , Dist.7 Screc Tower 3 52 26.5
Area: 81 – 477 m2
* 100m2 – 31 million VND/m2 * 71m2 – 28.9 million VND/m2
Orient Apartment 4 71.7 21.7 -
Price: 37 million VND/m2 * 89m2 – 29.7 million VND/m2
Hung Vuong Plaza 5 121 27 -
Hoang Anh Gia Lai 2 7 117.8 15.9 +
Phu Loi Sacomreal 8 69 12.1 +
Le Thanh BT 68.4 9.3 +
Morning Star BTH 85 21.9
Phu My Thuan NB 96 8.7 +
PN Techcons PN 138.6 24.7
Development land lots – HCMC
Blooming Park, Dist.2 Phu My, Dist.7 The Everich, Dist.11 An Phu – An Khanh 2 200 29.2
Dong Thu Thiem 2 128 15.4
* 88m2 – 22.5 million VND/m2
Area: 95 – 398m2 * 118m2 – 1,735 USD/m2
The Ky 21 2 160 18.5
* 114m2 – 24.2 million VND/m2
Price: 1,800 – 2,400 USD/m2 * 151m2 – 1,700 USD/m2
An Phu Hung 7 72 27
Direct contact with the investor1
Phu My – Cho Lon 7 125 15.3 -
Gia Hoa 9 200 9.5 -
Khang An 9 144 7.2 -
Cotec – Phu Xuan NB 136 7.5 +
Thai Son 1 NB 250 11.3 -
Apartment building – Ha Noi
CT3 Vimexco CG 131 26.2 -
Preche, Dist.2 Panorama, Dist.7 Saigon Pearl, B.Thanh Dong Nam Tran Duy Hung CG 152 25.2
* 147m2 – 2,222 USD/m2 Ha Thanh Plaza DD 114 25.5 -
* 147m2 – 39.5 million VND/m2 * 84m2 – 2,156 USD/m2
Hoa Lu HBT 64 34 +
* 135m2 – 2,173 USD/m2
Xa La HD 63 11.9 +
Linh Dam HM 73 14.9 -
Viet Hung LB 68 9
Development land lots – Other provinces
Hiep Thanh 1 BD 175 2.7
My Phuoc 3 BD 150 1.66 -
Long Kim 2 LA 110 4.5 -
Tay Nam BR-VT 90 1.9
The Vista, Dist.2 The Manor, B.Thanh
New SaiGon, Nha Be
Thien Loc CT 100 2.05 +
* 139m2 – 1,483 USD/m2 * 80m2 – 2,167 USD/m2
* 100m2 – 19 million VND/m2
Tam Phuoc DNI 250 2.3
* 121.4m2 - 18.7 million VND/m2 * 118m2 – 2,000 USD/m2
TCT XD Ha Noi DNI 100 2.5 +

1
Kien A Investment & Services Co., Ltd. - An Phu Ward, District 2, HCMC - Tel: (84.8) 3740 6688, Fax: (84.8) 3740 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:


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
nd
been put into use. The total investment cost of this housing area is 20 billion VND. (2 Oct,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
rd
Committee with a total investment of over 37 billion VND. (3 Oct,2008)
* Hiep Phuoc accommodation and 1 apartment block in District 9 is reserved for over 1,600 workers in
th
Hiep Phuoc industrial zone and hi-tech zones - Directed by HCMC People’s Committee (22 Jan, 2009).
* 4 three-storey apartment blocks (204 rooms) reserved for nearly 1,000 workers in Ha Quang export
garment factory and Tay Bac Dong Hoi industrial zone with the rent of 100,000 VND/ month/ person have
th
been put into use after Lunar New Year – Quang Binh - Dai Phong Co., Ltd (4 Feb, 2009)

* 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 D.1 is assigned to construct the resettlement area at 7/4ª Kha Van Can, TD D.
* 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
th
have been submitted to the government for approval. (30 Sep, 2008)
* 800 social welfare houses for lease - lease to purchase will be built at 19A and 21A plots, Viet Hung
th
urban area in 2009, which have been ratified by The People’s Committee of Ha Noi City. (16 Oct, 2008)
* 462 units of Khang Gia 3 apartment building (Go Vap Dist.) invested by Khang Gia Real Estate
th
Investment – Development JSC will be used for the resettlement demands. (27 Oct, 2008).
* Replacing 0.3 million m2 floor of the old apartment buildings in District 1, 4, 5, 11, Binh Thanh, Tan
Binh, Tan Phu and building 4 apartment buildings: 107 Truong Dinh (Dist. 3), Soai Kinh Lam ( Dist. 5),
Building B (plot Q), Nguyen Kim apartment building, Building B (plot B, C), Ngo Gia Tu apartment building
- Department of Construction (Jan, 2009).

Sponsor:


Ho Chi Minh City * The lowest price is 300,000 VND/m2
Land prices in 2009 stipulated (position 5, road No.8, coeffient 1)
* Urban land: not exceeding 81 million VND/m2
according to price list by the Ha Noi
* 2,700 road stretches/ routes have new prices,
state 675 sections/ routes keep the prices unchanged * Price of land within the city: 2.5 - 67.5 million
and 1,899 stretches/ routes have the prices VND/m2.
adjusted. The land price can be adjusted not to * Price of land in the towns: 1.5 - 16 million
Used as the basis to calculate the tax for exceed 20% as compared to the maximum price VND/m2.
using land; transferring land use right; and the minimum price. * Price of land in the rural area: 150,000 VND -
calculating the money for land use and lease
Can Tho 2.25 million VND/m2.
when handing over the land; leasing land
* The highest price of 17.5 million VND/ m2 is Hai Phong
without via auctioning land use right or inviting
for land on Hai Ba Trung street.
bids for projects using land; calculating the * Urban land: the highest price is over 30
* The highest land price is 6.5 million VND in
value of land use right when handing over the million VND/m2.
Binh Thuy District.
land without collecting land-use money of the * As compared to 2008, the land price has had
organizations, individuals; determining the Dong Thap an average increase of 30%. Especially, some
value of land use right and adding it to the * Urban land: the The highest price is 15 million areas such as Do Son, Duong Kinh, Cat Hai
asset value of the state-owned enterprises VND/m2 in Sa Dec town and 14.4 million districts have the increases of 100 - 225%.
when they are equitized; calculating land-use VND/m2 in Cao Lanh City. Thua Thien Hue
value for compensation when the government
* The price list of urban land in 2009 has * The highest price is 26 million VND/m2.
reclaims land, etc.
supplemented 46 new road routes and adjusted
* The lowest price is 320,000 VND/m2.
147 road routes with the popular increase of
Nghe An
200,000 – 1 million VND/m2.
Edited by VietRees
* Cua Lo and Thai Hoa towns: the highest
Nha Trang
February, 2009 price is 6.2 million VND/m2 and the lowest
* The highest price is 18 million VND/ m2 (equal
price is 50,000 VND/m2.
to 2008’s prices) – the stretch from the South of
* Vinh City: the highest price is 30 million VND/
Tran Phu bridge to Ana Madra hotel (position 1,
m2 & the lowest price is 320,000 VND/m2.
road No.1, coefficient 1).

CONSTRUCTION MATERIAL MARKET
The price of some construction materials such as iron, steel, brick, etc has still been on the downturn as
Opportunity for everyone to
compared to the peak, currently, there are some types that have decreased by 50%. The raw material
build houses price has declined and this has made the construction bid price plummet. Although many contractors
Edited by VietRees have suffered the profit decrease to expect to sign many new contracts, the situation has still been quite
gloomy. However, the labor costs have tended to considerably increase by 5 - 10% as compared to the
previous time, depending on the main or secondary workers. Not only the sellers have been melancholy
about the gloomy purchasing power, the producers have also fallen into the sluggish situation in the past
months. The cement consumption within the first two months of 2009 decreased by 18 - 20% over the
same period last year although the companies have implemented a series of promotions and discounts.
The main reason is that these are the first months of the year and the current economic situation is
difficult, as a result, the consumption of construction material has declined. Currently, those who
purchase the construction materials have mainly been the people who have demands for building
houses due to the quite cheap costs.
It is forecasted that the domestic steel market will have no change until June, 2009 due to the plentiful
supply and the continuous production capacity. The steel prices during the first days of March, 2009 at
the factories have ranged from 10.5 - 10. 8 million VND/ton (excluding VAT).

STOCK MARKET
After the previous significant downward session, today, both
Two bourses slightly increase
bourses of the stock market in Vietnam have slightly increased.
at weekend
* At the HCM bourse, right after the opening time, the market
Edited by VietRees has shown the signs of going up when many share codes have
been bought. Although the volume of transactions is not high as
Chart Source: Vietstock
compared to the previous sessions but it has also been
Up to date: 13 March, 2009 sufficient to help the VN-Index reverse its direction and increase
by 1.54 points. During the consecutive order-matching time, the
transactions go down. VN-Index has still maintained the upward
movement, however, it has increased by only 1.33 points as
compared to the former session and closed at 252.34 points. The total trading volume has reached
nearly 10 million units. Until the last order-matching session to determine the closing price, VN-Index has
gradually got breathless. Ending the session, VN-Index has slightly risen by 0.43 points as compared to
the previous session to close at 251.44 points. The total trading volume on the market has reached 11.8
million units worth over 204 billion VND.
Closing the quite eventful trading week, VN-Index has had 4 upward sessions and 1 downward session.
As compared to the last week, VN-Index has increased by 5.74 points. The total trading volume has
averaged over 14 million units per session.
* At the Hanoi bourse, HASTC-Index has come back to the upturn when adding 1.2 points to close at
88.67 points. The total trading volume on the market has reached 6.3 million units worth nearly 108
billion.
After one trading week, HASTC-Index has also had 4 upward sessions and 1 downward session. As
compared to the last week, HASTC-Index has also increased by 4.08 points (from 84.59 points up to
88.67 points)

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REAL ESTATE MARKET FORECAST
* Note: Information on market forecast is only updated every 4 periods (after one month) by VietRees – Mar, 2009

General trends on the Ho Chi The transaction situation of the apartments, town houses and project ground bases in February saw the
better signs as compared to January although many companies have still operated perfunctorily. In
Minh City market
general, the market has seen a slight increase in the prices of project ground bases and apartments for
sale. However, this situation may not be stable because it only takes place partially.
According to VietRees, investors have tended to switch to buying low-price real estate such as
apartments, town houses and project ground bases with many reasonable reasons: (1) preserving
capital, (2) high expectation of the ability of price increases in the future when the other investment
channels in stock, currency and gold are considered to be unsafe in the period of the economic
recession, (3) Meanwhile, the bank interest rate is low, as a result, many investors have chosen the low-
price properties as the safest investment channel, (4) the supplies of the low-price property have still
been scarce; (5) for the low-price property at the present - when the market is frozen, there will be a faint
possibility that the prices will be lower in the medium and long-term future.
Some prosperous signs of the market in February include: (1) some investors reduced the selling prices
of apartments together with the attached program of supporting finance; especially according to the
forecast of VietRees, this price decrease will contribute to stimulating the spread of the price decreases
in the future, (2) the State’s policy of kicking the demands is gradually affecting the market, (3) the
market will have many choices, (4) investors and customers have been more careful in transactions, as
a result, the law of supply and demand would also take more effect.

Apartment market The price of the primary apartments has dramatically declined as compared to before (over 40%). This is
the positive signs to attract customers and ensure the success in trading in projects when there are only
a few projects offered for sale and the market has traded in dribs and drabs in the past time.
While the price of the retransferred high-grade apartments has somewhat increased as compared to the
past, although the successful transactions have been inconsiderable. According to VietRees, the
reasons include: (1) the investors have weekly increased the prices because they hope that the market
will prosper when there are some good signals from the market, (2) the previous prices have
dramatically decreased and when there are good signals, they do not accept the same losses as when
they sold out at the low prices, (3) some projects that are considered to be high-class have the lower
prices as compared to the projects with the prices newly announced by the investors in the recent time
although the prices have dramatically declined.
According to the statistics, the prices of the high-grade apartments transferred in February rose by 1%
as compared to January and the transactions have still been quite slow. The high-grade apartment
prices are expected to remain the old prices or slightly decrease in the next few months, especially when
the market has more supplies at low prices. The general difficulties of the economy has made the
income of the people go down and caused the bank interest rates to decrease. This has contributed to
increasing the demand for the low-price houses in the future.
The supply of the apartments belonging to the medium and low segment is fairly limited and there is
almost no new product, as a result, the market does not show many movements. According to the
statistics, the prices have also slightly increased by 1% - 2% as compared to recently.

Project ground base market Although the project ground base prices have gone down, they have still been very much higher than the
level that the people with the real housing demands expect; as a result, the successful transactions have
been very scarce. This segment has seemed to only attractive to the investors, not those who have the
demands for building houses to live in.
In February, the ground base prices at some local areas in District 2, 9, Binh Chanh, etc have shown the
signs of heating up because the people that receive the support for damages and compensation for the
site clearance in the project of Thu Thiem new urban area have required price increases. The premise
prices of the projects have been pushed up to the fairly high levels by the sellers such as Trung Son
residential area, Thai Son residential area 1 - 2, etc. According to VietRees, this can only be the virtual
phenomenon of kicking the demands at the areas.
It is not a new trend, however, it can be confirmed that not only buying the low-price houses to live in but
also investing in the low-price houses and ground bases has been the trend. The low-price project
ground bases distant from the heart of the city and located in the provinces such as Binh Duong, Dong
Nai and BR-VT have actually attracted buyers. According to VietRees, this is the form of conserving the
capital of the investors and expecting the price increases of the market in the future when the market is
frozen and there is a faint possibility that the prices will become lower in the medium and long-term
future.

The market will become more The new price premise is gradually being set up after the market has been frozen. According to
VietRees, the market will be more eventful when there are more supplies with the reasonable prices in
eventful when new supplies
all of the market segments (from high-class, middle-class to the common or for low-income people). The
appear with reasonable prices reasonable new price premise will attract the transactions.
The investors need to calculate the interest rates reasonably and develop the projects quickly. The more
reasonable prices will attract the investors when the other investment channels have been considered to
lack the stability and be unsafe in the current situation. In the short, medium and long term, the real
estate demand has been great. Therefore, according to VietRees, with a reasonable interest, the
investors’ prestige, the marketing methods aiming at the right target customers and the good customer
services, the investors will have a lot of chances to succeed.
VietRees - March, 2009

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Vietnam Real Estate Newsletter - No. 73, Week 2 Mar, 2009

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Vietnam Real Estate Newsletter - No. 73, Week 2 Mar, 2009