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  1. 1. Weekly Newsletter A49 Vietnam Real Estate Week 3, September The first weekly electronic newsletter issued to registered members, approximately 100,000 reads per month joining to develop the newsletter VietRees, a member of Market situation (p.2) Real estate foreign investment (p.2) Vietnam in the world (p.3) Real estate agents (p.3) Websites of real estate companies in Vietnam (p.4) Real estate projects and prices (p.5) Real estate supply for customer groups (p.7) Real estate legislation (p.8) Real estate market forecast (p.9) Construction material market last week (p.9) Stock market last week (p.9) This weekly newsletter is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning or interested in Vietnam real estate market changes. Although the information is selected, synthesized from all reliable sources, this newsletter is only for reference and VietRees is not responsible for the occurring damage. Please visit the website for further Vietnam Real Estate information. When individuals and organizations quote or publish the information from our newsletter, please cite the source VietRees. According to the statistics on registration for the newsletter, the subjects making reference to the newsletter includes real estate investors; companies or units of government performing management tasks, business marketing, consulting, broking, assessment, real estate finance, construction, banking, architecture, interior decoration; domestic and foreign press agencies; and full of professional investors or individuals who have demand for real estate throughout provinces and cities nationwide; typically Ho Chi Minh, Ha Noi, Da Nang, Can Tho, Hue, Nha Trang, BRVT, Binh Duong, Dong Nai, Ha Tay… We would like to say thanks to the sponsors and all of the readers. We expect to continue to receive your support as well as your comments to improve our newsletter. Free register for weekly newsletter: Please send your email to Sponsor and advestising: T: (08) 948 5574 - E:
  2. 2. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A49 Page 2 MARKET SITUATION Real estate speculators In late 2007 and early 2008, the speculators played a decisive role in heating up the real estate market. The transactions with speculation purposes have accounted for 60 – 90% of the total transactions on the withdraw market. Due to the high inflation, monetary tightening policy, high interest rates and increasing risks of Tuoi Tre – 16 Sep, 2008 speculation, most speculators have been obliged to withdraw from the market. The fact that overseas Vietnameses or foreigners are eligible to buy houses will not have significant effects on the market in the near future because the procedures have still been difficult. Currently, the construction costs have risen by 10 – 30% or even doubled as compared with the beginning of this year and this has pushed up the costs of the output. According to the experts, the real estate market will not have dramatic movements in the coming time due to the fact that the supply is new and the payable demands have not been improved yet. The recent movements have showed that property prices have had tendency to level off. Although the transactions and the property prices at some areas have been on a slight uptrend, the current transactions have been mainly affected by those who have the real housing demands and these seperate movements cannot warm up the market. Although the property prices at the CBDs of the big cities will remain high, meanwhile, the property prices in the areas that have improved infrastructures will continue to increase. But the general situation is that the market will still be quiet. According to optimistic investors, the market will be eventful again in early 2009 or in the end of 2009 at the latest. According to an expert, besides the supply and the demand, “the wisdom of the crowd” will have a great control on the real estate market. If the speculators rebuild this “wisdom”, the market can make a quicker recovery. The new property supply will still be short and the transactions will mainly focus on the ongoing existing projects. Collecting real estate The real estate prices, especially the prices of apartments and project land have dropped by 40 – 60% and are levelling off. In the meantime, the market has seen a phenomenon that small and private NLD – 17 Sep, 2008 investors and even project investors are collecting properties. The investors are hunting for the apartments and ground-bases of those who have been “holding” keeping properties thanks to the bank loans in the past time. Currently, these property-holders are unfit to hold their properties any longer, so they are obliged to sell the properties. Not only small customers but also big investors are silently collecting the apartments of these kinds. However, because these customers are using idle money, they are cautiously seeking and waiting for the apartments whose prices are lower than market prices. According to an expert, this situation is due to the law of market. When prices go down, there will be buyers. When the prices become more competitive, the buyers will take advantage of this to buy more. There also is the posibility that some overseas Vietnameses “walk a step ahead” and take advantage of market opportunities after receiving the information on extending the subjects of overseas Vietnameses eligible to own houses in Vietnam. REAL ESTATE FOREIGN INVETSMENT A new urban area to appear Vinh Long Provincial People’s Committee has licensed Sterling Capital Partners Asia (Pte) Ltd. Co. to survey the site of investment for Mekong City new urban area at My Hoa commune, Binh Minh suburban at Vinh Long district. The company will report the survey and the overall planning of the project. The Department of VIetRees – 15 Sep, 2008 Planning and Investment has cooperated with the authorized departments and branches to provide guidelines and necessary information for the company. VinaCapital to construct VinaCapital Danang Resort Limited Company (belonging to VinaCapital Group) shows that they will invest in the construction of JW Marriott Danang Resort of 5-star standards at Ngu Hanh Son District, Da a resort at Da Nang Nang. The project includes 271 guest rooms, restaurants, swimming pools, spas and conference rooms VietRees – 16 Sep, 2008 with a total investment of 60 million USD. The project is expected to be commenced in the middle of 2009 and completed in 2011. The company has chosen Marriott International Hotel Management Group to be the long-term manager of the resort. Ha Cau project offers villas RDLVINA Company - the sole sales representative for the project of housing area and Ha Cau trade center - shows that 62 villas will be offered for sale in the first stage. for sale The project covers a site of 4.6 hectares at Ha Cau ward, Ha Dong City and includes 100 villas, 5 blocks TheSaiGonTimes – 18 Sep, 2008 of 27 - 32 storey apartment buildings and 1 block of 20-storey commercial building comprising offices, supermarkets and cinemas. This project is invested by Hyundai RNC Construction Co., Ltd with a total investment of nearly 200 million USD and it is expected to be completed in 2011. Key economic zones in the According to Foreign Investment Bureau under the Ministry of Planning and Investment, until the second quarter, the key economic zone in the central has attracted nearly 469 million USD. Until August, the FDI Central attract increasing FDI has reached over 1.12 billion USD. Thua Thien Hue has always been the leading in the five localities in attracting FDI, surpassing Danang, Quang Nam, Quang Ngai, Binh Dinh, increasing from 298 million USD (in the first quarter) to 1 billion USD (in the end of the August). Until the end of the August, 5 provinces and cities in the region have 264 valid projects with a total registered capital of nearly 5.8 billion USD, averaging about 20 million USD for each project. Sponsor:
  3. 3. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A49 Page 3 Fields atracting most FDISource: General Statistics Office In comparison with the last month, oil & gas and heavy industry have still been the two leading fields in the list with increases in the number of projects and the total capital as well. In spite of a small investment, service has still been the field attracting most projects. VIETNAM IN THE WORLD Vietnam is one of the top 10 According to the ranking of United Nations Conference on Trade and Development, Vietnam stands in the top 10 countries that attracted the most investment by multinational companies in the period of 2007- countries in attracting FDI 2009. In a special report on Vietnam in August of this year, BCA (Bank Credit Analyst), a prestiged Edited by VietRees – Sep, 2008 independent Canadian organization judged that Vietnam is gaining the market share from China, Thailand and India in the fields of textiles, footwear and electrical components due to low costs. BCA also told that this would be a good time to invest in Vietnam. Price Water House Coopers – an international auditing and consulting organization – has put Vietnam first in the top 20 emerging countries and it has also shown that Vietnam held a great attraction to investors, especially manufacturing industries including auxiliary ones. Therefore, in the context of inflation and gloomy global financial market, Vietnam has still attracted record foreign direct investment inflows. Indirect investment has also come back with 46 foreign investment funds specializing in investing in Vietnam and mainly aimed at real estate and securities market. The next thing to do is to improve administrative procedures; hasten the FDI disbursement and make the real estate and securities market transparent and wholesome in order to consolidate the confidence of investors. REAL ESTATE AGENTS UIDC chooses architectural Urban Infrastructure Development Investment Corporation – UDIC will choose the project of TTAS - Architecture Construction Consulting JSC for the complex of 29-storey apartment building and service design for the project N04 on Tran Duy Hung Street in Dong Nam urban area, Hanoi with a site of 10,279 m2. Kinh Te Do Thi – 15 Sep, 2008 The trading center will be on from the 1st to the 6th storey. The apartments will be on from the 7th to the 29th storey. It is considered to be an architecture design that flexibly meets the distribution of using functions and creates a maximum approach to the nature. Sacomreal–S signs a brokerage Seafood JSC No. 4 signed a brokerage contract with Sacomreal Service (Sacoreal-S) to sell Orient Apartment. contract to sell apartments The project of Orient Apartment is located at 331 Ben Van Don Street, Ward 1, District 4, HCMC on a VietRees – 16 Sep, 2008 site of nearly 3,300 m2, including two blocks of 17 storeys with 180 apartments scheduled to be put into use in late 2009. This contract is executed within 6 months with the number of 100 apartments. BMC – Hung Long pledges BMC - Construction Materials & Commercial Erection Company has shown that the project of high-class apartments BMC - Hung Long ensures its the construction process and will open in late 2009. The to hand over its project before company has built the sample apartments since the beginning of the June, 2008 at the project and at the deadline Public Benefit Service Company located on Dao Tri Street, Phu Thuan Ward, District 7, HCMC. Dien Dan Doanh Nghiep – 17 Sep, 2008 The project of BMC - Hung Long high-class apartments is located at 60/7 Huynh Tan Phat Street, District 7, including apartments, villas, townhouses, playground… With the selling prices of 18 - 22 million VND/m2, the whole project has been sold out before Lunar New Year 2008. Dat Xanh opens its branch Dat Xanh Real Estate Construction Service JSC opened the Branch Office My Phuoc 3 at Thoi Hoa th commune, Ben Cat suburban district, Binh Duong on September 15 , 2008, which helps make its real at Binh Duong estate investment and business at My Phuoc more convenient and quicker. VietRees – 17 Sep, 2008 In the opening week, Dat Xanh has a promotion program for the clients who buy My Phuoc ground th th bases from Sept. 15 to Sept. 20 , 2008 in the whole transaction system. Concurrently, the company also announced the decision on the recognition of Dat Xanh as a member in the network of real estate transaction centers of Housing Management Bureau. Hai Dang seeks design for Hai Dang Investment JSC has started the competition of architectural design for the project of Lighhouse complex in Nha Trang with a prize worth 25,000 USD. Lighhouse Lighthouse Complex has an area of 6,500 m2 and a height of 36 storeys. The project includes high-class TheSaiGonTimes – 18 Sep, 2008 trading service center, 4-star hotel, apartments and offices for lease. The total investment is nearly 100 million USD. It is expected to be completed and put into use in 2012. Sponsor:
  4. 4. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A49 Page 4 Websites of real estate companies in Vietnam Property developers Brokerage Evaluation Ho Chi Minh Ho Chi Minh AREV - Company 585 - An Gia - Hoang Quan - Company 584 - ACBR - Vietland - An Phu - Dat Xanh - VVFC - BCCI - Dia Loi - Daewon - Dat Cat - Construction Him Lam - FICO – Ho Chi Minh Hoang Anh Gia Lai - Kim Son - CIC8 - Linh Phong Conic - Phuc Duc - Coteccons - Nam Long - Hung Phu - Cosaco - Phu Long - Hung Thinh 2 - Hoa Binh - Phu Quoc Land - Hoang Quan - Hai Thanh - SacomReal - Intresco - Toan Thinh Phat - Sadeco - Loc Dien – Resco - Nova - Thai Thinh Capital - Phat Hung - Ha Noi Thu Duc House - Tan Dien - Constrexim - Phu My Hưng - Van Hung Phu - Cavico - Van Phat Hưng - HANCIC - Vietnam Land SSG - Ha Noi HUD - Incomex - Cland - Ha Noi Dong Do - FPT Land - Phu Thai Group - Architect and Interior Decoration C.E.O - Petrowaco - Ho Chi Minh Gia Tue - Petrolimex – A2 Visualization - HUD - Cat Moc - HDB Viet Nam - Research Le Do - www.model& Keangnam – CBRE - Nha Vui - Nam Cuong – Savills Viet Nam - Nha Viet - Song Hong Land - VietRees - Nha Dep - Vinaconex – Pho Xinh - Vincom - Consulting Viet Hung - CBRE - Ha Noi Dong Duong - ACT - Other cities Eden Real - ADKientruc - Becamex IDC - Indochina Land - Ashui – Biconsi - Long Gia Khang - Kien Truc Ha No - Tuan Chau - Savills Viet Nam - GNSVINA - Vina Capital - Company 579 - VietRees - Duc Manh - Sponsor:
  5. 5. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A49 Page 5 REAL ESTATE PROJECT AND PRICES Hong Thinh Investment Construction - Commerce Co., Ltd. is completing the preparation procedures for Hong Thinh high-end villa area commencing the construction of Hong Thinh villa area on a site of 4.3 hectares at Phu Xuan commune, VietRees – 15 Sep, 2008 Nha Be suburban district, HCMC. The project includes one national-standard school and 60 single villas or duplex villas that each features a private cark park basement and necessary conveniences. Two more buildings at Saigon Keppel Land Watco I Co. Ltd has shown that Saigon Centre will be developed into a financial centre with two buildings of 66 storeys and 88 storeys that include high-class retail commercial areas, grade-A Centre offices, 5-star hotels, observation towers and museums. Thanh Nien – 16 Sep, 2008 People’s Committee of HCM City has licensed Urban Transport Service Co. of Tan Binh District to invest Tan Binh traditional market and in the construction of Tan Binh trade and service center at the land plot 172-174M on Ly Thuong Kiet trade center to be constructed Street, Ward 8, Tan Binh District. VietRees – 17 Sep, 2008 Meanwhile, the Committee has also guided Department of Architecture-Planning and the People’s Committee of Tan Binh district to finish the technology infrastructure in order to serve the construction investment project of Tan Binh trade-service center and Tan Binh traditional market. The construction investment project of Tan Xuan – Hoc Mon wholesale market invested by HOTRACO Planning the project of Tan Xuan has been licensed by HCM city People’s Committee to adjust the planning of service areas and public - Hoc Mon wholesale market service areas. VietRees – 19 Sep, 2008 Accordingly, 18-storey service area is built on a site of 1.2 hectares. Four bottom storeys include motels, eating & drinking stores, post offices, banks, transaction offices and etc. The remaining storeys include mainly apartments used for the resettlement. High-grade apartments in HCMC, the percentage increases and decreases in apartment prices over the previous period (month) Prices are forecasted to see a slight increase of 2% in August, 2008 as compared with July, 2008 VietRees – Aug, 2008 Announced prominent real estate developments during the last 2 weeks* Week 2, September 2008 Week 3, September 2008 Ho Chi Minh City Thanh Loc Apartment Building (Dist.12), Truong Tho Hong Thinh Villa Area (Nha Be), Saigon Center Financial Apartment Building (Thu Duc) Center (Dist.1), Tan Binh Trade Center, Tan Xuan Service Area (Hoc Mon) Other Areas Tourism zone & Vina Universal film studio (Quang Ngai), Mekong City new urban area (Vinh Long), JW Marriott Son Tinh tourism zone (Quang Ngai), Vimeco Complex Danang Resort (Da Nang) (Ha Noi), Allzeboo resort (Phan Thiet) Approved prominent real estate developments in HCM City* August September Housing, apartment, residential area Truong Thanh Ward – VietNam House HA (Dist.9), 7/4A Phu Thuan Ward HA (Dist.7), Tan Kien Town ReA (Binh Kha Van Can ReA (Thu Duc), 13E Phong Phu RA (Binh Chanh), Thanh My Loi B RA (Dist.2), Phuoc Thien RA Chanh) (Dist.9), 99 Ben Binh Dong AP (Dist.8), Nhon Duc –Phuoc Kien RA (Nha Be) Office, commercial Hiep Phu Ward – Hiep Phu Gia Co. office building, 34-35 Tan Thanh Ward complex building (Tan Phu), C6/27 Pham Ben Van Don complex (Dist.4), 89A Nguyen Dinh Chieu Hung commercial center (Binh Chanh) office building (Dist.3) * Note: RA=Residential Area, AP=Apartment Building, HA=Housing Area, RuA=Reurban Area, TA=Tourism Area, IA=Investment Area, UA=Urban Area, ReA=Resettlement area Websites of properties in Vietnam Ho Chi Minh Ha Noi Other cities Blooming Park - Viglacera Tower - Cozyvill - Saigon Paragon - My Dinh – Me Tri RA - Flamingo Dai Lai - Dragon City - Bac An Khanh RA - Van Phu township - Preche - Ha Noi Plaza Hotel - Dam Vac Golf - SaigonPearl - Phap Van – Tu Hiep RA - Sanctuary - V-Star - Ho Tram Strip - Time Square - Sai Gon Sunbay - The Everrich - Other cities Eden Lagi Resort - Tan Da Court - Furama Resort - Van Quan – Yen Phuc township - Lancaster - Sai Gon – Mui Ne Resort - Quoc Te Do Son - The Vista - Sunspa ResortVietnam - Sponsor:
  6. 6. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A49 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 District (m2) VND/m2) +/- Apartment building – HCMC The LandCaster 1 120 84 Binh Minh 2 108 18 Cantavil 2 98 33 + Van Do 4 50 24 + Estella, Dist.2 V- star, Dist.7 Sky Garden 3, Dist.7 Hung Vuong Parkson 5 131 30 - * 148m2 – 2,150 USD/m2 * 97.6m2 – 22 million VND/m2 * 89m2 – 22.5 million VND/m2 Hoang Anh 2 7 118 16 * 98m2 – 30.6 million VND/m2 E-Home 9 74 8.1 Le Thanh BTA 68 11 Dat Phuong Nam BTH 104 27 New SaiGon NB 121.4 22 Phu My Thuan NB 93.5 9.5 + Botanic PN 109.5 32.9 + Sunshine TD 54.5 9.8 Development land lots – HCMC Blooming Park, Dist.2 Phu My, Dist.7 The Everich, Dist.11 Thanh My Loi – P.Nhuan 2 140.5 30 + * 115m2 – 29 million VND/m2 * 82m2 – 23 million VND/m2 * 119m2 – 2,100 USD/m2 * 135m2 – 31million VND/m2 * 151m2 – 1,850 USD/m2 The Ky 21 2 100 23 + * 117m2 – 25 million VND/m2 Direct contact with the investor1 Him Lam – Kenh Te 7 100 36 + Phu My - Van Phat Hung 7 132 22 Phu Loi – Hai Thanh 8 90 11.5 Gia Hoa 9 100 11 + Khang Dien 9 120 10 - Dai Phuc BC 100 35 Vinh Loc B BC 114 8 Apartment building - Ha Noi Doi Nhan BD 106 22 + Preche, Dist.2 Panorama, Dist.7 Saigon Pearl, B.Thanh Keangnam BD 107 42.5 * 147m2 – 2,222 USD/m2 * 144m2 – 42.7 million VND/m2 * 90m2 – 51 million VND/m2 Chelsea Park CG 100 27.5 * 154.5m2 – 2,360 USD/m2 * 151m2 – 48.3 million VND/m2 * 140m2 – 52.9 million VND/m2 Lang Ha DD 172 27.5 - Linh Dam HM 78 14.5 Phap Van HM 74 12.2 CT2 Van Khe TX 118 8.8 - Development land lots – Other provinces My Phuoc 3 BD 300 1.8 + Rach Bap BD 100 0.95 Khang Linh BR-VT 224.8 6.2 - BMC Hung Long, Dist.7 The Manor, B.Thanh Wind Hill BR-VT 180 4.3 The Vista, Dist.2 * 101m2 – 1,700 USD/m2 * 79.3m2 – 19.5 million * 80m2 – 1,800 USD/m2 HUD DNI 144 4.7 + * 152m2 – 2,000 USD/m2 VND/m2 * 101m2 – 2,550 USD/m2 Thanh Hung DNI 150 3.5 * 137 m2 – 21 million VND/m2 Long Kim 2 LA 88 4.5 + 1 Kien A Investment & Services Co., Ltd. - An Phu Ward, District 2, HCMC - Tel: (84.8) 740 6688, Fax: (84.8) 740 6949 Danang: 225 Huyen Tran Cong Chua - T: (84) 511 836 216 * HCMC: 390 Nguyen Cong Tru, D.1 - T: 8 821 7509 * Hanoi: No.6-1D Trung Yen New Town, Caugiay - T: 4 783 1598 Sponsor:
  7. 7. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A49 Page 7 PROPERTY SUPPLY FOR DIFFERENT TARGETS OF CUSTOMERS Social wefare houses for worker * Saigon Construction Corporation investor two apartment blocks high 5-storey for workers in Quarter 1, Linh Trung Ward, Thu Duc Dist, HCMC. The is . 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 storeys. th * Morning of August 28 , 2008, the Ministry of Construction has signed a memorandom 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. Real estate for the low income * Sai Gon – Gia Dinh Real Estate Company and Hoa Binh Phu Yen Company build Thoi An Apartment Building in District 12 with 1,000 apartments. VietRees * Construction Co. No.8 (CIC8) will invest in construction of 10,000 Keppel Land apartments & Tien Phuoc Co. will build a resettlement area including 1,900 apartments at An Phu, Binh Khanh, District 2. * HCM City People’s Committee will advance 50.5 billion to carry out the project of Vinh Loc B, Binh Chanh residential area for resettlement with hundreds of townhouses and 40 apartment blocks. * Construction Co. No.5 will invest in construction of 500 apartments at Ward 22, Binh Thanh District. * HCM City Cooperative Alliance has developed its construction investment project of housing area at Le Minh Xuan Commune, Binh Chanh Suburban District on a site of 67.49 hectares. * 50% of the house reserve at The Splendor apartment area (Go Vap Dist.) will be intended to serve resettlement demand in the district. * Dat Lanh Co. will offer 1,500 apartments to the market with the prices of 500-700 millions VND/unit. * People‘s Committee of HCMC has approved the project of the resettlement area on a site of 55.24 hectares at Dong Nam Cu Chi industrial - residential area in Cu Chi. * House management of Dist.1 is assigned to construct the resettlement area at 7/4ª Kha Van Can, Thu Duc district. * In early 2010, Hai Thanh company will complete 352 apartments of Hai Thanh 1 resettlement area project, Binh Tan District for the civil servants at Binh Tan District. * People’s Committee of Binh Chanh has just cooperated with Hung Vuong university Investment & Development JSC to construct resettlement area at Tan Kien commune, Binh Chanh suburban district. * People’s Committee of HCM City has just licensed Cho Lon Real Estate JSC to invest in the construction of the apartment buiding 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. Dwellings for overseas Vietnamese The Committee for overseas Vietnamese in HCMC has showed that there have been 130 overseas Vietnamese buying houses, mainly in HCMC. and foreigners Those who brought houses are those who come back to the country for their long term and direct VietRees investment, scientists, culture researchers invited to come back to the country to become experts and repatriating overseas Vietnamese. To buy houses, beside documents verifying priority subjects, the buyer must present their passport (issued in Vietnam). In the case that house buyers bring foreign passports, they must have certificates of Vietnamese nationality or documents confirming their losing Vietnamese nationality, or certificate of citizenship registration. Sponsor:
  8. 8. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A49 Page 8 REAL ESTATE LEGISLATION The Ministry of Construction has promulgated Circular 16/2008/TT-BXD to provide guidelines on Circular on bearing capacity inspection, certification of the conditions that ensure the allowable bearing capacity and certification of and construction quality suitability in terms of the quality of construction works. VietRees – 15 Sep, 2008 According to the Circular, the public works that gather the people from the grade III and upwards (including movie theaters, cinemas, stations, hospitals, schools, apartment buildings and etc) are bound to be confirmed to ensure bearing capacity before coming into use. As for the new construction works, Certification bodies are in charge of drawning up the drafts for inspecting and assessing the suitability of the quality in accordance with the sphere and the content of certification for the agreement of the investors and the owners. The inspections can be carried out when starting the construction of certified work items. After every inspection, Certification bodies must promptly send the documents informing the inspection results to the investors and the parties involved. As for the new construction works, Certification bodies are in charge of drawning up the drafts for inspecting and assessing the suitability of the quality in accordance with the sphere and the content of certification for the agreement of the investors and the owners. The inspection content may include inspecting the quality of designs and construction works through the documents that help complete the works. If neccessary, the inspection and assessment of the quality of the projects can be carried out through experiments and surveys. To ensure the independence and the objectivity, Certification bodies should not take part in inspection, design, construction and supply of construction materials and equipments, management of projects and supervision of the construction for the certified projects and work items. Meanwhile, they must be an independent organization. This circular replaces the Circular 11/2005/TT-BXD and applies to the organizations and individuals involved in the certification of conditions that ensure bearing capacity and certification of suitability in terms of the quality of construction works located in Vietnam. This circular takes effect after 15 days since the date of its publication on the Official Gazette. The latest official document promulgated by the Ministry of Construction provides the guidelines for Foreigners with at least 3-month foreigners on transferring the right of apartment leasing. Accordingly, to get permission for house lease stay can rent houses in Vietnam, foreign organizations and individuals have to present the residence permits valid for at least Kinh Te Do Thi – 16 Sep, 2008 3 months and their passports when carrying out the procedures for leasing houses. Those who have not yet been allowed to enter Vietnam are ineligible to rent houses in Vietnam. The cases of signing lease contracts with foreign organizations that have not yet been allowed to enter Vietnam are considered to violate the law. In these cases, they are not also allowed to authorize domestic companies to sell the right of apartment leasing. Free register for weekly newsletter: Please send your email to * Sponsor and advestising: T: (08) 948 5574 - E:
  9. 9. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A49 Page 9 REAL ESTATE MARKET FORECAST * Note: Information on market forecast is only updated every 4 periods (after one month) by VietRees General trends on HCM market In general, the situation of real estate transactions in August is slowler than July due to the psychology of keeping off buying houses in lunar July. However, selling prices have come back to the uptrend. Customers have more and more options to buy the properties whose prices are getting closer to their real values. According to the surveys of VietRees at the brokerage centers and transaction centers in HCMC, most of them have had only fews customers in HCMC. However, the prices of the real estate advertised for sale have levelled off or seen a slight decrease of 2 - 5% as compared with the last month. This reason of this price increase has been explained that construction materials prices in the past period have gone up dramatically, inflation has risen, the actual incomes of the people have dropped and most importantly, the sellers have been expecting the recovery of the market; as a result; the prices have become higher. Increasing prices have been recorded at the projects in good locations and ensure the progresses of the construction (the investors are continuing construction) and especially at the projects in which the houses are about to be handed over or the infrastructures have been somewhat completed and the construction speed is prompt. Apartment market The sale and purchase of apartments or house on an installment plan in August, 2008 has drawn interest from the buyers with real demands. Due to the fact that the banks have tightened real estate loans, many investors have flexibly implemented the way of selling houses on installment plans for many years to raise the capital for their projects. According to the recent market surveys of VietRees, in addition to the previous factors such as location, prices and convenient traffic; payment method and the money to pay in the first installment when purchasing project houses are also drawing a lot of interest from buyers. The apartments with small areas of 50 - 80 m2 and the value of below 600 - 800 million VND are seeing a sign of decreasing attraction. The reason is that the supply is significantly increasing while the inflation and the bank interest rates are rising sharply, therefore, the rent is not as high as the bank interest. Tenants now have more options than before. As a result, many apartments are left vacant because there is no tenant. The market of project land plots Similarly to July, on the whole, land prices have seen no decline and in some cases increased. The sellers think that the situation has become less difficult and they will not accept any more loss. Therefore, they will not try to sell properties at all costs like before. Land prices of some projects located in Nha Be, Dist.2, Dist.7 have risen by 0.5 to 2 million VND/m2. Transactions have appeared on the market although they are much less than in the beginning of the year. CONSTRUCTION MATERIAL MARKET Steel prices continue to go down Because the consumption of construction steels has been falling by over 50%, the prices of steel ingots in the world’s market have plummeted by nearly 200 USD/ton as compared with the last month. As a Edited by VietRees result, the steel prices in the domestic market have ranged only from 16.5 to 17 million VND/ton. In the past months, the steel prices in HCMC market were usually 1.5 – 2 million VND/ton higher than the selling prices at factories. But now, the difference in price is about 500,000 VND/ton. Rolled steel ø6, ø8 is only 17,500 VND/kg, rising by 1,300 VND/kg as compared with early September. The price of bar steel ø10 is 125,000 VND/bar (falling by 15,000 VND/bar), ø12 is 179,000 VND/bar (falling by 13,000 VND/bar), ø14 is 242,000 VND/bar (falling by 18,000 VND/bar), ø16 is 316,000 VND/bar (falling by 25,000 VND/bar). Although the steel supply still continues to increase, most producers of construction steel are facing the slow consumption of the output. However, this situation is only temporary. The downturn of the steel market at home and abroad is a good opportunity for enterprises with financial potential to keep hoarding steel in order to serve production demands when the output market becomes more evenful. STOCK MARKET Stock indexes soar on 2 bourses The stock market on weekend days has witnessed evenful transaction sessions with a remarkable Edited by VietRees recovery of VN-Index after a series of gloomy days. Chart source: Vietstock Right at the first order-matching phase, blue-chip Up to date: 19 Sep,2008 stocks have come back to the considerable amount of buying orders at ceiling prices. Vn-Index has added 14.86 points (or 3.54%) to close at 434.14 point-level. The trading volume have rocketed with over 12.2 million units worth more than 428 billion VND. The consecutive order-matching phases have continued to happen evenfully, Vn-Index has shot up to 19.79 points with over 22.48 units. Vn-Index has closed at 439.06 points with an increase of 19.78 points(or 4.72%) as compared with the previous session. Ending the session, there are 25.527 million units traded successfully with a total value of approximatly 856.7 billion VND. On Hanoi bourse, HaSTC-Index has added 9.66 points (or 7.1%) to close at 145,74 point-level. The total trading volume has gained 11.6 units worth 325.2 billion VND. Free register for weekly newsletter: Please send your email to * Sponsor and advestising: T: (08) 948 5574 - E: