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  1. 1. Weekly Newsletter A53 Vietnam Real Estate Week 3, October 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. Readers can print or save this newsletter on your computers to review when needed or transfer it to others. However, think of environment when you want to print it out. Free register for weekly newsletter: Please send your email to Sponsor and advestising: T: (08) 948 5574 - E:
  2. 2. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A53 Page 2 MARKET SITUATION Vietnam real estate market Many delegates attending the International Real Estate Federation (FIABCI) at the area of Asia - Pacific on the seventh time that has just been held in Ho Chi Minh City have assessed that the real estate still very attractive and full market in Viet Nam still is full of potential and is very attractive. of potential A total area of 150,000 m2 at 15 centers and commercial areas is too small as compared with the SGGP – 13 Oct, 2008 current demand, especially when the retail market is very hot with an increasing number of international tourists. Additionally, in Ho Chi Minh City, there are only about 6,950 hotel rooms that meet 3 - 5 star standards and the number of serviced apartments in Ho Chi Minh City are also limited. Therefore, according to many opinions, the investment opportunities in the real estate industry in Viet Nam in general and in Ho Chi Minh City in particular for the foreign enterprises are still quite good, especially when the policies of the government is becoming easier and the investment growth is good. In addition, Ho Chi Minh City still needs a large number of welfare apartments and housing areas. Although the real estate market is full of potential, Vietnam is facing many challenges. According to some experts’ prediction, the real estate market can recover with its quickest speed in late 2009 because the current housing demand of people is very high. However, most of them have to rely on the support of the banks. In addition, the legal system in the management and development of the real estate market has not yet completed; the administrative procedures are too complicated; the implementation of the projects takes a long time and the increase in expenses lead to the price increases of the properties. Although the real estate market has currently remained at unchanged prices, investors and customers are still expecting further price decreases. As a result, it is difficult for the market to recover in the near future. Bankruptcy risks of real estate According to a survey of VietRees at the brokerage centers and transaction centers in Ho Chi Minh City, all of them have seen the state of few customers and the substantial reduction in the volume and the enterprises scope of activities. Most of them have only operated moderately. In the past, although many trading Vneconomy – 17 Oct, 2008 centers changed into trading floors, the transactions have still had no sign of prosperity. The transaction situation of apartments, townhouses and project land continues to drop (the price decrease has been over 50% as compared with before) and the prices for sale are leveling off. In fact, currently, the capital source of the enterprises investing in the real estate business has been unchanged. The basic reason is the current capital sources have been mobilized with the maximum capacity. Even so, in order to limit the negative impacts of the financial crisis towards VN’s economy, the government has directed the State Bank of Viet Nam to have measures of closely supervising the loans for investment, especially the investments in the high-risk fields such as real estate. The housing demand of people is still high, but most of them still need the support of the banks. Therefore, the fact of maintaining the policies that tighten the management of the real estate market together with the high interest rate is not only the difficulty of enterprises but also the barrier in their accessing the bank loans for the people who have real demands to buy homes. With the current context, according to experts’ prediction, the enterprises will have to try to manage themselves and wait in the short term. However, many real estate enterprises must face the actual risks of bankruptcy in the long term. REAL ESTATE FOREIGN INVETSMENT Viet Nam invests in a modern On October 12th, 2008, the project of “Saythany Urban Village” with a total investment of 25 million USD urban village in Laos was commenced at Saythany suburban district, Vientiane city, Laos. The project is 14 hectares in size, including 100 villas, one 9-storey-hotel, one 5-storey trade center and other welfare projects. The project Vnagency – 13 Oct, 2008 is expected to be put into operation in 2010. Three cooperative shareholders including Vientiane city, XomMai Trading Co., Ltd. (Laos) and Hong Thai Construction & Consulting Co., Ltd. (Vinh city, Viet Nam) will establish Vieng – Vinh Development & Investment Cooperation Co., Ltd to execute this project together. Mapletree to construct a MapleTree Investments Pte. Ltd. (Singapore) signed a land lease agreement with Becamex IDC Corp. on October 14th, 2008 to develop a technology zone for business & production on a site of 75 hectares technology city in Binh Duong in Binh Duong industrial - urban area with a total investment of 400 million USD. TheSaiGonTimes, 14 Oct, 2008 The project is used for the enterprises operating in the fields of processing software, developing high- tech software, researching and developing products etc. The project is expected to commence in 2009. One more resort in Hue invested On October 14th, 2008, Thua Thien - Hue Provincial People's Committee licensed Dream Palace by Korea company (Korea) to invest 32 million USD in the construction of Dream Palace Resort at Chan May- VietRees, 15 Oct, 2008 Lang Co economic zone. The project is built on a site of approximately 27 hectares, including villa type motel areas, service areas, sport areas and entertainment areas with the criterion of being friendly with the environment. Sponsor:
  3. 3. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A53 Page 3 Total FDI in Viet Nam until September, 2008 Tong Cuc Thong Ke Until September, 2008, the whole country has had 885 new FDI projects licensed with a total registered capital of 56.3 billion USD. In which, the field of industry & construction accounts for 57.5% of the total registered capital. VIETNAM IN THE WORLD th th VN dropped in the rankings of As compared with last year, VN has dropped by 2 ranks from the 68 rank to the 70 on the board a global competition order ranking the global competitive ability of 2008 announced at World Economic Forum (WEF) on October th 8 , 2008. Edited by VietRees WEF will give marks and rank the economies based on the announced statistical data and opinion polls of the experts. The United States has still been leading because their economy has kept a high productivity and creative ability together with the ability of allocating resources to the most effective areas. The next countries are Switzerland, Denmark, Sweden, Singapore, Finland, Germany, Netherlands, Japan and Canada. Among East Asian countries, Vietnam has only ranked above Philippines and Cambodia (Laos and Myanmar have not appeared on the ranking board). The report assesses that Vietnam has exceeded the black round of the group 1 and is moving to Group 2. The strength of Vietnam is the stability of macro economy, health care - primary education and the market scale. The weaknesses of Vietnam are the infrastructure, training and university education and the Technology Readiness Level. Vietnam has 22 factors that rank it 100th or lower and 12 points that place it 40th among 109 detailed criteria used for evaluation, allocation of points and ranking. REAL ESTATE AGENTS On October 10th, 2008, after 2 months of carrying out the pilot operation and fully preparing the material Century Group opens a real facilities, Century Group officially opened its real estate transaction center (the branch Hai Ba Trung) at estate transaction center 304 Tran Khat Chan Street. At the transaction center, customers will be provided real estate package Ha Noi Moi – 10 Oct, 2008 services such as transactions (purchase, transfer, lease and purchase-lease), brokerage, consulting, assessment, advertising, management - exploitation and auction in terms of real estate. On this occasion, Century Group has also officially announced the operation of Century Valuation JSC formed from the valuation center of Century Group. In the morning of October 13th, 2008, Thu Duc Housing Development JSC (ThuducHouse) showed that Hoa Binh Corporation wins Hoa Binh Corporation (HBC) was chosen as the contractor of the bid package No.3 with the contents as many contracts in succession follows: executing the construction & erection, completing the body part of TDH - Truong Tho apartment VietRees – 16 Oct, 2008 building project at Truong Tho ward, Thu Duc district, Ho Chi Minh City. Previously, Hoa Binh was also chosen as the main contractor to execute CR5 and CR8 plots located in the project of Semicircle Lake area, Phu My Hung with the height of 7 stories, the value of nearly 460 billion VND and the construction time of 12 months. Binh Dinh: One more tourism In the morning of October 16th, 2008, Investment Promotion Center of Binh Dinh province showed that Tan Nghia Construction - Investment Co., Ltd. (HCMC) was licensed to develop the construction project of 70 billion VND investment project of the tourism site at No.3, Song Cau - Quy Nhon tourism service line. SGGP – 16 Oct, 2008 Tan Nghia Quy Nhon service-tourism site owns an investment of 70 billion VND, including types of resort-tourism areas and introducing the cultural features of Binh Dinh together with eco-tourism, camping, relaxing, eating and drinking. Bitexco Group and Huyndai E&C Co. signed a main bid package contract worth 93 million USD (which Starting the project of Bitexco belongs to the project of Bitexco Financial Tower) on the evening of October 16th, 2008. 68-storey tower Bitexco Financial Tower is located at No.1 Ho Tung Mau street, district 1, Ho Chi Minh City. The tower is Thanh Nien – 17 Oct, 2008 262.5m high, including 68 storeys and 3 basements, built on a site of approximately 100,000 m2. It is expected to be completed in 2010. BIDV provides credit facilites On October 17th, 2008, PFV Investment and Commerce JSC (the investor), Bank for Investment and Development of Vietnam (BIDV) – Quang Trung branch (the agent providing credit services), CBRE for the tenants of apartments estate investment and consulting company (the agent marketing and trading) – have officially signed a Dan Tri – 17 Oct, 2008 contract for cooperation to support the customers in borrowing loans to pay for leasing apartments which belongs to the project of trade center and Vincom Park Place high-end apartments for lease at 114 Mai Hac De Street, Le Dai Hanh ward, Hai Ba Trung District, Ha Noi city. CBRE has been mandated to be the business agent for leasing the apartments of the project. The branch of BIDV at Quang Trung will lend its capital to the customers who have registered for leasing the properties in the projects with the loans of up to 70% of the total expense of leasing an apartment and the maximum duration for the loans is 15 years. It is expected that on October 23rd, 2008, PVF will officially introduce and receive the registrations of leasing Vicom Park Place apartments. Sponsor:
  4. 4. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A53 Page 4 Websites of real estate companies in Vietnam Property developers Brokerage Evaluation Ho Chi Minh Ho Chi Minh AREV - Company 585 - An Gia - Hoang Quan - Company 584 - ACBR - Vietland - An Phu - Dat Xanh - VVFC - BCCI - Dia Loi - Daewon - Dat Cat - Construction Him Lam - FICO - Ho Chi Minh Hoang Anh Gia Lai - Kim Son - CIC8 - Linh Phong Conic - Phuc Duc - Coteccons - Nam Long - Hung Phu - Cosaco - Phu Long - Hung Thinh 2 - Hoa Binh - Phu Quoc Land - Hoang Quan - Hai Thanh - SacomReal - Intresco - Toan Thinh Phat - Sadeco - Loc Dien - Resco - Nova - Thai Thinh Capital - Phat Hung - Ha Noi Thu Duc House - SacomReal - Constrexim - Phu My Hưng - Tan Dien - Cavico - Van Phat Hưng - HANCIC - Vietnam Land SSG - Ha Noi HUD - Incomex - Cland - Ha Noi Dong Do - FPT Land - Phu Thai Group - Architect and Interior Decoration C.E.O - Petrowaco - Ho Chi Minh Gia Tue - Petrolimex – A2 Visualization - HUD - Cat Moc - HDB Viet Nam - Other cities Nha Vui - Keangnam - Dieu Hien - Nha Viet - Nam Cuong - Thien Loc - Nha Dep - Song Hong Land - Pho Xinh - Vinaconex - Research Vincom - CBRE - Ha Noi Viet Hung - Savills Viet Nam - ACT - VietRees - ADKientruc - Other cities Ashui – Becamex IDC - Consulting Kien Truc Ha Noi - Biconsi - CBRE - Tuan Chau - Dong Duong - Other Countries GNSVINA - Eden Real - Architects 61, Sing - Company 579 - Hop Nhat - DP Architects, Sing - Duc Manh - Indochina Land - SWA, USA - Long Gia Khang - Ong&Ong, Sing - Savills Viet Nam - RSP Vietnam, Sing - Vina Capital - Surbana Vietnam, Sing - Sponsor:
  5. 5. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A53 Page 5 REAL ESTATE PROJECT AND PRICES Constructing RAAS high-end According to RAAS Group, the project of RAAS eco-tourism site (also called Resort and Spa area - thousands of stars underwater) in Dam Bay, Nha Trang will be built following 5-star standards to serve eco-tourism site Miss World 2010 contest celebrated in Nha Trang. Kinh Te Do Thi – 14 Oct, 2008 The tourism site can serve over 5,000 visitors per day on a total area of approximately 569 hectares, including 2,000 hotel rooms underwater, 20 floating restaurants, underwater clubs, 12 seaside resorts and the Miss World village area. The village area includes 195 units showing the features of each nation together with other facility service systems. Ha Noi about to have one more The People's Committee of Ha Noi City has decided to transform the old racecourse area and the green new urban area tree park at Dai Kim, Hoang Mai, Thanh Liet commune, Thanh Tri into a functional-urban area of 196 hectares, bordering Cau Buou new urban area. Ha Noi Moi – 15 Oct, 2008 The project includes high-rise building areas, offices, green-tree parks, religious works, national security works and a 32 hectares air-conditioning lake. Thanh Hoa: Constructing an eco- In the morning of October 15th, 2008, the Management Board of Nghi Son economic zone announced the detailed planning of Nghi Son island eco-tourism site - Nghi Son economic zone, Thanh Hoa tourism site in Nghi Son island province with a total area of 100 hectares. Kinh Te Do Thi – 16 Oct, 2008 The project includes: central areas (4 blocks of high-rise motels, 23 low-rise motels with swimming pools and garden yards, health care centers, restaurants, conference houses, swimming pools and etc); ethnic culture villages; forest planning area for mountain climbing, camping; green tree park areas, seaside resorts and etc. Constructing a complex trade Binh Tien - Bits's Consumer Good Production Co., Ltd (HCMC) has been licensed by Dak Lak Provincial People’s Committee to construct the complex trade center in Buon Ma Thuot. center in Buon Ma Thuot The project owns a total investment of over 30 million USD, including: multi-functional trade areas, bank Thanh Nien – 17 Oct, 2008 - finance areas, offices for lease, 5-star hotels. The project is expected to be commenced in the first quarter of 2009. High-grade apartment prices at HCMC are not changed compared with September, 2008 Edited by VietRees – Oct, 2008 Announced prominent real estate developments during the last 2 weeks* Week 2, October 2008 Week 3, October 2008 Other Areas Na Hang ecotourism zone (Tuyen Quang), 27-storey office RAAS eco-tourism site (Nha Trang), Dream Palace building Le Van Luong (Ha Tay), Apec new urban area Resort (Thua Thien-Hue), Thanh Tri functional urban (Thua Thien - Hue) area (Ha Noi), Nghi Son island eco-tourism site (Thanh Hoa), Biti’s complex trade center area (Dak Lak) Approved prominent real estate developments in HCM City* September October Housing, apartment, residential area Phu Thuan Ward HA (Dist.7), Tan Kien Town ReA (Binh Apartment building No.1 – No.31 Calmette Street (Dist.1) Chanh), Thanh My Loi B RA (Dist.2), Phuoc Thien RA Resettlement area at Phu My Ward (Dist.7) (Dist.9), 99 Ben Binh Dong AP (Dist.8), Nhon Duc –Phuoc Kien RA (Nha Be) Office, commercial Tan Thanh Ward complex building (Tan Phu), C6/27 Pham Complex of Vietnam – Japan cultural park (Dist.2) Hung commercial center (Binh Chanh), Tan Binh commercial – service center (Tan Binh) * 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 A53 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 Distri Area Price (million ct (m2) VND/m2) +/- Apartment building – HCMC Sailing Tower 1 100 70 - The Lancaster 1 120 72.8 Cantavil 2 100 33.1 Constrexim 4 78.4 22.4 + Estella, Dist.2 V- star, Dist.7 Sky Garden 3, Dist.7 Orient 4 71 28 * 105m2 – 31 million VND/m2 * 85.56m2 – 17 million VND/m2 * 71m2 – 32.4 million VND/m2 Hung Vuong Plaza 5 130 33 + * 147m2 – 33 million VND/m2 * 91m2 – 33 million VND/m2 Tan Da 5 98 26 An Phú Hưng 7 76 26 New Sai Gon 7 98.9 21 Bong Sao 8 59.8 13 Thai An 12 73 13 Dat Phuong Nam BTH 109 25.5 - Sacomreal – 584 TP 81.9 16.2 - Development land lots – HCMC Blooming Park, Dist.2 Phu My, Dist.7 The Everich, Dist.11 An Phu – An Khanh 2 200 31 + * 115m2 – 29 million VND/m2 * 83m2 – 24 million VND/m2 * 112m2 – 1,800 USD/m2 Phu Gia 2 119 12 * 135m2 – 31million VND/m2 * 117.7m2 - 23.5 million VND/m2 * 161m2 – 1,900 USD/m2 An Phu Hung 7 72 29 + Direct contact with the investor1 Sadeco ven song 7 200 26 - Khang An 9 144 8.5 + Hai Yen BC 100 8.3 - Trung Son BC 120 38 + Long Hau 2 NB 176 5 + Long Thoi NB 400 7.7 Binh Chieu TD 168 11 Apartment building - Ha Noi Preche, Dist.2 Panorama, Dist.7 Saigon Pearl, B.Thanh Doi Nhan BD 85 21 - * 147m2 – 2,300 USD/m2 * 141m2 – 43.9 million VND/m2 * 86m2 – 2,100 USD/m2 Trung Van CG 71 16.8 * 154m2 – 2,500 USD/m2 * 147m2 – 45.9 million VND/m2 * 140m2 – 2,000 USD/m2 Yen Hoa CG 97 22 Viet Hung LB 72 10.9 - Ciputra TH 144 28 + Nang Huong TX 68 13.5 - Van Quan TX 67 16.2 Development land lots – Other provinces My Phuoc 3 BD 300 1.6 Viet – Sing BD 600 3 The Vista, Dist.2 BMC Hung Long, Dist.7 The Manor, B.Thanh Khang Linh BR-VT 303.3 6.5 * 140m2 – 1,636 USD/m2 * 78m2 – 20.5 million VND/m2 * 98m2 – 2,300 USD/m2 Lan Anh – Ap Bac 2 BR-VT 87.5 2 * 102.6m2 - 24.2 million VND/m2 HUD DNI 140 2.1 Thanh Hung DNI 120 2.3 + Long Hau 2 LA 90 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 A53 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. 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. * The housing area of 7,000 m2 (380 rooms) for 1,500 workers of Dong Quang Knit Limited Company at Hai Son industrial cluster (Duc Hoa Ha commune, Duc Hoa suburban dist., Long An province) has just been put into use. The total investment cost of this housing area is 20 billion VND. (02/10/2008) * The 4-storey apartment building at cluster 5, ward 8, Vinh Long town that serves the cadres, employees, professional serviceman and etc has been ratified by Vinh Long Provincial People's Committee with a total investment of over 37 billion VND. (03/10/2008) Real estate for the low income * Sai Gon – Gia Dinh Real Estate Company and Hoa Binh Phu Yen Company build Thoi An Apartment Building in District 12 with 1,000 apartments. VietRees * Construction Co. No.8 (CIC8) will invest in construction of 10,000 Keppel Land apartments & Tien Phuoc Co. will build a resettlement area including 1,900 apartments at An Phu, Binh Khanh, District 2. * HCM City People’s Committee will advance 50.5 billion to carry out the project of Vinh Loc B, Binh Chanh residential area for resettlement with hundreds of townhouses and 40 apartment blocks. * Construction Co. No.5 will invest in construction of 500 apartments at Ward 22, Binh Thanh District. * HCM City Cooperative Alliance has developed its construction investment project of housing area at Le Minh Xuan Commune, Binh Chanh Suburban District on a site of 67.49 hectares. * 50% of the house reserve at The Splendor apartment area (Go Vap Dist.) will be intended to serve resettlement demand in the district. * Dat Lanh Co. will offer 1,500 apartments to the market with the prices of 500-700 millions VND/unit. * People‘s Committee of HCMC has approved the project of the resettlement area on a site of 55.24 hectares at Dong Nam Cu Chi industrial - residential area in Cu Chi. * House management of Dist.1 is assigned to construct the resettlement area at 7/4ª Kha Van Can, Thu Duc district. * In early 2010, Hai Thanh company will complete 352 apartments of Hai Thanh 1 resettlement area project, Binh Tan District for the civil servants at Binh Tan District. * People’s Committee of Binh Chanh has just cooperated with Hung Vuong university Investment & Development JSC to construct resettlement area at Tan Kien commune, Binh Chanh suburban district. * People’s Committee of HCM City has just licensed Cho Lon Real Estate JSC to invest in the construction of the apartment 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. * Dat Lanh has cooperated with Truong Son Vanguard Youth General Squad to build apartments for low- income people at Dist.12 * Go Vap People’s Committee and Go Vap Public Benefit Service Co. have bought back the house reserve belonging to Phu Gia Hung high-end apartments, Duong Quang Ham Street, Ward 15, Go Vap Dist. and Dong Hung Thuan 1, 2 apartment buildings, Dist. 12 to serve the resettlement of the locals at Tham Luong project - Ben Cat - Nuoc Len ditch. * Approximately 184,000 apartments belonging to the investment program in the construction of the social welfare houses in the stage of 2009 – 2015 with the total investment of about 49,000 billion VND have been submitted to the government for approval. (30/09/2008) * 800 social welfare houses for lease - lease to purchase will be built at 19A and 21A plots, Viet Hung urban area in 2009, which have been ratified by The People’s Committee of Ha Noi City. (16/10/2008) 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 A53 Page 8 REAL ESTATE LEGISLATION Hanoi: New regulations on The People’s Committee of Hanoi city has officially announced the rent of the state-owned houses that have not yet been built and renovated in Hanoi on October 14th, 2008. the rent of the state-owned houses Accordingly, the rental prices of villas that belong to type I, II, III, IV are 11,300; 13,500; 15,800 and 24,800 VND/m2/month respectively. The rental prices of the normal houses at the grades of I, II, III, IV Tuoi Tre – 14 Oct, 2008 are 6,800; 6,300; 6,100 and 4,100 VND/m2/month correspondingly. The rental price for houses have also been adjusted following the K coefficient including the region (K1), the number of stories (K3) and the technical condition (K4). However, only 4 districts including Hoan Kiem, Ba Dinh, Dong Da, Hai Ba Trung do not see any price adjustments, whereas the rental prices of the other areas have been adjusted on the downward trend. As for the K3 (the number of stories), the rent of the houses at the third storey are equal to the rental price list and the houses on the first and second stories have increased according to the K coefficients of 0.15 and 0.05. The rents of the higher stories have been reduced. The formula that determines the house rent is: the rent = (standard price as stipulated) x (K coefficient) x (the usable area corresponding to the rent). In addition, the People's Committee of the city has also concretely stipulated the cases of receiving the exemption from or the reduction in the house rent. The Central Steering Committee The Prime Minister has made a decision to change the name “The Central Steering Committee on dwellings policy” into “The Central Steering Committee on dwelling policy and real estate market”. In on dwellings renamed addition, the committe has also added some functions, missions and powers during its operation. Vneconomy – 17 Oct, 2008 The Steering Committee is responsible for helping the Prime Minister to research, guide and coordinate in order to solve the crucial and interdisciplinary problems relevant to the real estate market; unifying the implementation of real estate business laws and the policies relevant to the development and management of the real estate market on the whole country. The board is also responsible for researching, periodically summarising and assessing the real estate market situation to learn from the experiences, propose the amendments and supplement to the mechanism and policies relevant to the real estate market in accordance with the socio - economic development situation of the country. In addition, the Steering Committee is responsible for providing guidelines on the management and operation of the real estate market activities of the Steering Committees of centrally-controlled municipalities. Meanwhile, it checks the implementation of the mechanism and policies towards the real estate market of the ministries, departments and localities. Real estate brokers not need Ministry of Construction has promulgated the documents to guide some Departments of Construction about granting certificates of real estate brokerage and assessment. qualifications Accordingly, considering granting certificate of real estate brokerage to individuals does not depend on Nguoi Lao Dong – 17 Oct, 2008 their education level. Regarding the jobs of real estate assessment, certificates of real estate assessment only need to be granted to the individuals of at least intermediate levels. The laws on real estate business do not regulate the valid duration of real estate brokerage & assessment. 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 A53 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 Prices and consumption of According to some construction material stores, at this time of the previous years, until now this market has still seen no movement as compared with a couple of years ago. Not only the prices of the essential construction materials going commodities such as steel and cement have decreased significantly but also the consumption has down more dropped by 30% - 60% as compared with 3 months ago. Edited by VietRees In HCMC, currently, the retail prices of steel have been only 14 - 14.5 million VND/ton, decreasing 1-1.2 million VND/ton as compared with the middle of September. The retail prices of cement have been only 68,000 - 72,000 VND/sack, decreasing by 1,000 - 2,000 VND/sack as compared with August. In Hanoi, the prices of construction steel have ranged from 14.8 - 15.5 million VND/ton. Types of corrugated iron have gone down to 76,000 VND/m2. The retail prices of PCB40 cement on the market are declining and range from 0.85 – 11 million VND/ton. Only commodities such as brick, sand and gravel have decreased by 10% - 25% on the whole country as compared with 2 months ago. The plummeting consumption and the large inventory of steel have made the producers and enterprises obliged to reduce the selling prices and even they have to suffer losses to pay the interests, bank loans, debts to the partners and expenses that have made steel prices go down more and more. According to the enterprises and agents of construction materials , this market will be gloomy until the end of this year when the “stormy season” passes by and the real estate market becomes eventful. STOCK MARKET Two bourses happen contrariwise, The fact of U.S stock market increasing fairly significantly in the ending session at the dawn of 17 Nov the market still sees many risks (Vietnam time) & the information about the petrol prices Edited by VietRees being reduced have not yet been able to to encourage the investors to join the market more drastically. Chart source: Vietstock Opening the session this morning, VN-Index has slightly Up to date: 17 Oct, 2008 increased by 1.16 points (or 0.3%), adding 385.77 points with the trading volume of over 3.5 million units. Only some minutes later when entering the consecutive order matching phase, the red color has flooded the electronic board with a high volume of selling orders, quickly dragging the market index down to 838.65 points, dropping by 0.96%. Ending the session, Vn-Index has closed at 382.52 points after losing 2.1 points (or 0.54%). Over 11.6 million shares and fund certificates (fund stocks) have been traded sucessfully with the value of 365.117 billion VND (a decrease of over 10% in volume and 5% in value). After one trading week with 3 downward sessions and 2 upward session, VN-Index has still increased by 3.45 points (or 0.91%) against the last week. Contrary to HOSE, HaSTC-Index today has reversed the direction to increase by 1.04 points (or 0.84%) & close at 125.32 points. The total trading volume of the whole market on HaSTC has reached over 6.1 million shares, worth nearly 125.32 points. Ending one trading week, HaSTC has had 2 downward sessions & 3 upward sessions, increasing by a total of 5.45 points against the sessions of 10 Nov, 2008. Free register for weekly newsletter: Please send your email to * Sponsor and advestising: T: (08) 948 5574 - E: