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  1. 1. Weekly Newsletter A60 Vietnam Real Estate Week 1, December 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.8) Market forecast, statistics expert opinions (p.8) Construction material market last week (p.10) Stock market last week (p.10) This weekly newsletter is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning or interested in Vietnam real estate market changes. Although the information is selected, synthesized from all reliable sources, this newsletter is only for reference and VietRees is not responsible for the occurring damage. Please visit the website for further Vietnam Real Estate information. When individuals and organizations quote or publish the information from our newsletter, please cite the source VietRees. According to the statistics on registration for the newsletter, the subjects making reference to the newsletter includes real estate investors; companies or units of government performing management tasks, business marketing, consulting, broking, assessment, real estate finance, construction, banking, architecture, interior decoration; domestic and foreign press agencies; and full of professional investors or individuals who have demand for real estate throughout provinces and cities nationwide; typically Ho Chi Minh, Ha Noi, Da Nang, Can Tho, Hue, Nha Trang, BRVT, Binh Duong, Dong Nai, Ha Tay… We would like to say thanks to the sponsors and all of the readers. We expect to continue to receive your support as well as your comments to improve our newsletter. Readers can print or save this newsletter on your computers to review when needed or transfer it to others. However, think of environment when you want to print it out. Free register for weekly newsletter: Please send your email to Sponsor and advestising: T: (84 8) 3948 5574 - E:
  2. 2. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A60 Page 2 MARKET SITUATION Can Tho real estate manages to According to investors of the residential area project in Can Tho city, from the beginning of November, 2008 until now, the number of transactions has increased due to the fact that the real estate enterprises stimulate demands have applied many flexible payment methods to stimulating the demands. TheSaiGonTimes – 02 Dec, 2008 Currently, the clients just need to prepay 35% - 50% of the house value and pay the rest on a 2 - 10 year installment plan with an interest rate of at least 1.35% in order to own the property. In addition to the programs of selling houses on installment plans and the reduced interest rates etc, the enterprises have also invested in the infrastructures and community amenities in order to attract the customers. Some experts have shown that this is the suitable time for those who have real housing demands to think of settling. Because the market formerly saw the price fever due to the involvement of many speculators until now, when the market is quiet they have to sell out to reduce their losses, causing the decreases in the property prices. Additionally, in the past, the real estate prices have decreased significantly and many real estate enterprises have applied flexible payment plans to attract buyers. The rent of offices down and the The larger supply and the difficult economic situation have made the market of offices for lease cool down. The rent in the big cities is decreasing while the demand of the retail premises is significantly retail premises up increasing. Nguoi Lao Dong – 04 Dec, 2008 In Ho Chi Minh City, as compared to the beginning of 2008, the rent of grade A offices at the end of the year has declined by 14% from 70 to 60 USD/m2; the rent of grade B office has declined by 22% from 45 to 35 USD/m2 and the rent of grade C offices has declined by 17% from 39 USD/m2 to 25 USD/m2. Although the prices have dramatically dropped, many signals have shown that the rents of offices in Ho Chi Minh City have still been quite high as compared to many countries in the region. According to an expert, the competitive rents of offices will be the base and promote the economic development. Viet Nam has to quickly seize the competitive advantages that will help enterprises reduce the operation costs including the rents of offices in the current economic situation. Although the demands for grade A offices will remain high in the near future because of the limited supplies. Meanwhile, grade B and C office buildings have just completed are entering the period of greater competition. While the market of offices for lease starts to go down, the demand for the premises for lease at the retail areas is predicted to greatly increase in the next year when Vietnam performs the open-door policy completely and allows the foreign retailers enter in Vietnam according to the WTO commitment. Some main retail centers in the city offer about 150.000m2 but all of them now are occupied. The average rent of the retail premises in the central areas is about 85 USD/m2, neighborhoods are about 65 USD/m2 and the premises farther from the center are about 40 USD/m2. The highest rent is up to 250 USD/m2. The stable situation of political economy and the expenditure potential of the domestic consumers are the factors attracting the foreign investors. The competition for the good retail premises will be able to push the rent up in the near future. However, many signs are showing that the rent of the retail premises can decrease in the next year because of global economic difficulties. REAL ESTATE FOREIGN INVETSMENT Investing in tourism area at the The project of Tam Dao 2 tourism area with a total area of 300 hectares is located at the top of the mountain Tam Dao. The tourism area is expected to have 10 works, including a natural park, a water top of Tam Dao mountain reservoir, a high-grade hotel, a conference center and casino, a high-level villa zone, a 9 hole golf TheSaiGonTimes – 29 Nov, 2008 course, helicopter landing field, a horse cage, a zoo, a climbing area, a picnic area and a sanatorium. Vinh Phuc Provincial People's Committee has cooperated with Hanoi University of Natural Science - Hanoi and Vietnam Partners Company (U.S.) to research the project of building and developing the tourism area without affecting the forest floor and environment. Opening Korean high-grade On 5th December 2008, Ha Tay Hyundai RNC Co., Ltd (belonging to RNC Hyundai Construction Co. Ltd., Korea) will officially introduce the project of Starclass Hanoi housing area and high-grade trade housing area in Hanoi center located in the heart of Ha Dong city. VietRees – 05 Dec, 2008 With an area of over 46,000 m2, the project has 5 high-rise apartment blocks of 26 -32 floors with 885 apartments, 100 villas and a 21-storey complex building. The first sale phase is expected to be implemented in the middle of December, 2008 with the average price of about 1,500 USD/m2. RDL Vina Real Estate Investment Consulting Co. will exclusively sell the products of the project. Sheraton builds the 3rd hotel After two hotels, Sheraton Hanoi Hotel (Hanoi) and the Sheraton Saigon Hotel & Towers (HCM City), Sheraton Group is implementing to build Sheraton International Hotel & Spa in Nha Trang and this in Vietnam project is expected to be put into use in mid-2009. VietRees – 05 Dec, 2008 With 30 storeys and over 280 rooms, Sheraton Hotel & Spa Hotel Nha Trang is a complex hotel system including the rooms, modern meeting rooms, spa services, restaurants and sports services to meet every need of the guests. Sponsor:
  3. 3. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A60 Page 3 List of localities attracting most FDI until Nov, 2008 Source: General Statistics Office Until the end of November, 2008, although the rank order see no change, only Ho Chi Minh and Hanoi are the twos localities increasing in the number of projects and total FDI. VIETNAM IN THE WORLD Vietnam ranked 3rd in attracting According to the documents announced by Asia Business Council (ABC), Vietnam has been ranked Asian businessmen third, before USA and only behind China and India in attracting Asian businessmen. Kinh Te Do Thi In 2006, nearly 80% of the consulted businessmen stated that they invested in the Chinese market. But until 2007, this percentage has decreased by 64% and it has been only 61% in 2008. Conversely, the number of Asian businessmen investing in Vietnam in 2008 has increased by 28% as compared to 2007. ABC’s businessmen have explained that Vietnam and India have still maintained the attractively cheap salaries. In addition, after joining WTO in 2007, the Vietnamese economy has been much more open. Asia Business Council, established in 2001, locates the headquarters in Hong Kong and gathers nearly 70 businessmen representing for the industrial and commercial companies that mainly operate in Asia. Although ABC is an unofficial organization, the ideas that it has offered have drawn the considerable attention from businessmen. REAL ESTATE AGENTS Starting XI apartment brand GS Engineering & Construction Group has held the opening ceremony for the model apartment belonging to the project of Xi Riverview Palace building in An Phu, Dist.2, HCMC on 27th November. in Ho Chi Minh The project includes 3 apartment blocks of 27-storeys with 258 apartments of 145 – 202 m2 and the BDS & TS – 01 Dec, 2008 penthouse apartments are equipped with Home Network System which helps the home owners easily have the remote control to the equipments in the house. According to the plan, the project will be completed in the first quarter 2011. Hoa Binh wins the contract for Hoa Binh Real Estate Business and Construction JSC has won the contract in the category of armored concrete structure from the mezzanine floor to the roof floor of the area B of the Vincom Trade center - building one part of Vincom complex Service - Hotel - Office - High-grade apartment - underground parking with a total of 29 floors (excluding TheSaiGonTimes – 04 Dec, 2008 the basement), located in District 1, Ho Chi Minh City. The total value of the contract is 257 billion and the time for the implementation is 345 days from the date of starting the construction. At the end of November, Hoa Binh Company also signed the contracts for some large projects such as: completing the Kumho Asiana Plaza project, constructing and finishing the body of Truong Tho apartment building invested by Thuduc House, completing Nam Long building invested by Nam Khang JSC. New services of ACB real estate ACB Real Estate JSC (ACBR) has shown that ACB standard real estate transaction center (upgraded from the real estate supermarket ACB) was officially opened at the end of November, 2008 at 29 Ter transaction center Nguyen Dinh Chieu Stress, District 1, Ho Chi Minh City. VietRees – 05 Dec, 2008 In addition to the implemented services such as advertising, brokerage, project marketing, assessment… ACB real estate transaction center also introduces 9 more new services: property advertising videos, advertising the projects at the transaction center, 24 hour electronic real estate transaction floor, marketing properties of the investors on Northern market, ACBR real estate newsletter, 24/7 call center, real estate consulting over the network, real estate exploitation and management and 7 working days. On this occasion, ACB also officially signed the contract of exclusively consulting and marketing Ba Ria Vung Tau Housing Development JSC in Ho Chi Minh City (HODECO) and the contract of exclusively marketing and trading the projects of Hoa Binh House company (HBH) through ACB real estate transaction center. Sponsor:
  4. 4. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A60 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 A60 Page 5 REAL ESTATE PROJECT AND PRICES Works start on 1,844 Thu Thiem On the morning of 28th Nov, 2008 Nam Rach Chiec Center Co., Ltd. – the joint venture between Tien Phuoc, Keppel Land and Tran Thai - has started the construction of Thu Thiem resettlement apartment resettlement apartments area at An Phu - Binh Khanh Ward, District 2, Ho Chi Minh City. With a gross floor area of more than BDS & TS – 01 Dec, 2008 204,000 m2 and 7 blocks of 18-storeys, the project provides 1,844 apartments and attached amenities. It is expected to be completed in 24 months from the date of starting the construction. Building the first apartment block Bach Nien Gia JSC, the member of the housing cooperative Bach Nien Gia, has started the construction of Truong Tho apartment block at Truong Tho Ward, Thu Duc, Ho Chi Minh City. It is the first project for of housing cooperative system the low-income people, belonging to the housing cooperative system. The project has a total area of VietRees – 03 Dec, 2008 3.165m2, including15 floors with 220 apartments of 48 - 68m2 with the total initial investment of 150 billion. The apartment block is expected to be put into use with the price of about 10 million VND/m2. Building the first 5-star resort in On the afternoon of 1st December 2008, Tan Phu Tourism JSC started the construction of Ana Mandara Ninh Binh high-grade resort at Gia Van commune, Gia Vien district, Ninh Binh. The project has a total Ninh Binh area of over 16 hectares with an initial capital of 15 million USD. This project includes 2 subdivisions: Lao Dong – 03 Dec, 2008 resort and recreational services. The recreation area is expected to welcome guests in late 2009. The rest of the project will be completed on the occasion of Thang Long 1000-year anniversary. Works start on Golf Hotel My Tho, Mekong My Tho Tourism JSC held a groundbreaking ceremony for the construction of Golf My Tho hotel in Ward 4, My Tho City on 28th November 2008. Tien Giang The hotel is built on a site of 14,812 m2, including 9-storeys with 108 rooms, swimming pool, tennis VietRees – 03 Dec, 2008 court, a 500-seat hall and some sub-projects with a total construction cost of about 300 billion. Golf My Tho hotel is expected to be complete and put into use at the end of 2010. Hanoi to have 300 more high-grade At the beginning of December 2008, the construction of Hanoi Indochina Plaza complex at 239 Xuan Thuy Street, Cau Giay District will be officially started. The project includes 1 office towers of 16 stories apartments and 2 high-grade apartment towers of 32 and 36 stories (more than 300 units) which are connected by a Kinh Te Do Thi – 03 Dec, 2008 modern 5 storey shopping center. Savills Vietnam Company Limited is the company that exclusively sells the apartments in the project. In general, the price of high-class apartments in Ho Chi Minh City have tended to keep going down after the slight increase in August Edited by VietRees – Nov, 2008 Announced prominent real estate developments during the last 2 weeks* Week 4, November 2008 Week 1, December 2008 Ho Chi Minh City Sacomreal Hoa Binh complex building (Tan Phu) Truong Tho apartment building (Thu Duc) Resettlement AP An Phu – Binh Khanh (Dist.12) Other Areas N04 AP in the South Eastern urban area (Ha Noi) Tam Dao 2 tourism area (Vinh Phuc) Best Western Premier Hotel Nha Trang Plaza (Khanh Hoa) My Tho golf hotel (Tien Giang) Ana Mandara Resort (Ninh Binh) Hanoi Indochina Plaza Complex (Hanoi) Sheraton Hotel & Spa (Nha Trang) Approved prominent real estate developments in HCM City* November December Housing, apartment, residential area AP - offices at Binh Quoi (Binh Thanh) Truong Tho apartment building (Thu Duc) AP at Phu Thuan Ward (Dist.7) Resettlement AP An Phu – Binh Khanh (Dist.12) AP at Thao Dien Ward (Dist. 2) * Note: RA=Residential Area, AP=Apartment Building, HA=Housing Area, RuA=Reurban Area, TA=Tourism Area, IA=Investment Area, UA=Urban Area, ReA=Resettlement area Websites of properties in Vietnam Ho Chi Minh Ha Noi Other cities Blooming Park - Viglacera Tower - Cozyvill - Saigon Paragon - My Dinh – Me Tri RA - Flamingo Dai Lai - Dragon City - Bac An Khanh RA - Van Phu township - Preche - Ha Noi Plaza Hotel - Dam Vac Golf - SaigonPearl - Phap Van – Tu Hiep RA - Sanctuary - V-Star - Ho Tram Strip - Time Square - Sai Gon Sunbay - 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 A60 Page 6 Property Retail Price Updated on information from ACBR, Van Phat Hung, Hung Thinh, Phuc Duc, Tuoi Tre Newspaper and developers (VietRees gathered by direct surveys), listed prices can be original prices or transfer prices at current or at one week prior from the date this newsletter is issued. Typical apartments in HCM city Other apartments and land lots Area Price (million Dist. (m2) VND/m2) +/- Apartment building – HCMC Central Garden 1 90.6 26 - Salling Tower 1 101 68.8 - Binh Minh 2 109 14.1 - An Loc 2 57 10.5 Cantavil, Dist.2 V- star, Dist.7 Sky Garden , Dist.7 Hung Vuong Plaza 5 132 27 * 150m2 – 1,950 USD/m2 * 97.56m2 - 15.8 million VND/m2 * 81m2 – 29.6 million VND/m2 Tan Da 5 77.75 32 - * 119m2 – 16 million VND/m2 * 89m2 – 30.1 million VND/m2 Tan Thinh Loi 6 74 13.5 + Him Lam – Nam Khanh 8 88 13.5 Bong Sao 8 68 12.5 The Mansion BC 83 12 Cuu Long BT 82.11 19 My Phuoc BT 81 26.8 Riverside Garden TD 89 15 - Sacomreal 584 TP 78.33 13.7 - Blooming Park, Dist.2 Phu My, Dist.7 The Everich, Dist.11 Development land lots – HCMC * 115m2 – 29 million VND/m2 * 83.28m2 - 19.5 million VND/m2 * 115m2 – 1,568 USD/m2 An Phu – An Khanh 2 100 24 - * 135m2 – 31million VND/m2 * 91.14m2 – 18 million VND/m2 * 151m2 – 1,520 USD/m2 Thanh My Loi 2 140 12.5 + Direct contact with the investor1 Him Lam Kenh Te 7 100 29.5 + Phu Loi 8 90 11.2 + Nam Long 9 100 12 Ho Ngoc Lam BT 64 10 13A BC 100 9.5 Thai Son NB 120 10.5 - Phu Xuan – Van Phat Hung NB 132 7 - Preche, Dist.2 Apartment building - Ha Noi Panorama, Dist.7 Saigon Pearl, B.Thanh Ngoc Khanh BD 123 33 * 147m2 – 2,222 USD/m2 * 121m2 – 35.5million VND/m2 * 135m2 – 1,600 USD/m2 M5 – Nguyen Chi Thanh BD 165 33 * 300m2 – 33.3 million VND/m2 * 140m2 – 1,750 USD/m2 Trung Hoa – Nhan Chinh CG 65 19.5 + Nam Trung Yen CG 88 17.5 - Thai Ha DD 60 23 My Dinh 1 TL 75 17.5 Bac Ha TX 70 15.7 Development land lots – Other provinces My Phuoc 2 BD 300 3.5 Rach Bap BD 132 0.96 The Vista, Dist.2 New SaiGon, Nha Be The Manor, B.Thanh Lan Anh 2 BR-VT 100 1.6 - * 101m2 – 1,808 USD/m2 * 98.9m2 – 17.1 million VND/m2 * 103m2 – 2,150 USD/m2 Tay Nam BR-VT 100 1.8 * 139m2 – 1,650 USD/m2 * 100m2 – 17.5 million VND/m2 * 195m2 – 2,000 USD/m2 HUD DNI 280 1.25 - Tam Phuoc DNI 250 2.3 + Tan Do LA 150 3.6 - 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 A60 Page 7 PROPERTY SUPPLY FOR DIFFERENT TARGETS OF CUSTOMERS Social welfare 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 storey. * Morning of August 28th, 2008, the Ministry of Construction has signed a memorandum for the cooperation in the field of welfare housing with Korean Ministry of Land-Traffic and Marine. * Ha Noi Construction Investment JSC (Hancic) has finished 4/10 units of the 5-storey house which belongs to the housing project for workers at Kim Chung Commune (Dong Anh). * Construction and Import-Export JSC (Vinaconex) has transferred and put into use 4 blocks of houses among the total 16 blocks of the housing project for the workers at Thang Long industrial zone. * The housing area of 7,000 m2 (380 rooms) for 1,500 workers of Dong Quang Knit Limited Company at Hai Son industrial cluster (Duc Hoa Ha commune, Duc Hoa suburban dist., Long An province) has just been put into use. The total investment cost of this housing area is 20 billion VND. (02/10/2008) * The 4-storey apartment building at cluster 5, ward 8, Vinh Long town that serves the cadres, employees, professional serviceman and etc has been ratified by Vinh Long Provincial People's Committee with a total investment of over 37 billion VND. (03/10/2008) 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 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 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) * 462 units of Khang Gia 3 apartment building (Go Vap Dist.) invested by Khang Gia Real Estate Investment – Development JSC will be used for the resettlement demands. (27/10/2008) * The construction of 1,844 resettement apartments at An Phu Ward and Binh Khanh Ward, District 2 invested by Nam Rach Chiec Center Ltd., Co have been started.(28/11/2008) * 220 apartments for the low-income peope belong to Truong Tho apartment block (Thu Duc Dist.) constructed by Bach Nien Gia housing cooperative.(03/12/2008) The Committee for overseas Vietnamese in HCMC has showed that there have been 130 overseas Vietnamese Dwellings for overseas Vietnamese buying houses, mainly in HCMC. Those who brought houses are those who come back to the country for their and foreigners long term and direct investment, scientists, culture researchers invited to come back to the country to become VietRees 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 A60 Page 8 REAL ESTATE LEGISLATION Natural resource and environment On 1st December 2008, the Prime Minister has promulgated the decision on transferring the tasks, the rights of land assessment, records, documents and the civil servants working on the land assessment branch assess land from the Finance branch to the Resource and Environment branch. TheSaiGonTimes – 01 Dec, 2008 The tasks, the rights of land assessment; records and documents from 1st January 2006 to 30th November 2008 including the records, documents on land assessment and other records, documents relevant to the land assessment; statistical reports on the land prices; the programs, topics, projects on the land assessment will be transferred from the Finance branch to the Resource and Environment branch. The Ministry of the Internal Affairs has amended the administrative personnel in charge of land assessment for the Resource and Environment branch in accordance with the regulations of the law. Announcing the planning of The Ministry of Construction has just promulgated the circular to provide the guidelines on setting up, assessing and managing the construction planning of industrial zones. industrial zone within 30 days The construction planning of the industrial zone should be suitable for the general planning to develop the Phap Luat – 02 Dec, 2008 national industrial zones, the regional construction planning and the general planning of constructing urban areas. The general planning of the industrial zones should clearly determine the functions of the land areas used for constructing the industrial works, public service centers; regulate the preservation and embellishment of the natural landscapes, ensure safety and prevent fire and explosion, protect the environment and connect to the technical works outside the fence. Within 30 working days from the date of the general planning projects and the detailed planning of the industrial zones being ratified, the authorized agencies have to announce and publicize the projects. Unifying the leading agent granting On 4th December 2008, Ministry of Natural Resources & Environment and Ministry of Construction had a meeting and unanimously agreed that there should be a leading agent that grants the certificates of land certificate of home ownership/land- use rights (red color) and the certificates of house ownership (pink color). That is the office where the use right people can register for the land-use rights in the localities. Nguoi Lao Dong – 05 Dec, 2008 For the above policy, the four forms of the current real estate certificates still remain their values. They include: certificate of land use rights following the land law; certificates of house ownership and land use rights; certificate of house ownership (in the case of the house owners being not the owner of the land- use right); certificates of construction works ownership (for the land plots having the construction works that are not the dwellings). The Ministry of Construction and Ministry of Natural Resources & Environment will also cooperate together to construct the project of developing the real estate market. The project will be submitted to the political bureau in late March 2009. 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 The transaction situation of apartments, townhouses and project land in October has continued to go down compared to September and the previous months, the offered prices for sale have fallen after leveling off in October. The decrease in the land prices (- 5%) is somewhat higher than that of apartment prices (-1%, -2%) compared to the previous month. Generally, regarding the market situation in the third quarter and the fourth quarter, the prices seem more stable but the rate of successful transactions has still not seen any sign of prosperity and appeared to be worse to some extent. The number of successful transactions has been on the downturn. According to the surveys of VietRees, in many trading floors (transformed from the previous center transaction) and the newly born trading floors, the transactions have almost mainly focused on properties with low values such as projects of apartments and ground bases in the areas around HCMC. The townhouse transactions in the existing urban area have also significantly decreased as compared to many previous months due to the difficult situation of the real estate field and the whole economy. According to the forecasts of VietRees, many transaction centers will close down from now until late 2008 and early 2009. Apartment market The supply of apartments belonging to the average and low segment is quite limited, so the market of this segment has also not seen any movement compared to the previous month. The successful apartment transactions do mainly belong to this segment. The investors are beginning to implement the new apartment projects of the average low segment, but in at least 2 years, the new market will have more supplies of the new apartments of this type. According to VietRees, the construction material prices in the past 2 months have declined, which has created favorable conditions for the investors to implement or speed up the construction progress of the projects, especially for this segment. The high-grade apartment prices have slightly decreased in the past month. According to VietRees, the prices have fallen down by approximately 2% as compared with September 2008. The domestic customers of this segment are gradually scaling down. The investors are looking for the new directions aiming at the Vietnamese overseas who are in need of buying houses in Vietnam. However, according to VietRees, there are many difficulties in approaching as well as successfully trading with this group of customers in the short term (1 - 2 years). The market of project land plots According to VietRees, the land market has continued to decline as compared with September, 2008 and the average decrease is recorded at -5%. The price fluctuations are explained that the project land has a special connection with the ups and downs of the stock market and the interest of the investors when most of the project land is being held by the investors and there are few of the people who have real demands. Similarly to September, the successful transactions of the project land are much lower than that of the apartments which is currently quite limited. Sponsor:
  9. 9. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A60 Page 9 VIETNAM REAL ESTATE MARKET Under View Of Expert – Statistics and edited by VietRees Statistics from VietRees Over 90% of the experts are confident in the future of Vietnamese real estate market. 30% of the opinions show that the market will recover in 2009 or after 2009 (according to statistical data of VietRees in November, 2008). Before the movements of the current real estate market, VietRees has collected the real estate experts’ opinions in order to determine the confidence in the development potential of the market in the future and concurrently, determine when Vietnamese real estate market will recover. This statistical result gathers the opinions of 33 leading real estate experts working for the state agencies, the senior leaders of some big famous prestigious real estate corporations operating in the real estate field. These comments have been publicized in the media such as newspapers, magazines, big and reputable websites from March 2008 to October 2008. Confidence in Vietnamese real Every expert has his own arguments to judge the market. However, according to 100% of the experts, the current market is facing many difficulties but they are still confident and optimistic about the future estate market market. According to Mr. Jean Chretien, former Canadian prime minister and the advisor of Asian Coast Development Ltd. “Although Vietnamese real estate market is having difficulties, it is only temporary. The market still has a lot of potential and foreign investors are aiming at the long-term investment herequot;. In fact, there are some experts that have not clearly expressed their confidence in the market. However, they have still believed that quot;the real estate market does not have a big problem, in the near future the market will change according to the stability of the financial market as well as other stable indexes of the economy”. More particularly, nearly 90% of the experts are still optimistic and confident in the development of the Vietnamese real estate market in the near future because in the so-called current recession of the market, some other real estate segments are still developing. According to the Chairman of Viet Nam Real Estate Association, Le Hoang Chau quot;Although the real estate market is leveling off, it only affects the segments of ground bases and apartments. The offices and industrial zone land for rent are still in the situation of “the supply not meeting the demand”. With the same opinion, Matthew Koziora, the director of the Vinaland company (VinaCapital Group) states: “The interesting fields are attracting foreign investors, including houses, industrial zones, hotels, high rise office buildings for rent, tourism sitesquot;. Forecasting the time of Vietnamese As of now, many individuals and units take interest in the time that the real estate market begins to recover and develop stability. The result of these statistics will answer these queries to some extent. real estate market recovering According to the result, 70% of the experts have not yet determined the specific time when the market will be up and about again. The reason for having not yet determined the time of the real estate market recovering is that the real estate market has still been much affected by other economic factors, shown by these experts. 30% of the experts’ opinions determine that the exact time for the recovery of the market is in 2009 or after 2009 (in which, 12% of the opinions determine that the market will recover in 2009 and 18% of the ideas determine that the market will recover after 2009). Summarizing all of the opinions of the experts, we can see that it is very difficult to determine the time for the recovery of the market. The recovery of the market depends on many factors. Only when we fully analyze the factors and economic indexes, combining with statistical prediction science, we can somewhat determine the exact time of the market recovering. Forecasting the time for the recovery of the market is only exact to some extent. Because the forecast does not just look at some expressions of the economy or not base itself on the opinions of some people but it needs to base itself on many different researches and scientific analyses. Free register for weekly newsletter: Please send your email to * Sponsor and advestising: T: (08) 3948 5574 - E:
  10. 10. VietRees – Vietnam Real Estate Viet Nam Real Estate Newsletter A60 Page 10 CONSTRUCTION MATERIAL MARKET Steel purchasing power up but Up to now, the construction material market has seen a lot of movement and the prices have decreased the inventory still large by approximately 40 – 60% over the same period of the last year and the beginning of this year. Edited by VietRees This was the fourth consecutive month in which the volume of the imported steel has significantly declined with the estimation of 25,000 tons in November 2008. After 11 months, the total volume of the imported steel ingots has been 2.11 million tons worth 1.54 billion USD. Although the volume of the imported steel ingots has increased by approximately 12%, the prices have increased by 63.1% over the same period last year. At present, the construction steel prices at the factories (excluding the transport fees and VAT) have ranged from 10.5 to 11.5 million VND/ ton, rising by 0.8 – 1.5 million VND/ ton as compared to October. Although the steel ingot prices offered for sale in Viet Nam have ranged from 400 USD – 450 USD/ton, increasing by 100 – 150 USD as compared to the middle of the previous month, the successful transactions have still been quite few. Because the domestic producers have still had 200,000 tons of finished steel in stock and approximately 500,000 tons of steel ingots. According to the experts’ prediction, the construction material market heavily depends on the real estate market. And if the real estate market in 2009 is still gloomy, the construction material market will definitely be hard to increase. The price level of the market in 2009 will be kept rather stable, maybe it will continue to decrease. STOCK MARKET VN-Index leaves 300-point threshold, Unlike the hope of investors for the upturn of the market after the slight upward session yesterday, right at the HASTC-Index loses 3.09 points opening of the market, at Ho Chi Minh bourse, the codes Edited by VietRees that had significantly increased in the previous session Chart Source: Vietstock have almost gone down and the selling orders have covered most of the electronic transaction board. VN- Up to date: 05 December, 2008 Index lost 4.77 points to close at 303.83 points. Entering the consecutive order-matching phase, VN-Index has continued on the downturn. At the end of this phase, the 300-point threshold has been broken when VN-Index has lost 9.21 points to close at 299.39 points. The total trading volume of this phase has reached 8.47 million units. The decrease has been almost remained the same until the end of the transaction. VN-Index has lost a total of 8.92 points (or 2.91%) as compared to the previous session, closing at 299.68 points. The total trading volume of the whole market has reached 10.2 million units worth nearly 240.4 billion. Vn-Index has been nearly back to the time of 13th November 2005 when the VN-Index has kept the 298.74-point level. After one trading week, VN-Index has had 4 downward sessions and 1 upward session. As compared to the last week, VN-Index has lost 14.41 more points (decreasing from 314.09 points to 299.68 points). At Ha Noi bourse, HASTC-Index has also backed to the downturn after 2 upward sessions at which it lost 3.08 points to close at 103.54 points. The total trading volume of the whole market has reached 6.4 million units worth 151.7 billion. After one trading week, HASTC-Index has had 2 upward sessions and 3 downward sessions. As compared to the last week, HASTC-Index has lost 2.66 more points (decreasing from 106.2 points to 103.54 points). Free register for weekly newsletter: Please send your email to * Sponsor and advestising: T: (08) 3948 5574 - E: