VietRees Newsletter 63 Week4 Month12 Year08

Embed Doc
Copy Link
Readcast
Collections

CommentGo Back

Weekly Newsletter

Vietnam

Real Estate

A63

Week 4, 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

Free register for weekly newsletter: Please send your email to marketnews@VietRees.comSponsor and advestising: T: (84 8) 3948 5574 - E: properties@VietRees.com

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)Research report (p.9)Market forecast, statistics expert opinions (p.10)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 thewebsite www.VietRees.com for further Vietnam Real Estate information. When individuals and organizations quote or publish the information from our newsletter, please cite the sourceVietRees.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 performingmanagement tasks, business marketing, consulting, broking, assessment, real estate finance, construction, banking, architecture, interior decoration; domestic and foreign press agencies; andfull 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.



VietRees – Vietnam Real Estate www.VietRees.com

Viet Nam Real Estate Newsletter A63 Page 2

Sponsor:

MARKET SITUATION

Real estate market in 2008: extremelyhot at the beginning, extremely coldat the end

Lao Dong – 24 Dec, 2008 The year 2008 has been the strangest year for the real estate market until now with the decisivetendency of continuously going down. The market has changed from the extreme of ‘hot’ to the extremeof ‘cold’.The end of 2007 and the beginning of 2008 was an unforgettable time. When the real estate market inHo Chi Minh city and in the Southeast region fell into the price fever that had never appeared before,real estate prices changed hour by hour. Only in a short time of less than 3 months (from December 2007 to February 2008), the real estate prices averagely rose by 300% - 500%. Some projects of constructing the apartment buildings launched the goods for sale while the market was “thirsty”, whichhelped the investors gain huge profits. In the real estate fever, the media publicize information aboutwarnings, forecasts and assessments of the experts on the risks of investing in properties following sucha movement. But regardless of all of the warnings, the market was still hot.The real estate fever of 2008 stopped only when the monetary policy was tightened, the supply from thebanks was cut off and the waves of selling out has appeared, which has made real estate pricescontinue to slide down with growing speed. After 6 months of price reduction, the real estate prices onthe market have averagely decreased by 50% of the value as compared to the peak of the fever until theend of year 2008. The depreciation level of the ground bases and high-grade apartments has beenmuch higher than as compared with the common housing projects and separate townhouses.According to some experts, the real estate market in Ho Chi Minh city in particular and the South of HoChi Minh City in general, there are 2 opposite movements in 2008: hot at the beginning of the year andcold at the end of the year. This has also been the first year in which the movement of the real estatemarket has gone against the laws of the previous years since the real estate market was in embryobefore 2008. Also according to the experts, the confidence that investing in the real estate field will getprofit more or less (which has existed so far) has been shaky in 2008.

The mind battle within the real estatemarket

Tuoi Tre – 25 Dec, 2008A few weeks ago, those who have demands for real estate purchases were at their leisure but now theyhave to consider the deposit time because the sellers do not hurry any longer. The deposit interest rateshave been too low and the loans have also decreased. Both sellers and buyers have also haggled hardand long. Some sellers have withdrawn the conditions of price negotiation and the buyers have stillpatiently inspected the properties and squeezed the prices. The haggling has become popular in theareas where the real estate projects have been completed or in the process and the projects that have just been started have still been quiet.Although it cannot be compared to the peak of the end of 2007, many experts have still believed that themarket will “heat up” because the liquidity hasincreased, which has started from the real needs andthose who have “dormant money” to buy properties for their investment. The real estate market willgradually heat up and focus on the properties with medium prices and those who have little money andreal housing demands will be the first group of customers. According to the credit specialists, wheninvesting in real estate, the customers should pay attention to the elements such as the financial abilityof the project owners, the legal status of the projects, the great and convenient locations for transportation, the ability to finish the infrastructure; the projects that can be put into use immediatelyand if the projects are difficult to be sold, they can be leased or used for living in. In addition, theinvestors should not depend completely on bank loans. They have to determine whether the cycle of thereal estate investment belongs to medium term or long term to have reasonable financial calculations.Many bank experts have also assessed that the investment opportunities in the real estate field areopening but it is the “art” of every investor to define when to enter the market.

REAL ESTATE FOREIGN INVETSMENT

Binh Phuoc builds Bau Keecotourism site

VietRees – 23 Dec, 2008On 22nd December 2008, Gia Hong company cooperated with MPM Construction DevelopmentInvestment (Austria) to hold a groundbreaking ceremony for the construction of Bau Ke ecotourism sitein Tan Phu town, Dong Phu suburban district, Binh Phuoc province with a total construction cost of 20million USD.On a site of 82,000 m2, the project includes the items such as: an amusement park, a resort, a sportscenter, a hotel - restaurant area and a housing area for the low-income people. The project is expectedto be completed in 2 years.

Works start on the first item of Vietnam – Japan intellectual park

Vnagency – 23 Dec, 2008On 23rd December 2008, VIJA Powersource Corp. held a groundbreaking ceremony for the constructionof Park Gate Building at Thu Thiem new urban area.The project has a total construction area of 38,000m2 including 18 floors and 3 basements with the totalinvestment of 40 million USD. It is expected to be completed in June, 2011.

Year 2009: Construction invetsmentto drop by 30%

Kinh Te Do Thi – 26 Dec, 2008According to the statistics in the report of "The overview of the construction market of Southeast Asiaand Hong Kong in the context of the global economic recession" researched and announced by theBuilding Construction Information (Asia BCI) on 23rd December 2008. In 2009, the investment in Asianconstruction market is forecasted to decrease by 16% to 31%. Many projects will have to be delayed dueto the lack of capital.Accordingly, the value of the construction projects in the next year will decrease significantly, from 140billion in 2008 to only about 118 billion in 2009. In the worst cases, the construction investment may beonly U.S. $96 billion. The regional economic situation has been on the down turn, the investors will delaypouring the capital into the projects of offices, hotels, entertainment areas and the retail centers.

VietRees – Vietnam Real Estate www.VietRees.com

Viet Nam Real Estate Newsletter A63 Page 3

Sponsor:

Total FDI poured into the real estatefield in Vietnam until November, 2008

Source:

General Statistics OfficeLicensed projects have mainly focused on theservice field with 380 projects. With theinvestment of over 9 billion USD, the field of building offices - apartments is attracting themost capital.

FDI record in 2008

Until the end of 2008, theimplementation capital has reached11.5 billion USD, which is thehighest figure within 21 years.The registered capital in 2008 hasexceeded 60 billion USD, whichhas also been a record figure untilthe current time.

VIETNAM IN THE WORLD

HCMC real estate shows the leadingpotential in Asia

VnagencyAccording to the latest report of PricewaterhouseCoopers Group (PwC) and Urban Land Institute, HoChi Minh City. Ho Chi Minh of Viet Nam is one of the cities that have shown the most prospects for development in Asia - Pacific in the real estate field.Ho Chi Minh city has gained 5.25 points in the assessment of the prospects for the development in 2009,ranked second after Bangalore (India) with 5.27 points and coming before the 17 other Asian cities in theranking board. In the specific real estate fields, Ho Chi Minh City has also reached a very high number of points, ranked 1st in trading offices, retailing real estate and leasing apartments, ranked 3rd in the hoteltransaction, ranked 2nd among the markets showing potential for the industrial works and distribution.Assessing the general situation of Asian real estate market, PwC has shown that most of the real estatemarket in Asia -Pacific until now has not yet been greatly affected by the global financial crisis.According to PwC, the profit in this area at this region is still very high, creating a big attraction toinvestors.

REAL ESTATE AGENTS

Works start on Montana apartmentproject

VietRees – 21 Dec, 2008Ngan Thanh Company and Lilama SHB Company held a groundbreaking ceremony for the constructionof The Montana high-grade apartment project at 360 Thoai Ngoc Hau, Tan Phu District, HCMC on 20thDecember 2008.With the total investment of nearly 200 billion USD and the total construction floor of over 15,000m2, thebuilding is 18 floors high, including 88 units with the sizes of 75m2 and above. The investor plans tohand the houses over in May, 2010 with the selling prices of 16.5 – 19 billion VND/m2 (excluding VAT).

500 clients to receive Saigon Pearlapartments before Tet holidays

BDS & TS – 22 Dec, 2008On 20th December, 2008, Co., Ltd Vietnam Land SSG held a meeting at Caravelle hotel for 500 gueststhat will be handed over the apartments Ruby in January, 2009. At the same time, the company willprovide the information necessary for the preparation for the apartment handovers.On this occasion, the investor have also introduced the companies that have won the contract of servingthe building: Savills Vietnam will manage the operation, Long Hai will ensure 24-hour security, PanPacific will be in charge of the sanitation service for the whole residential area and Absolute Pest Controlwill be responsible for the insect-killing service in the whole area for the project as well as in eachapartment periodically.

A 30-storey hotel complex to be built

Ha Noi Moi

– 24 Dec, 2008

The Ministry of Construction has approved to make some adjustments to the basic design of the projectof Vietnam Oil and Gas hotel complex at the Southeast Culture and Sports Park, Me Tri, Tu Liem district.With the newly-adjusted design, the Complex invested by Vietnam Oil and Gas corporation includes 3blocks: the 30-storey hotel block, the 24-storey office block, the 30-storey apartment block and 2 generalbasements connecting the 3 blocks.

Resco opens real estate transactioncenter

VietRees – 26 Dec, 2008Saigon Real Estate Corporation held an opening ceremony for Resco property transaction center that islocated at 41 Suong Nguyet Anh, Ben Thanh Ward, District 1, Ho Chi Minh City on 23th December 2008.The main function of Resco transaction center is trading in the products of Saigon real estatecorporation, the member enterprises and the other individuals and organizations that have demands. Inaddition, the transaction center also offers the other services relevant to real estate: advertising,brokerage, transferring, consulting, marketing and distribution, assessing, auctioning and performing thelegal formalities.

Paradise sea ecotourism site to bebuilt at Chan May

Sai Gon Tiep Thi – 26 Dec, 2008On 25th December 2008, Thua Thien Hue Provincial People’s Committee licensed Vincom Real Estateand Finance Investment JSC to build the ecotourism site at Chan May – Lang Co with the totalinvestment of 18 million USD.The project is built on a site of 8 hectares, including a hotel area, conference room, swimming pool,eating and drinking area. The construction of the project is expected to be started in September 2009and completed after a 24-month implementation.

of 00

Leave a Comment