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Viet Nam Real Estate Newsletter A68 Page 2
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MARKET SITUATION
The real estate market seekingthe chance for recovery
Thanh Nien – 01 Feb, 2009 The actions of setting up the plans for the investment of some enterprises have shown that they stillhave high hope for the luminosity of the real estate market, especially the last 6 months of 2009.According to a director of a real estate company, the real estate business investors have to face manydifficulties in 2009. Because the land prices promulgated in Ho Chi Minh City have doubled at someplaces. This will make the site clearance compensation become more difficult. The money for using landwill also be double. The projects started in 2009 will certainly meet difficulties.In addition, the real estate enterprises have thought that the compensation for site clearance is afrequent thorny problem. And the secondary investors have to consider paying the personal income taxon transferring the properties when they make purchases and sales of properties in this year. While thepurchasing power of the real estate market has dramatically dropped and has seen no sign of recoveryyet, the application ofthe income tax on transferring real estate has also influenced the investors’psychology. Therefore, whether the real estate market in 2009 will warm up or continue to cool down hasstill substantially depended on tax policies, money for the site clearance compensation, etc although thebank interest rates are going down.
Real estate market in 2009: thefathomless unknown
Sai Gon Giai Phong – 05 Feb, 2009
Many experts have shown that in the context of the global economy now facing a crisis, the multinationalenterprises will have to be more cautious about spending, minimize foreign laborers &recruit foreignerswho are single instead of married couples, etc. These will be also agents that have changed thedemands for leasing houses, the sizes of apartments, locations and standards of dwelling houses.Meanwhile, the competition pressure from the office buildings in Hanoi and HCM cities will cause a fewdifficulties for this market. In fact, the owners of the office buildings for lease have clearly realized thecompetition between the supplies in the future. Therefore, they have to reconsider to provide the rentsthat are more suitable for the demands. In addition to the changes in field of offices and apartments, thefield of hotel & tourism is predicted to reduce the rental capacity and the rents, especially in the high-grade segment, due to many reasons.Up to this time, only very few projects have been offered for sale in HCMC. The main reason may bethat the investors are planning to wait in front of the market, redesigning the apartments with smaller sizes, handing over the raw parts with fewer facilities and putting an end to the golden age of the high-grade apartments. Additionally, the fact of the properties’ value falling down has made the investorsworried and likely to formulate many new policies to attract the supply for the purpose of maintaining thesales turnover.According to the real estate enterprises’ prediction, there will be many foreign investors withdrawing fromVietnam or temporarily stop their projects due to the global economic recession in 2009. The real estatemarket tends to go down, causing the embarrassment and distraction for all participants. However, thefact of the developing speed getting slower than anticipated by the real estate market can be a positivefactor because this helps the market not to fall into the excess of supply over demand. However, theVietnamese real estate market has still been considered to have full potential and create many goodopportunities. But, it requires not only the effort and experiences of investors, but also the appropriatepolicies to develop healthily, steadily and sustainablein order to promote the economic growth andsocial security.
REAL ESTATE FOREIGN INVETSMENT
Life Resorts builds high-graderesort in Ninh Thuan
Ha Noi Moi – 30 Jan, 2009After the resort project in Da Nang, Life Resorts Group (Netherlands) has continued to implement theprojects of building the high-grade resort Life Wellness Resort Ninh Binh in Ninh Binh province.With the specific architecture of the North Central Coast region, the design will look like a Vietnamesevillage including 32 bungalows with the style of traditional tents, stone-built house, 74 room building, spaarea, swimming pool, restaurant, garden &a lotus pool, cobblestone footpaths close to the ancient ThaiVi 500 year old temple. Ninh Binh resort is expected to come into operation in the second quarter, 2010.
Malaysia builds the complex atNhon Trach
TheSaiGonTimes – 02 Feb, 2009
Sova Co. Holdings Sdn Bhd (Malaysia) and Thai Duong Co. (Vietnam) have cooperatedto develop thecomplex of over 8 hectares in Phu Hoi, Nhon Trach, Dong Nai province with the total investment of 47million USD. The project of Nhon Trach City Center consists of two 15-storey office buildings, four grade-B blocks of 13 stories, a villa, terraced houses, shopping centers, sports and a 4-star hotel. The projectis expected to be started at the beginning of April 2009 and completed in 2012.
One more resort in Quang Nam
VietRees – 06 Feb, 2009
La Perla International Living (Netherlands) has been licensed to build the 28-hectare resort close to HoiAn, Quang Nam Province. The project including 390 villas and apartments along with the auxiliary workswill be started in the third quarter of 2009 and put into operation after one year.Besides, the corporation plans to build 100 more villas at Bai Tram resort in Xuan Canh commune, SongCau district, Phu Yen province in March 2009 and will complete them in 2010 with the investment of about 80 million USD.
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