Weekly Newsletter
Vietnam
Real Estate
A70
Week 3, February
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Market situation (p.2)Real estate foreign investment (p.2)Vietnam in the world (p.3)Properties on 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)Construction material market last week (p.9)Stock market last week (p.9)
Market forecast, statistics expert opinions (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 A70 Page 2
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MARKET SITUATION
Three factors able to heat upreal estate after 2010
Thoi bao Kinh te Viet Nam – 16 Feb, 2009 Since 1992, after the Land Law was promulgated, the real estate market has experienced three pricefevers. The first fever occurred at the end of 1993 and lasted until 1994 - 1995, then froze for 6 years. In2001 - 2002, the second fever occurred, then frozenwithin 5 years. Early 2007 and late 2008 saw thethird fever period occur. Since then, the real estate market has fallen into a frozen period in terms of thetransaction volume, investment capital and prices.Until now, the investment in the real estate market has continued to go out rather than go in. In which,the main reason is that the real estate market fell into a frozen situation for a year. Currently, prices havecontinued to decline. Investors or speculators have not dared to further invest because there continuesto be a large inventory of goods while the previous loans with high interest rates have matured. Thosewho have real demands are still expecting further price decreases. In addition, in terms of types of products, while the real demands are apartments with small sizes and prices of about 300 -500 millionVND; investors have still focused on building apartments and villas with sizes of hundreds of s.q.m andthe prices of up to ten billion VND. Furthermore, the construction material costs havedramaticallydropped as compared to the peak and currently, it has been stagnant. Meanwhile, the real demand for buying houses has been very considerable.According to the prediction of experts, the realestate market will not warm up until 2010. At that time, itwill warm up the transaction situation first and then, the prices due to the following reasons:
(1)
thesupply of dwelling houses has now been plentiful including the goods of constructors and speculators.
(2)
Although the housing demand has been large, it became weak last year and will continue to go downin the following years due to the low incomes and payment abilities.
(3)
According to statistics, the later real estate price fever has been about 5 years distant from the former one and the frozen period hascome between them. However, the hot / cold cycle is able to be quicker or slower.
Hanoi real estate market in flux
Thong Tan Xa Viet Nam – 17 Feb, 2009
According to the real estate consultants, investors have shown that they have become more cautiousabout the trend of changes of the market in the first months of 2009.For the office market in Hanoi, building owners have more clearly realized the competition among thesupplies in the future. And they have started to offer the reasonable rents because there are manytenants who are ready to move their offices to the buildings suitable for their financial situations.Currently, the unoccupied area of the grade B and C offices has been over 10%. Many 2 -3 storeybuildings with great locations have also been unoccupied. Only grade A offices have still kept theoccupancy rate of nearly 100% despite the still-high prices. The Hanoi office market will continue to havethe adjustments in 2009 because the total office supply has still been very large. For the housing market,the demand will also decrease due to the gloomy economy and the psychology of expecting further pricedecreases. Therefore, the house buyers will continue to wait while the sellers will still keep goodsbecause they do not want to reduce the prices.In fact, the difference between the supply and demand of the real estate market in Hanoi in particular and in the whole country in general has still been great. As a result, many enterprises have still bravelyinvested in the projects with high feasibility.
REAL ESTATE FOREIGN INVETSMENT
Start project Delverton Vietnamin Binh Thuan
VietRees – 16 Feb, 2009Delverton Group Inc (UK) has just started the resort project Delverton Vietnam at the sand hill close tothe coastline of Bai Chua - Hoa Thang commune, Bac Binh district, Binh Thuan province.The site is 100 hectares in size with 3 sides bordering the sand hill and the remaining side beingcoastline. The total investment is over 260 billion and divided in two phases. According to the design,the rooms are equipped with the advanced facilities; arranged relatively separately from each other andown fairly large sizes. The areas for relaxation, recreation and sport are isolated from others, includingswimming pools, volleyball playground and sports at the beach. During the investment time of 5 years,the project Delverton Vietnam also aims at building the telphers, trains for yachts, golf courses… todiversify the tourism development services.
Ratifying the first golf courseon island
Sai Gon Giai Phong – 17 Feb, 2009
Hai Phong city People's Committee has approved the investment projects to construct the first 18-holegolf course on island in Viet Nam Xuan Dam, Cat Ba island, Cat Hai district and it is expected to bestarted in the middle of March, 2009.Xuan Dam golf course is located in the complex of tourism and finance Venus - Cat Ba and invested bythe International Investment Corporations Giico. The total investment of the community is 600 millionUSD.
Nikko hotel brand enters Ho ChiMinh City
Thoi bao Kinh te Sai Gon – 18 Feb, 2009
On 18th February 2009, Yueh Fei Company Vietnam (Taiwan) has signed a management contract withJAL Hotels Company (Japan) to start the constructionof 5 star hotel Nikko Saigon at 235 Nguyen VanCu Street, District 1, Ho Chi Minh City with the investment of 100 million USD.The hotel belongs to the second phase of Royal Center project, including 22 storeys and 3 basementswith 335 rooms and 47 serviced apartments, conference rooms, restaurants, gyms and the high-gradestore system. The hotel is expected to be completed in October, 2011.
VietRees – Vietnam Real Estate www.VietRees.com
Viet Nam Real Estate Newsletter A70 Page 3
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VIETNAM IN THE WORLD
Vietnam ranked 3rd in middle-termdevelopment
Kinh Te Do Thi – February, 2009Vietnam is ranked 3rd in terms of development prospect in the mid-term, which is one of the surveyingresults of the operation situation of 620 Japanese companies in foreign countries in 2008 conducted byJapanese International Cooperation Bank (JBIC) and presented at the Ministry of Planning andInvestment on 11th February.Despite being ranked 3rd in terms of the development prospect for the business & production activities inthe middle term (after China and India), the rate of supporting Vietnam has decreased as compared to2007. The reasons why Vietnam has been highly appreciated include the good location for investmentdiversification, the low laborcost, the good development ability of the domestic market and the availablesupplies for the assembling industry. However, the problems that have still hindered the investment intoVietnam include the poor infrastructure development, difficulties in keeping the leaders of the companiesand technicians / engineers, increasing labor costs, and the weak system of law enforcement. The fieldsthat Japanese companies have been interested in when investing in Vietnam includeselectrical /electronics appliances, automotive, general machinery and chemicals.
PROPERTIES ON THE WORLD
Investment in Singaporean realestate market dramatically decline
Property-ReportThe investment in Singaporean real estate market in 2008 has decreased by 67% as compared to oneyear ago to be at just nearly 18 billion Singapore dollars (nearly 12 billion USD).Meanwhile, the figure in 2007 was 54 billion Singaporean dollars. This figure is recorded in the report of CB Richard Ellis on Asian market in the last half of 2008. In which, over 96% of the investment in realestate in 2008 was poured into the first stage of the year, mainly focusing on building offices for lease.The Singaporean real estate market that went down in the last half of year 2008 with the recorddecrease has made the investors more cautious. According to the survey of CBRE, most of the investorshave decided to implement the strategy of “observing and waiting”. They have shown that once theAsian market recovers, the Singaporean market will have opportunities.
REAL ESTATE AGENTS
Opening real estate coffee shopInterLand
BDS & TS – 16 Feb, 2009International brand JSC (Inter Brand) has just opened the real estate transactioncenter InterLand at 12Nguyen Thi Minh Khai Street, District 1, Ho Chi Minh City on the morning of 12th February, 2009.In addition to the services relevant to real estate such as advertising, sales, legal consulting, investmentconsulting. The center also serves the drinks and light food such as a coffee shop. InterLand center willfocus on the high-grade and medium products in HCMC and all over the country.
Begin distributing the complexproject of Central Garden
VietRees – 17 Feb, 2009Colliers International Group has shown that the investor of the complex project Central Garden haschosen it as the official distributor and this would be implemented on 18th February 2009.Central Garden project includes the office building Office Zone & the complex of high-grade apartments -trading services with 3 blocks of 22 storeys on a large site of 8,000 m2 at Ben Chuong Duong Street,District 1, Ho Chi Minh City.
HCMC: high-grade apartmentprices decline
VietRees – 18 Feb, 2009
Hoang Anh Gia Lai Corporation (HAGL) has officially announced the discount on prices of high-gradeapartments at the two projects Hoang Anh River View - District 2 and Phu Hoang Anh -Nha Besuburban district to respond to theprogram of kicking the demand started by Government and tocontribute to heating up the real estate market.Accordingly, as compared to the prices HAGL announced in late 2007, the average prices of Hoang AnhRiver View apartments have decreased by 950 USD/m2 (from 2,300 USD/m2 down to 1,350 USD/m2)and Phu Hoang Anh apartments have slid from 1.800 USD/m2 to 1.250 USD/m2 (decreasing by 550USD/m2). The company has shown that the apartments offered for sale in this discount programaccounted for 50% of the total sizes of the both projects. The 330 clients previously paying for theapartments of these projects will be readjusted according to the current prices.
Tricon Towers opened on Hanoireal estate market
Ha Noi Moi – 19 Feb, 2009
On 18th February 2009, Minh Viet Investment SJC has started the next stage of the apartment projectTricon Towers in the heart of the new urban area An Khanh North, Ha Noi after completing the basestructure.With a total investment of over 145 million USD, the project includes 3 towers of 45 storeys with 732high-grade apartments built on a site of 17,000 m2. It is expected to be completed before the thirdquarter of 2011. Tricon Tower is designed by RDC global design consulting company and ClodwellBanker Real Estate Management and Business Consulting Company (American) exclusively offersmarket consulting and operation management to this project.
UDIC to build 170,000 m2 housingfloor area
Kinh Te Do Thi – 19 Feb, 2009
Urban
Infrastructure Development Investment Corporation (UDIC) has shown that over 40 works andprojects have been started in 2008 and at the beginning of 2009.It is estimated that in 2009, UDIC will provide the market with about 170,000 m2 housing area. Thesuccessful implementation of the construction investment projects will create a big market for other business production business fields such as consulting, construction, industrial production &constructionmaterials.
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VietRees Newsletter 70 Week3 Month2 Year09
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