Vietnam Real Estate Newsletter - No. 72, Week 1 Mar, 2009

Weekly Newsletter Vietnam Real Estate A72

Week 1, March

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Market situation (p.2)

Real estate foreign investment (p.3)

Real estate agents (p.3)

Vietnam in the world (p.3)

Properties on the world (p.4)

Real estate legislation (p.4)

Websites of real estate companies in Vietnam (p.5)

Real estate projects and prices (p.6)

Real estate supply for customer groups (p.8)

Construction material market last week (p.9)

Stock market last week (p.9)

Market forecast, statistics expert opinions (p.10)

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MARKET SITUATION The contrast in predictions Thoi bao Kinh te Sai Gon – 28 Feb, 2009

The market of offices for lease in Ho Chi Minh City in general has been sluggish under the impacts of the economic difficulties. Some grade-A office buildings have lost the customers within the past 3 months although the rents have decreased day by day. Currently, the rents of grade-A offices in CBDs of Ho Chi Minh City have dropped by below 50 - 60 USD/m2 and they may be lower if the customers want to lease the large areas. The economic crisis in 2008 has proven the previous predictions about the market of offices for lease to be wrong. The demands for leasing offices have plummeted and the main reasons are the situation of limited production, sluggish trading and the financial difficulties. Meanwhile, the supply of offices has become plentiful. Currently, HCMC has over 900,000m2 office floor areas of all types, increasing by 21% as compared to the end of 2007. However, at the high-rise buildings operating, the unoccupied floor areas have been considerable, accounting for about 10 - 30% (grade-A), 40 - 70% (grade-B and C). At many newly completed projects, many of the customers who made reservations have withdrawn, even some places cannot be put into operation because there are no customers. The prices of grade-B offices offered for lease have ranged from 25 to 35 USD/m2, depending on location and service quality. The prices of grade-C buildings have ranged from 14 to 22 USD/m2. According to the consultants, HCMC will have over 1.2 million m2 office floor area of all types for lease until the end of 2009, increasing by 66% as compared to the present. This will pull the office rent down to 30 USD/m2 (for grade-A offices), 20 USD (for grade-B offices) and 10 USD (for grade-C offices). For tenants, it is hard for enterprises that have moved their offices to the premises of private ownership to come back to the buildings due to the following reasons: (1) lease the contracts with the longer term to stabilize their works, (2) the enterprises had to spend the considerable costs on renovating and fitting out their new offices for long-term demands, (3) although the rents of the buildings have decreased, they have still been high. Therefore, investors need to grasp the reality and understand their customers’ requirements; then the amount of unoccupied office areas will become less.

Hanoi: The real estate market is taking a run-up to start! Ha Noi Moi – 02 March, 2009

Like the prediction of the economists, the Vietnamese real estate market from the middle of 2008 to the beginning of 2009 has been almost frozen. The transactions have happened perfunctorily and very few transactions are successful. However, until the last half of the first quarter 2009, although the transactions have not really yet happened boisterously, the number of the people who have real housing demands or inactive money has begun to show their interest in the information about real estate projects. The old projects belonging to the districts in the city continue to draw the attention of high-income people. The low-price housing projects that are being implemented in Hanoi and Ho Chi Minh City have also been paid a lot of attention by investors as well as those who have real demands. In addition, recently the warming up of the HCM City real estate market has also spreaded over to the Hanoi market. The Hanoi real estate market has warmed up due to many reasons, but the most important one is that the housing demand of the people has been great. According to an expert, the Vietnamese real estate market in 2009 and the following years will gradually return to the real value, the investors need to calculate the investment costs reasonably and ensure the effectiveness and the consumers also want to buy the properties with the right values. In addition, the fluctuation of gold, dollar, saving interest and stock has made the investors consider whether they should make investment for the profit at this time or not. Another important problem is that the policies and solutions of the government have a large impact on the real estate market. However, whether the Hanoi real estate market may develop sustainably or not will also depend on the situation of preventing the economic recession from affecting Vietnam in the next months. The reciprocal influence between the real estate market and the other markets will follow the positive directions that are profitable for the investors when the economy starts growing.

How hot is the real estate market? Sai Gon Tiep Thi – 02 March, 2009

According to many experts, currently the market has become "hot", not in terms of prices or profits but in the level of transactions. However, this hot level has partially happened, in the projects whose prices fit the scale and location. The price reduction will not have considerable impact if the deposit rate is not low as present. This has caused some investors to switch to the projects with more reasonable prices and less risks. In addition, the money from compensation and the additional support for the resettlement of Thu Thiem residents has also been the new demand. The urbanization process is taking place vigorously, which has made the process of moving the people to the environs increase and they are the potential customers. These people not only want to think of a peaceful life but also contribute the capital into the investment. The above factors have stimulated the market, but certainly, this stimulation has made the market heat up in the transactions because the housing demands are real, not focusing on the investment purposes like before. Therefore, the market will quickly cool down when the demands are met. Minimizing or increasing the risks in the current market has been completely based on the exact calculation of the investors, not based on the movement any longer.


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REAL ESTATE FOREIGN INVETSMENT Vietnam enterprises builds golf course at Laos Thoi Bao Kinh Te Sai Gon – 01 March, 2009

Long Thanh Trade and Investment JSC will start the construction of the 5-star golf course and hotel in the Dongphosy village, Hatsaifong suburban district in Vientiane capital, Laos in the first quarter of 2009. The project is located on the site of 557 hectares with the total investment of 1 billion USD, divided into 4 construction stages. It is expected to be completed in 2020.

Ha Noi: Grant investment license to Satin Residence VietRees – 04 March, 2009

CapitalLand Co., Ltd - Hoang Thanh has just received the investment license for the project of high-grade apartments, trade and services Satin Residence (Ha Noi). Satin Residence is a joint venture project between the Hoang Thanh Investment and Infrastructure Development JSC and CapitaLand - Singapore corporation including 5 high-rise buildings that will provide about 1,100 apartments with the investment of 120 million USD.

The number of the projects registering for licenses in the first 2 months of 2009 Source: The Foreign Investment Bureau The total projects including the newly-registered and capital-increasing ones in the first two months of 2009 has reached just over 1/3 as compared to the same period of the last year.

The Foreign Investment Bureau forecasts in 2009 and 2010 will be a difficult year for attracting FDI in Vietnam due to the impacts of the global financial crisis. However, the prospects for midterm and long-term investment in Vietnam still are considered to be good by investors.

REAL ESTATE AGENTS Sacoreal sold out Hoa Binh Sacomreal apartments BDS & TS – 02 March, 2009

Saigon Thuong Tin Real Estate JSC (Sacomreal) has shown that the remaining 30 apartments of Sacomreal Hoa Binh apartment building has been sold out within two days after being offered for sale in the second phase. Sacomreal Hoa Binh building is located at 47 Hoa Binh Street, Tan Thoi Hoa Ward, Tan Phu District, Ho Chi Minh City including the functions such as: trading center, offices for lease and the apartments with the scale of 1 basement, 1 ground floor, 11 floors, 1 mezzanine and 1 terrace. The project will be completed in the second quarter of 2010.

DIA starts works on The Phoenix Garden project Ha Noi Moi – 02 March, 2009

Dan Phuong suburban district People's Committee and DIA Investment and Development Co.,Ltd. have just organized a groundbreaking ceremony for the construction of the high-grade ecological urban area The Phoenix Garden in Phung town and Dan Phuong commune, 20m from the heart of Hanoi. The project is 43 hectares with the total investment of over 1,100 billion that is designed with the elegance of French architecture and the Asian traditional style, including the villas with the areas of from 400 to 800m2 and the amenities such as commercial centers, restaurants, entertainment areas...

Petrowaco prepares to start works on the high-grade apartments VietRees – 03 March, 2009

According to Oil&Gas Real Estate JSC (Petrowaco), in the second quarter of 2009, the company will start the construction of the complex project of offices and houses at 59 - 63 Huynh Thuc Khang street and the collective zone 97 Lang Ha Street in Dong Da District, Hanoi City. The complex project of offices, houses and commercial buildings at 59 - 63 Huynh Thuc Khang includes 25 storeys and 3 basements with the area of 2.315m2. The collective zone 97 Lang Ha includes 27 storeys with 172 high-grade apartments and 8 penthouse apartments on a site of 4.233m2. Petrowaco expects to complete these two projects in the first quarter, 2012.

Hue city: Works start on Apec new urban area VietRees – 05 March, 2009

Hue City People's Committee has just approved the report on the construction and investment situation of the new urban area APEC invested by Asian-Pacific Investment SJC. The project is located in Zone B - An Van Duong new urban area, Hue district. In the phase 1 of the project lasting from 2009 to 2014, the investment is expected to be 132 billion and 30 hectares will be executed. In the phase 2 of from 2015 to 2018, the investment is expected to be 75 billion and 16.5 hectares will be built.

VIETNAM IN THE WORLD HCMC ranked 5th in Asia in terms of office rent Edited by VietRees – March, 2009

According to Cushman and Wakefield Real Estate Brokerage Company (America), when comparing to the rents of the offices at 202 locations in 57 countries in the world, Hong Kong is the place where the rent is most expensive in the world with $2,214 USD/m2/year. The followings include Tokyo (Japan), London (England), Moscow (Russia), Dubai (UAE), Mumbai (India), Paris (France), Damas (Xyri), Abu Dhabi (UAE), Singapore (Singapore) and New York (USA). Ho Chi Minh City (Vietnam) is ranked 16th in the world (increasing by one rank as compared to the year 2008) and ranked 5th in Asia with the average rent of about 764.5 USD/m2/year. According to the reports, HCMC is the city where the speed of increasing the rents is fastest in Asia and the average increase is 46%/year. Cushman and Wakefield has also shown that the average rents of offices in the big cities in the world have decreased by 16% due to the significant impacts of the global financial crisis. Among them, London is the city that has suffered the greatest impact on the office market that has plummeted by approximately 23% as compared to 2007.


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PROPERTIES ON THE WORLD Hong Kong real estate market begins to prosper Property-Report

From the beginning of the year up to now, the segment of the high-grade houses at Hong Kong real estate market has been seeing positive changes. The liquidity of the market has become higher in the first months of the year and reached the peak for over half of the last year. According to Centaline Property Agency Ltd, the enterprises specializing in the high-grade residential area in Hong Kong, the number of successful transactions has increased by about 31% as compared to December 2008 and the value of the signed contracts has risen by around 9%, reaching 2.7 billion Hong Kong dollars (or about 348 million USD). This has been the highest earnings from July, 2008. The price of a high-class is priced at 10 million Hong Kong dollars. The analysis specialist at Jones Lang LaSalle consulting company has said that the shortage of supply and the low prices are the basic reasons behind the positive changes in the segment of high-grade apartment in Hong Kong. However, it is still too early to determine whether the luxury home segment has become stable or not.

REAL ESTATE LEGISLATION Strictly impose the laws in the construction field Lao Dong – 01 March, 2009

In order to prevent the situation of illegal construction, the lack of the law compliance of many investors in the past, the Government has promulgated the Decree 23/2009-ND-CP on "Imposing the fines on the administrative breaches in the construction activities; real estate business; construction material production, business & exploration, managing the technology infrastructure; managing the development of houses and government offices“. It wil take effect on 1st May, 2009. Accordingly, if the investors who breached the construction order including organizing the construction of the works without construction permits, not following the authorized designs; the detailed construction planning, etc still repeat the breaches after receiving the decision of the authorized officials on suspending the construction, then they shall be fined from 300 - 500 million VND and taken away the right of using the construction permits. In construction activities, the investors who have the behaviors such as conducting the construction surveys on their own when they do not have enough abilities; not executing the construction supervision and survey or not organizing the checking-and-taking over the result of construction surveys... will be fined from 30 - 40 million VND. If the contractors commit the breaches such as checking-and-taking over for nothing, organizing the hand over of the works to the owners, using the works when not organizing the checking-and-taking over in accordance with the regulations, making the wrong reports which leads to adjusting the designs twice and over ...will be fined 80 - 100 million VND. Additionally, selling, leasing-for-purchasing the properties that are obligated to be traded through transaction centers without passing through the transaction centers; trading in the properties that do not have enough standards or are not allowed to be put into trade, etc will be fined 60 - 70 million VND. The investors managing the development of dwelling houses and government offices do no save a portion of the land fund in the projects of developing the commercial dwelling housing for building the welfare houses following the regulations or not invest in the synchronous construction of the social infrastructure and technology infrastructure following the ratified projects, etc will be fined 40 - 50 million VND. The Decree also pays attention to technology infrastructure, the work quality and the consumers of the construction products. Additionally, the organizations and individuals constructing works ashore, on thewater, under the water in the areas for protecting the safety of the surface water source will be fined 30 -50 million VND. If they chisel the pipe route of raw water or the pipe of transmitting water without permission, they will be fined 40 - 50 million VND. In addition, the Decree 23 also publicizes the breaches of the objects who are imposed the fines. Besides the forms of fines, additional fines and the solutions to repairing the consequences according to the regulations. Some breaches must be publicized on the website of the Ministry of Construction and the Provincial People’s Committee, the city under Central Government, where the decision of levying the fines on the administrative breaches is promulgated.

HCMC: propose the management and vehicle keeping fees at apartment buildings Tuoi Tre – 05 March, 2009

The Department of Construction has offered the draft stipulating the ceiling level for the management and the operation costs of the apartment buildings and has been collecting the opinions from the relevant agencies. According to the draft, the maximum management and operation cost for the grade-1 apartment buildings is 9,000 VND/m2/month; 7,000 VND/m2/month (for grade-2 apartment buildings); 5,000VND/m2/month (for grade-3 apartment buildings); 4,000 VND/m2/month (for grade-4 ones) and 3,000VND/m2/month (for old apartment buildings). The apartment owners are responsible for contributing to the operation costs for their private usable areas, even including the areas that are not used. As for the apartment areas that have not been yet sold, the investors are in charge of paying the management cost. The draft also stipulates the costs of keeping cars at the apartment buildings. For instance, the car keeping cost for the grade-1 apartment building is 1 million VND/car/month. The costs have also decreased following the grades of the apartment buildings: 800,000 VND/car/month (for grade-2 buildings), is 600,000 VND/car/month (for grade-3 buildings), 500,000 VND/car/month (for grade-4 building), 400,000 VND/car/month (for old apartment buildings). The highest cost for keeping motorbikes is 180,000 VND and the lowest cost is 30,000 VND/motorbike/month


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Websites of real estate companies in Vietnam Property developers

Ho Chi Minh Company 585 - www.585.com.vn Company 584 - www.congty584.com.vn An Phu - www.anphugroup.vn BCCI - www.bcci.com.vn Daewon - www.daewon.vn Him Lam - www.himlam.com Hoang Anh Gia Lai - www.hagl.com.vn Linh Phong Conic - www.conic.com.vn Nam Long - www.namlongvn.com Phu Long - www.phu-long.com.vn Phu Quoc Land - www.phuquocland.net SacomReal - www.sacomreal.com Sadeco - www.sadeco.com.vn Resco - www.rescovn.com Thai Thinh Capital - www.richlandhill.com.vn Thu Duc House - www.thuduchouse.com Phu My Hưng - www.phumyhung.com.vn Van Phat Hưng - www.vanphathung.com.vn Vietnam Land SSG - www.saigonpearl.com.vn

Ha Noi FPT Land - www.fpt-land.com C.E.O - www.ceoholdings.com.vn Gia Tue - www.giatue.com.vn HUD - www.hud.com.vn HDB Viet Nam - www.hdbgroup.com.vn Keangnam - www.eng.kne.co.kr Nam Cuong - www.namcuong.com.vn Song Hong Land - www.songhongland.com.vn Vinaconex - www.vinaconex.com.vn Vincom - www.vincom.com.vn Viet Hung - www.ecopark.com.vn

Other cities Becamex IDC - www.becamex.com.vn Biconsi - www.biconsi.com.vn Tuan Chau - www.tuanchau-halong.com.vn GNSVINA - www.cozyvill.com Company 579 - www.cecico579.com.vn Duc Manh - www.ducmanhco.com

Brokerage

Ho Chi Minh An Gia - www.angia.com.vn ACBR - www.acbr.com.vn Dat Xanh - www.datxanh.com.vn Dia Loi - www.nhadatdialoi.com.vn Dat Cat - www.datcat.com.vn FICO - www.ficohome.com.vn Kim Son - www.kimson.com.vn Phuc Duc - www.phucduc.com Hung Phu - www.hungphunhadat.com Hung Thinh 2 - www.diaochungthinh.com.vn Hoang Quan - www.hoangquan.com.vn Intresco - www.intresco.com.vn Loc Dien - www.nhadatld.com Nova - www.novahomes.com.vn Phat Hung - www.phathung.com.vn SacomReal - www.sacomreal.com Tan Dien - www.tandien.com.vn

Ha Noi Cland - www.cland.com.vn Dong Do - www.dongdobds.com Phu Thai Group - www.phuthaigroup.com Petrowaco - www.petrowaco.vn Petrolimex – www.pland.com.vn

Other cities Dieu Hien - www.dieuhien.com.vn Thien Loc - www.thienlocnhadat.com.vn

Research CBRE - www.cbrevietnam.com Savills Viet Nam - www.savills.com.vn VietRees - www.VietRees.com

Consulting CBRE - www.cbrevietnam.com Dong Duong - www.indochina-consulting.com Eden Real - www.edenreal.com Hop Nhat - www.uniland.com.vn Indochina Land - www.indochinacapital.com Long Gia Khang - www.longgiakhang.com Savills Viet Nam - www.savills.com.vn Vina Capital - www.vinacapital.com

Evaluation AREV - www.arev.com.vn Hoang Quan - www.thamdinhgia.com Vietland - www.thamdinhgia.com.vn VVFC - www.valuation.vn

Construction Ho Chi Minh CIC8 - www.cic8.com Coteccons - www.coteccons.com.vn Cosaco - www.cosaco.com.vn Hoa Binh - www.hoabinhcorporation.com Hai Thanh - www.haithanh.com.vn Toan Thinh Phat - www.toanthinhphat.com.vn

Ha Noi Constrexim - www.constrexim.com.vn Cavico - www.cavicovn.com HANCIC - www.hancic.com.vn HUD - www.hud.com.vn Incomex - www.incomex.vn

Architect and Interior Decoration Ho Chi Minh A2 Visualization - www.a2viz.com.vn Cat Moc - www.catmoc.com.vn Nha Vui - www.nhavui.com Nha Viet - www.nhavietdecor.com Nha Dep - www.nhadep.com.vn Pho Xinh - www.phoxinh.com.vn

Ha Noi ACT - www.act.com.vn ADKientruc - www.adkientruc.com Ashui – www.ashui.com Kien Truc Ha Noi - www.kientruchn.com

Other Countries Architects 61, Sing - www.a61.com.sg DP Architects, Sing - www.dpa.com.sg SWA, USA - www.swavietnam.com Ong&Ong, Sing - www.ong-ong.com RSP Vietnam, Sing - www.resp.com.sg Surbana Vietnam, Sing - www.surbana.com


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REAL ESTATE PROJECT AND PRICES BCCI opens Dam Sen complex project in District 11 Vietrees – 03 March, 2009

Binh Chanh Construction and Investment JSC is implementing the measurement and compensation; setting up the records of the site clearance and resettlement for Dam Sen complex project. The project is built on a site of over 5.9 hectares in Ward 3, District 11, Ho Chi Minh City including the functions such as: trade centers, hotels, office buildings and apartments for rent.

Ha Noi: One more trade center in Hoang Mai District Xay dung – 04 March, 2009

Lilama Hanoi has just started the construction of the high-grade complex project at 52 Linh Nam, Mai Dong Ward, Hoang Mai, Ha Noi city with the total investment of 452 billion VND. The project consists of two 21-storey buildings and the terraced villas on a site of 7,756 m2. In addition, there are public works such as: kindergartens, medical stations, libraries, trade centers that fully meet all the needs of the residents. The project is expected to be completed in February 2011.

HCM City: Prepare to start works on high-rise complex at Phu Nhuan District Vietrees – 04 March, 2009

Satra - Dat Thanh JSC has shown that it would hold a groundbreaking ceremony for the high-rise project Satra - PN at 163 Phan Dang Luu Street, Phu Nhuan District, Ho Chi Minh City on 7th March, 2009. With the total investment of 500 billion VND, the building is built on a site of 3,247 m2, including 18 storeys and 2 basements. The 5-storey bottom block is dedicated as a commercial area, while from storeys 6 to 18 are separated into 2 blocks of high-grade apartments. This project is expected to be completed in middle of 2011.

Ha Noi: Nam Cuong starts 25-storey apartment complex Ha Noi Moi – 05 March, 2009

On 5th March 2009, Nam Cuong Group has started the first 2 bays of the 25-storey apartment complex NCG Residentials on Le Van Luong Street (prolonged), Ha Dong, Ha Noi. The apartment complex CT8 includes four 25-storey bays (780 apartments), located on 16,484 m2 precinct and the attached infrastructures of the area include the health care center, sport area, entertainment area and the complex of the shopping services located on the ground floor of the building. The complex is expected to operate in 2012.

In Feb 2009, the prices of the high-grade apartments in HCM City to slightly increase VietRees – Mar, 2008

The price change level of high-grade apartments in HCMC

Announced prominent real estate developments during the last 2 weeks*

Week 4 February, 2009 Week 1 March, 2009

Ho Chi Minh City Satra Dat Thanh AP (Phu Nhuan Dist.) Dam Sen complex (Dist.11)

Other cities The trade center & apartments with 25 storeys (Ha Noi) The complex in Trung Van Commune (Ha Noi) HA in the urban area Bac Linh Dam (Ha Noi)

Complex at Mai Dong ward, Hoang Mai Dist. (Ha Noi) Satin Residence apartment building (Ha Noi) NCG Residentials apartment (Ha Noi)

* 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 Blooming Park - www.bloomingpark.com Saigon Paragon - www.saigonparagon.com Dragon City - www.dragonland.com.vn Preche - www.preche.com SaigonPearl - www.saigonpearl.com.vn V-Star - www.v-star.com.vn Time Square - www.timessquare.com.vn The Everrich - www.theeverrich.com Tan Da Court - www.tandacourt.com Lancaster - www.lancaster.com.vn The Vista - www.thevista.com.vn

Ha Noi Viglacera Tower - www.viglaceraland.vn My Dinh – Me Tri RA - www.sudicosd.com Bac An Khanh RA - www.vinaconex.com.vn Ha Noi Plaza Hotel - www.charmvit.co.kr Phap Van – Tu Hiep RA - www.hud.com.vn

Other cities Furama Resort - www.furamavietnam.com Sai Gon – Mui Ne Resort - www.saigonmuineresort.com Sunspa ResortVietnam - www.sunsparesortvietnam.com

Other cities Cozyvill - www.cozyvill.com Flamingo Dai Lai - www.flamingodailai.com Van Phu township - www.dothivanphu.com Dam Vac Golf - www.damvacgolf.com Sanctuary - http://sanctuary.com.vn Ho Tram Strip - www.hotramstrip.com Sai Gon Sunbay - www.ctc-corp.vn Eden Lagi Resort - www.edenreal.com Van Quan – Yen Phuc township - www.hud.com.vn Quoc Te Do Son - www.vietlandgroup.com


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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

Cantavil, Dist.2 * 98m2 – 1,750 USD/m2

* 150m2 – 1,485 USD/m2

Riverside Residences Area: 81 – 477 m2

Price: 37 million VND/m2

Sky Garden , Dist.7 * 71m2 – 29.6 million VND/m2

* 88m2 – 28.8 million VND/m2

Blooming Park, Dist.2 Area: 95 – 398m2

Price: 1,800 – 2,400 USD/m2

Direct contact with the investor1

Phu My, Dist.7 * 83.6m2 – 21.2 million VND/m2

* 114m2 – 24 million VND/m2

The Everich, Dist.11 * 115m2 – 1,720 USD/m2

Preche, Dist.2 * 147m2 – 2,222 USD/m2

Panorama, Dist.7 * 147m2 – 38.8 million VND/m2

Saigon Pearl, B.Thanh * 84m2 – 2,400 USD/m2

* 135m2 – 2,390 USD/m2

The Vista, Dist.2 * 139.8m2 – 1,600 USD/m2

New SaiGon, Nha Be * 121.4m2 - 18.9 million VND/m2

The Manor, B.Thanh * 80m2 – 1,925 USD/m2

* 118m2 – 2,000 USD/m2

Dist. Area (m2)

Price (million VND/m2) +/-

Apartment building – HCMC Central Garden 1 73 28.7 - Landcaster 1 120 68 + An Khang 2 90.2 24 Binh Minh 2 108 16 + Constrexim 4 81.5 21.5 + Orient Apartment 4 71.7 22.1 + Hung Vuong Plaza 5 129.6 28 - Tan Thinh Loi 6 64 14.3 Carina Plaza 8 98.8 15.7 Dat Phuong Nam BTH 105 21.7 - Botanic PN 93 31 + 4S Riverside Garden TD 73.44 18 + Sunview TD 71 12.9 + Development land lots – HCMC Binh Trung Dong – Cat Lai 2 190 10 ADC Phu My 7 100 17 - Phu My - Cho Lon 7 125 15.6 Gia HoA 9 200 9.7 Nam Long 9 90 11.5 - Khang An 9 144 7.4 + Ho Ngoc Lam BC 76 12 Cotec – Phu Xuan NB 100 7.3 Thai Son 1 NB 250 13.9 Apartment building – Ha Noi

Chelsea Park CG 98 25.5 CT3 Vimexco CG 94 27.5 Ha Thanh Plaza DD 114 25.8 + Hoa Lu HBT 94 33 Xa La HD 64 11.8 + Linh Dam HM 75 15.3 + Vuon Dao TH 120 22 Development land lots – Other provinces

Green Square BD 199.5 9 My Phuoc 3 BD 150 1.7 + Long Kim 2 LA 110 4.7 Wind Hill BR-VT 180 3.8 Thien Loc CT 100 2 - HUD DNI 105 2.7 TCT XD Ha Noi DNI 100 2.4 +

1 Kien A Investment & Services Co., Ltd. - An Phu Ward, District 2, HCMC - Tel: (84.8) 3740 6688, Fax: (84.8) 3740 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


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PROPERTY SUPPLY FOR DIFFERENT TARGETS OF CUSTOMERS

Social welfare houses for worker VietRees

* Saigon Construction Corporation investor two apartment blocks high 5-storey for workers in Quarter 1, Linh Trung Ward, Thu Duc Dist, HCMC. * 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. (2nd Oct,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. (3rd Oct,2008) * Hiep Phuoc accommodation and 1 apartment block in District 9 is reserved for over 1,600 workers in Hiep Phuoc industrial zone and hi-tech zones - Directed by HCMC People’s Committee (22th Jan, 2009). * 4 three-storey apartment blocks (204 rooms) reserved for nearly 1,000 workers in Ha Quang export garment factory and Tay Bac Dong Hoi industrial zone with the rent of 100,000 VND/ month/ person have been put into use after Lunar New Year – Quang Binh - Dai Phong Co., Ltd (4th Feb, 2009)

Real estate for the low income VietRees

* 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. * 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 D.1 is assigned to construct the resettlement area at 7/4ª Kha Van Can, TD D. * 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 Xanh 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. (30th Sep, 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. (16th Oct, 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. (27th Oct, 2008). * Replacing 0.3 million m2 floor of the old apartment buildings in District 1, 4, 5, 11, Binh Thanh, Tan Binh, Tan Phu and building 4 apartment buildings: 107 Truong Dinh (Dist. 3), Soai Kinh Lam ( Dist. 5), Building B (plot Q), Nguyen Kim apartment building, Building B (plot B, C), Ngo Gia Tu apartment building- Department of Construction (Jan, 2009).


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Land prices in 2009 stipulated according to price list by the state Used as the basis to calculate the tax for using land; transferring land use right; calculating the money for land use and lease when handing over the land; leasing land without via auctioning land use right or inviting bids for projects using land; calculating the value of land use right when handing over the land without collecting land-use money of the organizations, individuals; determining the value of land use right and adding it to the asset value of the state-owned enterprises when they are equitized; calculating land-use value for compensation when the government reclaims land, etc. Edited by VietRees February, 2009

Ho Chi Minh City * Urban land: not exceeding 81 million VND/m2 * 2,700 road stretches/ routes have new prices, 675 sections/ routes keep the prices unchanged and 1,899 stretches/ routes have the prices adjusted. The land price can be adjusted not to exceed 20% as compared to the maximum price and the minimum price.

Can Tho * The highest price of 17.5 million VND/ m2 is for land on Hai Ba Trung street. * The highest land price is 6.5 million VND in Binh Thuy District.

Dong Thap * Urban land: the The highest price is 15 million VND/m2 in Sa Dec town and 14.4 million VND/m2 in Cao Lanh City. * The price list of urban land in 2009 has supplemented 46 new road routes and adjusted 147 road routes with the popular increase of 200,000 – 1 million VND/m2. Nha Trang * The highest price is 18 million VND/ m2 (equal to 2008’s prices) – the stretch from the South of Tran Phu bridge to Ana Madra hotel (position 1, road No.1, coefficient 1).

* The lowest price is 300,000 VND/m2 (position 5, road No.8, coeffient 1) Ha Noi * Price of land within the city: 2.5 - 67.5 million VND/m2. * Price of land in the towns: 1.5 - 16 million VND/m2. * Price of land in the rural area: 150,000 VND - 2.25 million VND/m2. Hai Phong * Urban land: the highest price is over 30 million VND/m2. * As compared to 2008, the land price has had an average increase of 30%. Especially, some areas such as Do Son, Duong Kinh, Cat Hai districts have the increases of 100 - 225%. Thua Thien Hue * The highest price is 26 million VND/m2. * The lowest price is 320,000 VND/m2. Nghe An * Cua Lo and Thai Hoa towns: the highest price is 6.2 million VND/m2 and the lowest price is 50,000 VND/m2. * Vinh City: the highest price is 30 million VND/ m2 & the lowest price is 320,000 VND/m2.

CONSTRUCTION MATERIAL MARKET Construction material prices continue to go down in construction season Edited by VietRees

Many stores and agencies selling construction materials have shown that currently, although the construction season has begun, the purchasing power has been very sluggish. The main reason is the impacts of the economic difficulties. As a result, the construction material market this year has not complied with the law. The production factories have reduced both the capacity and the prices. The construction pipe brick has also decreased by 650 - 800 VND/brick, the normal type of brick has been only 450 VND/brick. The decoration brick, tiles, sanitation equipments have also fallen by 5 - 15%. The cement prices have constantly going down after the price fever and scarcity of goods. Currently, the price of Ha Tien 1 cement has been only 67,000 VND/sack, Holcim has been 66,000 VND/sack, Fico has been 64,000 VND/sack, etc and the promotions of offering the extra products have also been launched. In the meanwhile, Vietnam Steel Corporation (VNSteel) based in the South has just continued to reduce the steel prices by 300,000 VND/ton as compared to the middle of February, 2009. Currently, the rolled steel price at the factories has been only 10.65 million VND/ton, the bar steel has been around 11.19 million VND/ton. This is the second price decrease in the same month of VNSteel based in the South. The retail prices have ranged from 11.5 to 1.7 million VND/ton. According to VNSteel, the rolled steel imported from Malaysia, Indonesia and Thailand to Vietnam has been 100,000 - 200,000 VND/ton lower than the domestic prices. The construction material price has dramatically decreased , which has made the construction price go down with the average reduction of 30 - 50%. The all-in price for executing the construction (including materials) has been 3.5 million VND/m2. According to the specialists, this is a good time for the families to implement construction and repair their houses because the construction material prices have now plunged, many products and the construction costs have also declined.

STOCK MARKET Two bourses increase, VN-Index adds 3.21 points, HASTC-Index adds 1.86 points Edited by VietRees Chart Source: Vietstock Up to date: 06 March, 2009

After two slightly increasing sessions, Vn-Index has returned to the downturn. The gloomy situation on the stock market in the world has put more pressure on the VN-Index. There is no support of the stocks with the large capitalized values at HoSe, VN-Index has become powerless in the context of reverse and lost 1.4 points after the second phase. Along with the decrease in the number of the points, the liquidity has only reached 5.8 million units - the lowest level in the past 3 weeks. Ending the session, VN-Index has decreased by 0.98 points to close at 245.7 points. The total trading volume on the whole market has reached only 7.89 million units worth 128.4 billion VND. After one trading week, the VN-Index has almost had no considerable changes when it lost 0.04 points as compared to the closing price of the last week before seeing 3 upward sessions and 2 downward sessions. * The Hanoi bourse has also had a slightly decreasing session when HASTC-Index lost 0.18 points (-0.21%) to close at 84.59 points level. The trading volume has reached 4.4 million units worth about 79 billion VND. Thus, despite having only 2 upward sessions and 3 downward sessions, HASTC has increased by 0.63 points as compared to the closing price of the last week (from 83.6 points up to 84.59 points).


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REAL ESTATE MARKET FORECAST * Note: Information on market forecast is only updated every 4 periods (after one month) by VietRees – Mar, 2009

General trends on the Ho Chi Minh City market

The transaction situation of the apartments, town houses and project ground bases in February saw the better signs as compared to January although many companies have still operated perfunctorily. In general, the market has seen a slight increase in the prices of project ground bases and apartments for sale. However, this situation may not be stable because it only takes place partially.

According to VietRees, investors have tended to switch to buying low-price real estate such as apartments, town houses and project ground bases with many reasonable reasons: (1) preserving capital, (2) high expectation of the ability of price increases in the future when the other investment channels in stock, currency and gold are considered to be unsafe in the period of the economic recession, (3) Meanwhile, the bank interest rate is low, as a result, many investors have chosen the low-price properties as the safest investment channel, (4) the supplies of the low-price property have still been scarce; (5) for the low-price property at the present - when the market is frozen, there will be a faint possibility that the prices will be lower in the medium and long-term future.

Some prosperous signs of the market in February include: (1) some investors reduced the selling prices of apartments together with the attached program of supporting finance; especially according to the forecast of VietRees, this price decrease will contribute to stimulating the spread of the price decreases in the future, (2) the State’s policy of kicking the demands is gradually affecting the market, (3) the market will have many choices, (4) investors and customers have been more careful in transactions, as a result, the law of supply and demand would also take more effect.

Apartment market The price of the primary apartments has dramatically declined as compared to before (over 40%). This is the positive signs to attract customers and ensure the success in trading in projects when there are only a few projects offered for sale and the market has traded in dribs and drabs in the past time.

While the price of the retransferred high-grade apartments has somewhat increased as compared to the past, although the successful transactions have been inconsiderable. According to VietRees, the reasons include: (1) the investors have weekly increased the prices because they hope that the market will prosper when there are some good signals from the market, (2) the previous prices have dramatically decreased and when there are good signals, they do not accept the same losses as when they sold out at the low prices, (3) some projects that are considered to be high-class have the lower prices as compared to the projects with the prices newly announced by the investors in the recent time although the prices have dramatically declined.

According to the statistics, the prices of the high-grade apartments transferred in February rose by 1% as compared to January and the transactions have still been quite slow. The high-grade apartment prices are expected to remain the old prices or slightly decrease in the next few months, especially when the market has more supplies at low prices. The general difficulties of the economy has made the income of the people go down and caused the bank interest rates to decrease. This has contributed to increasing the demand for the low-price houses in the future.

The supply of the apartments belonging to the medium and low segment is fairly limited and there is almost no new product, as a result, the market does not show many movements. According to the statistics, the prices have also slightly increased by 1% - 2% as compared to recently.

Project ground base market Although the project ground base prices have gone down, they have still been very much higher than the level that the people with the real housing demands expect; as a result, the successful transactions have been very scarce. This segment has seemed to only attractive to the investors, not those who have the demands for building houses to live in.

In February, the ground base prices at some local areas in District 2, 9, Binh Chanh, etc have shown the signs of heating up because the people that receive the support for damages and compensation for the site clearance in the project of Thu Thiem new urban area have required price increases. The premise prices of the projects have been pushed up to the fairly high levels by the sellors such as Trung Son residential area, Thai Son residential area 1 - 2, etc. According to VietRees, this can only be the virtual phenomenon of kicking the demands at the areas.

It is not a new trend, however, it can be confirmed that not only buying the low-price houses to live in but also investing in the low-price houses and ground bases has been the trend. The low-price project ground bases distant from the heart of the city and located in the provinces such as Binh Duong, Dong Nai and BR-VT have actually attracted buyers. According to VietRees, this is the form of conserving the capital of the investors and expecting the price increases of the market in the future when the market is frozen and there is a faint possibility that the prices will become lower in the medium and long-term future.

The market will become more evenful when new supplies appear with reasonable prices

The new price premise is gradually being set up after the market has been frozen. According to VietRees, the market will be more eventful when there are more supplies with the reasonable prices in all of the market segments (from high-class, middle-class to the common or for low-income people). The reasonable new price premise will attract the transactions.

The investors need to calculate the interest rates reasonably and develop the projects quickly. The more reasonable prices will attract the investors when the other investment channels have been considered to lack the stability and be unsafe in the current situation. In the short, medium and long term, the real estate demand has been great. Therefore, according to VietRees, with a reasonable interest, the investors’ prestige, the marketing methods aiming at the right target customers and the good customer services, the investors will have a lot of chances to succeed.

VietRees - March, 2009

Business

Vietnam Real Estate Newsletter - No. 72, Week 1 Mar, 2009