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8/14/2019 VietRees Newsletter 39 Week2 Month07 Year08
1/6
Vietnam Real Estate Newsletter A39
The first weekly electronic newsletter is released weekly and nationwide, especially for real estate companies, professional investors and individuals in need of real estate
Editorial Board: VietRees Market Information Department and renow.com.vn
Newsletter A39 Week 2 July, 2008
A member of:
Page 1
This is a weekly newsletter issued by VietRees Vietnam Real Estate. This is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning ornterested 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 forhe occurring damage. Please visit the website www.VietRees.com for further Vietnam Real Estate information. VietRees states clearly the original sources and dates for your convenient tracking or
getting full information. Should you need any queries or register to receive the newsletter, please contact via [email protected].
Sponsor:
Weekly issued
to 7,000registeredmembers,
approximately
20,000 readsper week or
80,000 readser month
Section A GeneralMarket Information
completely presents thewhole market with hot
news, foreigninvestment, real estatecompany, real estatenew developmentsand all necessary
legal news.
Section B ResearchResults & Statistics
provides marketstatistics including
pricings ofdevelopments, market
prices and constructionmaterials prices, real
estate overall statistics,newly announced
developments everyweek and month,
approved developmentsfor construction and
VietRees forecasts onthe market and VN-
Index stats.
Section C Utilities &Speciality Newsconsists of usefulselected articles,
reports and analysis.
Please stay tunedwith the
Real EstateInvesting Newsletter
issued by VietRees everymonth. The newsletter
introduces fully legitimatedevelopments that are
calling for investment andac uisition.
Joining with VietRees todevelop this weekly newsletter
SECTION A - GENERAL MARKET INFORMATION
A1-MARKET HOT NEWS
Source: Dan Tri Source:Tien Phong1. A sudden price fever hits HoTay land
06 Jul, 2008
2. Real estate market begins tothaw?
10 Jul, 2008
When information that Ho Tay will become thecentral of Ha Noi Capital surfaced, instantly landthere was offered for sale at double price comparedwith the extremely prosperous period-fourth quarter,2007. The hot areas in Tay Ho District include:Xuan La Street, Thuy Khe Street, Lac Long QuanStreet, Nguyen Hoang Ton Street, in which thereare always inconclusive discussions about land.
Unprofessional brokers began to appear. Those
searching for land have to pay brokers 50,000VNDfor one time to be taken to the land sellingaddresses. And the rule of 2% commission forsuccessful transactions is applied for sellers andeven buyers. In fact, people around the lake arewealthy and they think that renting just one floor isenough for their living.
20 years ago, land at surrounding area of Ho Taytowards Thuy Khe street was priced at 20-30 millionsVND/m2, but now the prices have gone up 3-4 times.
With nice landscape and central location, Ho Taycurrently is ranked at the top list of properties in HaNoi city. Especially when stone embankmentprojects and road works around the lake are
executed, land prices in Ho Tay surrounding areasincrease by many times. Real estate circles believethat it will be a long time before land prices in Ho Taydepreciate.
In the first week of July, 2008, despite the fact thatapartment transactions have increased by about 10-15%but only focused on apartments priced at 1.5 billionVND/per apartment and downwards, high endapartments have difficulties in sale and purchase.
Compared with price fever period, prices of apartmentsof this type have dropped by 60% and this price levelmakes it possible for home owners and investors in thebuyer market to wait for a bargain price before
purchasing. Noticeably, these apartments have quitestrong construction progress and belong to prestigiouscompanies or low-price projects. This demand is realand does not depend on fluctuation of the market. Onthe contrary, as for high end apartments of ill fame,despite the fact that they are in slow progress or just onpaper or suffer significant decrease in price, it is nearlythat there are no prospective buyers in the marketinquiring about them. Besides, segments of the marketin many areas are in a situation where a lot of propertiesare offered for sale but only a few properties are beingsold. This situation spreads from District 2, District 9toBinh Duong, Nhon Trach, Ba Ria - Vung Tau.
Ho Chi Minh Real Estate Association suggests that the
real estate market can thaw only when real estateagents manage to get capital, bank interest rates godown and loosens current policies to allow borrowers tobuy property, inflation decreases and people have moremoney to spend.
A2-REAL ESTATE FOREIGN INVESTMENT
Source: VietRees Source: VietRees3. Surbana will invest inBinh Duong
08 Jul, 2008
4. A Japanese Corporationopened in Viet Nam
11 Jul, 2008
Surbana Company - Temasek Corp (Singapore) hassaid it would invest in a model complex urban areaon a site of around 560 hectares in An Tay serviceand industrial zone, Binh Duong province. The
project is a master plan community which comprisesof: apartments, villas, garden homes, trade centers,parks, recreation area, schools of all levels
Currently, Surbana is executing the planning anddesigning of 3 urban projects in Vinh Phuc, BinhDuong and Ha Noi.
11 July, 2008, Japan Asian Viet Nam Companyorganized its opening ceremony at Sofitel Plaza Building.This company was granted an investment certificate withtotal investment of 1.6 billion VND by HCMC Peoples
Committee.JAVCO expects to make its contribution to thedevelopment of Viet Nams real estate market byrecognizing that investing in the Viet Nam real estatemarket will bring long term results.
Insightful Real Estate Market Information And Research: Please contact VietRees, theprofessional real estate researching and consulting company in Vietnam. We specialized ininspecting demands and performing behavioral analysis on current customers, targetedcustomers and potential customers in the real estate business sector in order to assist andadvise real estate companies developing a perfect business and marketing plan thatsucceeds in satisfying customer demands to its best. Furthermore, VietRees carries out awide variety of researches including possibility analysis, competition analysis, mediamarketing analysis and real estate valuating services.
Information regardingpublishing:
On June 14th
2008, VietReesand The NOW Group renow.com.vn have signedan agreement on cooperatingand developing the VietnamReal Estate Newsletter.
8/14/2019 VietRees Newsletter 39 Week2 Month07 Year08
2/6
Vietnam Real Estate Newsletter A39
The first weekly electronic newsletter is released weekly and nationwide, especially for real estate companies, professional investors and individuals in need of real estate
Editorial Board: VietRees Market Information Department and renow.com.vn
Newsletter A39 Week 2 July, 2008
A member of:
Page 2
This is a weekly newsletter issued by VietRees Vietnam Real Estate. This is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning ornterested 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 responsibleor the occurring damage. Please visit the website www.VietRees.com for further Vietnam Real Estate information. VietRees states clearly the original sources and dates for your convenientracking or getting full information. Should you need any queries or register to receive the newsletter, please contact via [email protected].
Sponsor:
A3-REAL ESTATE COMPANY EVENT
Source:Thanh Nien Source: Tien Phong5. Investment cooperation in a residentialarea in Long An
06 Jul, 2008
6. First-class modern walking route inViet Nam commenced
07 Jul, 2008
Civil Engineering Construction and Investment Joint Stock CompanyNo.135 and Thu Duc Housing Development Corporation have signeda contract on second stage - investment cooperation of residentialarea at the heart of Ben Luc town, Long An province on 04 July,2008.
The second stage includes a scale of 26.7 hectares with totalinvestment of 234 billion VND and comprises 150 villa plots, 318 plotsof terraced townhouse, 850 townhouse plots, service-trade centers,schools, green parks... The second stage is scheduled to commencein November 2008 and complete in 2010.
Peoples Committee of Ha Tay province and Nam CuongCorporation started construction of the project of 63km North-South economic route running through 7 suburban districts of HaTay in the morning of 06 July, 2008. Total investment of the projectis 7,694 billion VND and the construction duration is 5 years.
Nam Cuong Corporation invests in the project in BT form. Aftertransferring the construction, Peoples Committee of Ha Tayprovince will assign Nam Cuong some land plots to execute otherprojects for the purpose of recuperating its investment and profit.
Source: BDS&TS Source: Vnagency7. Sacomreal to exclusively market SaigonHam Tan project
07 Jul, 2008
8. HUD Company to establish affiliatedcompany
09 Jul, 2008
Sai Gon Thuong Tin Real Estate JSC. has signed a contract toexclusively distribute projects including of villa resort, golf course,resort, Saigon Ham Tan Residential Area for Resettlement (in BinhThuan) invested by Sai Gon Ham Tan Tourism JSC.
At first stage, Sacomreal will market and distribute ground bases of10 hectare residential area for resettlement with prices of 944,000 -2,160,000 VND/m2.
House and Urban Development Investment Holding Company(HUD) has announced that the project of establishing Housing andUrban Development Group was ratified by Government and waswaiting for the most suitable time to be introduced to public.
At present, HUD includes 15 affiliated companies, 6 associatedcompanies and 2 joint ventures.
A4-REAL ESTATE DEVELOPMENTS NEWS
Source: Nhan Dan Source: Thanh Nien9. Hue nha ruong ecotourism area to bebuilt
07 Jul, 2008
10. 5-star hotel and trade center to bebuilt
09 Jul, 2008
Thua Thien Hue Provincial Peoples Committee has ratified theproject of investing in Hue nha ruong ecotourism area at ThuyDuong commune, Huong Thuy suburban district, invested by VietThang Co. Limited.
The Department of Construction, Planning-Investment and NaturalResources - Environment together with Huong Thuy PeoplesCommittee will provide guidelines and assistance for investors tocomplete procedures relevant to the project.
Land plot 76-78 Hai Ba Trung St., Dist.1 (managed by SaigonTrade Corporation and City House Business ManagementCompany) and land plot 35-36-39 Ly Tu Trong St., Dist.1(managed by Tran Phu Printing Company) with total area of over3,260, will be assembled to build a 5-star hotel and a trade center.
Ho Chi Minh Peoples Committee has approved the project andassigned Saigon Trade Corporation to be the investor of thisproject.
NBVNBNN
Source: NLD Source: VietRees11. Start construction of the first tunnel for carparking in Vietnam
09 Jul, 2008
12. Trung Hung New Urban Area Project
11 Jul, 2008
8 July, 2008 Dong Duong Ltd. Co. announced that the first Vietnam
tunnel for car parking at Lam Son construction site would becommenced in late July, 2008. This construction is 12-storey high,including tunnel for car parking and public services with total area ofover 3,500 s.q.m, the construction depth of 36m-38m and totalinvestment of 300 billions VND. This construction is scheduled tocome into use after 24 months with its capacity of 298 cars.
Trung Hung New Urban Area project is located in the West of Ha
Noi - invested by Momota - Joint Stock 118 with the cost of 2,000billion VND on a site of 250 hectares and is scheduled to becommenced in the early fourth quarter of 2008.
The project includes high-class villa zone, trade center square,traditional trade village zone, food culture village...
8/14/2019 VietRees Newsletter 39 Week2 Month07 Year08
3/6
Vietnam Real Estate Newsletter A39
The first weekly electronic newsletter is released weekly and nationwide, especially for real estate companies, professional investors and individuals in need of real estate
Editorial Board: VietRees Market Information Department and renow.com.vn
Newsletter A39 Week 2 July, 2008
A member of:
Page 3
This is a weekly newsletter issued by VietRees Vietnam Real Estate. This is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning ornterested 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 responsibleor the occurring damage. Please visit the website www.VietRees.com for further Vietnam Real Estate information. VietRees states clearly the original sources and dates for your convenientracking or getting full information. Should you need any queries or register to receive the newsletter, please contact via [email protected].
Sponsor:
A5-LEGAL NEWS
Source: Ha Noi Moi Source: Phap Luat13. Properties not in dispute grantedcertificate of ownership
02 Jul, 2008
14. Ho Chi Minh City begins to grantcertificate of ownership to domain 1037
03 Jul, 2008
On 4 July, 2008, Ministry of Construction promulgated officialdocument providing guidelines on granting certificate ofownership for dwelling and constructions.
Regarding dwellings and construction before being planned(without one of documents stipulated at Decree 90/CP), ifPeoples Committee in communes, wards certify that actualstate of properties does not get involved in any dispute aboutsquatters right or land use right, certificate of ownership isgranted to these properties.
Regarding dwellings and constructions after being planned(without one of documents stipulated at Decree 90/CP orDecree 95/CP), certificate of ownership is granted to propertieswhich are certified about actual state (not in dispute aboutsquatters right) and suit the planning. If dwellings andconstructions are obliged by law to have building permits,certificate of ownership is granted after authorized offices settleadministrative procedures.
Certificate of ownership is not granted for dwellings andconstructions unfit for site planning.
Since 11 July 2007, according to Resolution No1037/2006 of StandingCommittee of the National Assembly (abbreviated as domain 1037),owners of dwellings involved in civil deals about dwellings which were setup before 1 July 1991 and executed by overseas Vietnamese can submitdocuments to request certificate of ownership.
Overseas Vietnamese authorized to manage dwellings before leaving thecountry will receive certificate of ownership at home. If dwellings have noowners, managers who use properties continuously from before 1September 1976 to 1 September 2006 will be granted certificate ofownership.
Documents for requesting certificate of ownership include:
(1) Application for certificate of ownership.
(2) One of documents verifying house ownership in compliance withDecision No 54 of Municipal Peoples committee.
(3) Sketch map of house and land.
(4) One of documents concerning civil deals such as lease contract,authorization contract
(5) Papers belong to individual or legal entity of person who requests tobe granted certificate of ownership.
8/14/2019 VietRees Newsletter 39 Week2 Month07 Year08
4/6
Vietnam Real Estate Newsletter A39
The first weekly electronic newsletter is released weekly and nationwide, especially for real estate companies, professional investors and individuals in need of real estate
Editorial Board: VietRees Market Information Department and renow.com.vn
Newsletter A39 Week 2 July, 2008
A member of:
Page 4
This is a weekly newsletter issued by VietRees Vietnam Real Estate. This is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning ornterested 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 responsibleor the occurring damage. Please visit the website www.VietRees.com for further Vietnam Real Estate information. VietRees states clearly the original sources and dates for your convenientracking or getting full information. Should you need any queries or register to receive the newsletter, please contact via [email protected].
Sponsor:
SECTION B RESEARCH RESULTS & STATISTICS
B1. PROVINCES ATTRACTING MOST FDI IN THE PAST 6 MONTHS B4. APARTMENTS AND DEVELOPMENT LANDS PRICES
Ha Tinh has risen to leadthe list with only 1 projectbut its total FDI is nearly 8billion USD. The followingis Thanh Hoa with totalFDI of 6.2 billion USD. HaNoi is the area attractingmost projects but its totalFDI has only attained 661million VND.
B2. FOREIGN COMPANIES MAKE STRONG INVESTMENT IN HO CHI
MINH REAL ESTATE MARKETField of real estate, especially high-end apartments and infrastructure serving hi technvestors, has been becoming a hot point in attracting foreign investment in Ho ChiMinh city in the first 6 months of this year.
Department of Planning and Investment of Ho Chi Minh city said that the real estatefield made up to 70% of total foreign investment in the city.
The start of this trend is Thu Thiem software park project with total capital of 1,2 billionVND invested by Saigontel, member of Saigon Investment Corporation forming a jointventure with TA Associates International Company of Singapore. The next is Vietnamnternational University Town project (VIUT) with total investment of 3.5 billions USD
from Berjiya Land Berhad corporation.
Foreign corporations realize the Vietnam real estate market still has a lot of potential,especially the segment of dwellings with high quality and up to standard for high endcustomers and the segment of dwellings with moderate sizes for middle incomeearners.
Not only South East investors but also many Middle East Investors have begun puttingheir eyes to Vietnam real estate market.
Edited by VietRees
B3. VN-INDEX
Source: Vietstock Up to date 11/07/2008
Updated on information from ACBR, Van Phat Hung, Hung Thinh, PhucDuc, Tuoi Tre Newspaper and developers (VietRees gathered by directsurveys), listed prices can be original prices or transfer prices at current orat one week prior from the date this newsletter is issued.
District Area (m2)Price (million
VND/m2)+/-
Apartment building HCMC
Sailing Tower 1 101 78,5 -
An Khang 2 106 25,5 -
An Thinh 2 101 22
Hoang Dieu 4 75 33 +
Khanh Hoi 2 4 55 23
V - Star 7 119 15,5 -
Phu Long I 7 125 30,5
Phu Tho - Thuan Viet 11 98 23 -
The EverRich 11 113 47
Tan Kien BC 100 9,5
The Mansion BC 115 18
New Saigon NB 121 19
Development land lots HCMC
An Phu - An Khanh 2 80 23
Thanh My Loi 2 200 18
The Ky 21 2 160 20
Phu Loi 8 120 13,5 -
Ung Thanh 8 88 9
Bac Rach Chiec 9 126 11
Hung Phu 1 9 90 11
Nam Long 9 120 10
Thai Son 1 NB 250 9Thanh Nhut NB 108 11
Apartment building - Ha Noi
M5 DD 149 28
Thai Thinh DD 114 27
Hoa Lu HBT 106 35
Happy House LB 94 16
Me Tri Thuong TL 73 18
Vimeco TL 96 26
Nang Huong TX 72 13
Trung Van TX 87 16
Development land lots Province
Green Square BD 120 12
Lan Truc Thanh CT 147 3,5
Long Tho Phuoc An DNI 100 2HUB DNI 285 2
Long Hau 1 LA 300 5,5
My Yen LA 80 4
B5. ANNOUNCED PROMINENT REAL ESTATE DEVELOPMENTS DURING THE LAST 4 WEEKS
Week 3, June 2008 Week 4, June 2008 Week1, July 2008 Week 2 July, 2008HCMCity
Binh Thien An AP Thu ThiemSoftware Park (D.2), Phu HuuWard HA (D.9), Truong ThoWard AP (T.Duc D.)
Tan Thuan Tay Residential Area (D.7),Long Truong Ward Residential Area(D.9)
Vietnam International Universitytown (H.Mon D.), ResettlementArea W.22 (B.Thanh D.), HorizonPlace Complex (D.4)
5-star hotel - trade center (D.1)
OtherAreas
P.4 Housing Service Area(V.Long)
The Long Chau Villas & Residences(H.Long) Vi Thanh Commune RA(H.Giang), Bao Son Paradise (H.Tay),Golf Course Hotel Sea Links (P.Thiet)
Trang Cat UA and Industrial Park(H.Phong), Long Dien ApartmentArea (V.Tau), Marketing Center atBac An Khanh UA (H.Tay), Tan PhuThanh RA (H.Giang)
An Tay UA (B.Duong), Ben LucRA (L.An), Hue Nha RuongEcotourism Area (Hue), TrungHung New UA (H.Noi)
8/14/2019 VietRees Newsletter 39 Week2 Month07 Year08
5/6
Vietnam Real Estate Newsletter A39
The first weekly electronic newsletter is released weekly and nationwide, especially for real estate companies, professional investors and individuals in need of real estate
Editorial Board: VietRees Market Information Department and renow.com.vn
Newsletter A39 Week 2 July, 2008
A member of:
Page 5
This is a weekly newsletter issued by VietRees Vietnam Real Estate. This is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning ornterested 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 responsibleor the occurring damage. Please visit the website www.VietRees.com for further Vietnam Real Estate information. VietRees states clearly the original sources and dates for your convenientracking or getting full information. Should you need any queries or register to receive the newsletter, please contact via [email protected].
Sponsor:
B6. APPROVED PROMINENT REAL ESTATE DEVELOPMENTS IN HO CHI MINH CITY
June: Vinh Loc B RA (D. Binh Chanh), Van Phuc Gia Company HA (H.Mon), 38,4ha RA (D.2), Hung PhuCompany HA (D.9), Thu Thiem Software Park (D.2), An Phu Dong Ward De Tam Company HA (D.12), TruongTho Ward Tin Nghia Company AP (T.Duc D.), Office Building Conference Center 31 Le Duan (D.1), HoangPhuoc Company HA (D.12), P.13 584 Company AP (B.Thanh D.), Hoa Thanh Ward AP (T.Phu D.), CommercialBuilding 01W Dien Bien Phu (B.Thanh D.), AP For Reurban 147 Nguyen Chi Thanh AP and CommercialBuilding 258 Le Hong Phong (D.5), Hiep Binh Phuoc Ward AP (T.Duc D.), Tan Chanh Hiep Ward HA (D.12)
July: Complex W.11 (Minh Phu Co,D.3), Vietnam International UniversityTown (VIUT) (H.Mon D.), Suburb Areaat Thanh My Loi ward (Quang TrungCo, D.2), Horizon Place Complex (D.4),Descon AP (D.2)
RA: Residential Area, AP: Apartment Building, HA: Housing Area, RuA: Reurban Area, TA: Tourism Area, IA: Investment Area, Urban Area: UA.
B7. REAL ESTATE MARKET FORECAST
The situation of real estate market For Sale during the last 6 months shows that prices are maintaining the current downturn. Many properties on consignmenthave not been asked to be purchased. According to VietRees, the reason is that the instability of market was exposed clearly and buyers insecurity becameworse when they got puzzled about the real value of real estate and kept expecting further price decreases. Prices of high-end apartment buildings have beenplummeted and prices of ground base in some areas have gone up too much higher than the real value.
The current time has been considered to be difficult for many real estate companies because the market has been selecting and promising a lot of newchanges. Real estate enterprises are getting in trouble because bank loans for house purchase have tightened. One of the steps taken by these enterprises is
o cut down every cost and expand the progress, delay or stop implementing projects, and wait for a better market to deploy. In the market, there is a tendencyhat some enterprises have shifted towards investing in other fields to maintain their operation and overcome this current period.
According to VietRees, individual investors or those who are in real demand and have available capital but bank loans can re considered house buying at thisime. Real estate enterprises should reconsider and choose the projects of high feasibility and efficiency to implement. It is advisable to regard customers asthe core and guarantee their interests; investment portfolio should aim at customers who have real demands and avoid focusing on segments of secondarynvestors. Besides, it is neccessary for enterprises to raise capital from many different sources including joint venture with foreign partners. However, in reality,aising capital from joint venture with foreign parters currently also has difficulties because they are more punctilious about choosing, evaluating and
considering than before. Investors must be more professional when conducting any negotiation with these foreign partners.
* Note: Information on market forecast is only updated every 4 periods ( after one month) by VietRees
B8. CONSTRUCTION MATERIALS MARKET PRICES REPORT B9. CONSTRUCTION MATERIALS MARKET PRICES
Solutions for stabilizing the market together with bringing cement into theSouth market during the past time have reduced the fluctuation of prices. Evenn early days of July, cement prices have shown signs of short pauses and aslight decrease. Cement factories have a chance to relax after days of great
attempts. Despite the downward trend in cement consumption in the Southernmarket, Viet Nam Cement Corporation (VICEM) have still directed its factorieso continue production for the purpose of meeting market demands andncreasing the reserve for late months of this year. Currently, sale prices of HaTien 1 cement at agents have decreased from 2.000 5.000 VND/bag; otherypes have slightly reduced or remained unchanged. VICEM anticipates thathe cement market in the South region will definitely have no significantluctuation of prices in July.
On 7 July, steel price at the factory of Vina Kyoei, Pomina continued toncrease by over 900.000 VND/ton compared with the early month, whichpushed steel price (including VAT) to approximately 20 million VND/ton.Currently, bidders say that they are buying steel at the price level of 19.7 -9.98 million VND/ton, but agents informed that there would be price increase
n the next few days. Ministry of Industry and Trade has announced that it willemporarily apply the regulation that the license of automatic export is issued
or imported or domestically produced iron and steel from the late July, 2008 to31 December, 2008.
On the market, prices of items such as ice iron sheet, color iron sheet... havecontinued to increase by 4.500 - 27.500 VND/m depending on each product.
Edited by VietRees
Type of goods
(Source: HCMC Department of Finance)Unit
Price(VND)
Ha Tien Cement PCB40 50kg pack 72.000
Holcim Cement PCB40 50kg pack 72.000
Lavilla Cement PCB40 50kg pack 70.000
Fico Cement PCB40 50kg pack 70.000
Steel bloom D6 - Pomina kg 19.700
Steel bars D10 bar 144.000
Hard Zinc Iron Sheet 0.23 zem P. Nam m 54.500
Color iron sheet 0.39 zem P.Nam m 99.200
Soft cold iron sheet 0.32 zem m 80.000
Brick Wall 4x8x19 brick 1.200
Hollow Brick 8x8x19 brick 1.200
Stone 2x4 m3 230.000
Sand m3 200.000Sand (base for concrete) m3 230.000
Dong Nai decoration tiles (grade A1) tile 3.300
Thick, thin glazed tiles (grade A1) tile 1.000
Coric decoration tiles (30x30) m2 71.500
8/14/2019 VietRees Newsletter 39 Week2 Month07 Year08
6/6
Vietnam Real Estate Newsletter A39
The first weekly electronic newsletter is released weekly and nationwide, especially for real estate companies, professional investors and individuals in need of real estate
Editorial Board: VietRees Market Information Department and renow.com.vn
Newsletter A39 Week 2 July, 2008
A member of:
Page 6
This is a weekly newsletter issued by VietRees Vietnam Real Estate. This is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning ornterested 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 responsibleor the occurring damage. Please visit the website www.VietRees.com for further Vietnam Real Estate information. VietRees states clearly the original sources and dates for your convenientracking or getting full information Should you need any queries or register to receive the newsletter please contact via marketnews@VietRees com
Sponsor:
SECTION C: UTILITIES & SPECIALITY NEWS
C1. REAL ESTATE BROKERAGE TRAINING CENTERS C6. TRENDS IN INVESTMENT AND DEVELOPMENT OF REALESTATE PROJECTS
VietRees has updated a list of 40 agents granted training licenses andcertificates with regard to brokerage, pricing & management andoperating real estate trade floor. Most of these agents are located in HaNoi and Ho Chi Minh City and there is only 1 agent in Da Nang and 1agent in Can Tho.
C2. FEATURED ARCHITECTURAL DESIGN COMPANIES
SWA, M, www.swavietnam.com
Ong&Ong Co., Ltd., Singapore, www.ong-ong.com
Surbana Vietnam, Singapore, www.surbana.com
RSP Vietnam, Singapore, www.resp.com.sg
Archiects 61 Pte., Ltd., Singapore, www.a61.com.sgDP Architects Pte., Ltd., Singapore, www.dpa.com.sg
C3. HOUSING NEEDS FOR FOREIGNERS
According to Statistics of Construction Ministry, at present, approximately80,000 foreigners are living and working in Vietnam, of whom 21,000 arefully capable of buying houses in Vietnam. In Hanoi, total housing area forforeigners to lease has reached about 220,000 s.q.m, whereas in Ho ChiMinh City, this number has tripled.
Houses for lease are mainly villas, terraced houses and apartments with aease term of 3-5 years. Ministry of Construction envisages that in thecoming time there are about 10,000 foreigners in need of buying houses withotal square area of 1.5 millions s.q.m.
C4. DEMAND OF WELFARE HOUSES FOR LOW INCOME EARNERSAND RESETTLEMENT IN HCM CITY
HCM City has developed the project of 30,000 welfare houses since the last5 years, yet currently only 30% is done. Regarding houses forcadres,workers, officials in the whole city, 17/49 projects serves over 3,600apartments and over 4,700 ground bases. Most of projects were executedmore slowly than committed date of investors by an average period of from12 to 18 months.
According to Department of Construction, (1) HCM City includes 3 exportprocessing zones and 11 industrial zones in which housing areas need to bebuilt for nearly 218,000 workers; (2) 30.000 houses for resettlement and (3)houses for approximately 11,000 young officials and cadres.
C5. REAL ESTATE FOR THE LOW INCOME
Extra hundreds of thousands of apartments to be built for low-ncome earners
* Sai Gon Gia Dinh Real Estate Company and Hoa Binh Phu Yen Companybuild Thoi An Apartment Building in District 12 with 1,000 apartments.
* Construction Company No. 8 (CIC8) will invest in construction of 10,000 KeppelLand apartments and Tien Phuoc Company will build a resettlement areancluding 1,900 apartments at An Phu, Binh Khanh, District 2.
* HCM City housing development fund will build low- income houses in District 12.
* HCM City Peoples Committee will advance 50.5 billion to carry out the projectof Vinh Loc B, Binh Chanh residential area for resettlement with hundreds ofownhouses and 40 apartment blocks.
* Construction Company No. 5 will invest in construction of 500 apartments atWard 22, Binh Thanh District.
* Dat Lanh Company has granted construction permit for 30-40m2 apartmentspriced at 200-300 millions VND/unit.
* Besides, VinaCapital and Chinese, Korean Groups are expediting projects ofapartments worth below 400 millions USD/unit.
According to VietRees analysis, in aspect of project developmentand investment, the current real estate market is witnessing somefollowing trends:
Current trends in investment and development of real estateprojects
1. Domestic enterprises with powerful financial potential, mainlycorporations, still keep developing, but their progress may beslower than before.
2. Most of enterprises are still expecting and trying to stay in thefield, but instead of doing it on their own as before, now theseagents have turned joint-ventures, called for cooperation,investment and integration.3. Some medium and small enterprises with unstable structuresand some individuals that own and tend to develop formerprojects are having difficulties in project implementation and havenot found out suitable partners. Now they are aiming at projecttransfer.
Before this situation, one reality is that many foreign investors arehunting for projects of domestic companies to undertake, transferor carry out joint-venture. According to study of VietRees, someadvantages that make foreign investors much interested in thisform include: clear legal situation of projects, avoidance of siteclearance compensation, furthermore, some projects only needinvestment to be implemented quickly. In addition, investmentcosts is sometimes a little lower than in reality because projectland of project management are taken back due to their slower
implementation than in stipulation.Recently, VietRees Investment Promotion Department has beenreceiving many requests from domestic investors who haveprojects in need of investment or transfer and requests of foreigninvestors about searching properties as well. As a supplier of fullservices, a deep market understanding and working experienceswith foreign partners, VietRees would like to offer advices toproject managers interested in calling for foreign investment intheir projects as follows:
Advice for project management interested in calling forforeign investment1. Fully prepare documents about project (especially for legaldocuments of projects).
2. Carefully study price of transfer or equity capital (for
cooperation form or joint-venture form).3. Regarding projects planned in details, a clear and logicalbudget distribution sheet for investment and detailed design ofevery portfolio in the overall project required.
4. Submit an analysis table of successfulness and feasibility level(profitability level) of projects.
5. For joint - venture forms, project managers should havecarefully and clearly prepared financial reports on enterprisessituations, and these reports should be carried out byprofessional audit companies.
6. Additionally, a small yet important factor is to learn aboutbusiness culture and national culture of foreign investors in orderto clear their very concerns and satisfy their requirements.VietRees