VietRees Newsletter 73 Week2 Month3 Year09

8/14/2019 VietRees Newsletter 73 Week2 Month3 Year09

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VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A73 Page 2

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MARKET SITUATION

The investors start projectsto prepare

Kinh Te Do Thi – 11 March, 2009

The real estate market in general and office market for lease in particular have suffered the directimpacts from the instabilities of the economy. From the middle of 2008 until now, the unoccupied area atthe offices for lease has increased and the rent has tended to decrease. Although it is judged that in2009 the office market has had the lowest number of tenants within the past 4 years, the experts haveproved to be optimistic. The prospect of the Hanoi real estate market has still shown that the positivesigns and the demands for offices, residential areas and high-grade apartments are growing day by day.Therefore, recently, many domestic and foreign investors have restarted or renovated the projects of thehousing, offices and trading complex. According to the plan, the projects will be completed and put into

use within the next 2 - 3 years. It is the time that the world economy in general and Vietnam in particular are considered to recover after the recession.

According to the enterprises, the real estate market in 2009 would not be able to recover due to theimpacts of the global economic recession. Until 2010, the market will have more positive signs. At thattime, the real estate supply will increase when there are many projects completed and put into operation.

The depressing situation of office buildings

Sai Gon Giai Phong – 11 March, 2009

About two years ago, when the real estate market did not yet speed up, the office buildings fell into thefever and it still was not affected when the real estate market was frozen. But until now, when the globaleconomy has fallen into the recession, the office buildings have also not been able to avoid the setback.The buildings under construction have fallen into the situation of “smile through one’s tears” and thebuildings that are operating have also not shown the better signs when the customers “have fled for their life”.

According to the recent statistic, until the end of 2008, the occupancy rate of grade-A and B office wasapproximately 95 - 96%. However, this figure will dramatically decline when a series of grade-A and B

buildings are about to be completed in the near future. Currently, the whole city has 600,000m2 for officebuildings. However, the speading economic crisis has made the unoccupied areas considerable. If adding the giant areas from the buildings that will be completed in the next years, the market of officebuildings for lease will fall into the situation of superfluity.

One more time, this fact has demonstrated that the real estate market has developed following the wayof living by makeshifts that has been proved by the stories of high-grade apartments and offices for lease. Accordingly, the types of welfare houses are very much in demand, however very few investorshave taken interest in them.

What are the real prices of apartment buildings?

Bao Xay Dung – 13 March, 2009

The economy has been facing the crisis and the real estate market has leveled off and gradually gonedown. However, many sellers have reduced the apartment prices. However, the sellers are more thanthe buyers. Most companies have faced the situation that the goods are large but the buyers areinconsiderable. The majority of buyers in the recent time have been those who have the preferentialtreatment for buying goods from the companies and relatives.

According to a construction expert, in fact, the price premise for construction has not been high, onlyabout 4 million VND/m2 because most types of construction materials in Vietnam have nearly had thesame prices and types. The difference is if the areas have more synchronous infrastructure system andare located closer to the center, their prices will be 10 - 20% higher than the general premises.Furthermore, grasping some people’s psychology of valuing the “high-grade” goods, the companieshave added English name and the “high-grade” adjective, which has made the buyers secure and trustthose lines of letters, therefore, they think that these goods are certainly worth much. That is the reasonwhy the prices of the products have been three or four times higher than the original prices when theyare delivered to the consumers.

To account for this problem, the companies have shown that in fact, the costs for lobbying have beenquite considerable (more than 30% of the costs). As a result, when the companies have full documents,basic infrastructure, etc, they have to collect more money from the buyers to recoup the costs.

The price decrease wave of

real estate spreadingEdited by VietRees

In 2008, the real estate market seen the significant inversion with the remarkable decrease of 70% in theprices of many projects on the free-market. Until 2009, after Hoang Anh Gia Lai has reduced the prices

of the two projects Hoang Anh River View and Phu Hoang Anh by 40%/m2, other enterprises have alsoreduced the prices. Dat Xanh Company has reduced the selling prices of Sunview Apartment (Thu DucDistrict) from $1,300 USD to $764 USD/m2. The following is Thuduc House that offers 10% discount onthe prices of TDH - Truong Tho project and this advertisement will be valid until the end of 30th April,2009. Hong Ha Company has also launched the promotion of “sharing benefits with customers” byreducing the prices of The Morning Star project (Binh Thanh District) from $2,000 USD (2008) to $1,200to $1,500 USD/m2. On 2nd March, Montana project (Tan Phu District) has also offered 2 million VND/m2decrease for the first 30 customers, etc.

According to the real estate experts, the phenomenon of price reduction is the vital impact of the law of supply and demand in the market economy facing the crisis of finance and confidence. However, someopinions have shown that the price reduction of the apartment projects completed in the future hasbelonged to the strategy of restructuring and repositioning businesses of the real estate corporations and joint venture companies in order to overcome the crisis. They have thought that reducing the prices toget inconsiderable profits or losses is better than suffering the heavy losses or bankruptcy.

In fact, although the purchasing power has gone up when there have been the waves of promotions and

price decreases, the good signs of the real estate market have not been really clear. The opportunitieshave mainly focused on those who have much money and the investors. Those who have real housingdemands have still been considered to be the strangers on the real estate market at this time.




Sponsor:

REAL ESTATE FOREIGN INVETSMENT

Build high-grade trade center in Binh DuongVietRees – 10 March, 2009

On 10th March 2009, ECC Group (Netherlands) will announce the development of Trade Center Promenada @ Canary implemented by the joint venture between the Group ECC and Co. GuocolandVietnam (Singapore), located in the overall high-grade urban complex The Canary in Binh Duong.

The project is located on a site of 82,000m2, including four storeys: big supermarket, high-grade eatingand drinking – entertainment area, sports center and resort ... Promenada @ Canary will be started inthe third quarter, 2009 and it is expected to be completed in the forth quarter, 2012.

REAL ESTATE AGENTS

BCCI to be listed on stock exchangeDien Dan Doanh Nghiep – 09 March, 2009

Binh Chanh Investment and Construction JSC (BCCI) is completing the last procedures and will officiallybe listed on HoSe with the stock code of BCI on 16th March, 2009.

BCCI will list 54.2 million shares and the total value of the listed securities is 542 billion VND. Thereference price in the first transaction day is 27,000 VND per share. The price change limit on the firsttransaction day is + / - 20% as compared to the reference price.

Thu Duc House officially offersTruong Tho apartment for saleBDS & TS – 09 March, 2009

Thu Duc House Development JSC (Thuduchouse) has shown that it would officially offer the remainingapartments of the project to the customers who have demand on 31st March, 2009 at the prices rangingfrom 18.5 to 21.3 million VND/m2, (inclusive of VAT). Customers can divide their payment into 6installments within 15 months and can take out the loans of up to 70% of the apartment value frombanks. The period for payment is 15 years.

Thuduchouse expects to complete & hand over the project to the customers in the second quarter, 2010.

IDICO starts Phu My 2 IndustryprojectVietRees – 10 March, 2009

On 6th March 2009, Vietnam Industrial Zone - Urban Development and Investment Company to developurban and industrial areas (IDICO) held a ceremony to start the construction of Phu My Industrial Zone2, in Phuoc Hoa, Tan Thanh district, Ba Ria - Vung Tau province.

Phu My Industrial Zone 2 has an area of 1,023 hectares with the total investment of over 3,000 billionand has completed the compensation for site clearance, the basic formalities of construction investmentand implementing the construction of technology infrastructure systems. Some investors has registeredfor leasing the land in this industrial zone, including: POSCO (Korea), FUCO Steel Co. (Taiwan), HoaSen JSC ...

HAGL prepares to invest in thebig projects in 2009VietRees – 11 March, 2009

Hoang Anh Gia Lai JSC (HAGL) will start the three projects in 2009, including two office buildings: 40-storey buildings at the top of Kenh Te bridge (Dist.7) with a total floor area of 130,000m2; the project

apartment An Tien (including 980 apartments) opposite the project Phu Hoang Anh (Nha Be district), thetotal floor area is 180.000m2; Hoang Anh Incomex apartment project is located at the crossroad of LeVan Luong - Tran Xuan Soan (Dist.7) with 450 apartments on the 72,000m2 floor area.

According to Board of Directors of HAGL, from now to 2015, the company will build the 250,000m2 floor area equivalent to nearly 1,500 apartments.

Open the first stage of Saigonexhibition center TTXVN – 12 March, 2009

On 12th March 2009, Expo Center and Exhibition in Saigon (SECC) is located in District 7, HCMC hasofficially opened the first stage with a lobby exhibition and the total investment of 30 million USD. Thelobby has an area of 9.000m2, no columns, the height of 12m, an outdoor exhibition area of 6.000m2; aconference room seating 500 and 4 meeting rooms with the capacity of from 20 to 100 guests/room. It isone of the lobbies meeting the international standards in terms of technology, construction and space for the exhibition industry in Asia.

SECC has been invested by Saigontourist Joint Venture company and Phu My Hung company. Oncethe three stages are completed, the project will be a general type of tourism that combines meetings,

seminars - conferences, resorts, investment (MICE) with fairs - exhibition.

VIETNAM IN THE WORLD

HCMC ranked 5th in Asia in termsof office rent

Edited by VietRees – March, 2009

According to Cushman and Wakefield Real Estate Brokerage Company (America), when comparing tothe rents of the offices at 202 locations in 57 countries in the world, Hong Kong is the place where therent 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), AbuDhabi (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 thereports, HCMC is the city where the speed of increasing the rents is fastest in Asia and the averageincrease is 46%/year.

Cushman and Wakefield has also shown that the average rents of offices in the big cities in the worldhave decreased by 16% due to the significant impacts of the global financial crisis. Among them, Londonis the city that has suffered the greatest impact on the office market that has plummeted byapproximately 23% as compared to 2007.




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PROPERTIES ON THE WORLD

Hong Kong real estate marketbegins to prosper

Property-Report

From the beginning of the year up to now, the segment of the high-grade houses at Hong Kong realestate market has been seeing positive changes. The liquidity of the market has become higher in thefirst 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 residentialarea in Hong Kong, the number of successful transactions has increased by about 31% as compared toDecember 2008 and the value of the signed contracts has risen by around 9%, reaching 2.7 billion HongKong dollars (or about 348 million USD). This has been the highest earnings from July, 2008. The priceof 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 supplyand the low prices are the basic reasons behind the positive changes in the segment of high-gradeapartment in Hong Kong. However, it is still too early to determine whether the luxury home segment hasbecome stable or not.

REAL ESTATE LEGISLATION

The rent of land for constructingunderground works is 30 – 50%of the rent of land on the ground

Thoi bao Kinh te Viet Nam – 01 March, 2009

In some big cities, many organizations have used the land to construct the underground works.However, the current law has not had the full regulations on leasing land to construct the undergroundworks and the regulations on the land use space, land prices and the use management system. TheMinistry of Natural Resources and Environment has amended and supplemented some new contents interms of the land for constructing the underground works in the decree draft adding the regulations onthe land use planning, land prices, land reclamation, compensation and support for the resettlement of

the government and these regulations are about to be submitted to the government.

According to the draft, the rent of land for building the underground works is 30 - 50% of the rent of landon the ground with the same using purposes. All domestic and foreign organizations and individualshave the demands for using land to construct the underground works (not the underground parts of theworks on the ground) must carry out the land lease procedures and implement the administrativeobligations following the regulations of the land law and the Ministry shall provide the guidelines on theorder and procedures for leasing land to build underground works.

Another important content in the draft is that the Department shall assess the land or hire the consultantsto assess land price and submit to the provincial People’s Committee for decision. Any re-determinationto the land price in some cases of price changes will help push the land price assessment closer to themarket price.

Danang: the notary offices allowedto certify real estate

VietRees – 10 March, 2009

Da Nang City People's Committee has just had the document on transferring the certification of thecontracts and transactions concerning real estate under the jurisdiction of the People's Committees of

communes, wards, districts, suburban districts to the notary organizations.Accordingly, from 1st April, 2009, the certification of the contracts and transactions concerning realestate ( testaments and documents on refusing the inheritances) that used to belong to the jurisdiction of People's Committees of districts and wards in Hai Chau, Thanh Khe and Ngu Hanh Son will betransferred to the notary offices.

The organizations & individuals that have demands for certifying contracts and transactions concerningreal estate are entitled to choose any notary organization in Da Nang.

The organizations and individuals belonging to the areas of Cam Le, Lien Chieu, Son Tra, and Hoa Vangdistrict are entitled to choose the certification of the contracts and transactions concerning real estate atany notary organization in the city or at the People's Committee of districts, communes and wards wherethere are properties following the regulations.

HCMC: ratifying the selling pricesof resettlement apartments in

District 10Thanh Nien – 10 March, 2009

On 9th March 2009, the People's Committee of District 10 has ratified the selling prices of theresettlement apartments at building A Nguyen Kim (Ward 7) and Ngo Gia Tu (Ward 3). And the price listis applied for the households belonging to lot B of Ngo Gia Tu apartment building (Ward 3, District 10).

Specifically, the prices of 1m2 is 18,076,000 million VND (level 1), 17,571,250 million VND (level 2),17.223.440 million VND (level 3), 16.945.190d (level 4), 16,694,770 million VND (level 5), 16,458,260d(level 6), 16,221,750d (level 7), 15,971,330 million VND (level 8), 15,720,910 million VND (level 9),15,470,490 VND (level 10), 15,220,070 million VND (level 11), 14,747,050 million VND (level 12),14,510,540 million VND (level 13), 14,260,120 million VND (level 14).

For the compensation and support for the resettlement of 184 households living at lot B of Ngo Gia Tuapartment building, the land unit price for calculating the compensation & support has been determinedto be equal to the prices ratified by the HCM City People's Committee at the time of transferring the realland use rights on the market. Namely, the locations on the ground floors or frontages of Hoa Hao streetare 28,482,000 million VND/m2; the locations on internal frontages or ground floors are 17,801,000million VND/m2; the locations on the 1st storey are 14,241,000 million VND/m2, the locations on the 2ndstorey are 12,817,000 million VND/m2; the locations on the 3rd storey are 11,393,000 million VND/m2.

It is expected that on 12 - 3rd March, the People's Committee of District 10 will hold a meeting topublicize the whole plan for the compensation, support, resettlement and the selling prices of theresettlement apartments; drawing lots, etc.




Sponsor:

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.vnFICO - 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

ConstructionHo 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




Sponsor:

REAL ESTATE PROJECT AND PRICES

HCMC: petitioning for piloting thelow-price welffare housesEdited by VietRees – March, 2009

* According to Ho Chi Minh city Department of Construction, from now until 2010, the city will complete 8social welfare house projects with the area of 5.5 hectares, including 2,820 apartment buildings. TheDepartment of Construction has also proposed the People's Committee of the city to offer thegovernment some mechanisms to encourage the development of the welfare house programs.

* According to the guiding document of the HCM City People's Committee, the departments, branchesand People's Committees of the districts and suburban districts: 2, 9, 12, Thu Duc, Hoc Mon, BinhChanh should urgently determine the land use planning to invest in the construction of 4 clusters of

welafre houses at 4 gateways of HCM City. The Real Estate Association of the City has researched themechanisms and policies of implementing the welfare house programs and actively call on the realestate enterprises to register for the participation.

* HCM City People's Committee has proposed that the investment for building welfare house be 1,250billion VND and 1,200 billion VND be used for setting up the land reserve for constructing theaccommodation and about 3,600 billion VND be used for building dormitories for students .

Phan Thiet: Invest in constructionof 5-star hotelThoi bao Kinh te Sai Gon – 10 March, 2009

The Hotel Investment project is a 5-star hotel located at Phu Thuy Ward, Phan Thiet city on a site of 11,000m2 with a total investment of 200 billion VND. Phan Thiet Hotel Investment – the investors- has just been granted the investment certificate by the People's Committee of Binh Thuan province.

The hotel includes 52 rooms modern, high quality facilities and service system entertainment comes: therestaurants, the spa and massage, the sport, the entertainment area for children ...

Da Nang: 6 more resorts to appear

VietRees – 13 March, 2009

The Department of Culture - Sports and Tourism of Da Nang has shown that from now till the end of the

year there will be 6 more resorts at Da Nang beach opened to welcome the visitors including Silver Shore - Hoang Dat, Olalani, Ba Na telpher, Tien Sa, Xuan Thieu Son Tra and Spa.

According to the statistics, Da Nang has 46 tourism investment projects with a total investment of over 1.8 billion USD. In which, there are 12 foreign investment projects with the total investment of USD 763million and 34 domestic investment projects with the total investment of 1.56 billion USD.

High-grade apartment pricesin HCMC slightly increase(by 1%) in February, 2009

VietRees – Mar, 2009

The level of changes in the prices of the high-grade apartment in HCMC

According to the statistics, the high-grade apartment prices transferred in February increased by 1% ascompared to January and the transactions have still been quite slow. The high-grade apartment pricesare predicted to remain the old prices or slightly decrease in the next months, especially when themarket has more new supplies with the low prices. The general difficulties of the economy have alsomade the income of people partly go down and made the bank interest rate low, therefore, they havecontributed to increasing the demand for the low-price properties in the future.

Announced prominent real estate developments during the last 2 weeks*

Week 1 March, 2009 Week 2 March, 2009

Ho Chi Minh City Satra Dat Thanh AP (Phu Nhuan Dist.)

Dam Sen complex (Dist.11)

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

NCG Residentials apartment (Ha Noi)

Hotel 5-star The Hotel Investment (Phan Thiet)Promenada @ Canary Complex (Binh Duong)

* 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




Sponsor:

Property Retail PriceUpdated on information from ACBR, Van Phat Hung, Hung Thinh, Phuc Duc, Tuoi Tre Newspaper and developers (VietRees gathered by direct surveys), listed prices can beoriginal 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

* 100m2 – 31 million VND/m2

Riverside Residences

Area: 81 – 477 m2

Price: 37 million VND/m2

Sky Garden , Dist.7

* 71m2 – 28.9 million VND/m2


Blooming Park, Dist.2

Area: 95 – 398m2

Price: 1,800 – 2,400 USD/m2

Direct contact with the investor 1

Phu My, Dist.7



The Everich, Dist.11

* 118m2 – 1,735 USD/m2

* 151m2 – 1,700 USD/m2

Preche, Dist.2

* 147m2 – 2,222 USD/m2

Panorama, Dist.7


Saigon Pearl, B.Thanh

* 84m2 – 2,156 USD/m2

* 135m2 – 2,173 USD/m2

The Vista, Dist.2

* 139m2 – 1,483 USD/m2

New SaiGon, Nha Be

* 100m2 – 19 million VND/m2

* 121.4m2 - 18.7 million VND/m2

The Manor, B.Thanh

* 80m2 – 2,167 USD/m2

* 118m2 – 2,000 USD/m2

Dist.Area(m2)

Price (millionVND/m2)

+/-

Apartment building – HCMC

BMC – Ben Chuong Duong 1 82 25.5

An Cu 2 140 18.3 -

An Khang 2 90.2 23.4 -

Thinh Vuong 2 130 17.7

Screc Tower 3 52 26.5

Orient Apartment 4 71.7 21.7 -

Hung Vuong Plaza 5 121 27 -

Hoang Anh Gia Lai 2 7 117.8 15.9 +

Phu Loi Sacomreal 8 69 12.1 +

Le Thanh BT 68.4 9.3 +

Morning Star BTH 85 21.9

Phu My Thuan NB 96 8.7 +

PN Techcons PN 138.6 24.7

Development land lots – HCMCAn Phu – An Khanh 2 200 29.2

Dong Thu Thiem 2 128 15.4

The Ky 21 2 160 18.5

An Phu Hung 7 72 27

Phu My – Cho Lon 7 125 15.3 -

Gia Hoa 9 200 9.5 -

Khang An 9 144 7.2 -

Cotec – Phu Xuan NB 136 7.5 +

Thai Son 1 NB 250 11.3 -

Apartment building – Ha Noi

CT3 Vimexco CG 131 26.2 -

Dong Nam Tran Duy Hung CG 152 25.2

Ha Thanh Plaza DD 114 25.5 -

Hoa Lu HBT 64 34 +

Xa La HD 63 11.9 +

Linh Dam HM 73 14.9 -

Viet Hung LB 68 9

Development land lots – Other provinces

Hiep Thanh 1 BD 175 2.7

My Phuoc 3 BD 150 1.66 -

Long Kim 2 LA 110 4.5 -

Tay Nam BR-VT 90 1.9

Thien Loc CT 100 2.05 +

Tam Phuoc DNI 250 2.3

TCT XD Ha Noi DNI 100 2.5 +

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. Thecompany continues to petition Tien Giang Provincial People’s Committee to grant a 5.000m2 land area toconstruct 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, TanThanh suburban district, Ba Ria - Vung Tau province. The stage 2 of the apartment building is about tobe 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 whichbelongs 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 housesamong 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 atHai Son industrial cluster (Duc Hoa Ha commune, Duc Hoa suburban dist., Long An province) has justbeen put into use. The total investment cost of this housing area is 20 billion VND. (2

nd 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'sCommittee with a total investment of over 37 billion VND. (3

rd Oct,2008)

* Hiep Phuoc accommodation and 1 apartment block in District 9 is reserved for over 1,600 workers inHiep Phuoc industrial zone and hi-tech zones - Directed by HCMC People’s Committee (22

thJan, 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 havebeen put into use after Lunar New Year – Quang Binh - Dai Phong Co., Ltd (4

thFeb, 2009)

Real estate for the low incomeVietRees

* Sai Gon – Gia Dinh Real Estate Company and Hoa Binh Phu Yen Company build Thoi An ApartmentBuilding in District 12 with 1,000 apartments.

* Construction Co. No.8 (CIC8) will invest in construction of 10,000 Keppel Land apartments & TienPhuoc 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, BinhChanh 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 LeMinh 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 serveresettlement 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 55.24hectares 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 areaproject, 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 theconstruction of the apartment building at No. 99 Ben Binh Dong, ward 11, district 8 in order to make thehouse reserve at the social welfare housing program.

* People’s Committee of HCM City has promulgated the decision about reclaiming the land areas atPhuoc Kien, Nhon Duc and Phuoc Loc communes, Nha Be suburban district for the construction of theresettlement 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 ThanhLoc 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 isbuilt 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 housereserve belonging to Phu Gia Hung high-end apartments, Duong Quang Ham Street, Ward 15, Go VapDist. and Dong Hung Thuan 1, 2 apartment buildings, Dist. 12 to serve the resettlement of the locals atTham Luong project - Ben Cat - Nuoc Len ditch.

* Approximately 184,000 apartments belonging to the investment program in the construction of thesocial welfare houses in the stage of 2009 – 2015 with the total investment of about 49,000 billion VNDhave been submitted to the government for approval. (30

thSep, 2008)

* 800 social welfare houses for lease - lease to purchase will be built at 19A and 21A plots, Viet Hungurban area in 2009, which have been ratified by The People’s Committee of Ha Noi City. (16

thOct, 2008)

* 462 units of Khang Gia 3 apartment building (Go Vap Dist.) invested by Khang Gia Real EstateInvestment – Development JSC will be used for the resettlement demands. (27

thOct, 2008).

* Replacing 0.3 million m2 floor of the old apartment buildings in District 1, 4, 5, 11, Binh Thanh, TanBinh, 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).




Free register for weekly newsletter: Please send your email to [email protected] * Sponsor and advestising: T: (08) 3948 5574 - E: [email protected]

Land prices in 2009 stipulatedaccording to price list by thestate

Used as the basis to calculate the tax for using land; transferring land use right;calculating the money for land use and leasewhen handing over the land; leasing landwithout via auctioning land use right or invitingbids for projects using land; calculating thevalue of land use right when handing over theland without collecting land-use money of theorganizations, individuals; determining thevalue of land use right and adding it to theasset value of the state-owned enterpriseswhen they are equitized; calculating land-usevalue for compensation when the governmentreclaims 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 unchangedand 1,899 stretches/ routes have the pricesadjusted. The land price can be adjusted not toexceed 20% as compared to the maximum priceand the minimum price.

Can Tho* The highest price of 17.5 million VND/ m2 isfor land on Hai Ba Trung street.

* The highest land price is 6.5 million VND inBinh Thuy District.

Dong Thap

* Urban land: the The highest price is 15 millionVND/m2 in Sa Dec town and 14.4 millionVND/m2 in Cao Lanh City.

* The price list of urban land in 2009 hassupplemented 46 new road routes and adjusted147 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 millionVND/m2.

* Price of land in the towns: 1.5 - 16 millionVND/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 30million VND/m2.

* As compared to 2008, the land price has hadan average increase of 30%. Especially, someareas such as Do Son, Duong Kinh, Cat Haidistricts 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 highestprice 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

Opportunity for everyone tobuild houses

Edited by VietRees

The price of some construction materials such as iron, steel, brick, etc has still been on the downturn ascompared to the peak, currently, there are some types that have decreased by 50%. The raw materialprice has declined and this has made the construction bid price plummet. Although many contractorshave suffered the profit decrease to expect to sign many new contracts, the situation has still been quitegloomy. However, the labor costs have tended to considerably increase by 5 - 10% as compared to theprevious time, depending on the main or secondary workers. Not only the sellers have been melancholyabout the gloomy purchasing power, the producers have also fallen into the sluggish situation in the past

months. The cement consumption within the first two months of 2009 decreased by 18 - 20% over thesame period last year although the companies have implemented a series of promotions and discounts.

The main reason is that these are the first months of the year and the current economic situation isdifficult, as a result, the consumption of construction material has declined. Currently, those whopurchase the construction materials have mainly been the people who have demands for buildinghouses due to the quite cheap costs.

It is forecasted that the domestic steel market will have no change until June, 2009 due to the plentifulsupply and the continuous production capacity. The steel prices during the first days of March, 2009 atthe factories have ranged from 10.5 - 10. 8 million VND/ton (excluding VAT).

STOCK MARKET

Two bourses slightly increaseat weekend

Edited by VietRees

Chart Source: Vietstock

Up to date: 13 March, 2009

After the previous significant downward session, today, bothbourses of the stock market in Vietnam have slightly increased.

* At the HCM bourse, right after the opening time, the markethas shown the signs of going up when many share codes havebeen bought. Although the volume of transactions is not high ascompared to the previous sessions but it has also beensufficient to help the VN-Index reverse its direction and increaseby 1.54 points. During the consecutive order-matching time, thetransactions go down. VN-Index has still maintained the upwardmovement, however, it has increased by only 1.33 points ascompared to the former session and closed at 252.34 points. The total trading volume has reachednearly 10 million units. Until the last order-matching session to determine the closing price, VN-Index hasgradually got breathless. Ending the session, VN-Index has slightly risen by 0.43 points as compared tothe previous session to close at 251.44 points. The total trading volume on the market has reached 11.8million units worth over 204 billion VND.

Closing the quite eventful trading week, VN-Index has had 4 upward sessions and 1 downward session.As compared to the last week, VN-Index has increased by 5.74 points. The total trading volume hasaveraged over 14 million units per session.

* At the Hanoi bourse, HASTC-Index has come back to the upturn when adding 1.2 points to close at88.67 points. The total trading volume on the market has reached 6.3 million units worth nearly 108billion.After one trading week, HASTC-Index has also had 4 upward sessions and 1 downward session. Ascompared to the last week, HASTC-Index has also increased by 4.08 points (from 84.59 points up to88.67 points)




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 ChiMinh City market

The transaction situation of the apartments, town houses and project ground bases in February saw thebetter signs as compared to January although many companies have still operated perfunctorily. Ingeneral, 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) preservingcapital, (2) high expectation of the ability of price increases in the future when the other investmentchannels in stock, currency and gold are considered to be unsafe in the period of the economicrecession, (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 stillbeen scarce; (5) for the low-price property at the present - when the market is frozen, there will be a faintpossibility 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 pricesof apartments together with the attached program of supporting finance; especially according to theforecast of VietRees, this price decrease will contribute to stimulating the spread of the price decreasesin the future, (2) the State’s policy of kicking the demands is gradually affecting the market, (3) themarket will have many choices, (4) investors and customers have been more careful in transactions, asa result, the law of supply and demand would also take more effect.

Apartment marketThe price of the primary apartments has dramatically declined as compared to before (over 40%). This isthe positive signs to attract customers and ensure the success in trading in projects when there are onlya 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 thepast, although the successful transactions have been inconsiderable. According to VietRees, thereasons include: (1) the investors have weekly increased the prices because they hope that the marketwill prosper when there are some good signals from the market, (2) the previous prices havedramatically decreased and when there are good signals, they do not accept the same losses as whenthey 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 timealthough 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 apartmentprices are expected to remain the old prices or slightly decrease in the next few months, especially whenthe market has more supplies at low prices. The general difficulties of the economy has made theincome of the people go down and caused the bank interest rates to decrease. This has contributed toincreasing 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 isalmost no new product, as a result, the market does not show many movements. According to thestatistics, 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 thelevel that the people with the real housing demands expect; as a result, the successful transactions havebeen very scarce. This segment has seemed to only attractive to the investors, not those who have thedemands 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 thesigns of heating up because the people that receive the support for damages and compensation for thesite clearance in the project of Thu Thiem new urban area have required price increases. The premiseprices of the projects have been pushed up to the fairly high levels by the sellers such as Trung Sonresidential area, Thai Son residential area 1 - 2, etc. According to VietRees, this can only be the virtualphenomenon 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 butalso investing in the low-price houses and ground bases has been the trend. The low-price projectground bases distant from the heart of the city and located in the provinces such as Binh Duong, DongNai and BR-VT have actually attracted buyers. According to VietRees, this is the form of conserving thecapital of the investors and expecting the price increases of the market in the future when the market isfrozen and there is a faint possibility that the prices will become lower in the medium and long-termfuture.

The market will become moreeventful when new suppliesappear with reasonable prices

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

The investors need to calculate the interest rates reasonably and develop the projects quickly. The morereasonable prices will attract the investors when the other investment channels have been considered tolack the stability and be unsafe in the current situation. In the short, medium and long term, the realestate demand has been great. Therefore, according to VietRees, with a reasonable interest, theinvestors’ 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

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VietRees Newsletter 73 Week2 Month3 Year09