Vietnam Real Estate News

The southern economic hub’s Saigon South area continues to be a promising place for property developers to prosper

2009-12-12T19:42:00.000+02:00

Saigon South, which covers District 7 and Nha Be and Binh Chanh districts, has recently seen Khang Thong Joint Stock Company break ground for construction of a $30 million commercial and residential complex at Huynh Tan Phat street.

The complex, scheduled to open in three years, will be located on 3,395 square metres. The 19-storey building, designed by Korean firm Gansam Partners, will have a two-storey basement, five retail floors, entertainment and offices for lease, 204 apartments and 12 penthouses.

Only the State is a loser in Vietnam’s real estate boom

2009-12-08T08:46:00.000+02:00

TDQ had a house in Tan Quy ward (HCM City District 7) that he purchased for 1.5 billion dong, about $75,000. Recently, he bought another house for five billion dong in the same ward. With real estate prices high, Q resolved to sell the first house, but of course he did not want to pay income tax on his gain.

Only people who own two houses or more are liable to pay the tax. Q solved his problem by arranging the paperwork necessary to convey the first house to his son. Once it was in his son’s name, Q sold the house for 2.5 billion dong without having to share one dong with the tax office.

CapitaLand pours US$223 million into real estate in Vietnam

2009-11-04T15:46:00.000+02:00

The Singapore-headquartered CapitaLand has deployed 299 million Singaporean dollars (US$223 million) to further its growth in the real estate sector in Vietnam.

In a press release last week, the company said that Vietnam was the group’s potential fourth pillar of growth in addition to its core markets of China, Singapore and Australia.

“Vietnam is a key Asian market for CapitaLand Group. The country’s strong economic growth and rapid urbanisation have creasted many opportunities for international real estate companies like CapitaLand,” says the press release.

Who benefits after the real estate market bounces back?

2009-09-17T00:50:00.000+03:00

Despite the real estate market seeing signs of recovery, investors still enjoy high profits as a result of the market lacking available properties and transparency, according to economic experts.

Market bounces back

The real estate market in Hanoi has begun to gain momentum since May with areas of land in Ha Dong, My Dinh, An Khanh and Thang Long seeing a sharp increase in price.

Vietnam coastline set to become big attraction to foreign real estate investors

2009-09-06T08:15:00.000+03:00

Emerging Market Boom

The head of planning and foreign investment in Vietnam is predicting that the country’s tourism real estate market will see a boom in five years time and declared he has no worries about exploiting beautiful areas.

Phan Huu Thang is encouraging developers to promote property investment in real estate resorts to foreign buyers as this will be a key part of the growth of Vietnam’s property sector.
‘Investment in real estate has been increasing significantly in the last two years, responding to many changes in the land laws. Foreign investors have shown special interest in real estate projects that will serve the tourism sector,’ he said.

Int'l real estate conference to be held in HCM City

2009-08-06T01:58:00.000+03:00

The Ho Chi Minh City Real Estate Association will sponsor an international real estate conference on December 17-18.

Participants will discuss solutions for sustainably developing the country’s real estate market.

They will hear a number of speeches on low income housing and Ho Chi Minh City’s architectural development strategy.

The conference, the first of its kind in Vietnam, is part of a national programme to promote the country’s real estate in 2009.

Prime HCM City Real Estate Awaits Investors

2009-07-15T10:39:00.000+03:00

Most of the 793 hectares of highly valuable land, commonly known as "golden land" here remains idle due to a shortage of investors with sufficient financial capacity, Vietnam News Agency (VNA) reported.

Interest in the land, located in districts 1, 9 and Binh Thanh, continues to be intense, city officials have said.

District 1, which includes the prime downtown area, contains 4.9ha of the total golden land area, as well as some of the city's most expensive sites.

Of the eight projects to be located on the prized land, only two are in the pipeline.

VinaCapital plans $350 mln Vietnam real estate fund

2009-06-29T22:27:00.000+03:00

SINGAPORE, June 23 (Reuters) - VinaCapital, Vietnam's largest asset manager, aims to raise $350 million in a real estate private equity fund in September to tap a local sector that it thinks has bottomed, a company official said on Tuesday.

The proposed VinaCapital Vietnam Land II fund will focus on residential developments, shopping malls and business hotels, David Blackhall, deputy managing director of VinaCapital's real estate arm, told Reuters in an interview.

"Vietnam is already showing signs that it has stabilised," he said, adding the residential sector offered the greatest potential because prices had fallen sharply since the end of 2007 and the country's growing middle class could afford to buy homes.

Market 'maturing' in Vietnam

2009-06-20T17:14:00.000+03:00

Real estate developers in Vietnam are drawing up strategic partnerships with other investors in a sign that the property market is maturing...

A lot of alliances and partnerships have been set up since the beginning of the second quarter, especially in the Ho Chi Minh City real estate market.

Analysts say that the professionalisation of investment, construction, distribution and management will be seen in the market as a move towards sustainable development.

Strategic partnerships on the increase as Vietnam property market

2009-06-14T17:25:00.000+03:00

Hoang Anh River View apartments

Real estate developers in Vietnam are drawing up strategic partnerships with other investors in a sign that the property market is maturing.

A lot of alliances and partnerships have been set up since the beginning of the second quarter, especially in the Ho Chi Minh City real estate market.

Analysts say that the professionalisation of investment, construction, distribution and management will be seen in the market as a move towards sustainable development.

Some of the major partnerships include Hoang Anh Gia Lai Housing Construction and Development Corporation opting for a strategic partnership with An Binh Land Real Estate Investment Company.

Tech-reliant Vietnam hit hard by downturn

2009-05-22T19:31:00.000+03:00

HO CHI MINH CITY, Vietnam — It's hard to see hints of an economic downturn on the horn-blaring streets of this commercial hub.

High-end restaurants are overflowing, fashionably dressed young women fill chic stores, and everyone seems to be talking on cell phones while plowing motorbikes through roundabouts swarming with Honda scooters and SUV taxis. Vietnam's main stock market, after losing 66 percent last year, has been riding a seven-month high, up more than 20 percent this year.

But the conspicuous consumption masks the reality that the global economic implosion is rippling across the Pacific and jolting this Communist Southeast Asian country, which had enthusiastically ridden the rising tide of globalization. Small Taiwanese manufacturers of low-end tech products silently closed plants in Vietnam for good during the New Year Tet celebration without telling workers.

Savills opens real estate trading floor in Hanoi

2009-05-17T15:04:00.000+03:00

UK-based real estate service provider Savills Vietnam opened a property trading floor Wednesday in Hanoi, a company spokeswoman said.

It had received a license last month from the Ministry of Planning and Investment, becoming the first foreign-owned firm to receive a nationwide license, the company said.

Hanoi to reclaim over 100 state-owned sites

2009-05-11T01:25:00.000+03:00

VietNamNet Bridge – Hanoi authorities plan to take back more than 100 State-owned plots of land. Most of them are street-front sites in the inner city, and worth millions of dollars.

Vietnam pledges to improve quality of developments

2009-05-05T16:51:00.000+03:00

Developers in Vietnam face stricter regulations and checks as part of a government led initiative to improve the quality of buildings.

From holiday resorts to large civil projects like bridges, more attention is to be focused on standards, the Ministry of Construction has announced.

There is particular concern that a massive growth in the industry had led to many shortcomings in buildings. Now each phase of a construction project must be implemented thoroughly, from the drawing board to consultation and carrying out and checking the final work, said Minister of Construction Nguyen Hong Quan.

He said that there is particular concern about work quality for large scale, national projects involving complicated techniques. New legal standards are to be set for quality management and contractors who are deemed to be responsible for shoddy work face punishment.

New property tax law could fuel land crunch, speculation

2009-04-30T11:17:00.000+03:00

Tran Du Lich, deputy head of the National Assembly representative committee from Ho Chi Minh City, supported the value-based house tax law because it accords with international norms, but he said the law needed to delineate more housing categories to be fair to all residents.

The proposal would tax houses valued between VND600 million (US$33,700) and VND1.2 billion to 0.05 percent of their total value.

Those costing more would be taxed 0.1 percent.

“So owners of a VND10-billion house will pay the same tax as those who own a VND1.3-billion house. But they should obviously pay more,” Vo said.

Hanoi: Investors to be compensated for halted projects

2009-04-23T20:42:00.000+03:00

Binh reported to the Hanoi People’s Council that under the prime minister’s assignment, the city authorities and the Ministry of Construction reviewed 744 construction plans and investment projects, totalling more than 75,000ha of land. Half of them are real estate projects.

The official said that the Hanoi People’s Committee will make public the inspection results of construction plans and investment projects in expanded Hanoi in June.

A deputy of the Hanoi People’s Council, Pham Thi Loan, asked: “What criteria will the city apply to determine which projects will be implemented, which will be amended and which brought to an end?”

Other questions are: As the city doesn’t have a comprehensive construction plan yet, what will be the foundation for it to licence projects? How will the city compensate investors for projects that will be halted?

Vietnam considering new law to increase number of overseas nationals who can buy property

2009-04-22T13:55:00.000+03:00

The Vietnamese government is considering easing property ownership restrictions for nationals who live abroad to enable them to buy as much real estate as they want.

The National Assembly is discussing proposed amendments to the current housing law which also includes increasing the number of Việt Kiều eligible to purchase houses and apartments in Vietnam.

If the proposals are passed in law it will mean that people of Vietnamese origin will be able to own properties. At present, only overseas Vietnamese acknowledged as making a contribution to Vietnam, such as scientists and experts, and those married to Vietnamese citizen can buy property. Any foreigner who is married to a Vietnamese citizen and resides in Vietnam can also purchase a house or an apartment.

Real estate prices go up and down in accordance with rumours

2009-04-18T22:17:00.001+03:00

Real estate has become the investment channel favoured by many people, as the stock prices decreased continuously and the bank deposit interest rate proved to be unattractive.

People think that the real estate price has bottomed out, and it is now the right time to make investments. That explains why real estate centres these days receive a lot of visitors who come to learn more information and seek to buy land and houses. Meanwhile, the centres’ doors were silently shut for the whole day several months ago.

Nguyen Thi Hoa in Thanh Xuan district, who is seeking to buy some houses, related that right before Tet, when banks lowered the deposit interest rates, she withdrew money from the banks to purchase gold.

The central city of Da Nang is preparing to host an exhibition on estate in mid July.

2009-04-17T21:50:00.000+03:00

Le Canh Duong, deputy director of the Da Nang Investment Promotion Centre, said the centre has completed plans to hold the Da Nang Real Estate Exhibition 2009 from July 16-18.

The three-day exhibition will help to warm up the city’s real estate market during the current period of economic slowdown, Duong said, introducing investors to real estate projects in the city, investment environment and challenges, as well as Vietnam’s development policy, procedures for selling or leasing property and market values.

Duong said the exhibition will also help the investors develop strategies for property projects in the city, as well as seek partners and new investment opportunities.

The exhibition is expected to attract the participation of 15-25 firms to market their services and issue calls for investment in real estate development projects.

2009 Property Hotspots - Bloomberg

2009-04-15T18:36:00.000+03:00

Vietnam facing office property crisis as supply outstrips demand

2009-04-13T20:28:00.000+03:00

Office rents in Ho Chi Minh City have plunged by up to 50% and the trend is expected to continue as supply outstrips demand.

Belt tightening due to the global economic downturn is also having an effect, according to forecasts from various international analysts.

Global real estate companies Cushman & Wakefield, Savills and CB Richard Ellis said top quality office space rents have fallen from a peak at the beginning of last year of $70 per square metre to $43 this year and could go as low as $30.

Rents for second-class space have fallen from about $45 per square metre to $28 to $40 and third-class office space from $39 to $14 to $25.

The Ho Chi Minh City housing market

2009-04-11T23:36:00.000+03:00

The study, on the impact of WTO entry on the city’s realty market done by the HCMC Institute of Development Studies, said 50 percent of all foreign investment in the city in the last two years has flowed into realty.

Foreign firms invested US$1.5 billion in 24 real estate projects in 2007, accounting for 50 percent of all projects and investment in the sector, and double their cumulative investment between 2000 and 2006.

They rose to US$3 billion in 45 projects last year.

In fact, most major projects and five-star hotels are fully or partly invested by foreign firms.

WTO entry sees HCM City property market boom

2009-04-10T00:13:00.001+03:00

Untrained brokers hurting real estate market

2009-04-03T12:23:00.000+03:00

The lack of professionalism among many local real estate brokers is partly to blame for property market fluctuations that are hurting the industry, experts said at a conference last Saturday.

Speaking at the conference on International Networking and Cooperation in Real Estate Investment and Brokerage in Ho Chi Minh City, Deputy Minister of Construction Nguyen Tran Nam said the presence of untrained brokers focused on earning quick and easy profits was increasing the element of risk in the local real estate market.

Vu Thi Hoa, deputy head of the Ministry of Construction’s housing and real estate market management department, said brokers were not able to perform their proper role as intermediaries because they were not aware of all the functions that this entailed.

Vietnam property market shows signs of recovery

2009-04-01T00:09:00.000+03:00

As gloom continues to descend over South East Asian property markets, is Vietnam, which oversaw one of the fastest growing and then most rapidly descending markets going to be the first to bounce back?

Following a year long cycle of decline, the Vietnamese property market is beginning to show signs of life again and they are signs that prices might start to recover in both Ho Chi Minh City and Hanoi. In the capital city, nearly 400 off-plan apartments in Keangnam Tower were sold not long after construction on the building started. Lots in the Van Phu Urban Area and Xa La high-class apartment projects in Hanoi´s newly-merged Ha Dong city have also been magnetic to investors, and prices have gone up nearly 20 per cent since Tet. Last year, investors paid little attention to these and other projects, as land prices were in heavy decline.

“Vietnam real estate entered the downturn in late February 2008 when the State Bank of Vietnam capped lending growth at 30 percent over 2007 levels,” Brett Ashton, managing director of Savills Vietnam says. “Many banks had already experienced lending growth in the first two months at or near this level and so limited new loans to long time clients.