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.
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.
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.
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.
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