Norfolk Group Australia

Vietnam Property Skyrockets

2007-08-15T18:23:00.000-07:00

HO CHI MINH CITY - People were probably laughing behind Tran Van Thuan's back six years ago when he bought a small plot of land near a polluted canal in this southern Vietnamese city. Although the 100 square-meter property cost him less than 20 teals of gold (around US$7,000), the foul smell of the Nhieu Loc canal - called the "stinking river" by locals - had discouraged many would-be buyers before him from buying it. Thuan, however, even proceeded to build a three-storey house costing another $10,000 on the land. These days, Thuan is having the last laugh, thanks to a government infrastructure upgrading program in several cities across Vietnam. Last year, a water drainage project funded with World Bank loans turned the "stinking river" into a clean waterway. It also cleared the areas bordering the canal - turning the small alley where Thuan's house is into a beautiful street. Crows Thuan, "This premium location has enabled me to sell the house for 130,000 dollars." The state's upgrading projects have turned many people here, as well as in Hanoi, Danang and Hai Phong into Vietnamese-dong billionaires as the values of their properties rise. New streets have been developed, making the land on either side prime property. The upgrading is also under way in the old cities to address the needs of ever-growing populations and of modern life. These include projects on added electricity, water supply, drainage, telecommunications, transport and housing. Some projects have required lots of land clearance and population relocation. Those inconvenienced by the changes have simply been drowned out by the gleeful indirect beneficiaries of the projects, some of whom are plowing their new earnings into the booming property market. After selling his house facing the former "stinking river", for example, Thuan bought a cheaper property and, after some upgrading work, managed to sell it again at a nice profit. Says Truong Van Phuoc, one of the country's leading bankers: "People are shifting into the property market as profit margins are higher than bank interest rates." To many, the time to strike is now, and those in the real estate industry could not be happier. After being moribund amid the regional economic downturn and the fall of notorious real estate speculators, the industry is taking full advantage of the windfalls brought by government projects. But while the property boom is making quick money for some, other residents left to look for affordable housing are finding themselves hit painfully as even modest housing becomes steep. Take the case of 47-year-old Nguyen Thi Lan, who lived in the same quarter as Thuan and whose house, unlike his, was cleared by the drainage project that made the water in the adjacent canal clean. Because they were displaced, Lan's family has been offered the right to buy an apartment in a building put up especially for those relocated by infrastructure projects - except that the family had to struggle to produce the money needed for it. The family paid a 50 percent downpayment on the 60-square-meter apartment, which cost 150 million dong ($10,344), and will pay the rest over a five-year period. Then, the family was not too happy with its location being far from work. Likewise, "at first the apartment seemed okay, but after some heavy rains, water began to leak from the ceiling," Lan explains. Amid this real estate boom - which benefits mostly traders - searching for a home to fit their financial status has become more difficult for many city dwellers, whose monthly income stands at an average 750,000 Vietnamese dong. While the housing demands of city folk have grown rapidly, state investment to satisfy these needs adequately - as Lan's family found - has been modest and limited. Real estate development companies have mushroomed in Hanoi and Ho Chi Minh City to build apartments for those displaced by infrastructure projects and for lower-income officials, but problems like poor construction and unaffordable prices have been common. Elsewhere in Vietnam, infrastructure development is pushing up not only land prices but driving the conversion of agricultural fields. When Ho Chi Minh local authorities decided to carry out the East-West Corridor project, an extension of the highway linking Cambodia with Southern Vietnam, the land where the corridor passes, as one local put it, "as precious as gold". Not surprisingly, real estate consultancy and trading firms have sprung up all over over the big cities and their new suburban areas. Even the Asia Commercial Bank (ACB) now boasts of a "real estate supermarket" that is open seven days a week. Real estate websites also offer a range of services, including house and land price information, construction and design and even interior decorating advice. Property experts also note that local demand for housing and land in major cities is now exceeding supply. Says Vu Duy Tan, director of a real-estate consultancy and trading group: "Nearly 70 percent of our customers want to buy, not sell." He explains that the most popular houses are 200-square-meter properties, built for wealthy people and available for around $110,000 dollars. In other cases, he says, "properties attract attention, but not many customers have enough money to afford. Buyers are mostly traders who try to make big money." Observers also point out that the property fever is due to the participation of too many investors who see in real estate the simplest form of investment. The "fever" has been fanned by false information spread by land brokers, housing developers and investors whose housing projects were stalled for so long due to capital shortages. One of the rumors that helped send property prices rocketing was alleging that Hanoi is allowing overseas Vietnamese or "Viet Kieu" to buy houses in Vietnam along with land-use rights without any limit in residential areas. In truth, the National Assembly in its latest session decided to grant that right to only a handful of "Viet Kieu" investors and intellectuals who "contribute to the development of Vietnam". (Inter Press Service)

Work begins at Bond Street

2007-03-28T19:57:00.000-07:00

Demolition has just started at our Bond Street Apartments and the boys from Construction Pacific don't waste any time. As you can see, it's been gutted and getting ready to lay new foundations. Due to heritage reasons, we have to keep the existing face but will be incorporated into the new design. I find it amazing how quickly they can demolish a whole building. Sure wish they could build it that quick! Should be exciting to see it slowly come to life - its due to be completed by mid 2008.

Overworked and Understaffed

2007-03-14T18:52:00.000-07:00

Well it's tough times here as our Director Robert Blackmore (Pictured) works very hard to complete projects. Recently we have had a 20% increase in work and are struggling, so we are on the lookout for some high quality architects to join our dynamic team. We've had a bunch of applications and are sorting through them, arranging inverviews and viewing portfolios.

You can view our job ad here

So if you are intrested in applying for this position, please email us or just call us on 02 92993100 and ask for Paul.

1A Bond Street Apartments, Mosman

2007-02-25T16:29:00.000-08:00

Its an exciting time here at Norfolk Group, as we've just started development of a new residential/retail project at Mosman.

Bond Apartments - 1A Bond Street

You can check out all the info here

We are just starting expressions of interest per our PC Sums list and let me tell you, this is going to be one great development. No detail has gone unnoticed. It's got everything from great design, excellent location - close to schools and shopping centres as well as the latest European appliances and security access.

My favourite is the dedicated storage level for each unit. No more stuffing those bits and pieces into the garage, especially if you are downsizing from a larger home.

We've just finished the detail on the courtyard design and I love how we've used a shaded Pergola to block out the harsh sun yet still let a lot of light into the courtyard. Nothing like reading a paper, enjoying your morning coffee while relaxing outside in a bright courtyard with great landscaping.

I think we're on to a winner here - but then again, I'm biased!

Stay tuned, we'll to keep you up to date with our latest projects so check back often.

'till then!

John Blackmore
Project Co-Ordinator
Norfolk Group Australia

About Us: Norfolk Group Australia

2007-02-12T22:02:00.000-08:00

NORFOLK GROUP AUSTRALIA

Overview

Norfolk has been successfully involved in property development and project management for some 25 years.

Norfolk’s philosophy of excellence in design and construction has led to numerous awards over the years and a quality reputation in the marketplace.

Company director and chairman, Robert Blackmore is a registered Architect (BArch N.S.W.I.T. ARAIA, reg no. 4134) and with his associates is passionate about Architecture, design and the built environment.

OVERVIEW – ASIA

The crash of the stock exchange in 1988 and the Western World’s economic malaise in 1989 saw Norfolk expand into Asia, where the new emerging ‘tiger’ economies such as Vietnam provided opportunities for investment and growth in the region.

Between 1990 and 1995 Norfolk financed and managed the design, construction and operation of two Vietnam’s original FDI joint ventures; The Norfolk Hotel and the PDD Office Building, both in downtown Ho Chi Minh City. Norfolk and its subsidiary Minh Man continue to develop opportunities in the region.