Vietnam Real Estate News

Vietnam mulls ban on unfinished home sales

2011-05-18T17:24:00.000+03:00

An incomplete mansion in Hanoi
The Ministry of Construction has proposed a new rule that bans project developers to sell land and half-built houses to customers.
Residential property developers must finish construction before being allowed to sell their projects, the rule said.

In its latest report on the real estate market, the ministry found that many people cannot afford a house while some others have been leaving their houses unfinished and unoccupied for a long time, which it said is a waste of land resources.

An inspection of 18 residential projects in Hanoi found that only 80 percent of townhouses and 50 percent of villas were put into use, according to the report.

The Ministry of Construction said it is necessary to control bank loans to real estate projects, especially in the high-end market segment. Uncontrolled credit to luxury housing and resort projects can cause the market to collapse, the ministry warned.

UAE investments in Vietnam have reached $3 billion

2011-05-14T16:36:00.001+03:00

The UAE spent $130 million in direct investments in Vietnam, while additional indirect investments such as joint ventures and securities brought the total figure to $3 billion, said Vo Hong Phuc, Vietnamese Minister of Planning and Investments after signing a Memorandum of Understanding with Emirates Gate Investment yesterday. "The aim is to facilitate UAE entrepreneurs to invest in Vietnam," he said, adding that a host of UAE firms are already investing in Vietnam and more continue to show interest.
"Investment from the UAE to Vietnam is modest but I see potential for the future," he told reporters after the event. Key investment sectors include manufacturing, energy and infrastructure, he added.

Vietnam office rents among the highest in the world

2011-05-10T00:02:00.000+03:00

HO CHI MINH CITY: The office rent rates in Vietnam’s biggest cities such as Ho Chi Minh City and Hanoi are among the highest in over 100 markets worldwide, according to an annual report released by British real estate services firm Knight Frank last week.
Ho Chi Minh City is the 19th and Hanoi (21st) most expensive markets with prime rents at US$38 and US$36.5 per square metre per month respectively, the report said.
The rates are more expensive than established markets like Manhattan (New York), Frankfurt (Germany ), Shanghai (China ), Brussels (Belgium ) and Rome( Italy), according to the Vietnam news agency.
However, the availability has increased in Vietnam, with both the cities seeing large amounts of new Grade A office supply during 2010.
This has caused vacancy rates to rise and put pressure on Grade A rents.
Meanwhile, demand remains strong in the Grade B and C office sectors, according to the report.
Elsewhere, the rental growth has been led by the world’s major financial centres, with office rents rising in cities such as London, New York, Hong Kong and Singapore, said the report.

Vietnam Real Estate Report Q3 2010 - New Market Report Published

2010-07-05T20:44:00.000+03:00

There is a property glut in Vietnam. Rental rates fell by double digit rates through 2009 - in each of the three cities for which we gathered data (Hanoi, Ho Chi Minh City and Da Nang) and across all three subsectors. Vacancy rates are generally running at around 30%.

Normally, in an economy that has been growing so quickly - that the authorities are tightening both fiscal and monetary policy in order to curb inflationary pressures - rents and capital values would fall until much of the vacant space is absorbed.

However, this is not the process of adjustment that is under way in Vietnam. The government has intervened to re-regulate the commercial Real Estate sector. Approvals for projects that have been proceeding slowly have been revoked. The aim of this measure may be to prevent/discourage speculation in a country where inflation has been rising. More likely, it is a move to curb supply at a time that rental rates are under downwards pressure.

Writedowns push VinaLand into the red

2010-01-14T22:57:00.000+02:00

Vietnam real estate market investment vehicle VinaLand posts a net loss of $201.6m for the year to June compared with a profit of $248.2m last time.

The firm said the result was due to writedowns which reflected market conditions.

Its net asset value stoo at $660m - down from $804m in 2008 - and it had cash and cash equivalents of $50.3m.

Director Don Lam said: "Despite the continuation of tough conditions over the past year, VNL has maintained its position as the leading foreign investor in Vietnam's burgeoning real estate sector.

"I am pleased with the company's progress over the period - particularly as regards to our residential projects, in which we have witnessed strong demand and rising prices.

"We will continue to pursue our strategy of focusing on the most profitable urban districts whilst maximising returns through divestment from selected projects."

Story provided by Business Financial Newswire

RoK businesses keen on Vietnam’s market

2010-01-13T22:26:00.001+02:00

He stated this at a seminar to promote investment and trade between Vietnam and the RoK in Hanoi on January 11.

Secretary General Cho and representatives from the top 20 construction businesses in the RoK are on a fact-finding tour of Vietnam from January 11-13 to seek out investment opportunities.

The investment and trade relationship between Vietnam and the RoK has developed rapidly in recent years. Since the Law on Foreign Investments took effect in Vietnam in 1988, the RoK has invested US$20 billion in more than 2,200 investment projects in Vietnam, ranking second among the 89 countries and territories currently investing in the country.

Deputy Minister of Industry and Trade Nguyen Thanh Bien confirmed that bilateral economic, investment and trade ties will further improve, especially as the RoK is one of the world’s economies to see an early recovery from the global economic downturn and maintain a good economic growth.

The Vietnamese Government highlighted the efforts made by RoK investors as the nation is always amongst the top three countries and territories to invest in Vietnam, stated the deputy minister.

The RoK businesses have left an important mark in various economic sectors, including infrastructure, real estate, the ship building industry, electricity generation and electronics, he added.

Hanoi property catches foreign investors’ attention

2010-01-11T00:20:00.000+02:00

Foreign investors will start to shift investment from HCM City to Hanoi this year, says Marc Townsend, managing director of Property services and consulting firm CB Richard Ellis (CBRE) Vietnam Co.

At a real estate conference held last Wednesday in the capital, Mr. Townsend said about 80 percent of its investors’ last year capital has been poured into the market.

He said both foreign investors and Vietnamese government had been very active in the market.

“Malaysian and Singaporean investors view the city as a promising market,” said the MD.

Weathering the global economic downturn, Vietnam reached a positive GDP growth rate in 2009. Interest rates were increased by one percent on December 1, a move designed to limit credit growth and rein in inflation.

CBRE forecast that new legal documents on the market would provide foreign investor with new opportunities.

2009 a time of reflection for Vietnam veteran Dennis Pfeiffer

2010-01-09T11:28:00.000+02:00

This past year Dennis Pfeiffer has often caught himself wondering, “What was I doing at this moment 40 years ago?”

The answer that almost always comes back? Flying with the 242nd Assault Helicopter Company over Vietnam.

The 60-year-old Wauneta man and Army veteran put in 18 months stationed in Vietnam, from November 1968 to June 1970. Most of that time was spent as a flight engineer aboard a Chinook CH-47 helicopter, resupplying the 25th Infantry.

In May Pfeiffer got a chance to reconnect with several of his old Army buddies as honored guests during the dedication of the Nebraska National Guard’s Army Aviation Support Facility in Grand Island.

During that same whirlwind week, Pfeiffer accompanied his 84-year-old father, Oscar Pfeiffer, on a Buffalo County-sponsored Hero Flight trip to Washington, D.C., where together the Vietnam veteran and World War II veteran journeyed to the war memorials honoring their military service.

“It was an intense week, that’s for sure,” said Dennis.

Vietnam Construction Market Data & Forecast to 2013 - new report released

2010-01-07T23:25:00.000+02:00

Vietnam Construction Market Data & Forecast to 2013 - a new market research report on companiesandmarkets.com

www.companiesandmarkets.com/Summary-Market-Report/vietnam-constr ..

Vietnam Construction Market Data & Forecast to 2013 report is the essential source for Construction industry data and analysis covering Vietnam, both at the top level and providing in-depth category and channel insight.

The report provides historical data and forecasts for the Vietnamese Construction industry in the period 2004-2013, detailed profiles and financial metrics covering the major market players, a
breakdown of key recent M&A and partnership activity, and comprehensive analysis of the key factors driving the industry at consumer, market and company level.
The Vietnamese construction industry grew at a CAGR of 20.93% for the period 2003-2008. Non-residential sectors market share was 51.4% in 2008, while residential sector accounted for the balance 48.6%. Located in South-East Asia, Vietnam, once a war savaged land, is now a fast developing market. Over the five years prior to 2008, the Vietnamese economy has recorded 8% growth in Gross Domestic Product (GDP), making it one of the fastest growing Asian markets. Even in the face of recession in 2008, the country reported a robust GDP growth of 6.2%. Vietnam has been moving to industrialization over the last two decades. The industry and construction sector which accounted for 23.8% of the countrys GDP in 1991 has grown to 39.9% in 2008.

Vietnam`s largest project tees off in Laos

2010-01-05T21:56:00.000+02:00

Hanoi (ANTARA News/Asia Pulse) - Vietnam's Long Thanh Golf Trading and Investment Co. began construction of a US$1 billion golf course and real estate project in Vientiane on January 3, making it the largest foreign-invested venture in Laos.

Covering an area of 557.4 ha, the project will feature an 18-hole golf course, a five-star hotel, high-grade villas, a resort and school and hospital facilities.

The project is expected to become operational after 12 years of construction.

Vietnam should attract FDI into supporting industries: economist

2010-01-03T21:23:00.000+02:00

Dau Tu: What would you say about the FDI capital flow in 2009?

Vo Tri Thanh: Committed FDI capital in 2009 is obviously lower than 2008. The figure of $21 billion in committed capital is encouraging, showing that foreign investors still see long-term potential in Vietnam.

If we look at the sum of money poured into Vietnam in 2009, about eight billion dollars, we see that foreign investors’ financial situation is really healthy. They are making investments and aiming for long-term, not short-term, profits.

However, I can see some problems in the FDI flow in 2009.

Many FDI projects are in the real estate sector. When the real estate sector goes up and down, this will create negative effects in both the real estate market and the national economy. When a big volume of capital is poured into the real estate sector, this shows the big potential of the market, but we should also anticipate risks as well.

Besides, Vietnam still has disadvantages in attracting FDI, including its poor infrastructure and labor problems with a shortage of skilled workers and qualified managers

The 10 biggest FDI projects in 2009

2009-12-31T10:32:00.000+02:00

According to Thoi Bao Kinh Te Vietnam, the 10 biggest FDI investment projects in terms of registered capital in 2009 include six real estate projects, two projects in accommodation services, one processing industry project and one mining project.

The top 10 FDI projects are capitalized at $12.7 billion, of which real estate projects alone make up $6.48 billion. Most were just granted licenses in the fourth quarter of 2009.

Vietnam attracts US$21.48 billion in FDI in 2009

2009-12-30T21:19:00.000+02:00

US$21.48 billion in foreign direct investment (FDI) has flown into Vietnam this year despite the global economic crisis and stiff competition from other regional countries.

Of the total, US$16.34 billion is registered by 839 newly-licensed projects and the rest from additional capital poured into 215 ongoing projects, according to the Ministry of Planning and Investment’s Foreign Investment Agency (FIA).

The agency said that accommodation and restaurant services continued to catch the eye of foreign investors this year, drawing in US$8.8 billion.

Real estate came second with an estimated US$7.6 billion, followed by manufacturing and processing with US$2.97 billion.

In 2009, the country’s disbursed capital is estimated to have reached US$10 billion, about 1.5 billion lower than in 2008 when FDI hit a record high of US$64 billion, according to the agency.

Respect Vietnam vets

2009-12-29T19:16:00.000+02:00

President Obama's speech at West Point (Dec. 2) was right on mark and I believe we will rid the area of terrorist criminals in and around Afghanistan. Taking the fight to these thugs on their home turf is a good plan.We will root these cowards out and wipe them out. They won't be bombing anyone else ever again.

The part of the speech where our president compares this new deployment of our combat troops with the Vietnam War is where I have a disagreement. He said he disagrees when hearing "Afghanistan is another Vietnam." The president then gave three reasons why the two conflicts differ. I realize the president respects Vietnam Vets, but there are plenty of people who say and think that the "Nam" War was a disaster. This is a put down of the American combat troops who fought and died in the Nam.

As a Vietnam Era Vet I resent these ridiculous comments. Most of us were drafted and had no choice about assignments, but we wouldn't have it any other way and think we kicked the VC in their butts!

Since these Vietnam Era critics and doubters like this war better then the Nam why don't they sign up for this one. Maybe they'll learn that war is war no matter where it's fought and that serving your country honorably like we Nam Era Vets did is what counts.

Seeking capital for real estate projects

2009-12-27T23:52:00.001+02:00

VietNamNet Bridge – Experts have been called on to set up a legal framework to call for capital for real estate projects, or Vietnam will never be able to meet the demand for accommodation.

A real estate conference which gathered late last week heard that in 2008 loans provided to fund real estate projects were 132,545 billion dong, or 9.15 percent of the total of outstanding loans in the year. The figure had increased by 10 percent by June 30, 2009.

However, bank loans are not the only channel which brings capital to the real estate market

Stocks, gold, real estate or dollars – what’s best for Vietnam’s investors?

2009-12-26T10:04:00.000+02:00

Stocks, gold, real estate or dollars – what’s best for Vietnam’s investors?

All investments are risky

The gyrations of the world gold market recently have helped many Vietnamese earn a fortune, but at least as many others have been cleaned out. Amateur investors are conspicuous in the latter group, having plunged in without good market information and all too often placing their bets with the help of dreams and horoscopes.

Vietnam Real Estate Growth Limited By Regulatory Environment

2009-12-25T14:13:00.000+02:00

The key factors limiting Vietnam's real estate market are: a lack of transparency, access to funding and the legal framework. Heeding the lessons learned by Vietnam's counterparts in the Asian property sector should advance the position of this emerging market. See the following article from Property Wire for more on this.

Improved legal and financial frameworks are needed if Vietnam’s emerging property market is to grow into a sustained real estate environment, it is claimed.

The country’s real estate sector will continue to grow and attract investors in 2010 but potential problems such as rapid urbanization, environmental pollution and supplying sufficient low cost housing needs to be addressed, a two day conference heard.

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.