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A41
Vietnam Real Estate Week 4, July
The first weekly electronic newsletter issued to registered members, approximately 80,000 reads per month
joining to develop the newsletter VietRees, a member of
This weekly newsletter is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning or interested in Vietnam real estate market changes.
Although the information is selected, synthesized from all reliable sources, this newsletter is only for reference and VietRees is not responsible for the occurring damage. Please visit the
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One more Nam Ha Dong new urban KT & DT Over 1.600 billion VND invested in the Tuoi Tre
22 July, 2008 residential area 7/5 22 July, 2008
People’s Committee of Ha Tay province suggested the Ministry of The 7/5 company of Military Zone 7 High Command has just started
Construction to consider and give ideas about the project of Nam construction of the residential area 7/5 at Long Thanh My ward,
Ha Dong new urban area located on a 295.47 hectare site in the District 9, HCMC. The project is 324.000m2 in size. The total
region of Phu Lam and Phu Luong communes, Ha Dong city, Ha investment of the project is over 1,600 billion VND. The project
Tay province. The project includes the residential areas, existing includes 662 garden terraced houses, 162 villas, 768 apartment
neigbours intermixing with industrial bases. buildings, trade centers, schools...
At present, this new urban area project has been finishing its Stage 1 will build a fully made infrastructure system until 2010.
planning at a scale of 1/2000 to submit to Ministry of Construction. Stage 2 (from 2011-2012) will complete the residential area.
Legal news
Certificate of Ownership granted within Tuoi Tre Changing using purposes of farm land Ha Noi Moi
30 days 24 July, 2008 located in residential area 24 July, 2008
Ho Chi Minh city Department of Construction has provided districts People’s Committee of Hanoi city has promulgated Decision No
46/Decision-People’s Committee on changing land using purposes
and precincts with guidelines on granting certificate of ownership to
of households, individuals who are using garden land, ponds on the
the cases concerning civil deals about houses of private ownership same parcel of housing land located in residential area yet not
set up before 1 July 1991 with the participation of Vietnamese recognized as residential land or agricultural land into non-
settling in foreign countries. agricultural land (residential land, land for production, for business
and other types of specialized land) in Ha No area.
There are 4 subjects considered to be granted certificate of
ownership, including: inland Vietnamese, overseas Vietnamese, Based on this decision, households and individuals requesting
permission to change land using purpose should be people who
Vietnamese at home and abroad (joint ownership or joint heir).
properly implement local laws on land. Area of land lots whose
Documents requesting certificate of ownership include: application using purposes are requested to be changed should fit general
for certificate of ownership, some papers about setting up houses planning. Duration of land using for housing area is permanent,
and residential land, one of papers relevant to civil deals about when switching to land for production base and business, the
dwellings in the sphere adjusted by resolution number 1037 of maximum duration is not over 50 years. When it comes to expire,
Standing Committee of the National Assembly. the State will consider renewal of land using.
Dealing time of People’s Committee at ward and commune level
Department of Construction will receive documents and grant
does not exceed 13 days from when legitimate documents are fully
certificate of ownership to organizations, and People’s Committee submitted. Department of Resources and Environment at districts
of Districts and Precincts will perform the same procedures to and suburban districts will perform their assessment right after
individuals. receiving documents. If suitable, within 15 working days, People’s
Committee at ward and commune level should announce their
permission for changes of land using purpose.
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This weekly newsletter is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning or interested in Vietnam real estate market changes.
Although the information is selected, synthesized from all reliable sources, this newsletter is only for reference and VietRees is not responsible for the occurring damage. Please visit the
website www.VietRees.com for further Vietnam Real Estate information.
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FDI by Industries in the first 6 months, 2008 Apartments and development lands prices
[
Week1, July 2008 Week 2, July 2008 Week 3, July 2008 Week 4, July 2008
HCM Vietnam International University 5-star hotel - trade center (D.1) Thang Long Tower (Tan Binh Dist.), Golden Hill Complex (Dist.1), The
City town (H.Mon D.), Resettlement Rach Lao Resettlement Apartment Splendor apartment buidling (Go
Area W.22 (B.Thanh D.), Buidling (Dist.8) Vap), Residential area 7/5 (Dist.9),
Horizon Place Complex (D.4) Thu Duc Sofware Center (Dist.2)
Other Trang Cat UA and Industrial An Tay UA (B.Duong), Ben Luc Thuan An Ecotourism Site Ocean Valley Tourism Site
Areas Park (H.Phong), Long Dien RA (L.An), Hue “Nha Ruong” (P.Quoc), Phu Yen Toursim (P.Thiet), Nam Ha Dong new
Apartment Area (V.Tau), Ecotourism Area (Hue), Trung Complex - Hon Ngoc Bai Tram Eco urban area (H.Tay)
Marketing Center at Bac An Hung New UA (H.Noi) tourism (P.Yen), Da Sa Ecotourism
Khanh UA (H.Tay), Tan Phu Site (L.Dong), Vinh Yen Plaza
Thanh RA (H.Giang) Trade Center (V.Phuc)
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This weekly newsletter is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning or interested in Vietnam real estate market changes.
Although the information is selected, synthesized from all reliable sources, this newsletter is only for reference and VietRees is not responsible for the occurring damage. Please visit the
website www.VietRees.com for further Vietnam Real Estate information.
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Sponsor:
This weekly newsletter is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning or interested in Vietnam real estate market changes.
Although the information is selected, synthesized from all reliable sources, this newsletter is only for reference and VietRees is not responsible for the occurring damage. Please visit the
website www.VietRees.com for further Vietnam Real Estate information.
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Housing needs for foreigners Investment trends in development of real estate projects
According to Statistics of Construction Ministry, at present, According to VietRees’ analysis, in aspect of project
approximately 80,000 foreigners are living and working in Vietnam, development and investment, the current real estate
of whom 21,000 are fully capable of buying houses in Vietnam. In market is witnessing some following trends:
Hanoi, total housing area for foreigners to lease has reached about
220,000 s.q.m, whereas in HCMCity, this number has tripled. 1. Domestic enterprises with powerful financial potential, mainly
corporations, still keep developing, but their progress may be slower
Houses for lease are mainly villas, terraced houses and apartments
than before.
with a lease term of 3-5 years. Ministry of Construction envisages
that in the coming time there are about 10,000 foreigners in need of 2. Most of enterprises are still expecting and trying to stay in the
buying houses with total square area of 1.5 millions s.q.m. field, but instead of doing it on their own as before, now these
agents have turned joint-ventures, called for cooperation,
Demand of welfare houses for low income earners and investment and integration.
resettlement in HCM city
3. Some medium and small enterprises with unstable structures and
HCM City has developed the project of 30,000 welfare houses since some individuals that own and tend to develop former projects are
the last 5 years, yet currently only 30% is done. Regarding houses having difficulties in project implementation and have not found out
for cadres, workers, officials in the whole city, 17/49 projects serves suitable partners. Now they are aiming at project transfer.
over 3,600 apartments and over 4,700 ground bases. Most of
projects were executed more slowly than committed date of
investors by an average period of from 12 to 18 months. Before this situation, one reality is that many foreign investors are
hunting for projects of domestic companies to undertake, transfer or
According to Department of Construction, (1) HCM City includes 3 carry out joint-venture. According to study of VietRees, some
export processing zones and 11 industrial zones in which housing advantages that make foreign investors much interested in this form
areas need to be built for nearly 218,000 workers; (2) 30,000 include: clear legal situation of projects, avoidance of site clearance
houses for resettlement and (3) houses for approximately 11,000 compensation, furthermore, some projects only need investment to
young officials and cadres. be implemented quickly. In addition, investment costs is sometimes
VietRees a little lower than in reality because project land of project
Real estate for the low income management are taken back due to their slower implementation
than in stipulation.
Extra hundreds of thousands of apartments to be built for low-
income earners Recently, VietRees Investment Promotion Department has been
* Sai Gon – Gia Dinh Real Estate Company and Hoa Binh Phu Yen
receiving many requests from domestic investors who have projects
Company build Thoi An Apartment Building in District 12 with 1,000 in need of investment or transfer and requests of foreign investors
apartments. * Construction Company No. 8 (CIC8) will invest in construction about searching properties as well. As a supplier of full services, a
of 10,000 Keppel Land apartments and Tien Phuoc Company will build a deep market understanding and working experiences with foreign
resettlement area including 1.900 apartments at An Phu, Binh Khanh, partners, VietRees would like to offer advices to project managers
District 2. * HCM City housing development fund will build low- income interested in calling for foreign investment in their projects as
houses in District 12. * HCM City People’s Committee will advance 50.5 follows.
billion to carry out the project of Vinh Loc B, Binh Chanh residential area for
resettlement with hundreds of townhouses and 40 apartment blocks.
*Construction Company No. 5 will invest in construction of 500 apartments
at Ward 22, Binh Thanh District. * Dat Lanh Company has granted
Advice for project management interested in calling for
construction permit for 30-40m2 apartments priced at 200-300 millions foreign investment
VND/unit. * Besides, VinaCapital and Chinese, Korean Groups are 1. Fully prepare documents about project (especially for legal
expediting projects of apartments worth below 400 millions USD/unit. * HCM
documents of projects).
City Cooperative Alliance has developed its construction investment project
of housing area at Le Minh Xuan Commune, Binh Chanh Suburban District 2. Carefully study price of transfer or equity capital (for cooperation
on a site of 67.49 hectares. * 50% of the house reserve at The Slendor form or joint-venture form).
apartment area (Go Vap D.) will be intended to serve resettlement demand
in the district. 3. Regarding projects planned in details, a clear and logical budget
VietRees distribution sheet for investment and detailed design of every
portfolio in the overall project required.
VN-Index
4. Submit an analysis table of successfulness and feasibility level
(profitability level) of projects.
5. For joint - venture forms, project managers should have carefully
and clearly prepared financial reports on enterprises’ situations and
these reports should be carried out by professional audit
companies.
6. Additionally, a small yet important factor is to learn about
business culture and national culture of foreign investors in order to
clear their very concerns and satisfy their requirements.
VietRees
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This weekly newsletter is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning or interested in Vietnam real estate market changes.
Although the information is selected, synthesized from all reliable sources, this newsletter is only for reference and VietRees is not responsible for the occurring damage. Please visit the
website www.VietRees.com for further Vietnam Real Estate information.
VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A41 Page 6
Sponsor:
This is a weekly newsletter issued by VietRees – Vietnam Real Estate. This is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning
or interested in Vietnam real estate market changes. Although the information is selected, synthesized from all reliable sources, this newsletter is only for reference and VietRees is not
responsible for the occurring damage. Please visit the website www.VietRees.com for further Vietnam Real Estate information.
VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A41 Page 7
This weekly newsletter is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning or interested in Vietnam real estate market changes.
Although the information is collected and selected from all reliable sources, this newsletter is only for reference and VietRees is not responsible for the occurring damage. Please visit the
website www.VietRees.com for further Vietnam Real Estate information.