vietrees newsletter 35 week2 month06 year08

8/14/2019 VietRees Newsletter 35 Week2 Month06 Year08

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Vietnam Real Estate Newsletter A35

VietRees Vietnam Real Estate Web: www.VietRees.com Email: [email protected] Week 2 June, 2008

NEWS BULLETIN FOR PROFESSIONAL REAL ESTATE INVESTORS, PLANNERS, DEVELOPERS AND MARKETERS

English Edition Editorial Board: VietRees Market Information Department and RENOW Group Company Renow.com.vn

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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 ornterested 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 forhe occurring damage. Please visit the website www.VietRees.com for further Vietnam Real Estate information. VietRees states clearly the original sources and dates for your convenient tracking or

getting full information. Should you need any queries or register to receive the newsletter, please contact via [email protected].

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Weekly issued

to 7,000registeredmembers,

approximately

20,000 readsper week or

80,000 readser month

Section A GeneralMarket Information

completely presents thewhole market with hot

news, foreigninvestment, real estatecompany, real estate

new developments andall necessary legal

news.

Section B ResearchResults & Statistics

provides marketstatistics including

pricings ofdevelopments, market

prices and constructionmaterials prices, realestate overall statistics,

newly announceddevelopments every

week and month,approved developments

for construction andVietRees forecasts on

the market and VN-Index stats.

Section C Ultilities &Speciality Newsconsists of usefulselected articles,

reports and analysis.

Please stay tunedwith the

Real EstateInvesting Newsletter

issued by VietRees everymonth. The newsletter

introduces fully legitimatedevelopments that arecalling for investment

and acquisition.

Joining with VietRees todevelop this weekly newsletter

SECTION A - GENERAL MARKET INFORMATION

A1-MARKET HOT NEWS

Source: SGGP Source: Lao Dong1. New Hanoi : Real estatemarket hot spot gets frozen

12 Jun, 2008

2.Real estate prices drop by50%- 60% 13 Jun, 2008

In recent months, the real estate market in Hanoi andNew Hanoi area has become frozen, especiallydifferent from the beginning of 2008. At this time, theprice of housing and land in New Hanoi areas hasdecreased by 2 - 6 million VND/m2. In the OldHanoi area, real estate prices also have dropped by5% - 10%. However, contracts have been dealt veryslowly.

A series of real estate brokerage firms depending on

bank loans are facing two horns of a dilemma. Thesefirms still have to pay staff salary and broker feesevery month. Additionally, some firms got into debtbecause they took on land plots for investment. Alarge number of real estate brokerage firms areselling off their speculative land plots any waypossible. The current frozen real estate market haspushed many real estate agents into bankruptcydanger and cause delays for many constructionprojects. Ha Tay Department of Planning andInvestment shows that until now around 30 projects,mainly real estate business projects registered orimplemented for investment, have still beendeadlocked. In addition to difficulties on premises,prices, construction materials, it is the indifference toprojects that makes many investors to pay lessattention to projects than before.

The most noticeable fact in HCM city real estate marketin the past half of month is there has been a sharpdecrease in land and house prices.

Land prices of most projects in Saigon South new urbanarea and neighboring area such as Binh Chanh, NhaBe have gone down to November, 2007 pricing thetime before the real estate fever. Apart from somefoundations located at favorable positions in projectswhich own convenient sites; prices of other foundationsdropped to under 15 million VND/m2.

In general, most projects prices fell over 60%compared with the extremely hot period. In neighboringareas of Thu Thiem new urban area, reduction speed ofland price is partly slower than in Saigon South newurban area.

Meanwhile, prices of apartment buildings have beengoing down. At transaction floors, the number of flatsoffered for sale and consignment has went upsubstantially; however there have not been any buyerseven though the prices decreased by nearly 50%.Regarding high-class projects, the reduction level ishigher. Nonetheless, a series of high-grade apartmentbuilding projects in District 2, Binh Thanh Districtinvested by foreign companies were offered for salewithout any announcement about prices.

A2-REAL ESTATE FOREIGN INVESTMENT

Source: Vneconomy Source: SaiGonTimes3. Another Accor hotel tobe opened in Hanoi

08 Jun, 2008

4. Banyan Tree increasesits investment into LagunaHue

08 Jun, 2008

French-owned Accor Hotel Management Corporationand Ha Noi Tourism Corporation and SIH InvestmentGroup from Singapore started construction ofNovotel Hanoi on the Park hotel on 06/06/2008 at295 Le Duan, Hai Ba Trung District, Hanoi.

With total investment of 40 million USD, hotel isconstructed under 4-star international standard on asite of 10.331m2 and includes 2 basements, 1mezzanine floor, and 5 storeys.

Hotel is expected to welcome guests in 2010. NovotelHanoi on the Park is the 5th hotel managed by Accorin Hanoi.

Thua Thien - Hue Provincial Peoples Committeegranted Enda Pte. Ltd. Company (a subsidiary ofBanyan Tree Holdings Ltd. Group - Singapore)permission to invest into construction of Laguna HueTourism Area worth 875 million USD with the area of

300 hectares in Cu Du hamlet, Loc Vinh commune, PhuLoc suburban district of Chan May - Lang Co economiczone.

The Tourism Area comprises 7 high-ranking hotels,1.000 houses, international shopping-conference zonesand many other tourism works. The project is expectedto be completed in 2014.


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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 ornterested 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 responsibleor the occurring damage. Please visit the website www.VietRees.com for further Vietnam Real Estate information. VietRees states clearly the original sources and dates for your convenientracking or getting full information. Should you need any queries or register to receive the newsletter, please contact via [email protected].

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A3-REAL ESTATE COMPANY EVENT

Source: Thanh Nien Source: VietRees5. Cantavil Hoan Cau introduces modelapartments

07 Jun, 2008

6. Tin Nghia offers Tan Bien 2 residentialarea for sale.

08 Jun, 2008

Daewon-Hoan Cau Housing Development JVC, Ltd officiallyintroduced model apartments of Cantavil Hoan Cau high-classapartment building project, located at 600A Dien Bien Phu, BinhThanh District, HCM city on the last June 4th.

The project includes 180 apartments fully equipped with luxuryamenities. It is the reason why experts assess the price at notunder 3,500 USD/m2. Cantavil Hoan Cau will be completed in July,2009.

On 7 June, 2008 Tin Nghia Limited Co officially offered Tan Bien 2residential area for sale in Bien Hoa - Dong Nai.

The residential area is 30.817m2 large, including one apartmentbuilding and 165 terraced townhouses planned with finishedinfrastructure.

The average price is around 1,5 billion VND/unit with the area of 186-217m2. Sacomreal is the official distributor of Tan Bien 2 residentialarea in HCM city.

Source: VietRees Source: SaiGonTimes7. Savills manages Saigon Pearl complex

11 Jun, 2008

8. Hung Anh JSC cooperates withDistrict 5 Housing Development andManagement Company

12 Jun, 2008

Real estate service provider Savills Vietnam has signed a contractwith Vietnam Land SSG to manage the latters Saigon PearlComplex - 92 Nguyen Huu Canh, Binh Thanh District, HCMC onJune 10th 2008.

With the area of over 10 ha and the total investment of more than500 millions USD, this complex comprises 2,000 high-gradeapartments, 5 star hotel, high-rise office building, trading centerand shopping areaSavills will provide professional managementservices which meets international standards.

On June 6th, 2008 Hung Anh Construction and Investment Companysigned a cooperation contract with District 5 Housing Developmentand Management Company to establish Hung Anh 5 Real EstateBusiness Investment Co, Ltd with the charter capital of 90 billionsUSD.

Besides its functions including construction of civil projects and realestate brokerage,Hung Anh 5 also focuses on businessdevelopment of ecotourism projects. Both Hung Anh Company andHung Anh 5 are affiliated companies of Sacobank.

A4-REAL ESTATE DEVELOPMENTS NEWSSource: DienDanDoanhNghiep Source: Thanh Nien9. Nam Long launches An Vien

apartments for sale07 Jun, 2008

10. One 21,2-hectare housing area to bebuilt in Hoc Mon

10 Jun, 2008

Nam Long Investment JSC has officially inaugurated sampleapartment and announced the sale of An Vien apartments, Ward 7,Tan Thuan Dong, District 7, HCMC. An Vien apartment areacovers an area of 28 hectares, comprising 3 blocks of 9-storeybuildings with over 240 units which each is 70 - 75 square meterslarge. Ground floor and mezzanine are used for public works. Fromthe second to ninth floors, there are 28 apartments of all types foreach along with penthouses on the highest floor.

HCMC Peoples Committee licenced Van Phuc Gia Real EstateCompany to invest in construction of housing area in Hoc Mon town,Hoc Mon District in early June, 2008. Van Phuc Gia Company willnegotiate with land users by itself when starting this project.

After 12 months since approval date, if investor has not decidedabout land assignment or land-using purpose change, this project willbe taken back.

Source: VietRees Source: Ha Noi Moi11. STN CORP invests 600 billion VND inMang Den ecological area

12 Jun, 2008

12. One more resettlement area to be builtin Long Bien District.

13 Jun, 2008

Saigon-Tay Nguyen Investment JSC( STC CORP) has registeredfor its investment of 600 billions VND in Mang Den Ecological Areaproject.Mang Den KonTum Ecological Area includes many servicespremises such as: 50 resort villas, animal-caring area in naturalforest and culture villages of ethnics minorities in Tay Nguyen.

Afternoon 12th, June Hanoi planning and Architecture Departmentand Long Bien Peoples Committee officially announced and handedover detailed planning of resettlement area in Giang Bien ward, LongBien District. Hanoi Peoples Committee assigned Urban andHousing Development and Investment Company to be investor of thisproject. Built on a site of 218,178 m2, this project includes low-riseblocks, 15 - 20 storey apartment buildings, schools, trading center

Insightful Real Estate Market Information And Research: Please contact VietRees, the professional real estate researching and consulting company inVietnam. We specialized in inspecting demands and performing behavioral analysis on current customers, targeted customers and potential customers in thereal estate business sector in order to assist and advise real estate companies developing a perfect business and marketing plan that succeeds in satisfyingcustomer demands to its best. Furthermore, VietRees carries out a wide variety of researches including possibility analysis, competition analysis, mediamarketing analysis and real estate valuating services.


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A5-LEGAL NEWS

Source: Vneconomy Source: DienDanDoanhNghiep13. The possibility of grantingconstruction permit through Internet

10 Jun, 2008

14. The Fourth Draftamendments and supplementsof Land Laws 2003

11 Jun, 2008

Ministry of Construction expects to grant construction permit andcertificate for construction practice via the Internet in 2009 or 2010.

With this granting, people can visit websites of management officesto fill necessary information in available sample forms, and thensend them to authorized offices. Authorized offices will receive thisinformation and provide guidelines, make an appointment forbringing concerned papers which are impossible to be submittedthrough Internet to management offices.

At present, there are 40 local departments of constructionimplementing the granting of construction permit via the Internet.According to statistic of Ministry of Construction, there are 26,000certificates issued in the past time. There are sample forms ofsome other administrative procedures online now.

Ministry of Environment and Resource has officially announced TheFourth Draft for amendment and supplement to some provisions ofLand Laws 2003.

In this draft, there are 60 provisions which need amending and 6provisions which need supplementing, compared with previous times.It is noticeable that the Provision 57 about regulations on land pricingand land-price assessment is amended and supplemented. Besidesthe organization of land pricing, there is an organization of land priceassessment, which aims to ensure the objectiveness in land-price

assessing. Two organizations are established according to decisionof Provincial Peoples Committee. Additionally, Clause 3 of Provision57 regulates that organizations or individuals who want to do servicebusiness in land pricing should include these following conditions:

- Enterprise or cooperative should be established with its legal capitaland is registered according to regulations.

- At least two people should be granted the certificate of practicingland-price assessment by Ministry of Environment and Resource.


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SECTION B RESEARCH RESULTS & STATISTICS

B1. TOP COUNTRIES AND PROVINCES TO INVEST IN VIETNAM B4. APARTMENTS AND DEVELOPMENT LANDS PRICES

Only have 11developments howeverVirgin Islands hasinvested over 2 billionUSD. The runner-up isthe United States with9 developments and1.3 billion USD. Koreahas the mostdevelopments with 47developments andalmost 350 millionUSD in investment

capital.

B2. HCMC RENTAL PRICES TO BE RANKED

As of current, Ho Chi Minh City (HCMC.) is ranked at 6th in Asia and 10th in the worldon the list of most expensive house leasing fees cities. The leasing fee in HCMC., ingeneral, is more expensive than Paris (ranked at 11th) and Shanghai (ranked at 12th),and only after Singapore (ranked at 5th) in the area.

6 out of top 10 cities in the list are in Asia, these are: Mumbai (6th), Seoul (7th),Singapore (7th), HCMC. (10th), Hong Kong, and Tokyo. The rest of the top areMoscow, New York, London and Caracas. The average leasing price of a 3 bedroomapartment in Asia is about USD 3,820 while it is around USD 2,950 in the world. HongKong is still in the highest ranking; however, the gaps among the Asian cities areshortened.

The lack in supply of apartments for rent meeting international standards appears tocause the increase in leasing price in HCMC.

Source: ECA International

B3. VN-INDEX

Source: Vietstock Up to date 13/06/2008

Updated on information from ACBR, Van Phat Hung, Hung Thinh, PhucDuc, Tuoi Tre Newspaper and developers (VietRees gathered by directsurveys), listed prices can be original prices or transfer prices at current orat one week prior from the date this newsletter is issued.

District Area (m2)Price (million

VND/m2)+/-

Apartment building - HCMC

Horizon Tower 1 106 33

Preche 2 154 38,5 -

Nguyen Phuc Nguyen 3 84 26

Constrexim Square 4 81 21 -

Phu My 7 114 21,5 -

Sky Garden 2 7 89 28,5 -

Carina 8 99 16,5

Phu Tho Thuan Viet 11 66 26,5 +

Thai An - Quang Trung 12 72 13 +

Hanh Phuc BC 80 12 -

Tan Kien BC 83 9,5 -

Dat Phuong Nam BTH 105 27

Development land lots HCMC

An Phu An Khanh 2 200 20,5 -

Him Lam Kenh Te 7 200 50

An Thien Ly 9 110 13 +

Gia Hoa 9 140 11,5

Phuoc Long B 9 320 13

Hai Yen BC 100 13

Vinh Hoang HM 100 8

Constrexim NB 160 6,0

Phu Xuan NB 125 7,5

Thanh Nhut NB 126 11 -

Apartment building - Ha Noi

Chelsea Park CG 98 25,5 -

Vimexco CG 74 25,5 -

VIP CG 245 29

M5 DD 149 28

Thai Thinh Plaza DD 114 27,5

Hong Lien TX 77 17

Nang Huong TX 117 13,5

Trung Van TX 87 16

Development land lots Province

My Phuoc 3 BD 300 2,5

Phu Hoa 1 BD 350 7

Vinh Phu 1 BD 207 5,5Lan Anh 2 BR-VT 87 2

Wind Hill BR-VT 180 5

Phu An DNI 107,5 2

B5. ANNOUNCED PROMINENT REAL ESTATE DEVELOPMENTS DURING THE LAST 4 WEEKS

Week 4 May 2008 Week 4 (continued) May 2008 Week 1 June 2008 Week 2 June 2008

HCMCity

Intresco 13E RA (D.7), Phu Loi 2 AP(D.8), Khai Hoan AP (D.11)

Vinh Loc B Commune RuA(B.Chanh), Blooming Park (D.2)

Vuon Dua Golf Courses and RA(D.9)

Van Phuc Gia Company HA(H.Mon)

OtherAreas

Da Nhay Resort (Q.Binh), Cau SatIA Commercial Center Hoi Phu Quan doan 3 RA (G.Lai), 5-starHotel Bo Y Tay Bo Y IA An ThinhIA Dong Duong IA (K.Tum), Ha

Linh RA (

.Nai)

Ho Tram Strip TA Rung DuongLaguna Beach Resort (V.Tau),Inexim Building (D.Lak), Tay SonComplex (H.Noi), Nam Hoangong 1 IA (L.Son)

Raffles Residence AP IndochinaRiverside Towers Complex TrueFriends Park Complex (D.Nang),Vung Bau TA (K.Giang),Commercial Area B Vinh Long

(V.Long)

Novotel Hanoi on the Park Hotel Long Bien District RuA(H.Noi), Laguna Hue TA (TT-Hue), Mang Den Ecological TA(Kon Tum)


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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 ornterested 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 responsibleor the occurring damage. Please visit the website www.VietRees.com for further Vietnam Real Estate information. VietRees states clearly the original sources and dates for your convenientracking or getting full information Should you need any queries or register to receive the newsletter please contact via marketnews@VietRees com

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SECTION C: UTILITIES & SPECIALITY NEWS

C1. REAL ESTATE BROKERAGE TRAINING CENTERSC4. REAL ESTATE MARKETING NEEDS TO BE MOREPROFESSIONAL

Under the Law on the Real Estate Business, from January 1, 2009, everyndividual, organization authorized to offer real estate services is required tohave a working license. The first 9 competent entities that are authorized togrant licenses are: (1) Hoa Phat Real Estate Joint Stock Company, (2) RealEstate Transaction Center of The Ha Noi Department of Resources Environment and Real Estate, (3) Vietnam Valuation and Finance ConsultancyCompany, (4) Economics Administration Research and Training Company, (5)nvestment and Construction Joint Stock Company 579, (6) Vietnam IEC JointStock Company, (7) Business Promotion and Training Center of Davilaw Patent,Trade Mark & Copyright Joint Stock Company, (8) Economics and BusinessTraining and Consultancy of Research Institute, Ministry of Industry and Trade,

(9) Tan Viet College of Economics and Technology, Education and TrainingDepartment of Ho Chi Minh City.

Those are the competent authorities who are allowed to opening courses andgranting licenses in real estate brokerage, real estate appraisal and real estatesupermarket operation.

C2. FEATURED ARCHITECTURAL DESIGN COMPANIES

(1)SWA, USA, www.swavietnam.com, typical projects: The Landcaster, NhaTrang Center, Saigon Pearl Villa, Hoan Cau An Phu, SSG Villa

(2)Ong&Ong Co., Ltd., Singapore, www.ong-ong.com, typical projects: BlueDiamond, VRG Office building, Fico Tower, River

Garden Tower, The Everich

(3)Surbana Vietnam, Singapore, www.surbana.com, typical projects: Sunrisecity, Big C An Lac, Tan Tao Residence, Me Linh New Township - Vinh Phuc,

Nhon uc Water Town Nha Be, HCM(4)RSP Vietnam, Singapore, www.resp.com.sg, typical projects: The Vista,HCM

(5)Archiects 61 Pte., Ltd., Singapore, www.a61.com.sg, typical projects:Kenton Residence, Vinataba Masterplan, HCM

(6)DP Architects Pte., Ltd., Singapore, www.dpa.com.sg, typical projects: VillaRiviera, Saigon Sport Center City, Phu My Condominium, BIDV Tower, SaigonM&C Tower

C3. REAL ESTATE FOR THE LOW INCOME

Thousands of apartments for the low income are now coming soon.

* Sai Gon- Gia Dinh Real Estate Joint Stock Company and Hoa Binh Phu YenDevelopment and Investment Joint Stock Company have cooperated in buildinga 15 floor condominium named Thoi An with 1,000 units on an area of 15.1 ha

n District 12 for the low income.* Construction and Investment Company 8 (CIC8) will invest about 10,000apartments for the low income from the land fund of 8 projects all over thenation in the next 5 years.

* Keppel Land and Tien Phuoc Company will build 1,900 apartments on 17.3 haresettlement area at An Phu and Binh Khanh Ward, District 2.

* HCMC House Development Fund has been accepted by its PeoplesCommittee on the project of home building for the low income on an 11.749 haat Hiep Thanh Ward, District 12.

* HCMC Peoples Committee has accepted to advance VND 50.5billion (approx.USD 3m) for the project of Vinh Loc B residential area with hundreds oftownhouse and 40 blocks of condominiums on a 30 ha area in Binh ChanhDistrict, providing inventory for resettlement programs.

VietRees, June 2008

According to a study of VietRees on the current state ofreal estate marketing, only a few business firms have amethodical professional approach to the market while themajority is still confused in finding a proper way toadvertise their real estate to target customers.

Without a suitable marketing strategy, an enterprise canwaste their source, erode their brand and make theirbusiness activities less effective. A delay in selling outproject units can cause difficulties in constructionprocess, reduce the profit and even make a loss as theterm to pay bank interests lasts longer.

At the present time, projects are normally advertised to alltypes of customers at the same time. For manyenterprises, projects marketing just simply meansdelivering leaflets, name cards and newspapersadvertisements which are similar in words and designs.This way of marketing makes no attraction to thecustomers in each certain market segment.

Specifying clearly the target market and marketsegments and having deep knowledge on thesegments are the foundation of a successfulmarketing strategy. Real estate investment andconstruction enterprises should pay more attention toplanning marketing strategies and doing marketing

research to understand its customers and approach themdirectly. The enterprises can outsource marketingresearch activities in case the internal resource cannotafford.

Once understanding the target customers as well as theirparticular requirements, enterprises can at the same timeimplement these tasks:

(1) Setting and following plans on customer searching,customer approaching, and customer service. Advertisingonly takes effect when it is suitable with the receiversinformation acquiring way.

(2) Specializing sales staff to meet customers specificrequirements and respond to their specific enquiries.

(3) Observing other competitors projects and marketsituation to adjust plans when needed. The mostimportant is that all the movements must be inaccordance with each other and create a different valuefor the target customers.

Besides, constantly building and enhancing enterpriseimage in the mind of target customers is always thenecessity and priority of all investment decisions.

Why dont you act now to show your difference andsolidify your position in the market!

VietRees, 2006-2008

vietrees newsletter 35 week2 month06 year08

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