Construction update – March 2009

Daewon Cantavil An Phu

Total area of the land: 46,605sq.m is planned with 2 small areas:

+ Villa area: with 82 isolating, doublet and inter-villas; each villa has an area from 126 to 387sq.m.

+ High-class apartment: in cooperation with Daewon Company (Korean), a leading company which has got many awards in construction in Korea and South East Asia, to develop high-class apartments with the branch Cantavil – Happy home.

Location: the project borders on Hanoi Highway in the North, on East West Avenue with the width of 32m and 6.8ha Park in the South, on 20m wide street in the West and 12m planning street in the East.

Daewon – Thu Duc Join Stock Company developed Daewon An Phu Apartments (Cantavil phrase 1) successfully. The apartment tower has the height of 16 storeys with 390 units which have been run. The tenants here are very satisfied with a landscape environment, facilities as well as management of the company. All units are designed nicely with pure environment. In public area, there are community area and facilities as: supermarket, swimming pool, medical center, sport area, parking lot, park and walking line.

Daewon – Thu Duc Join Stock Company keeping going on constructing a complex of international commercial center, office building and apartment tower comprising two 36 storeys towers in An Phu New Urban, An phu Ward, Dist. 2, HCMC.

The 36storeys international commercial center, office building and apartment complex belong to An Phu Commercial and Residential (Cantavil An Phu) with area of 4.6ha developed by Thu Duc Housing Development Join Stock Company. This project is adjacent to An Phu New Urban with area of 131ha.

With strategy location at the Eastern gate of the city, close to 6.8ha park, schools supermarket, hospital and etc., the property has a special value for itself in the future. Developer has pay their special attention to planning design to ensure standards on living, traffic and park land in order to give the best serve for the complex. Standards of a modern urban, comfortable living environment are ensured for tenants. Technical infrastructure is linked synchronously with technical infrastructure of total area.

The 36storeys international commercial center, office building and apartment complex has been arranged with following structure:

Four basic storeys are for commercial services such as food, clothes, domestic household serving essential demands for tenants.

Kindergarten with total net floor size of 680sq.m is on ground floor and can contact directly with outside play ground safely and logically.

Two tower with 36 storeys (including base floors): 1st, 2nd and 6th floor are for commercial services; 3rd, 4th and 5th are for office, apartments are from 7th to 36th floor to serve various demands of customer.

More information, please contact:

ThuDuc Housing Development Corporation
Address: 384 Vo Van Ngan str., Binh Tho ward, Thuduc dist., HCM City, Vietnam
Tel: (84.08.) 3896 6676 – 3897 2799 – 3722 0407
Fax: (84.08.) 3896 1123
Email: thuduchouse@hcm.vnn.vn
Website: http://www.thuduchouse.com

Ha Dong Highrise building complex

Two blocks of independent but carry the same language architecture located next to each other with the shareholders, modern, with volume for services and the attractive houses luxury.

Image from the architecture of 2 buildings of the combination block by two block of the foot sole and high-rise blocks with a total volume increased to 1 is 35 storeys with the main service and commercial houses, block 2 of 45 floors with the office services and housing.

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Website functions will be public layout in the lower floors of buildings, the technical area is located at the interface between the 2 main functions, or between the apartments and the public services.

In addition to regular apartments with a variety of apartments with area from 75 m2 to 240m2 apartment is in the top 2 floors of the building layout 8 apartments with high quality private swimming pool, garden with wide viewing angle and from the high of the most beautiful buildings. This is the apartment block to meet the needs in the highest perfection in Hanoi. Changing the apartment by modun square network of apartment space with 3-dimensional decoration. Increased lighting, landscape front, the back for each apartment.

Works with 03 basement was held as to where the car (the size of 1 car / 1 households). The technical level in the appropriate position. Welcome main lobby overlooking the Tran Phu service from the service. The welcoming lobby of the apartment blocks and offices held in Van Quan main road location and traffic other additives. From the service and rooms are designed with surface adjacent to the main road in order to maximize accessibility to consumers.

Location: Ha Dong Bus – Van Mo Ward – Ha Dong City – Ha Noi
Investor: Song Da Construction and Urban development JSC
Scale investment: 02 blocks of 45 and 35 floors. Investment capital 1700 billion VND.

The margin narrowed

“Choose the right price” is a popular local television game show. Joining the game, the player is challenged to identify the exact prices of consumer goods such as shampoos, kitchen wares, perfumes and beverages among others. Although the player gets hints from the audiences at the studio before giving a final decision, they often miss chances to be the winner of the game. The property market is just like that if it comes to looking at the apartment segment. The real prices of apartments are challenging the homebuyer to guess.

The apartment prices are on the decrease under the pressure from dampened sentiment. Some project developers have begun slashing selling prices of apartments. Some say this is the right time to grasp the opportunity while others claim that such declines have yet to reflect the real prices, so they will continue for some time.

Margins narrowed

After a long period of overheating, the property market has been experiencing the fallout from the past credit crunch and then the economic slowdown, with land and housing prices taking a nosedive. Some property firms have been making efforts to pull themselves of the blues.

Several weeks ago, HAGL Land stirred up the quiet market with a surprise announcement by slashing prices of apartments by a stunning 40% to attract potential buyers. Some 500 apartments of the two apartment projects including Hoang Anh Riverview in Thao Dien Ward in District 2 and Phu Hoang Anh in HCMC’s Nha Be District were on the promotion list.

Back to 2007 when the property market was seeing prices running wild, HAGL Land quoted Hoang Anh River View apartments at US$2,300 per square meter and Phu Hoang Anh ones at US$1,800. However, until recently the prices have slid to as low as to US$1,350 and US$1,250 respectively. Explaining the huge price cuts, the company said prices of building materials ware falling, coupled with the low prices the company enjoyed when acquiring land for the projects.

Following HAGL Land, Dat Xanh Real Estate Company has been running an advertising campaign for its SunView Apartment in Tam Phu Ward in HCMC’s Thu Duc District. There are 200 apartments put on sale with prices slashed to US$764 per square meter from the US$1,300 a year ago.

In another project, Daewon Hoan Cau Housing Development Joint Venture Company is offering a price of US$2,000 per square meter for the Cantavil Hoan Cau project on Dien Bien Phu Street in HCMC’s Binh Thanh District. This is the project which sparked a controversy several months ago as a property service company released research results showing a considerable decline in prices in the project. A representative of the Daewon Hoan Cau denied it, saying such information threw the company into a difficult position.

Commenting on the most recent apartment price reductions, Le Tham Duong, head of the Administration Faculty of the HCMC Banking University, said it was just an excuse. Property companies said they were supporting the Government’s economic stimulus program, but in fact, they have no choice but to lower prices to either recoup capital or restructure their investment portfolios, he said. Slashing prices, Duong said, is the wisest decision under the current circumstances and they have to narrow their expected profit margin to survive troubled times.

Financial woo

To some extend, the fall in prices of apartments is sending out a positive signal to the market as there are many transactions reported in the last few weeks. However, this would not have happened if there had been no promise of financial support from banks. Most of the projects that are on the price promotion rampage have got pledges from banks to offer loans worth at least 70% of the value of an apartment.

For example, Sai Gon Thuong Tin Real Estate Joint Stock Company (Sacomreal), which is distributing some 300 Hoang Anh Riverview apartments, is supporting the homebuyer with loans from Sacombank, Vietcombank and Bank for Investment and Development of Vietnam (BIDV), with repayments to be made for 10 to 20 years.

Phu My Hung Corporation (PMH) early this month started selling apartments in the Riverside Residence project at VND37 million per square meter. The company said 128 apartments were snapped up within one morning. Twelve banks were backing the company by providing loans up to 70% of the value of an apartment for the buyer. The term of loans is up to 20 years.

Besides prices, financial support is a vital condition for both project developers and homebuyers. With the market becoming busier in the last several weeks, some say the market is being warmed up, but others show a conservative attitude as prices of apartments remain high regardless of the most recent drops.

However, the current market conditions are still for a certain group of moneyed people since many people with limited finances but real demand for a home are still seeing the current apartment prices unaffordable.

Source: The Saigon Times

Office rents continue to tumble

Office rents in Vietnam, particularly in HCMC, keep going down and have started to fall faster due to new developments in the city and as the global crisis deepens, according to Cushman & Wakefield.

“It’s been our view that Grade A office rents will reach US$30++ per sqm per month in 2009, principally due to the significant growth in supply during the year,” the world leading company in real estate services said in a statement sent to the Daily last week.

The company unveiled the projection not long after another big property service provider CB Richard Ellis (CBRE) forecast a sharp decline in office rents this year when taking into account the happenings in Vietnam and elsewhere in the world.

“With the global slowdown continuing to gather momentum, office rents are under additional pressure as occupiers focus on expense discipline and cost reduction as they look for ways to survive the economic turmoil,” Cushman & Wakefield said.

The company explained office rent took the largest fixed costs of most businesses, followed by staff and information technology. Currently, companies are also cutting back on office space as staff numbers dwindle, and they are also slashing their future growth forecasts.

“As tenants seek ways to lower costs, and at the same time increase efficiencies, landlords need to attract and retain quality tenants,” Cushman & Wakefield said. “Never has the relationship between tenant and landlord been more important.”

“Flight to quality – always the darkest before dawn” is what Cushman & Wakefield commented on the future of office rents in this economic hub of Vietnam.

The company did not clarify the future supply of offices for lease in HCMC, but CBRE earlier this year said the office space available in the city would rise to over 1.2 million square meters by the fourth quarter 2009, and double within three years.

Cushman & Wakefield said the grade A office buildings to be up and running in HCMC included Kumho Asiana Plaza with available space of at least 28,000 square meters, Center Point with around 30,000 square meters, HCMC Building with 10,500 square meters, A&B Tower with 25,500 square meters and the Financial Tower with 119,000 square meters.

With the abundant future supply of all types, Cushman & Wakefield projected the monthly grade B office rent to go down to US$20-25 per sqm and the grade C could reach US$10-15.

The company’s projection is more or less the same to the view of CBRE managing director Marc Townsend, who predicted the office rents could tumble to the 2002 levels of US$30 per sqm for grade A, US$20 per sqm for grade B and US$10 per sqm for grade C.

The monthly rates fall from around US$48-60 per sqm for grade A, US$28-40 for grade B and US$14-25 for grade B that CBRE released last month. Earlier last year, rents stood at nearly US$70 per sqm for grade A, US$45 for grade B and US$39 for grade C.

Actually, the economic slump has bitten much the budget of office building operators and investors since the fourth quarter of last year, when Cushman & Wakefield said the prime office rents fell to as low as around US$17-40 per sqm per month depending on locations.

Cushman & Wakefield said falling rents should assist companies in their cost cutting, and could mitigate the need for further headcount reduction.

“As the global crisis deepens rents have started to fall faster driven by landlords of new developments, and 2009 is expected to be a tenants market.”

Cushman & Wakefield predicted a lot of tenant movement between buildings this year. “We view this flight to quality. However, (it is) a good thing for the property market, and for Vietnam generally as the country seeks to maintain its competitive edge in the region.”

By Mong Binh – The Saigon Times

Fusion Alya Hoi An

Fusion Alya Hoi An is situated on Quang Nam province’s Cua Dai Beach, on extremely popular gateway for prosperous Asians. The charming town of Hoi An, renowned for its authentic atmosphere and well-preserved architecture, graces this unique region of Vietnam, featuring international standard resort facilities. Just 30 minutes from Danang International airport, and neighboring two of the country’s most beautiful 36-holf golf courses, the fascinating UNESCO World Heritages sites of Hoi An, Hue and My Son are a short drive away

Encompassing three hectares of land on the quieter and more private part Cua Dai beach, a setting of unique privacy, tranquility and exclusivity is created in this community. Lifestyle options include 19 pool villas and 11 luxurious beach villas, most with direct access to the sea, spacious terraces and private plunge pools, The 57 apartments and 19 penthouses are all designed to maximize space utilization and amenities

All units are designed to integrate into the surrounding landscape with perfect harmony, with special attention paid to maximizing the space and privacy of each and every property. Whatever your choice may be, exquisite beach views are guaranteed.

Fusion Resorts is currently opening several projects in South-East Asia, each with its own unique character inspired by the local environment and culture. Club Fusion is a fundamental element of our projects and brand. Homeownership in Fusion Alya Hoi An will earn certain rights and privileges in all our unique Fusion locations, with an exciting menu of benefits, aimed at making life easier and more enjoyable.

Style	Price	Features	Size	Facilities
Pool villa	US$280,000	Master bedroom Master bathroom Dinning room Guest bed/bathroom Living room Private plunge pool	Residential – 105sq.m Swimming pool – 22sq.m Terrace – 53sq.m Land 400-580sq.m	All unites are fully furnished 2 restaurants Conference room Kitchen Shop Lobby Lounge Reception 2 swimming pools 8 treatment rooms Gym and sauna Children play pavilion Beach club with cabanas Garden lounge pavilion
Beach villa	US$220,000	Master bedroom Bathroom Children room Living room Dinning room	Residential – 85sq.m Terrace – 10sq.m Balcony – 10sq.m Land 400-580sq.m
Penthouse	US$140,000	Master bedroom Bathroom Dinning room Living room Oversize balcony	Residential – 76sq.m Balcony – 13sq.m
Apartment	US$110,000	Bedroom Bathroom Dinning room Living room Sea view balcony Terrace	Residential – 61sq.m Terrace – 6sq.m Balcony – 6sq.m Land 40-120sq.m

For further information, please contact:
Fusion Alya Hoi An
2C-2D Phan Boi Chau, Hoi An Town, Quang Nam Province, Vietnam
Tel: (+84) 510 3914 414
Fax: (+84) 510 3914 415

Sky City Towers

Located on a main street of Hanoi, Sky City Towers is closed to embassy offices, hotel, school, hospital, facilities and entertainment area of the city. Sky City Tower is away only several steps from National Cinema Center, golf course, BigC supermarket and a series of international restaurants.

This is a very convenient location for your moving because Sky City Tower is very close to city’s center, in the East of the city and in the West of My Dinh new urban.

Sky City Towers includes a complex of high-class office, retails, restaurants, cafeteria, playing-ground for children, medical center, gymnasium, indoor swimming pool and sport center. Nice campus of Sky City Towers will be playing yard for children with outdoor safe and modern equipments. Green grass covers with plants and trees will give peace and private for the landscape which is separated with noisy streets outside.

Construction and design of Sky City Tower can meet standards of high innovation in order to ensure luxurious comfort and safe for all apartments. All types of apartments, two or three bedrooms, have living room with uninterrupting space with dinning room, wide kitchen and separate flexible room. Interior of apartment is imported and is made from natural materials with stylish figures follow fashion style of today, tomorrow and many years later.

Sky City Towers can satisfy demands on modern living style. All apartments are equipped with camera telephone at door, high-speech ADSL and air-conditioning saving power. In addition, fire alarm and building management are very sophisticated to ensure for tenant here always in safe; and parking is not a matter when a parking lot is available at basement with capacity of 500 cars and 1500 motorbikes.

For further information, please contact:
CB Richard Ellis Vietnam
12A Floor, Tower B, Vincom City Tower, 191 Ba Trieu, hanoi, Vietnam.
Tel: +84.4.2220 0220.