Foreign investments slide into Vietnam’s property market

VNRE – Foreign realty groups and asset managers are pouring into the national property market.

After hitting $23.6 billion in registered investment capital in 2008, foreign direct investment (FDI) capital into Vietnam’s real estate sector started slowing down.

By the end of 2009, total FDI registered capital flowing into the sector was only $7.6 billion. In the first 10 months of 2010, the capital was only $2.7 billion.

The gradual decreasing of registered FDI capital mostly caused by the global financial crisis which occurred in 2008.

Market analysts however said the slow-down trend could be changed.

To underscore the trend Indochina Capital last week announced that it would put the newest private fund, Indochina Land Holding 3 (ILH 3) with $180.3 million of total capital commitments to rapidly invest on urban and suburban residences and mixed-use developments in Hanoi and Ho Chi Minh City.

Peter Ryder, Indochina Capital director, said: “Vietnam’s major urban centres continue to benefit from the country’s positive economic growth, compelling demographics and rapid urbanisation.”

“In the context of global real estate investment, Vietnam’s residential property market has demonstrated attractive domestic demand dynamics, supported by the country’s long term fundaments,” said Ryder.

Ryder said the company planned to raise two new investments, one in a $190 million project in Ho Chi Minh City, and the other in a project worth around $533 million in Hanoi.

The ILH 3 is Indochina Land’s third private, closed-ended Vietnam property fund and brings total funds under management to nearly $500 million.

Meanwhile, CapitaLand last week announced its new real estate subsidiary, CapitaLand Vietnam Investments Pte. Ltd, a $200 million joint venture to invest in residential developments in Ho Chi Minh City and Hanoi.

The joint venture’s partners are Mitsubishi Estate Asia – a wholly-owned subsidiary of Mitsubishi Estate Company Limited and an affiliate of GIC Real Estate, the real estate investment arm of Government of Singapore Investment Corporation.

CapitaLand (Vietnam) (CVI) will take up a 50 per cent stake in the joint venture, while the balance will be held in equal proportions by MEA and the affiliate of GIC Real Estate.

In another case, Malaysia-backed Gamuda Land has bought a 60 per cent stake in Sacomreal’s $293 million Celadon City in Ho Chi Minh City’s Tan Phu District.

Binh Thuan provincial people’s committee also issued an investment certificate to British West Indies-backed Birch Hill with its plan to develop the $475.8 million Birch Hill complex in Phan Thiet city.

Reported by Thuy Vu | VIR

Hanoi apartment prices expected to cool down by 2012

VNRE – Prices of apartments in Hanoi are expected to drop by late 2011 or early 2012 as an abundance of new apartment projects will go up for sale at reasonable prices.

Professor. Dr. Dang Hung Vo, Former Deputy Minister of Natural Resources and Environment, made the prediction when questioned about the future real estate market of Hanoi.

Next year, the construction of an additional 252 apartment projects will be undertaken expected to provide nearly 8,000 more apartments for the city.
Vu Xuan Thien, Deputy Director of Housing and Real Estate Management Department under the Ministry of Construction, agreed with Vo, adding that most of the construction projects started in 2010 wil be completed by 2012.

Thien also said that until 2013, people’s demand for apartments will have been basically met. The boom of apartment projects is a good sign for a more transparent real estate market and will offer more opportunities for people to own houses.
A range of urban area projects such as Trung Hoa-Nhan Chinh, Van Phuc, Van Khe, Duong Noi, An Hung, Park City and Mo Lao have been built along extended Le Van Luong Road.

Along Thang Long Avenue, the longest and most modern road in Vietnam, there is a series of new urban areas such as Tay Mo-Dai Mo, Geleximco, Nam An Khanh, Bac An Khanh and Van Canh. Hundreds of apartment blocks are also being built in the districts of Cau Giay, Tu Liem, Tay Ho and My Dinh.

HUD HOLDINGS is building the Thanh Lam-Dai Thinh II project in Me Linh District. Vietnam Construction Import-Export Corporation (Vinaconex) and Hanoi Housing Development and Investment Corp (Handico) are investing in an 18-ha project to build houses for low-income earners in the Bac An Khanh Urban Area.

Song Da-Thang Long Joint Stock Company is speeding up construction of UsilkCity Project and Nam Cuong Group is quickening Le Van Luong Residential project for sales.

Source: Dan Tri | VIR

Saigontourist to invest 3 luxury hotels

VNRE – Today morning, Sai Gon Tourism Corporation (Saigontourist) and Que Huong Liberty (a member of Saigontourist) officially start construction of the 5-star hotel named Pullman Saigon Centre.

This project is built on the land of the Metropole 3-star hotel at 148 Tran Hung Dao Street, District 1, Ho Chi Minh City and Comeco company’s gas stations. Pullman Saigon Centre building includes 3 basements and 24-storey, with total 300 hotel-rooms. Total investment of this project is $60 million and expected to be completed in 2013.

In another project, Saigontourist said, they recently completed the foundation of 4-star hotel project named Novotel Saigon Centre on Hai Ba Trung Street, District 1, Hochiminh City. This hotel has total investment of $38 million with scale of 18 storeys, 250 rooms and other services. When completed in 2012, Novotel Saigon Centre will be managed by Accor.

Today, Saigontourist and Que Huong Liberty also open the Liberty Central 4-star hotel on Le Thanh Ton Street, District 1. The hotel is hight 12 storeys with 139 rooms will be managed by Saigontourist.

Mr. Nguyen Huu Tho, general director of Saigontourist, said the investments are in the development strategy of the business up to 2020 in the field of accommodation, travel and restaurant … According to Mr.Tho, the revenue of Saigontourist could reach figure $1 billion in 2015.

Thu Thiem Sky – Eco-home beside the Saigon River

VNRE – Despite of the investor’s intention to invest and develop middle income housing only, ARDOR Architects has created an exceptionally beautiful building by fine architectural design solutions, and using suitable building form within an outstanding master plan.

Thu Thiem Sky consists of two blocks, rotated and formed a curve adapting the Saigon river’s shape. The two blocks are also connected by sky garden bridges for community activities. Parking solution is proposed by utilizing the ground floor and mezzanine floor instead of constructing a basement which is more costly and time consuming, especially for weak soil conditions nearby rivers.

As it is a results of creativeness and dedicated work attitude, ARDOR believes that Thu Thiem Sky shall not only by an ideal and peaceful home for the residents but also contribute to the success and growth of Thu Thiem Investment Corporation and its brand name.

Location: Thao Dien Ward, Dist 2, HCMC
Build area: 4.075,5m2
Total floor area: 20.846,7m2
Number of apartments: 171 units
Building density: 34%
Coefficient of land use: 4.4

Investor: Thu Thiem Investment Corporation
Architectural design: ARDOR Architects

CT Plaza Minh Chau

VNRE – Located at 369 Le Van Sy Street – District 3 – Hochiminh City, CT Plaza Minh Chau multi-cultural building has strategically location, only 10 minutes to move to the city center. The project is on the route focus of shops and hotels.

Built on an area of 1,415.7 m2, CT Plaza Minh Chau includes 02 basements and 16 floors with a senior cinema which has seat as class C of the Airbus A-380, a book coffee area, a night club, conference center, libraries, 2 senior restaurants, luxury shopping area and 4-star hotel.. Total floor area is approximately 12,000 m2.

Long-term stay room

Modern design and equiped fully furniture, ensuring natural ventilation. All appliances are selected from natural materials, handicraft goods are manufactured separately. Rental period can be up to 48 years.

Long-term stay hotel also has convenient kitchen, bringing comfort to people who live and work for a long time in HCMC.

Short-term stay room

Short-term room links easily with coffee books, gym, pool, shopping area and cinema…

Luxury cinema

Winter book café

CT Plaza Minh Chau is invested by the experienced investor – C.T Group and Saigon Cultural Products Corporation. The hotel is managed by Centara Corporation of Thailand.

Total investment capital is about $11 million. CT Plaza Minh Chau was started construction on 29/11/2010 and expected to be operational early in 2012.

Further information, please contact:

Minh Chau Trading & Cuntural Limited – a member of C.T Group
Add: 369 Le Van Sy Street, Ward 12, District 3, HCMC
Phone: 84.8.3915 2829 – 3567 3450 Fax: 84.8.3915 2829
Email: sales@ctplazahotel.com

CIC8 builds a cluster of multifunctional condominiums in Can Tho

VNRE – Yesterday 28/11, No.8 Investment and Construction Joint Stock Company officially started construction “cluster of multifunctional condominiums”at Hung Phu new urban area – Can Tho City.

The project has total investment of 2,373 billion VND, including 16 high-rise blocks built on the land with a total area of 72.512m2.

Expected to the end of 2014, CIC8 will finish construction of 16 buildings and provide to Can Tho market total of about 4,000 apartments, commercial, office…

Mr.Huynh Huu Phuoc – Chairman, CEO of CIC8 commitment: “CIC8 will spend 15% of apartment for priority subjects, such as: officer; teachers; other policy objects who don’t have house…”

Reported by Van Duc | CAND

Large property project breaks ground in Binh Duong

VNRE – Binh Duong Construction Investment Consultancy Company (Biconsi) on November 25th broke ground for a huge property project in Thu Dau Mot town, Binh Duong.

The project that costs VND 640 billion to build a trade and services complex, named Bach Dang, will have towers containing offices and apartments, hotels, green parks and other functional sections and facilities.

With various sub-projects that can enhance a modern complete complex, the project is expected to be an up-scale residential and tourist resort on the river of Sai Gon, and will become a new trade and services hub in Binh Duong Province.

The project will be divided into 2 phases with the first phase consisting of building infrastructure and public subprojects and the second phase will erect towers containing offices and trade and services centers.

By Thu Nguyen | Source: DDDN

Property loses golden lustre duet

VNRE – Property prices are likely to dim in comparison to gold and US dollar market pricing fevers.

Gold prices on the domestic market increased by more than VND1 million ($50) per tael to the record VND38.2 million-VND38.5 million ($1,910-$1,925) in the early November after the world market set a record of $1,410 per ounce. The prices have been recently fluctuated around VND36 million ($1,800). Gold prices in the early 2010 stood between VND28-29 million ($1,400-$1,450) per tael.

Also, the US dollar-local currency exchange rate has set a new peak at around VND21,100-VND21,200 a dollar in the black market, from VND19,500 seen in early 2010. The State Bank recently nailed the official rate to VND19,500.

According to the Ministry of Planning and Investment’s General Statistics Office, gold prices and foreign exchange rates have continued fluctuating wildly. However, real estate prices have kept stable.

Nguyen Thi Thanh Huong, director of Tin Nghia Real Estate Trading Floor, said: “Most of the projected properties we have sold recently have their own prices separate from gold and US dollar pricing levels.”

Vietnamese people’s habit of valueing properties by gold was just seen in private properties, while most other transactions had been done in dong or US dollars with fixed exchange rates, Huong said.

She said: “Properties compared to gold and US dollars will be more competitive in terms of savings and investment purposes because of developer’s recent reasonable pricing scheme to stimulate the property market.”

Tran The Anh, marketing manager of Daewon Thu Duc’s Cantavil Premier An Phu project in the southern hub’s District 2, said: “We are now working on pricing for the project with no references to the prices of gold and US dollars. The project will be launched for sale early next year.”

Decree 71, which provided restrictions to property transferral deals, had made real estate developers like Daewon Thu Duc carefully consider pricing strategies to make products affordable to buyers, said Anh.

“This means that property is getting cheaper and will be more competitive when gold and US dollars are unstably priced in the coming time.”

Anh said prices for a square metre at the Cantavil Premier An Phu project were originally set among $1,800-$2,300 but they could be adjusted to $1,500 each.

The State Bank in early September directed its branches in Hanoi and Ho Chi Minh City to tightly monitor US dollar-listed prices for property trading and construction projects.

The Article 22 of the Foreign Exchange Management Law bans trading, paying, listing prices or advertising with foreign currencies, except among credit institutions.

Accordingly, enterprises and individuals are not allowed to list and collect prices or services fees in foreign currencies without approval. Each violation carries a VND20-30 million ($1,000-$1,500) fine and the money made from the violation is confiscated. Offenders’ business licences may also be revoked.

Reported by Ly An | VIR

Real estate ranks third in FDI attraction

VNRE – The real estate sector currently ranks third in attracting foreign direct investment (FDI) in Vietnam, according to the Ministry of Planning and Investment’s Foreign Investment Agency.

By the end of the third quarter this year, foreign investors had disbursed a total of 8 billion USD to real estate projects in Vietnam, the Foreign Investment Agency reported at an international seminar on experiences in developing housing and real estate worldwide, along with options for Vietnam.

The seminar, held in Hanoi on Nov. 26, brought together 1,500 real estate developers and foreign investment funds from 15 countries and territories.

Construction Minister Nguyen Hong Quan said the real estate market is important as it makes direct impacts on the national economy’s growth and has close ties with financial, construction, building materials, and labour markets.

According to Deputy Minister of Construction Nguyen Tran Nam , by the end of 2009, foreign developers had invested in 500 real estate projects with a combined registered capital of over 40 billion USD.

In 2009 alone, FDI in real estate reached 2.5 billion USD, accounting for 21.8 percent of new FDI in Vietnam .

The same day, Vietnam ’s real estate market potentials were introduced to participants in an international real estate exhibition, which was held as part of the seminar.

Source: VietnamPlus

Foreign companies boost Vietnam’s housing

VNRE – Japanese and Singaporean real estate companies announced a joint project to invest in the housing market in Vietnam on November 25.

They plan to construct four residential complexes covering 14,000 sq. metres in Hanoi and 962 units in Ho Chi Minh City and also expect to invest in commercial facilities in the near future.

The total investment capital of the venture is expected to reach US$215 million, with 75 percent of the total coming from two Singaporean real estate firms, including CapitaLand Company and the real estate investment division of Singapore’s sovereign wealth fund, GIC. The Japanese company Mitsubishi will contribute 25 percent of the investment capital.

Source: VNA