Archive | April, 2011

Official groundbreaking ceremony for FPT City Danang

29 Apr
VNREThis morning 04/29, FPT City Da Nang joint stock company held a groundbreaking ceremony for technology urban project in Hoa Hai Ward, Ngu Hanh Son District, Danang City.

SOM Unveils Green Master Plan for FPT City in Danang, Vietnam

Mr. Truong Gia Binh, Chairman of the Board of FPT, said FPT expected the technology urban project will be the first pattern technology urban of Danang city and central. The project is planned to become a modern urban area towards eco-friendly standard on the basis of the strength of the FPT in the technology sector.

According to FPT, FPT City Danang technology urban will have more than 100 hectares for green space and for public facilities. Another landmark of this urban is FPT University and FPT Software Research Training Center.

Total investment for the project is estimated at more than U.S. $1 billion. Skidmore, Owings & Merrill (SOM) was select to design masterplan.



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Middle-income flats have bright future

29 Apr
VNREApartments for middle-income people offer a major growth segment in the domestic market for the coming time, say experts.

These include apartments measuring from 60-100sq.m and priced around 800 million VND – 1 billion VND (38,090 USD-46,619 USD) and are primarily located in new urban areas, they say.

Nguyen Van Duc, deputy director of the Dat Lanh Property Ltd Company, said many property companies developed apartments for middle-income people replacing luxury apartments in investment strategies, because of high demand and their rapid rate of return on the invested capital.

Pham Thanh Hung, deputy general director of the Cen Group, said the new wave in middle-income housing from investors was due to the difficulties they were facing in raising enough capital for luxury apartment development due to high interest rates. This was also compounded by a current glut in the supply of luxury apartments.

Investors in the luxury apartment sector could face 5-7 years before registering return on their investment. Meanwhile, middle-income apartments would need only two to three years, he said.

According to the Dat Lanh Property Ltd Company, 80 percent of total apartment transactions was focused on the trade of apartments for middle-income people with an average value of around 1 billion VND in the HCM City market.

Dang Van Thanh, a property expert in HCM City , said this kind of housing had proved suitable for lower earners, as investors had not spent much on the interiors and the buildings were generally located in the suburbs.

A shift to middle-income earner apartments would heat up the domestic real estate market that had slowed to almost a halt, Hung said.

However, buyers of these apartments also face problems, as interest rates for bank loans are still far too high. Potential co-operation between property investors and the banks to provide subsidised interest rates is highly anticipated.

Meanwhile, Le Chi Hieu, chairman and general director of Thu Duc House Development Company, said it was difficult to cut apartment prices because inflation had forced up the price of material and labour in construction.

Source: VNA

Crescent Mall to open this year

29 Apr
VNRESavills Vietnam announced on Thursday that half the total space of a retail development named Crescent Mall in Phu My Hung in HCMC’s District 7 had been leased out and the shopping center would be in place by November.

Rupert Provest, director of agency for Savills Vietnam, a property service provider, said at the project site that 50% of the 45,000-square-meter shopping mall was leased by local and foreign retailers, including major brands.

The US$110-million development, comprising of six levels of retail floor and three basements, is offering a monthly rent of US$50 per square meter for spaces on the ground floor. Rent will be lower on upper floors.

Provest revealed that tenant MegaStar Company had confirmed a total space of 2,500 square meters to set up an eight-cinema multiplex on the fifth floor of the mall.

The Imex Pan-Pacific Group had signed a deal for 1,700 square meters to set up stores introducing fashion brands such as Niketown, GAP, Tommy Hilfiger and Diesel.

New retail developments will contribute a significant supply to the retail market in HCMC, where department stores, shopping centers, retail podiums and supermarkets contribute some 630,000 square meters.

Savills said the central business districts remain the most desirable locations for both developers and retailers because of prime location and high turnover.

The average rent for the whole market was recorded at US$75 per square meter, and the increase in rent caused the average occupancy of the market to decrease by 3% in the first quarter.

Demand for retail space in the central business districts might increase in the short and medium terms as many international retailers are entering the market. However, the increasing rent rate could lead to a trend of retailers seeking shop-houses along main streets, which have more reasonable rent rates, according to market research.

Savills said the fast growth of the country’s retail market was one of the main reasons the country had become an attractive destination. However, rent is the biggest concern for both new and existing retailers.

The company projected that some 960,000 square meters of retail spaces will come online from the second quarter of this year.

Reported by Dinh Dung | The Saigon Times

Hanoi buyers dominate Da Nang real estate market

28 Apr
VNREThe residential real estate market in Da Nang is mainly driven by buyers from Hanoi because of the city’s proximity and advantageous weather conditions, says consulting firm CB Richard Ellis.

According to the company’s latest quarterly report, in the first three months this year, 51 percent of buyers were from Hanoi while locals accounted for 39 percent. CBRE said the beach was another factor that helps the central city attract many buyers.

In terms of prices, the luxury residential segment remained quite steady in the first quarter, with that of condos falling slightly to US$1,787 per square meter from $1,842 per square meter. Meanwhile, mid-end condo prices have risen in the last two quarters, the report said.

CBRE said there has been no additional luxury or high-end supply in the last three quarters. “Developers are shifting their priority to mid-end projects to deliver more affordably priced units to a larger market of potential buyers. Currently the mid-end segment accounts for the largest market share at 47 petcent of the total residential market supply,” the company said in its report.

It said an additional 2,500 units across all segments will enter the market through 2014.

The report also noted that the land plot market in the city is “hot” since a sharp increase in supply started in the third quarter of 2010. “Most land buyers are speculators, those who are looking for a profit within a shorter time horizon.”

Da Nang’s economy expanded 12.7 percent in the first quarter compared to the corresponding period last year, CBRE said.

Source: Thanh Nien

HCM City Real Estate Market Remains "Cold"

27 Apr
VNRESavills, CB Richard Ellis (CBRE) and Knight Frank all forecast a dark prospect for Vietnam’s southern real estate market. All three companies anticipated that the supply will increase in volume in all segments but investors only focus on profit-making and quick capital-recovering investments from 2012 to 2014.

Luxury real estate slack

Rudolf Hever, Associate Director of Research and Consultancy Division at CB Richard Ellis (Vietnam) Co., Ltd, said: It is still too early to predict the bottom of real estate rents but the speed of decline is slowing “because there is no Class A project launched in 2011. Thus, the office for lease market will focus on Class B and C segments where Class B segment supplied nearly 42,000 square metres in the first quarter of 2011.”

However, Mr. Rudolf Hever noted that the vacant space in Class B and C segments may rise. Besides, in the next three quarters, the supply of these two segments will climb. Thus, to boost sales, investors need to calculate reasonable prices and add utilities for tenants.

According to Savills, office rents continued to decline 3 percent quarter on quarter to reach approximately US$29 per square metre. The significant increase in supply brought down the occupancy rate 3 percentage points to 80 percent. Most office building owners are reducing rents to keep current tenants and attract new ones to fill up the vacant space when the supply is on the rise.

Brett Ashton, Managing Director of Savills Vietnam Limited, said: There will be no Class A office coming online in Ho Chi Minh City from now to early 2012 because investors tighten investments for high-grade projects as sales go slowly. Office rents decreased 3 percent on average in all segments. However, as the supply increased significantly, the occupancy rate dropped 3 percent to 80 percent.

According to Savills, after 2012, the market will see about 960,000 square metres of office space to be launched onto the market. This will forces rents to go down further. The supply in 2011 is estimated at 140,000 square metres, down 28 percent from the same period last year. Future office buildings are mainly located in District 1 and District 7. Tan Binh District and District 4 are expected to attract many tenants in the future because they are near to the downtown with good traffic systems and importantly have reasonable rent rates.

Investors focus on profitable segments

Although sales are sluggish, the supply will increase in all segments, according to Savills. From 2012 to 2014, some 23 projects with over 14,500 apartments will be offered for sale in the next two quarters. Together with 15,000 apartments unsold from current projects, the condos supply will be extremely abundant, making the market more competitive than ever. According to Savills, investors must take appropriate strategies to adapt to the rapid changing market. About 42 projects with about 24,000 new apartments will be completed and go online from 2012 to 2014.

As regards hotel segment, the market is estimated to see 750 five-star rooms, 628 four-star rooms and 170 three-star rooms to be launched onto the market in 2011 and 2012. In the next four years, 22 serviced apartment projects with more than 5,200 units will go online. This segment remains attractive to investors. District 3 and Tan Binh District are expected to be good locations for serviced apartments.

Besides, at least three retail centres will go into operation in the second quarter of 2011, supplying approximately 42,000 square metres of retail space. From the second quarter onwards, the retail market will have another 960,000 square metres of new supplies, which mainly come from District 1, District 2 and District 7 (with about 70 percent of supply). Villas and semidetached houses for sale will mainly concentrate in outskirts districts like Thu Duc, Cu Chi, Hoc Mon, District 9, Binh Tan and Go Vap because land funds there are more available.

According to real estate consulting firm, Knight Frank, in the coming time, buyers will switch to buy and invest in villas, townhouses and residential land because they bring in quick profit while outlooks for high-rise apartments are not very bright.

CBRE predicted that, before 2015, as many as 1.4 million square metres of offices for lease will be launched onto the market. However, in reality, only 43.7 percent of them are under construction and more than 56 percent remaining are unsure because of funding difficulties.

Besides, to be paid back quickly, when projects are nearly completed, investors will have to find all ways to sell their products. According to experts, this is an opportunity for speculators to buy.

Reporte by Ha Linh | VCCI News

Times City – Green urban in the heart of Hanoi

26 Apr
VNREBuilding on the idea about a modern urban with eco-friendly architecture style of Singapore island country, Times City is a luxury and highclass combination – where you and your family can enjoy life of comfort, peace.


With total area of up to 364.500m2, divided into several functional areas including: luxury apartments system, high-end retail center, giant park and entertainment, restaurants system; the biggest aquarium in Hanoi; unique indoor skating rink; general hospital, 5-star hotel; schools, international standard kindergartens; string of green parks and lakes; modern nourishing garden…, Times City became an important factor, wake up potential and contribute to change the face of south area of the capital and bring your family a young, modern and perfect living space.


Location

Located in main southeast gateway of Hanoi, very near Vinh Tuy bridge and connected to the city center by modern highway system, Times City has the most prime location in the region.

The appearance of Times City with a series of modern works like a new vatality, create new look for “dia linh nhan kiet” homeland.


Utilities

Green park

Green campus wide 100.000 m2 and a sky garden system on roofs of the buildings were designed and arranged in harmonious to bring residents of the green space, airy and peaceful.


VinMec international hospital


With 500 rooms, comfortable, luxurious and high technology, VinMec hospital promises to become a trust address for the people.

International schools


System of pre-schools and high schools reach the international standard at the Times City will ensure the optimal conditions for future generations of your family learning and development.

Sport club and recreation area

At Times City, there is an outdoor stadium system with tennis court, badminton court, volleyball court… where you experience your passion with the full cheery sports.


In addition, Times City also has an indoor skating rink, bowling; 3D-4D cinemas… where your family can relax at weekend.


Gym & Spa


A large gym system will be equipped fully with modern machinery and equipment to bring residents the comfortable practice space .

After hours of working, residents of Times City can release in fresh four seasons swimming pool or relax in order to “refresh” at the spa .


Transport system

From the Times City, residents can move into the city center by taxi with less than 10 minutes, through the western gateway to Ha Dong District, Cau Giay District by highway system; through Vinh Tuy bridge to the East Coast of the Red River City, or easily move into Giai Phong Street in minutes by bus, taxi, car, motorcycle …


Apartments


Trade Center


Food Village


Development team

– Owner: Hanoi Southern City Development Joint Stock company: As the leading company in the field of development and investment real estate, Hanoi Southern City Development JSC has experience in operating and managing large projects such as: Vincom City Towers Trade Centre, Vincom Park Place Apartment, Royal City in Hanoi, Vincom Center in Hochiminh City…

– Consulting and Design: ACT Vietnam Architects Co., Ltd; PCM Corporation.

Contact us to buy apartments and rent kiosks at the City Times:

Times City Project Address:
458 Minh Khai – Hai Ba Trung – Ha Noi

Vincom Real Estate Trading Center
Address: Floor 4, Building B, Vincom City Towers – 191 Ba Trieu, Hanoi.
Tel: 84.4.3974 3550 – Fax: 84.4.3974 3551
Hotline: 84.98 574 8866 – 093 532 6686

Foster & Partner carry out the research of financial district in Thu Thiem New Urban Area

26 Apr
VNREOn April 26, 2011, Foster & Partner consulting firm presented the preliminary ideas planned of the International Finance District for Thu Thiem New Urban Area. The participants attended including the Thu Thiem ICA, Department of Planning – Architecture, and Department of Transportation.

Departments and Thu Thiem ICA highly valued and impressed with the research in which propose new ideas for the plan. The proposals detail that relating to the solution design for space at central zone in order to create attraction, active in order to shape the International Financial Center in Thu Thiem New Urban Area.
However, there’re many solutions ideas in the proposal differ from the detailed planning at scale 1/2000 of Thu Thiem New Urban Area that was approved in 2005, and the principles which were defined in the the contents tasks of partial adjustment of detailed planning at scale 1/2000 of Thu Thiem New Urban Area, in which People’s Committee of HCMC has approved and being implemented by Sasaki- the consulting. Therefore, Foster & Partner need to compliance general principles of the master plan and coordinate with Sasaki consulting to ensure the uniformity and harmony.
The delegates suggested Foster & Partners need to conduct a deeper research on the scope of the planed area of international financial center, to clarify details about the layout space, details of key functional areas, about the related architectural space and landscape, and the infrastructure condition… Foster and Partners has to analyze and evaluate the feasibility factors and established conditions of International Financial Centre; as well in making a comparison between the history and development conditions of some major financial district in the region and the world such as Hong Kong , Singapore and London.
Thu Thiem ICA will continue to coordinate and provide the necessary updates documents for the Foster & Partners consulting as well appropriate suggestion to solutions.
Reported by Thuan Thao | Thu Thiem ICA.