Archive | September, 2011

MGM Grand Ho Tram – Update for September 2011

30 Sep
VNREThe first item in MGM Grand Ho Tram project is topping out soon.

Source: ACDL

Banyan launches sales of luxury condo project in Hue

27 Sep
VNREBanyan Tree Worldwide Group of Singapore on Friday introduced a model apartment and officially launched the apartment offering of Laguna Lang Co integrated resort being developed for two years in Thua Thien-Hue Province’s Phu Loc District.

Michael Ayling, senior vice president of Banyan Tree, said 40 among 197 apartments in Angsana Properties of the resort will be introduced to potential investors with prices ranging from US$290,000 to US$2 million each.
Getting off the ground since August 2009, Laguna Lang Co, covering 280 hectares, is being constructed in four phases with total investment raised from US$875 million to US$1 billion.
This project will have seven hotels with over 2,000 rooms, over 1,000 luxury apartments, a golf course, a villa resort and other components such as conference center, retail outlets and an entertainment section.
The first construction phase of Angsana Lang Co apartment project and an 18-hole golf designed by Nick Faldo, a professional golfer, is set for completion in July next year.
Lang Co is endowed with favorable natural conditions such as white-sand beaches along the ‘heritage road’ with many heritage sites recognized by UNESCO. Besides, it takes only one hour to get to Hue and Danang airports from Lang Co which has both mountain and sea, said Michael.
The project, which has the apartment price based on the average price in regional countries, attracts not only locals and overseas Vietnamese but also foreign investors as Banyan Tree is a famous developer in tourism property with many projects such as Laguna Phuket in Thailand.
In addition, Banyan Tree pledges a profit to attract potential customers, in which apartment owners can join Angsana club and have chances to go on a vacation with 60 days per year in many other Angsana resorts worldwide.
Customers can also get an annual profit of 6% in the first six years or receive net sales from apartment leasing. Any apartments bought will be listed as hotel rooms and managed by Angsana.
Languna Lang Co, Banyan Tree’s first project in Indochina region, is scheduled to be finished in late 2014.
Reported by Dinh Dung | The Saigon Times Daily

Viettel Tower

21 Sep
VNRERecently, Nihon Sekkei – Coninco Joint Venture won first prize in the competition of architectural design “Viettel Headquarter and Complex Serviced Centre” (Viettel Tower) at lot D26, Cau Giay urban area, Yen Hoa ward, Cau Giay District, Ha Noi.


Viettel Tower is at the most beautiful location of Cau Giay urban area – where is considered as the IT nerve center of Vietnam. The 60-storey tower with distinctive architecture will be the headquarter of Viettel Corporation.

As expected, this building will be started construction in 2012 and completed in 2016.







TVC courtesy of 3D Art Studio

Foreign investors have found opportunities in Vietnam’s real estate market

21 Sep
VNRE – While national developers are facing with many difficulties about funds, however the foreign investors, especially the Asian investors, have found the potential opportunities in Vietnam’s real estate market. In the recent period, there has been transferring of the property projects in the country to the foreign corporations which have strong capital. In addition, Asian investors express interests in some potential segments such as office, retail as well as resort complex in order to earn great profits in upcoming years. Although the investment funds of the foreign into Vietnam reduced significantly in comparison with the previous years, most investors have a positive vision in the market the next two years.

According to statistics, there are 158 Korean construction entrepreneurs are being operating in Vietnam with the total investment capital over USD10 billion. Particularly in real estate sector, there are 61 projects with the total registered capital of above USD6.1 billion, accounting for 26.5% of total Korean projects and making up 13.3% of total foreign investment projects. A newspaper was recently reported about the interview with the senior leaders of several major Korean companies in Vietnam have shown the positive outlook in investment into Vietnam real estate market. It shows an optimistic vision about investment into Vietnam’s real estate market in upcoming years. According to the general director of Inpyung company, one of the biggest real estate companies in Korean, the decline in investment is currently occurring in a short time; so that Korean investors will continue to invest into Vietnam because this is a potential market. Meanwhile, the director of Hibrand Vietnam Co.,Ltd has insisted that although the real estate is having many difficulties, but the company still guarantee for the quality and progress of the projects to provide the market the products of truly international standard level.

Together with Korea, Singapore is a country invested quite strong in Vietnam’s real estate market. Recently in the market, there has been transferring some prominent property deals done by some real estate companies of Singapore. In detail, CapitaLand Vietnam purchased 65% of stakes of a project of Quoc Cuong Gia Lai company in Binh Chanh district at VND121.2 billion with the total scale of 9,000 sqm. and 70% of stakes of Spring Life residence in Binh Trung Dong ward – district 2 of Khang Dien company. Moreover, this company has entered into a joint venture with Mitsubishi estate Asia Pte. Ltd,. (MEA) and GIC Real estate company to continue to invest in the apartment segment in HCMC and Hanoi. Likewise, Keppel Land – another investor from Singapore – signed joint venture with local partners such as Riviera Cove, The Estella and Riviera Point. Alongside acquisitions, several Singapore’s real estate companies plan to develop their projects in Vietnam. Most significant point currently is the Mappletree Investment Co., Ltd of the Temasek Holdings Corporation has announced about their long-term investment strategy in Vietnam. With total of fund of about USD 300-500 million, the company mainly targeted at the market of serviced apartments in Hanoi as well as the market of serviced apartments and retails in HCMC

In addition, Malaysia is also one of the most positive Asian investors in Vietnam. According to statistics, Malaysia is ranked fifth in the ranking of foreign investors in Vietnam and there are many real estate projects have been registered and are ready to deploy soon in the near future . In detail, Berjaya Land Berhad real estate company of Berjaya Holdings came to Vietnam since 2006 with the total of fund of about USD7.1 billion. In addition, SP Setia – one of the most famous real estate investment companies in Malaysia – has two large projects in deploying status. It includes Ecolakes projects in Binh Duong province and Eco Spring – Lai Thieu projects with the investment capital of USD100 million and USD177 million respectively. Moreover, Gamuda Land signed joint venture with Sacomreal company to invest Celadon City projects in Tan Phu district.

Furthermore, some other Asian countries like Hong Kong, Philippines, Japan, etc. have had several real estate investment projects in Vietnam. Last June, Asia New Generation of Hong Kong corporates with Minh Thanh company to build a resort complex at Vinh Hy bay – God mountain with the total capital of USD800 million.

In general, as identified by Asian company investing into Vietnam, although the whole domestic real estate market is facing through with many difficulties, but it hidden many great potential profits in the future. Whereas, according to the situation going on the real estate markets in Philippines, Thailand, Singapore and Hong Kong are no longer easily to get profit as much as before . Most Asian investors have expressed their optimism thinking when comment about the Vietnam current real estate market.

Source: Coldwell Banker® Vietnam.

Fusion Resorts to sign new five-star Fusion Maia property

15 Sep
VNREOn the 1st of September 2011, Fusion Resorts (www.fusion-resorts.com) has signed its newest Fusion Maia property on a 50-hectare piece of beachfront land in Ham Tan (Binh Thuan province) with KTG Land. Not only do Fusion Resorts take the management of the resort on itself, but the Design and Development Company behind Fusion, Serenity Holding will also take a stake of 30% in the resort to guarantee its quality and sustainable development.

According to Marco van Aggele, CEO and Co-founder of Serenity Holding, “The addition of Fusion Maia Ham Tan to our chain will be very necessary to take tourism developments in South Vietnam to the next level. So far, the (mostly) low quality developments in Mui Ne and Vung Tau cannot satisfy the increasing demand of high-end hospitality accommodation. The large size of the property will allow a phased development of high-end hospitality and real estate product in the years to come. In the coming months, the in-house design team of Serenity Holding will work out a design concept that will need to fit to the innovative management style and services of Fusion. I am eager to present another distinct concept to the market very soon.”

Chairman and Co-owner of KTG Land, Mr. Dang Trong Ngon explained “with Fusion on-board I am more confident taking a project of this dimension in my portfolio, especially considering the current market conditions. I am glad the overall strategy is to develop the land in line with the market demand, which allows me to already receive good earnings on my initial investment in an early stage of the development”.

KTG Land is no unfamiliar face to Serenity and Fusion, as KTG Land is also the owner of Fusion Zana Phu Quoc, Fusion Suites Da Nang and soon to be signed Fusion Zana Nha Trang. After the recent successes of Fusion Maia Danang, Fusion Alya in Hoi An and La Gi, Serenity Holding has been receiving many requests to continue the expansion of the innovative resort chain within Vietnam. The first three outstanding properties are currently conquering the Vietnamese market with a fresh innovative ways of looking at hospitality concepts based on the market demand and the location’s characteristics. Ham Tan is one of those locations that the developers wish to add to the Fusion portfolio, especially because of the short distance to Ho Chi Minh City and the (near future) freehold status of the land.

Fusion Resorts gracefully spin around the concept of “fusion”, which lies in the unconventional combinations of elements that you hardly find elsewhere. All located in gorgeous locations in the culturally bounteous Vietnam, Fusion resorts infiltrate nature into contemporary design, spiritual wellbeing into luxurious conveniences. And on top of that is the people. The warmest of Vietnamese hospitality flows profusely from Hoi An, Dalat, Phu Quoc to La Gi, and other luxurious Fusion Resorts across the country.

Contact info: Fusion Resorts
Add: 30 Nguyen Van Mai street, Ward 4, Tan Binh District, Ho Chi Minh City
Phone: +84 8 3948 0950
Web site: http://www.fusion-resorts.com

Saigon Tax Trade Center

9 Sep
VNREThe project is in the process of architectural design contest. This below is architectural plan designed by the company Bergman, Walls & Associates ltd.

According to latest information from City People’s Committee, the Saigon Tax Trade Center and the Eden Center project are allowed to build a tunnel connecting the No. 2 station of Metro Line 1(Ben Thanh – Suoi Tien). This is part of the planning of underground space connecting public transportation system with the buildings in the city center.




Real estate M&A set to surge amid market downturn

5 Sep
VNREVietnam will see the number of merger and acquisition deals in real estate rising as the market is critically short of capital, real estate service provider Savills said.

Given that the Vietnam real estate market is now in a downturn, caused by constrained bank financing, Savills expected to see more M&A transactions in the property sector over the next 12 months, the UK-based company said last week.

Neil MacGregor, Deputy Managing Director of Savills Vietnam, said developers in Vietnam are seeking new sources of finance.

“There are a number of options open to developers requiring capital to move their projects forward, none of which necessarily require financing from banks, if the right partner can be found,” MacGregor said. The options include outright project sales, en bloc sales of residential units or seeking a joint venture partner, he added.

According to Savills, many Vietnamese developers continue to hold large land banks and they can sell development land to third parties to raise capital.

Vietnam has tightened lending to the real estate sector this year, making it difficult for property firms to finance their projects. Credit restrictions also affect homebuyers, causing sales to fall sharply and housing stock to grow.

The Ministry of Construction, however, said earlier this month that the prospects for the real estate market are positive in the long-term because housing demand will continue to grow at a fast pace through 2020.

MacGregor of Savills said while the lack of bank finance is troublesome for many in the industry, it also creates “an unprecedented period of opportunity for others, particularly those with cash.”

“Although facing a number of challenges such as an immature legal framework, low market transparency, complicated licensing procedures and differences in price expectations, it is believed that the next few years will see a rising number of M&A deals happening,” he said.

According to Savills Vietnam, M&A in real estate is witnessing a rapid growth worldwide. Asia Pacific in particular saw deal value increase from $12 billion in 2009 to $22.7 billion last year.

Source: Thanh Nien News