BINH DUONG MARKET UPDATE, Q3/2013 BINH DUONG MARKET UPDATE, Q3/2013 Presented by: Mr. Marc Townsend, Managing Director, CBRE Vietnam Saturday, 21 st September 2013 AGENDA Binh Duong Market Updates Fact Sheet Snapshots Real Estate Overview • Retail • Industrial Parks • Residential Leasing • Condominium – Where to buy in Binh Duong? – Where to buy in Binh Duong? – Who to invest into? – Why to buy in Binh Duong New City? – Foreigner Housing Ownership 2 CBRE | BINH DUONG MARKET UPDATES
Transcript
BINH DUONG MARKET UPDATE, Q3/2013BINH DUONG MARKET UPDATE, Q3/2013Presented by: Mr. Marc Townsend, Managing Director, CBRE VietnamSaturday, 21st September 2013
AGENDABinh Duong Market Updates
Fact Sheet
Snapshots
Real Estate Overview
• Retail
• Industrial Parks
• Residential Leasing
• Condominium
– Where to buy in Binh Duong?– Where to buy in Binh Duong?
– Who to invest into?
– Why to buy in Binh Duong New City?
– Foreigner Housing Ownership
2 CBRE | BINH DUONG MARKET UPDATES
BINH DUONG FACT SHEETEconomic overview
Population and Labour Force, Binh Duong ProvinceKey Economic Indicators
6%
9%
12%
1.0
1.5
2.0
(Mill
ion
pers
ons)Area (sq.km) 2,694.43 sq.km
Population (million persons) 1.7+ (2012)
Working population (mil. pers.) ~1.1 (2011)
0%
3%
0.0
0.5
2006 2007 2008 2009 2010 2011
Pop
ulat
ion
(
Real GDP growth rate (%) 14% (Annual)9.5% (6M/2013)
Registered FDI (US$ mil.) 501.2 (8M/2013)
Labour force Others Population growth
Real GDP growth rate (%), Binh Duong ProvinceRegistered FDI, Binh Duong Province
Top in Vietnam Competitiveness Index for 5 years
10%
15%
20%
row
th ra
te (
%)
$1,000
$1,500
$2,000
$2,500
FDI (
Mill
ion
US
D)
0%
5%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Q2/
2013
GD
P g
$0
$500
,
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
8M/2
013Reg
iste
red
F
R i t d FDI
3 CBRE | BINH DUONG MARKET UPDATES
QReal GDP growth rateSource: Vietnamese General Statistics Offices,
Binh Duong Statistics Office
8Registered FDI
ECONOMIC UPDATESFDI continues to grow
Accumulative No. of Total registered FDI registered FDI projects (US$ mil.)
Eastern International University Hanh Phuc International Hospital Metro Cash & Carry Dai Nam Park
KinderWorld Int’l Kindergarten Columbia Asia Int’l Hospital Co.op Mart Binh Duong Song Be Golf Resort
Singapore International School Big C Supercentre Binh Duong General Hospital Twin Doves Golf Club
5 CBRE | BINH DUONG MARKET UPDATES
Vietnamese German University Citimart Binh Duong Binh Duong Traditional Medicine Hospital Thanh Le Cultural Park
BINH DUONG SNAPSHOTA bright spot? 40 metres above sea level >> no flood, no earthquake
Good connectivity:• National Highway 13, Trans-Asia Highway • My Phuoc - Tan Van Expressway: Slow but steady• Proposed tramway system in downtown
Social infrastructure:
Retail: Metro, Big C, Lotte, Aeon
School: KinderWorld International Kindergarten
School: KinderWorld International Kindergarten, Eastern International University, Singapore International School
Hospital: Hanh Phuc Hospital, Eastern International
General Hospital
Leisure: Song Be Golf Resort, Twin Dolves Golf Club, Dai Nam Park, TiniWorld
Notable residential projects: SORA gardens, The Oasis, Ecolakes, Horizon, TDC, IJC Aroma, Charm Plaza, EcoXuan
Banking: HSBC BIDV Vietcombank Eximbank etc
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Banking: HSBC, BIDV, Vietcombank, Eximbank, etc.
BINH DUONG REAL ESTATE OVERVIEWSome residential developers are still spending...
Advertised by Month, Southern Vietnam*, Mar-Sep 2013 Advertised by provinces, Southern Vietnam*, Mar-Sep 2013
10
12
50
60
100
125
150
20
25
30
4
6
8
20
30
40
50
75
100
10
15
20
0
2
Binh Duong Dong Nai Vung Tau0
10
Number of advertisements Number of projects
0
25
0
5
Mar Apr May Jun Jul Aug SepNumber of advertisements Number of projects
Source: CBRE, tracked from Tuoi Tre; Mua & Ban; Tap chi Bat Dong San (Property Magazine);; Thanh Nien; Nhip Cau Dau Tu; Doanh nhan Sai Gon; Saigon Times Daily; Vietnam Investment Review; Vietnam News.
Number of advertisements Number of projectsNumber of advertisements Number of projects
(*): HCMC, Binh Duong and Dong Nai, BR-VT
Some developers increased their advertising spending. Apart from HCMC, Binh Duong topped the list with eight projects having advertised since March 2013
7 CBRE | BINH DUONG MARKET UPDATES
advertised since March 2013.
BINH DUONG REAL ESTATE OVERVIEWThose who can deliver
TDC Plaza Scale: 340 units (phase 1) Price: from VND19 million/sm
SORA gardens 1 Scale: 404 units (phase 1) Price: from VND19 million/sm
St t C t ti t f ll
Charm Plaza Scale: 404 units Price: from VND17 million/sm
Binh Duong’s Political & Administrative Center Status: Under construction
Status: Handed-over in mid-JulyBig size units remained for sale.
Status: Construction at full pace to Floor 3 after 3 months
Most of the local IP-based expatriates lease accommodations in HCMC (20km away) due to the lack of:
• Daily-life facilities such as a shopping destination, swimming pool, tennis court and gymnasium;
5,200+ expats vs.
146 i d & tennis court and gymnasium;
• Night-life venues such as restaurants, bars, clubs, etc.;
• Educational and healthcare centres;
• And limited fully-furnished accommodation options in the province
146 serviced apts. & 2,092 buy-to-let condos &
834 hotel rooms
12 CBRE | BINH DUONG MARKET UPDATES
And limited fully furnished accommodation options in the province.Source: CBRE, Binh Duong IZs Authority, VSIP1&2
BINH DUONG CONDOMINIUMCondominium overview
Existing Supply v.s. New Supply, Binh Duong Province Unit Type, Binh Duong Province
60%
80%
100%1BR 2BR 3BR 4BR Penthouse
2,500
3,000
3,500
4,000
s
0%
20%
40%
The Canary -
The Canary -
New Horizon
Sunrise Block C
Sunrise Block D
IJC Aroma
TDC Plaza (
Charm Plaza -0
500
1,000
1,500
2,000
5 6 7 8 9 0 1 2 f f
Un
its
New Supply
Existing
$1 500
Condominium Clusters, Binh Duong Province
P1 P2 Block D (Block E)
P1
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
gSupply
$1,000
$1,500
S$/
sm)“ New completions increased ~19% y-o-y.
The most sought-after type is 2BR.Binh Duong New City offers more reasonable price with better quality ”
Thu Dau Mot
Thuan An Binh Duong New City
$0
$500
Pric
e (U
Sreasonable price with better quality. ”SOURCE: CBRE RESEARCH & CONSULTING
Source: CBRE
Di An
13 CBRE | BINH DUONG MARKET UPDATES
$01 2 3 4 5 6
Quality of Condominium Products
Source: CBRE
High security
Clean and f resh air
Af fordable housing productsWHERE TO BUY IN BINH DUONG?Good inf rastructure
Good connection with HCMC
Good for business Ranking of locations:
Rank Preferred location b b ers Comprehensive development planning
Centralised government
Residents with good community spirit
G d d ti i t
Rank Preferred location by buyers
1 Binh Duong New City
2 Thu Dau MotBi h D N Ci Good education environment
Good healthcare facilities
Abundant greenery space
Premium-quality residential options
3 Thuan An
4 Di An
5 Ben Cat
Binh Duong New City
Thu Dau Mot
Thuan An
Di An
Ben Cat Premium quality residential options
Source: CBRE
Project launched since 2008 by foreign developers, with a scale of 400–1,500 units and a political - administrative centre located in a township “ SORA gardens is the ONLY
project located in a township
1 2 3 4 5
Projects launched since 2008 by foreign developers, with a scale of 400–1,500 units and located in a township
Projects launched since 2008 by foreign developers, with a scale of 400–1,500 units
project located in a township which boasts the political & administrative headquarter
of the province. Other townships (PMH, Celadon
Projects launched since 2008 by foreign developers
Projects launched since 2008 (excluding affordable project)
City in HCMC; Linh Dam, Ciputra, Van Quan in Hanoi)
do not have a provincial administrative centre inside.”CBRE RESIDENTIAL PROJECT MARKETING
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CBRE RESIDENTIAL PROJECT MARKETING
WHO TO INVEST INTO?
Can apply to property developers, construction/property management companies
Brands – a way to categorize
pp y p p y p p p y g p
Helps to quickly and easily identify a property/service
Sets levels for quality & standards
I t ti l/ ti l i ibilit & d t k l d International/national visibility & product knowledge
Enhances value
Residential Developers/Contractors
15 CBRE | BINH DUONG MARKET UPDATES
WHY TO BUY IN BINH DUONG NEW CITY?
Binh Duong New City - A well-planned town that is
A mid- to long-term vision: the best quality of life for your children
Close to HCMC
With fresh air, abundant greenery, large roads, etc.
With quality housing products and social infrastructure such as
15 years ago, no one believed in Phu My Hung’s vision.
With quality housing products and social infrastructure such as schools, hospitals, retail centres, restaurants and bars, etc.
S i S th 1995
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Saigon South, 1995 Phu My Hung, 2013
LEGAL UPDATESMore opportunities for foreigners to buy houses in VN
Current Law(Resolution No.19, effective 2009 - 2013)
Proposed Amended Law(effective 2014 IF approved)
Foreign Individual Buyers
YES with restrictions such as:• Individual investors who make direct investment
in Vietnam;• Expatriates at managerial positions;• Individuals who possess special skills that are
YES for all foreigners who have a visa to the country that is valid for at least three months
• Individuals who possess special skills that are needed in Vietnam;
• Individuals who are married to Vietnamese citizens;
Foreign ONLY foreign-invested companies operating in YES to all foreign investment funds, banks, Vietnamese gOrganisations
g p p gVietnam which are not in the real estate business but have the need to provide accommodation to their employees.
gbranches and representative offices of overseas companies.
One unit only For individuals:• Option 1: Unlimited• Option 2: Limited to one or twoFor organisation:• Depend on the number of foreign employees it has
Maximum Lease Term
50 years • Option 1: 50 years with the possibility of another 50-year extension;
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• Option 2: 70 years with no extension.
LEGAL UPDATESForeigners to buy houses - Regional comparison
Thailand Singapore
YES with some restrictions:YES S i
Foreign Individual Buyers
YES with some restrictions: Holding a residency permit under Thai Immigration law. Permitted to stay in Thailand under the Investment
Promotion law (BIO) A foreigner or foreign entity remitting a foreign currency into
Thailand or withdrawing money from Thai Baht account of
YES Some important notes: They have to pay an additional buyer's stamp duty
(ABSD) on the higher of the total purchase price or market valuation. Only citizens and Permanent Residents of some
Thailand, or withdrawing money from Thai Baht account of the persons residing abroad, or withdrawing from foreign currency account
countries which have signed free trade agreements (FTAs) with Singapore are exempted from ABSD.
Sublease YES YES for condo only
YES ith t i ti
Foreign Organisation
YES with some restrictions: Only joint-venture between a foreign and a local company
with at least 51% of share held by Thai Foreign juristic entity in receipt of a promotion certificate
under the Investment Promotion Law.
YES with higher ABSD rate
Product Condominium: as long as the building has not already sold its 49% foreign quota.
Condominium of a six- or more- storey. Landed house with condition: Approval from the Controller of Residential Property For accommodation purpose only.
Number of Product
N/A
Condominium: unlimited but a single foreign party cannot buy all units in a condominium development without prior approval. Landed house: 1
18 CBRE | BINH DUONG MARKET UPDATES
Maximum Lease Term
30 years with another 30-year extension 99-year lease
LEGAL UPDATESA turning point of a maturing market
“ Like first time buyers, retirees, up-graders, Vietnamese overseas and newly married couples; foreigners should be seen as a logical extension of a maturing market, not just a quick fix.
””SOURCE: MS. DUNG DUONG, ASSOCIATE DIRECTOR, CBRE RESEARCH & CONSULTING
19 CBRE | BINH DUONG MARKET UPDATES
At CBRE, we live and breathe
Every week – NEWSPAPER UPDATESE th DASHBOARD
the business of real estate
Every month – DASHBOARDEvery quarter – QUARTERLY REPORT
For more information regarding this presentation please contact:MARC TOWNSENDManaging DirectorT + 84 3824 6125F +84 3823 [email protected]
