Date post: | 30-May-2018 |
Category: |
Documents |
Upload: | internationalvr |
View: | 213 times |
Download: | 0 times |
of 9
8/14/2019 VietRees Newsletter 47 Week1 Month09 Year08
1/9
Weekly NewsletterVietnam Real Estate
A47Week 1, September
The first weekly electronic newsletter issued to registered members, approximately 100,000 reads per month
joining to develop the newsletter VietRees, a member of
Free register for weekly newsletter: Please send your email to [email protected]
Sponsor and advestising: T: (08) 948 5574 - E: [email protected]
Market situation (p.2)
Real estate foreign investment (p.2)
Real estate agents (p.3)
Websites of real estate companies in Vietnam (p.4)
Real estate projects and prices (p.5)
Real estate supply for customer groups (p.7)
Real estate legislation (p.8)
Real estate market forecast (p.9)
Construction material market last week (p.9)
Stock market last week (p.9)
This weekly newsletter is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning or interested in Vietnam real estate market changes.Although the information is selected, synthesized from all reliable sources, this newsletter is only for reference and VietRees is not responsible for the occurring damage. Please visit thewebsite www.VietRees.com for further Vietnam Real Estate information. When individuals and organizations quote or publish the information from our newsletter, please cite the sourceVietRees.
According to the statistics on registration for the newsletter, the subjects making reference to the newsletter includes real estate investors; companies or units of government performingmanagement tasks, business marketing, consulting, broking, assessment, real estate finance, construction, banking, architecture, interior decoration; domestic and foreign press agencies; andfull of professional investors or individuals who have demand for real estate throughout provinces and cities nationwide; typically Ho Chi Minh, Ha Noi, Da Nang, Can Tho, Hue, Nha Trang,
BRVT, Binh Duong, Dong Nai, Ha Tay
We would like to say thanks to the sponsors and all of the readers. We expect to continue to receive your support as well as your comments to improve our newsletter.
8/14/2019 VietRees Newsletter 47 Week1 Month09 Year08
2/9
VietRees Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A47 Page 2
Sponsor:
MARKET SITUATION
A lack of retail premises
before zero hour
Vneconomy 03 Sep, 2008
Although the zero hour of the retail business will be officially started in 4 months, the total area of retailbusiness premises has been scanty.
According to the current statistics, there are 15 trade centers that supply about 150,000 m2 in terms ofpremises for the retail market in HCMC. However, with the rapid growth of the retail market, this totalarea is insufficient to satisfy the current market. The preparation of a facility system for the retail marketin Vietnam does not keep pace with the operation progress of the market. In the past, the productivity ofleasing premises at trade centers, shopping areas has always reached over 94%, especially hot at the
CBD. Additionally, a series of separate stores take advantage of townhouse frontages scattering underthe big hotels such as Sheraton, Caravelle and etc.
Untill late July 2008, the monthly rental of retail premises at the CBDs of HCMC has averaged from 65 85 USD/m2/month and the highest monthly rent has gone up to 250 USD/m2/month. The monthly rent atthe regions outside the CBDs is at the average level of 40 USD/m2/month. The highest monthly rentstays at the trade centers such as Diamond Plaza, Opera View, Parkson and etc.
According to a recent survey, District 1 has been gathering most trade centers and shopping areas inHCMC, the next is District 5 and District 11 will be extended in the near future. And in the next 3 years,the supply of premises in HCMC will receive additional premises of approximately 350,000 m2.
Apartment building market
is splitting
Thanh Nien 05 Sep, 2008
Currently, the situation of the apartment market in HCM has seen opposite movements. The prices ofupscale projects have dropped dramatically and become more and more reasonable and competitive. Incontrast, the prices of middle-class projects have been pushed up unreasonably.
Saigon Pearl project is cited as an example. The average transaction price of Sai Gon Pearl wasformerly 3,500 USD/m2 but as of now, it is being advertised for sale with the prices of 2,300 2,400
USD/m2. Meanwhile, prices of Phu My project (Dist.7) have soared up to 22 million VND/m2 from thelevel of 15 million VND/m2. Prices of New Sai Gon project have jumped from 18 million VND to 22million VND/m2. These price levels are being bravely advertised for sale by many investors. Theapartment market in HCMC has been seeing a clear split between the market share of high-classapartment and that of middle-class apartment.
According to a real estate expert in HCMC, the prices of high-class apartments are becoming morereasonable because most of the transactions in this market share are speculations. Currently, mostenterprises have fallen into the lack of capital, so the best way is to make little profit from sales ofupscale products. Additionally, the supply of high-class apartments is becoming more abundant; themarket is suddenly sluggish and consequently, most of projects are offering their products at the originalprices. Regarding middle-class apartments, their prices have been constantly pushed up high becausethere are successful transactions from the people having real housing demands in some projects andmany investors have taken advantage of this fact to push up the apartment prices higher.
Due to the difficulties in capital, it is very difficult to have higher prices for apartments at this time. In thelong term, the law of supply and demand will decide the prices reasonably. The rise in prices has justappeared in theory. In reality, the number of successful transactions is scarce
REAL ESTATE FOREIGN INVETSMENT
A new urban area to be
constructed at Cau Treo
border gate
TheSaiGonTimes 31 Aug, 2008
On August 26th, Ha Tinh Provincial Peoples Committee and Jiseya Partners Company (Korea) signed a
memorandum for the cooperation to develop a new industrial zone and a new urban area at Cau Treointernational border gate economic zone with the total investment of approximately 1.2 billion USD.Jiseya Partners will establish a company with 100% foreign-owned capital in order to develop theindustrial zone on a site of 100 hectares and the new urban area on a site of 400 hectares. Additionally,the company also constructs vocational schools and some other projects.
Real estate market lures
Singaporean investors
Vnagency 24 Aug, 2008
Although there are many real estate projects in Vietnam, recently, many Singaporean investors arelooking at long-term investment plans for Vietnam. Many investors have carefully studied the land laws,real estate development laws of Vietnam or they have visited Vietnam directly to learn about the marketand seek investment partners. Means of communication in Singapore have been flooded with the
information on the opportunities and investment environment in Vietnam, especially in HCMC.In the first 8 months of this year, Singapore has had 56 investment projects in Vietnam with the totalregistered capital of over 4 billions USD, ranking the 6th among 36 countries and territories investing inVietnam. Additionally, the investors from other countries also have a very high opinion of the potentialityof Vietnam real estate market. According to an expert, in the near future, Vietnam will receive manyprojects from other Asian nations such as Malaysia, Korea, China, Japan and the investors from Europeand Middle East.
8/14/2019 VietRees Newsletter 47 Week1 Month09 Year08
3/9
VietRees Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A47 Page 3
Sponsor:
List of the localities attracting
most FDI until August, 2008
Source: General Statistics Office
Until August, 2008, Ba Ria Vung Tau province, HCM City
and Ha Tinh province have stillbeen the leading localities in thelist as compared with July.However, only HCMC has seenthe increases in the number ofprojects and the total FDI.
FDI in the past 8 months: the
registered capital up 416.4%
Ha Noi Moi 03 Sep, 2008
In August, 2008, the whole country had 118 licensed foreign-invested projects with the total registeredcapital of 1.8 billion USD, raising the total new-level projects (from the beginning of the year till August22
nd, 2008) up to 772 projects with the total registered capital of 46.3 billion USD, increasing by 416.4 %
in terms of the registered capital over the same period last year.
The newly-licensed projects mainly focus on the field of services with 23.6 billion USD (accounting for51% of the total registered capital); industry and construction with 22.5 billion USD (accounting for48.6% of the total registered capital); the agro-forestry and aquiculture with 200.9 million USD
(accounting for nearly 0.4%). In which, Ba Ria - Vung Tau province is leading with the total registeredcapital of 9.3 billion USD (accounting for 20.2% of the total registered capital), the next is HCMC with 7.9billion USD (accounting for 17.1%), Ha Tinh with 7.9 billion USD (accounting for 17%), Thanh Hoa with6.2 billion USD (accounting for 13.4%), Phu Yen with 4.3 billion USD (accounting for 9.4%) and KienGiang with 2.3 billion USD (accounting for 5%).
REAL ESTATE AGENTS
150 billion VND invested in
Vinpearl Hoi An ecotourism area
Tuoi Tre 30 Aug, 2008
Quang Nam Provincial Peoples Committee has decided to reclaim the land of Cu Lao Cham InvestmentTourism Commercial JSC (due to the slow construction) and assigned it to Vinpearl Hoi An TourismInvestment JSC for their implementation of the project of Vinpearl Hoi An ecotourism area with the totalinvestment of approximately 150 billion VND on a site of over 77.500 m2 at Cua Dai Ward, Hoi An City.
Ngan Long villa area to be
inaugurated
Thanh Nien 31 Aug, 2008
Phu Long Real Estate JSC has prepared to open Ngan Long villa area which belongs to one part of the
Dragon City project located on Nguyen Huu Tho street, Nha Be suburban district with the totalinvestment of over one billion USD.
The project includes 60 villas for living and for business operation as well. This project is scheduled to beofficially inaugurated in the fourth quater of 2008.
Apartments at Nam Thong
commercial area project to be
officially advertised for sale
VietRees 01 Sep, 2008
Nam Thong commercial area is located in Nam Long new urban area Tan Thuan Dong, District 7,HCMCity. This project is constructed by Nam Long Investment JSC.
This project is the combination of homes and offices, each apartment has an area of 184m2 to over 300m2. This commercial area is expected to be advertised for sale on September 6
th, 2008.
Dieu Hien to develop real
estate projects in HCMC
BDS & TS 01 Sep, 2008
Dieu Hien Group shows that they will start the construction of Binh An House 1 high-class apartmentproject with 15 storeys at 83 Nguyen Van Troi street, Phu Nhuan district in late 2008. The totalinvestment is estimated to be over 300 billions VND.
In early 2009, the company will continue to start the construction of Binh An House 2 at Cao Thangstreet, District 3. The project is 22-storey high, including high-class apartments, offices for lease andtrade centers. The total investment is over 700 billions VND.
Investment in construction
of the complex building at
Tan Phu district
VietRees 03 Sep, 2008
Peoples Committee of HCMC has licensed Saigon Trading Group to transfer the land-using purpose atNo. 62 Tan Thanh street, Tan Thanh ward, Tan Phu district in order to invest in the construction of thecomplex building, including trade centers, offices for lease and apartments.
The Peoples Committee of HCMC has also approved the supplementary planning for the location atC6/27 Pham Hung, Binh Hung Commune, Binh Chanh suburban district and it will be used for operatinga supermarket and a trade center. The group is the investor and directly doing business.
The construction planning
of Thanh My Loi B residential
area ratified
VietRees 05 Sep, 2008
The Peoples Committee of HCMC has just ratified the construction planning of Thanh My Loi Bresidential area, Thanh My Loi Ward, District 2. The project is invested by Thanh Nien Xung PhongConstruction and Investment Company (Cinco) with a total area of 178.84 hectares.
The residential area includes infrastructure works to serve the needs of living, learning, working, sportand entertainment activities and etc. The population is planned to be 21,500 people and theconstructions are planned to be 2 - 25 storey high.
8/14/2019 VietRees Newsletter 47 Week1 Month09 Year08
4/9
VietRees Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A47 Page 4
Sponsor:
Websites of real estate companies in Vietnam
Property developers
Ho Chi Minh
Company 585 - www.585.com.vn
Company 584 - www.congty584.com.vn
An Phu - www.anphugroup.vn
BCCI - www.bcci.com.vn
Daewon - www.daewon.vnHim Lam - www.himlam.com
Hoang Anh Gia Lai - www.hagl.com.vn
Linh Phong Conic - www.conic.com.vn
Nam Long - www.namlongvn.com
Phu Long - www.phu-long.com.vn
Phu Quoc Land - www.phuquocland.net
SacomReal - www.sacomreal.com
Sadeco - www.sadeco.com.vn
Resco - www.rescovn.com
Thai Thinh Capital - www.richlandhill.com.vn
Thu Duc House - www.thuduchouse.com
Phu My Hng - www.phumyhung.com.vn
Van Phat Hng - www.vanphathung.com.vn
Vietnam Land SSG - www.saigonpearl.com.vn
Ha Noi
FPT Land - www.fpt-land.com
C.E.O - www.ceoholdings.com.vn
Gia Tue - www.giatue.com.vn
HUD - www.hud.com.vn
HDB Viet Nam - www.hdbgroup.com.vn
Keangnam www.eng.kne.co.kr
Nam Cuong www.namcuong.com.vn
Song Hong Land - www.songhongland.com.vn
Vinaconex www.vinaconex.com.vn
Vincom - www.vincom.com.vn
Viet Hung - www.ecopark.com.vn
Other cities
Becamex IDC - www.becamex.com.vn
Biconsi - www.biconsi.com.vn
Tuan Chau - www.tuanchau-halong.com.vn
GNSVINA - www.cozyvill.com
Company 579 - www.cecico579.com.vn
Duc Manh - www.ducmanhco.com
Brokerage
Ho Chi Minh
An Gia - www.angia.com.vn
ACBR - www.acbr.com.vn
Dat Xanh - www.datxanh.com.vn
Dia Loi - www.nhadatdialoi.com.vn
Dat Cat - www.datcat.com.vnFICO www.ficohome.com.vn
Kim Son - www.kimson.com.vn
Phuc Duc - www.phucduc.com
Hung Phu - www.hungphunhadat.com
Hung Thinh 2 - www.diaochungthinh.com.vn
Hoang Quan - www.hoangquan.com.vn
Intresco - www.intresco.com.vn
Loc Dien www.nhadatld.com
Nova - www.novahomes.com.vn
Phat Hung - www.phathung.com.vn
Tan Dien - www.tandien.com.vn
Van Hung Phu - www.vanhungphu.com
Ha NoiCland - www.cland.com.vn
Dong Do - www.dongdobds.com
Phu Thai Group - www.phuthaigroup.com
Petrowaco - www.petrowaco.vn
Petrolimex www.pland.com.vn
Research
CBRE - www.cbrevietnam.com
Savills Viet Nam - www.savills.com.vn
VietRees - www.VietRees.com
Consulting
CBRE - www.cbrevietnam.com
Dong Duong - www.indochina-consulting.comEden Real - www.edenreal.com
Indochina Land - www.indochinacapital.com
Long Gia Khang - www.longgiakhang.com
Savills Viet Nam - www.savills.com.vn
Vina Capital - www.vinacapital.com
VietRees - www.VietRees.com
Evaluation
AREV - www.arev.com.vn
Hoang Quan - www.thamdinhgia.com
Vietland - www.thamdinhgia.com.vn
VVFC - www.valuation.vn
ConstructionHo Chi Minh
CIC8 - www.cic8.com
Coteccons - www.coteccons.com.vn
Cosaco - www.cosaco.com.vn
Hoa Binh - www.hoabinhcorporation.com
Hai Thanh - www.haithanh.com.vn
Toan Thinh Phat - www.toanthinhphat.com.vn
Ha Noi
Constrexim - www.constrexim.com.vn
Cavico - www.cavicovn.com
HANCIC - www.hancic.com.vn
HUD - www.hud.com.vn
Incomex - www.incomex.vn
Architect and Interior Decoration
Ho Chi Minh
A2 Visualization - www.a2viz.com.vn
Cat Moc - www.catmoc.com.vn
Le Do - www.model&more.com
Nha Vui - www.nhavui.com
Nha Viet - www.nhavietdecor.com
Nha Dep - www.nhadep.com.vn
Pho Xinh - www.phoxinh.com.vn
Ha Noi
ACT - www.act.com.vnADKientruc - www.adkientruc.com
Ashui www.ashui.com
Kien Truc Ha No - www.kientruchn.com
8/14/2019 VietRees Newsletter 47 Week1 Month09 Year08
5/9
8/14/2019 VietRees Newsletter 47 Week1 Month09 Year08
6/9
VietRees Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A47 Page 6
Sponsor:
Property Retail PriceUpdated on information from ACBR, Van Phat Hung, Hung Thinh, Phuc Duc, Tuoi Tre Newspaper and developers (VietRees gathered by direct surveys), listed prices can beoriginal prices or transfer prices at current or at one week prior from the date this newsletter is issued.
Typical apartments in HCM city Other apartments and land lots
Estella, Dist.2
* 124.6m2 2,100 USD/m2
V- star, Dist.7
* 97.5m2 22 million VND/m2
* 119m2 16.8 million VND/m2
Sky Garden 3, Dist.7
* 71m2 32.7 million VND/m2
* 91m2 27.5 million VND/m2
Blooming Park, Dist.2
* 115m2 29 million VND/m2* 135m2 31million VND/m2
Direct contact with the investor1
Phu My, Dist.7
* 82.1m2 23 million VND/m2
* 312m2 18 million VND/m2
The Everich, Dist.11
* 115m2 2,300 USD/m2
* 160m2 1,950 USD/m2
Preche, Dist.2
* 154.5m2 2,200 USD/m2
Panorama, Dist.7
* 144m2 42.7 million VND/m2
Saigon Pearl, B.Thanh
* 133m2 3,000 USD/m2
* 136.5m2 2,900 USD/m2
The Vista, Dist.2
* 101m2 1,700 USD/m2
* 152m2 2,000 USD/m2
BMC Hung Long, Dist.7
* 79m2 19.5 million VND/m2
* 102m2 20.8 million VND/m2
The Manor, B.Thanh
* 67.1m2 2,100 USD/m2
* 157m2 2,800 USD/m2
DistrictArea(m2)
Price (millionVND/m2)
+/-
Apartment building HCMC
The Lancaster 1 120 76.8
An Khang 2 102 25.7 +
Binh Minh 2 108.5 17.7 -
Green Building 3 73 22.4 +
Hung Vuong Plaza 5 121.6 35
My Vien 7 95 33.7
My Thuan 8 128.8 8 -
Hoang Thap BCH 98.5 22
Le Thanh BTA 68.4 8.7 +
Tan Tao BTA 91.11 9.3 -
Cuu Long BTH 87 20.5 +
Phu My Thuan NB 90 12.5
An Binh Plaza TD 54.5 9.9Development land lots HCMC
An Phu An Khanh 2 120 31
Dong Thu Thiem 2 108 11 -
Eden 2 300 11.5
Binh Phu 2 6 75 30
An Phu Hung 7 72 26.5
Ba To 8 110 7.5 -
Gia Hoa 9 200 10.5 +
Phuoc Long 9 300 9
Hai Yen BC 100 8.2 -
Apartment building - Ha Noi
Trung Hoa Nhan Chinh CG 120 26
Vimexco CG 142 27.5
Viet Hung GL 81.4 8 -
Mai Huong HBT 45 20
Dai Kim - Dinh Cong HM 55 17.2
Momota HM 90 20
Totosa HM 96 16.15
My Dinh 1 TL 93 15.5
Development land lots Other provinces
My Phuoc 3 BD 300 3 +
Vinh Phu 2 BD 143 5.8 -
Thanh Binh BR-VT 301.3 10.5
Nam Long CT 114 5.5
Licogi 16 DNI 180 2.6Long Hau 3 LA 116 5.5
1Kien A Investment & Services Co., Ltd. - An Phu Ward, District 2, HCMC - Tel: (84.8) 740 6688, Fax: (84.8) 740 6949
Danang: 225 Huyen Tran Cong Chua - T: (84) 511 836 216 * HCMC: 390 Nguyen Cong Tru, D.1 - T: 8 821 7509 * Hanoi: No.6-1D Trung Yen New Town, Caugiay - T: 4 783 1598
8/14/2019 VietRees Newsletter 47 Week1 Month09 Year08
7/9
VietRees Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A47 Page 7
Sponsor:
PROPERTY SUPPLY FOR DIFFERENT TARGETS OF CUSTOMERS
Social wefare houses for worker
VietRees
* HCMC housing development fund has inaugurated a 5-storey apartment buidling for workers in Quarter1, Linh Trung Ward, Thu Duc Dist, HCMC. The investor is Saigon Construction Corporation.
* Hung Vuong JSC has just put a 5-storey apartment building into use for cadres and workers. Thecompany continues to petition Tien Giang Provincial Peoples Committee to grant a 5.000m2 land area toconstruct more apartment buildings for workers with an investment of 100 billions VND.
* Saigon Paper JSC has put an apartment building into use for workers at My Xuan Commune, TanThanh suburban district, Ba Ria - Vung Tau province. The stage 2 of the apartment building is about to
be implemented with a scale of 8 storeys.* Morning of August 28
th, 2008, the Ministry of Construction has signed a memorandom for the
cooperation in the field of welfare housing with Korean Ministry of Land-Traffic and Marine.
Real estate for the low income
VietRees
* Sai Gon Gia Dinh Real Estate Company and Hoa Binh Phu Yen Company build Thoi An ApartmentBuilding in District 12 with 1,000 apartments.
* Construction Co. No.8 (CIC8) will invest in construction of 10,000 Keppel Land apartments & TienPhuoc Co. will build a resettlement area including 1,900 apartments at An Phu, Binh Khanh, District 2.
* HCM City Peoples Committee will advance 50.5 billion to carry out the project of Vinh Loc B, BinhChanh residential area for resettlement with hundreds of townhouses and 40 apartment blocks.
* Construction Co. No.5 will invest in construction of 500 apartments at Ward 22, Binh Thanh District.
* HCM City Cooperative Alliance has developed its construction investment project of housing area at LeMinh Xuan Commune, Binh Chanh Suburban District on a site of 67.49 hectares.
* 50% of the house reserve at The Splendor apartment area (Go Vap Dist.) will be intended to serve
resettlement demand in the district.* Dat Lanh Co. will offer 1,500 apartments to the market with the prices of 500-700 millions VND/unit.
* Peoples Committee of HCMC has approved the project of the resettlement area on a site of 55.24hectares at Dong Nam Cu Chi industrial - residential area in Cu Chi.
* House management of Dist.1 is assigned to construct the resettlement area at 7/4 Kha Van Can, ThuDuc district.
* In early 2010, Hai Thanh company will complete 352 apartments of Hai Thanh 1 resettlement areaproject, Binh Tan District for the civil servants at Binh Tan District.
* Peoples Committee of Binh Chanh has just cooperated with Hung Vuong university Investment &Development JSC to construct resettlement area at Tan Kien commune, Binh Chanh suburban district.
Dwellings for overseas Vietnameseand foreigners
VietRees
The Committee for overseas Vietnamese in HCMC has showed that there have been 130 overseasVietnamese buying houses, mainly in HCMC.
Those who brought houses are those who come back to the country for their long term and directinvestment, scientists, culture researchers invited to come back to the country to become experts andrepatriating overseas Vietnamese. To buy houses, beside documents verifying priority subjects, the buyermust present their passport (issued in Vietnam). In the case that house buyers bring foreign passports,they must have certificates of Vietnamese nationality or documents confirming their losing Vietnamesenationality, or certificate of citizenship registration.
8/14/2019 VietRees Newsletter 47 Week1 Month09 Year08
8/9
VietRees Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A47 Page 8
Free register for weekly newsletter: Please send your email to [email protected] * Sponsor and advestising: T: (08) 948 5574 - E: [email protected]
REAL ESTATE LEGISLATION
Realtors could be fined for
avoiding trade centers
Thanh Nien 31 Aug, 2008
Imposing fines for breaches in real estate business is a completely new section in the draft decreeamending the Decree 126/2004/ND-CP on levying fines for administrative breaches in constructionactivites that the Ministry of Construction is drafting.
Accordingly, organizations or individuals would be fined 50 - 60 million VND if they sell, buy or rent theproperties that are obligatory to be traded through trading centers without going through such centers.
This fine level would also be levied on property transactions that violate the stipulated order andprocedures or regulations on the properties traded through transaction center already. Fines of 60 70million VND would be imposed on the real estate developers operating without business permits; tradingunlicensed properties; violating the construction progress or the regulations on capital mobilization forinvestments in the construction of housing development projects. Beside the fines, the business permitsof the violators could also be revoked.
Fines of 70 - 80 million VND would be applied to the violations of the principles on real estate brokerage,assessment, management and trading centers operation. A 90 milllion VND fine will be applied to thedevelopers or agents that fake certificates of real estate brokerage and assessment and the violatorswould be banned from operating in this field within 5 years from the date of punishment.
Construction Price Index
in 2nd quarter, 2008
TheSaiGonTimes 03 Sep, 2008
The Ministry of Construction has released the construction price index in the second quarter 2008 withthe purpose of helping the investors and contractors to determine the total investments, cost estimates,payments and manage the construction expenditure. It is also the foundation for capital disbursement.The construction price index is categorized according to 3 areas (including Hanoi, Da Nang and HCMC)and 5 types of construction works (including civil construction works, industry works, traffic works,
irrigational works/water conservancy projects and technological infrastructure works). This index showsthe ups and downs in construction prices of works calculated according to construction material priceindex, labour prices and machine prices.
The construction index proves a rapid increase in construction prices of works of all types, especially thetypes of civil constructions such as dwellings, head offices and hotels.
Although this index has assessed the fluctuations in the costs of construction, equipment, projectmanagement, construction investment consultancy and some other expenses, it has not yet paidattention to some other important factors (if any) such as the expenses for ground clearancecompensation and resettlement, expenses for the elaboration of the reports evaluating environmentimpacts and protection, expenses for hiring foreign consultancy, loan interest rates in the constructionperiod (for the projects using loans), the working capital in the pilot-production period (for business orproduction projects)
The Ministry of Construction also notes that it is needed to base on the features and requirements of theprojects to add into the costs suitably when using these indexes to estimate the total investment.
8/14/2019 VietRees Newsletter 47 Week1 Month09 Year08
9/9
VietRees Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A47 Page 9
REAL ESTATE MARKET FORECAST* Note: Information on market forecast is only updated every 4 periods (after one month) by VietRees
Trend In general, transaction situation of apartments, townhouses and project land in July has been moresatisfactory than the previous months. Although the sign of a warming market is less, transactions arecoming back. Customers have many choices and a lot of time to consider when buying. Transactionshave begun to appear on the market, but not as fast as before.
At present and in the future, there may be not many investors, speculators or wholesalers like before.According to VietRees, the number of buyers for real needs will increase. However, due to theinabundance of real needs and finances, they will ponder on this matter. Therefore, the decision making
process will take more time than before. There is a slight increase in market prices of projects thatinvestors hasten the progress of infrastructure construction and apartment buildings which are about tobe completed and put into use.
Although the real estate market is still in a difficult period, some companies, individuals and investmentfunds still keep investing into properties, especially foreign investors.
Apartment market The apartment segment is warming again due to the large decrease in prices. Additionally, it is difficultfor the prices to keep going down while the inflation and prices of construction material are becominghigher and higher.
In July, prices of many projects stopped sliding, even with an price increase of 10% in some projects.Customers have not only focused on the apartments with prices of under 1 billion VND as previousmonths but also learned and really paid attention to high-grade apartments for different purposes, whichhas caused slight increases in prices of high class projects. In comparision with the previous month, thequantity of customers having a look at apartments of some high-end apartment projects that are about tobe put into use in Phu My Hung has significantly increased.
Some investors are aiming at the apartment projects on the point of being handed over to customers.
These projects can be used for customersoccupancy immediately.
Project land market In general, the land price has stopped suddenly. Most sellers believe that the situation has had lessdifficulties, prices have gone down too much and they cannot afford to suffer any more losses, so, theyhave stopped reducing sale prices.
Additionally, the majority of projects with price increases have well-built infrastructure, customers canreceive land for housing construction and begin building at once. Many projects with substantial priceincreases are located adjacent to Phu My Hung urban area.
CONSTRUCTION MATERIAL MARKET
Cement agents raise the import
and cut the sale. Steel sales are
sluggish but its prices are still high
Edited by VietRees
In August, cement consumption has been slow due to heavy rains across large areas. Cement has seenan extra decrease of 2,000 - 4,000 VND/sack. Even so, Cement Ha Tien 1 JSC has still raised the pricesby 5,000 VND/sack since September 1
st, 2008, up to 65,000 VND/sack. Factories show that the output
will be enough to meet the demand of the construction market in the remaining 4 months of this year.
Prices of construction sand and stones of all types have fallen by 20,000 VND/van; bricks have gonedown by 200 - 1,200 VND/brick. Expenses on transportation of construction material at some routes
have also dropped by 15,000 - 20,000 VND/journey.Although steel prices have been reduced for 3 times by the enterprises in August, 2008, the transactionhas still been gloomy due to the low purchasing power on the market. The most significant pricedecreases have happened to bar steel and rolled steel of all types from the pinnacle of 21 - 21.5 millionsVND/ton to 17 17.5 milllions VND/ton. Types of iron, steel pipes and corrugated iron have also seendramatic price decreases of 5,000 20,000 VND. The main cause is that prices of steel and steelembryo have dropped by 10 20% as compared with June. Currently, the enterprises have an inventoryof 220,000 tons of finished steel and 400,000 tons of formerly imported steel embryo. The re-exporting ofsteel and steel embryo has stopped when the export tax rate has still remained at 20%.
Regarding the domestic construction material market in the last months of this year, the experts showthat there have been signs of price decreases since early August due to the fact that the supply is higherthan the demand, the prices of oil fuel is low, the inventory of finished steel is large while manyconstruction works are stagnating due to a shortage of funds and effects of crop factors.
STOCK MARKET
Securities Index on two tradingfloors have lost points
Edited by VietRees
Chart Source: Vietstock
Up to date 05 Sep, 2008
Vn-Index has lost 11.9 points and slide out of550 point-level. Meanwhile, HASTC-Index hasalso gone down by 5.73 points to end at 189.14point-level.
After a tough upward session, when openingthe market in the morning of September 5th,HOSE has seen a majority of selling orders.VN-Index has decreased by 7.21 points ascompared with the previous session, to end at551.35 points. Entering the order-matchingphase, Vn-Index has recorded an additonaldecrease of 2.94 points as compared with thefirst phase, falling below the 550 point-level toend at 548.41 point-level. Ending the session,VN-Index has lost a total of 2.94 points to end at 546.66 points (equivalent to a decrease of 2.13%). Thetotal trading volume on the whole market has reached over 22.7 units worth more than 900.3 billionVND. As a result, during 3 trading sessions after the National holiday, Vn-Index has recorded 2 upwardsessions and 1 downward session. In sum, VN-Index has added 7.56 points this week.
At Hanoi transaction centre, HASTC-Index has fallen by 5.73 points or 2.94% to end at 189.14 points.The total trading volume on the whole market has reached 16.7 units with the trading value of over 791.7billion VND. With 3 trading sessions in the week, HASTC-Index has also recorded 2 upward sessionsand 1 downward session. HASTC-Index has lost 3.29 points as compared with the last trading sessionof last week.