admin – Page 7 – Officehcm

admin
Email Us!

Author's Posts:

Japanese firms invest in real estate market in Vietnam

Many Japanese firms such as Mitsubishi, Maeda, Kajima, Sumitomo and Creed Group have made investments worth tens to hundreds of millions USD in the Vietnamese realty market within over the past year. For example, the Mitsubishi Group has invested 290 million USD in a joint venture with Vietnam’s Bitexco to develop the Manor Central Park in Hanoi. In the first stage of cooperation, the two sides agreed to establish a joint venture to develop 240 low-rise buildings and two high-rise buildings with 1,036 apartments.

In September 2016, the Kajima Overseas Asia Company spent $500 million to establish the Indochina Kajima Development joint venture with Indochina Capital. Both plan to invest in Vietnam’s real estate market in the next 10 years. More recently, Sanyo Home invested in the field via cooperation with Tien Phat Company under the Hoa Binh property business and construction joint stock company to invest in the Ascent Lakeside project in District 7, HCM City. Meanwhile, Sumitomo will invest in the Nhat Tan-Noi Bai urban area in Hanoi along with Vietnam’s BRG Group.

According to Toshihiko Muneyoshi, president of the investment fund Creed Group, with a population exceeding 93 million people, increasing incomes and rapid urbanization, the demand for houses among young customers is huge. Notably, each year, 50,000-60,000 new households are expected to be built in Hanoi and Ho Chi Minh City, he said, adding that the fund will focus on the middle-range segment and seek more partners in Vietnam. Japanese investors have secured their position in Vietnam in recent years with 3,411 projects worth nearly $44 billion.

According to the Foreign Investment Agency under the Ministry of Planning and Investment, in the first six months 2017, Japan rose to first position in 94 countries and territories with investment projects in Vietnam, with total registered capital of $5.08 billion, making up 26.45 percent of total investment.

Source: Vietnamplus

July 24, 2017 / by admin / in News

The real estate market gets the highest sales since 2011

According to the report of Real Estate Firm Savills, the affordable housing went through the roof, with Quarter 2 sales jumping 123% in Ho Chi Minh City. It saw a strong performance in the apartment business in the second quarter this year, thanks largely to the affordable segment.

Apartment transactions between April and June increased 33% from the first quarter of the year, and by 67% from the same period last year, with 11,600 units sold, according to figures from real estate consultancy firm Savills. The number was the highest since 2011, the year of the city’s housing crisis. The affordable housing segment accounted for 64% of the sales, the company said in a report released on Monday.

While transaction volume in the top-tier dropped 32% on-year, sales of more affordable units costing less than 30 million VND ($1,320) a square meter surged a whopping 123%. With 58,000 new households (families) formed in 2016, Ho Chi Minh City has the biggest real estate market in Southeast Asia, the company said, but in terms of affordability, it is among the worst in the region.

The market has for years focused on the high-end segment, where prices hit 90 million VND (nearly $4,000) per square meter. That would mean it would take two working adults 20 years to pay for a 60 square meter apartment, based on the city’s average income in 2016. Besides, many people in the city are migrants and low-income workers.

Savills research suggests that the market is changing and will continue in an affordable direction to catch first-time buyers. Low-cost apartments are expected to occupy nearly half of the apartment market in the city this year, with a further 48,000 units to be launched by the year-end.

Source: VNexpress

July 13, 2017 / by admin / in News

Useful advice for the foreigners to own the property in Vietnam

According to the Housing Law, the foreigners can buy and own the property in Vietnam. However, they have to know well about the regulations. These are 7 tips for them to consider carefully.

First, the buyer must be qualified under the applicable laws. According to the Housing Law, the condition is now so relaxed that a foreigner who lawfully enters Vietnam can be eligible to own residential housing. As such, the buyer needs to prove that his entrance is legally permitted.

Second, he should keep a track record for the money he brings to Vietnam for buying the house. This would make it easier for the buyer to remit the money back after selling the house at a later date. For this purpose, he should open an account at a bank in Vietnam to which the money will be transferred, and from which the payments for the house should be made. In case the money is his salary or income earned from working or doing business in Vietnam, he should keep documents that track his/her income.

Third, the buyer should get to know which property projects that he or she is permitted or not permitted to buy in order to avoid future risks. Please note that foreign buyers are only permitted to buy houses from new housing development projects, not in existing residential quarters. This job is not difficult for foreign buyers if he or she consults with a reputable property agent.

Fourth, foreigners should make sure that the property developers they are contracted with are qualified to sign housing sale and purchase agreements with buyers. In principle, the property developers are allowed to enter into housing sale and purchase agreements once (i) the housing project is properly approved; (ii) the foundation work of the house is completed, and (iii) the terms and conditions of the agreement for selling a condo have been registered at the Vietnam Competition Authority (under the Ministry of Trade and Industry). An agreement may be void if failing to meet one of these conditions, and thus, the interests of the buyer may not be properly protected.

Fifth, buyers should pay careful attention to the implementation of a housing sale agreement with housing development projects, since this may be not similar to the transaction practice in his native country. He should seek advice from lawyers to avoid risks.

Sixth, according to the Housing Law, foreign housing owners have the same full rights as Vietnamese over the house, such as leasing, donation, a capital contribution, etc. However, it should be noted that the foreign owner can exercise these rights only after he or she has obtained a “land use right certificate and/or property ownership” for the real estate. Therefore, in the respective contract, the obligation to apply for the certificate of ownership and/or the land use rights by the seller should be clearly stipulated. Also, when leasing the real estate, the foreigner owners must register the lease agreements with the local government (district-level administration committees), and properly declare his/her income tax for the earned rents. By complying with these requirements, the foreign buyers’ incomes will be treated as legitimate income which can be remitted abroad. In addition, when renting out a house, it is also required that the owners must register the temporary residence of tenants with relevant local authorities.

Seventh, if the foreign owners no longer want to own the house, what can they do? They can sell it. However, currently there is no clear guidance from the State Bank of Vietnam on how foreign owners can remit the sale proceeds from selling the house. Again, to navigate through such procedures, buyers should consult with a lawyer specializing in real estate.

Source: VIR

June 29, 2017 / by admin / in Advice

The foreign investment is increasing in the real estate projects

A sharp increase in foreign arrivals to Vietnam at the start of 2017 has injected a huge development impetus into the coastal resort sector, and there have also been a raft of investments, mergers and acquisitions in other real estate sectors. Vietnam’s largest property consultancy firm Savills recently released a report on the investment and transfer of real estate projects that have taken place so far this year.

One of the stand out transactions was made by CapitaLand Group with the purchase of a 0.6-hectare (1.5-acre) piece of commercial land in downtown Ho Chi Minh City to build Vietnam’s first A-class international complex. The project will receive more disbursement from a $500-million investment fund committed by Singaporean developers last November. CapitaLand also announced the acquisition of a 90 percent stake in a 0.8-hectare project in Thao Dien, Ho Chi Minh City, to build over 300 apartments.

Another Singaporean developer Keppel Land has paid VND 846 billion ($37 million) to raise its share to 16 percent in the Saigon Center project in downtown Ho Chi Minh City.

Besides, in March, Hong Kong Land officially became a strategic partner of the Ho Chi Minh City Infrastructure Investment Joint Stock Company (CII) to build housing projects in the new Thu Thiem urban area.

In another popular residential area in the southern economic hub, local group An Gia and its Japanese partner Creed Group continued their takeover of five apartment blocks in La Casa project in District 7 worth some VND 910 billion (around $40 million).

In the resort sector, Malaysia’s Berjaya Land sold its 70 percent stake in a four-star resort on Phu Quoc Island to Sulyna Hospitality for $14.65 million.

According to Savills, Vietnam’s tourism sector enjoyed a great start to this year with around 3.2 million foreign arrivals in the first quarter, up 29 percent on-year.

This growth follows record numbers in 2016 when Vietnam welcomed over 10 million international tourists. The country is forecast to receive 11.5 million foreign visitors this year. This should provide the ideal conditions for further growth in the resort sector, said Savills.

Source: VNexpress

June 27, 2017 / by admin / in News

Ministry does not accept proposal of building mini apartment

The Ministry of Construction has rejected a Ho Chi Minh City Real Estate Association proposal for housing developers to construct mini apartments that measure less than 25 square meters each.

The association has proposed the Ministry of Construction give the green light to developers to construction these mini apartment units for rent to replace many slums and cramped, dirty apartment buildings in Ho Chi Minh City that fail to meet both quality requirements and living conditions for tenants.

The Ministry gives the reasons of rejection

The association explains that the majority of low-income earners can afford to own these small units, which will result in a substantial improvement in their living environment and security issues. However, the ministry said the proposal was not in line with its Circular 20/2016 TT-BXD.

Specifically, the circular specifies households or individuals can develop rooms for rent with a minimum area of 10 square meters, as the majority of such individuals develop these housing units on their land that is usually not large. These regulations are aimed to encourage households or individuals to build homes for rent.

Meanwhile, the enterprises must cover at least 25 square meters to develop each budget housing apartment since they can secure vast areas of land to develop their projects. In addition to apartment units, they have to invest in technical and social infrastructure in order to guarantee residents’ quality of life, the ministry added.

Regarding a question by the Ho Chi Minh City Real Estate Association over funding for social housing projects to support the poor, the ministry said the Government has directed the Ministry of Finance to work with relevant ministries and agencies to map out a mechanism for partly covering interest rates for social housing apartments, which are budget homes for poor people.

Besides, the Ministry of Planning and Investment has been assigned to coordinate with the ministries of finance and construction to determine the amount of money needed.

The State Bank of Vietnam and the Vietnam Bank for Social Policy are responsible for devising interest rates. Then, the Prime Minister will have a final say on this.

Source: The Saigon Times

June 21, 2017 / by admin / in News

The property market of Vietnam in the first half of 2017

Macroeconomics

Vietnam remains an attractive destination for foreign investors, demonstrated by the substantial increase of 77.6% y-o-y in the newly registered FDI recorded in 1Q17. Among investors, South Korea, Singapore and China ranked the three largest sources.

Residential market

Both Ho Chi Minh City (HCMC) and Hanoi reported strong launching and sales activity in the first quarter of 2017. New launches came on a citywide and segment-wide manner in both main markets, and sales continued to respond positively to the new supply. The market witnessed good performance of both the investor and owner-occupier demand. In addition, thanks to the currently good market sentiment, coupled with more improvement in infrastructure development and the retail sector across the cities, prices extended their prevailing up-trends. Until year-end, good momentum in many facets of the residential markets is expected to be continued.

Office for lease market

Both HCMC and Hanoi market reported high-level net absorption rates in the first quarter of 2017, with HCMC mainly driven by the two new Grade B buildings and Hanoi led by Grade A and Grade B buildings completed in recent years 2015-16. In terms of rental rates, the Grade A segment in both markets reported q-o-q increases while the Grade B segment showed opposite trends. Some long-standing Grade B buildings in Hanoi quoted lower rents q-o-q in order to stay attractive compared to their competitors. Between now and end-2017, increased leasing activity is likely in both markets, with two new Grade A buildings expected in HCMC and five Grade B buildings expected in Hanoi.

Retail market

The retail markets in HCMC and Hanoi were quite stable in the Shopping Centre segment with no new supply. Rental rates in the Non-CBD areas of the two cities continued to experience decreases while those in the CBD areas reported different trends. Shopping centres in the HCMC’s CBD saw some slight increases in rents thanks to the increased footfall and openings of new flagship stores. The two markets in the remainder of 2017 are expected to be more active, with an addition of around 40,000-50,000 sqm of retail space to each market. The Convenience Store segment has experienced considerable growth in recent quarters and this is expected to continue into the remainder of 2017.

Source: JLL

June 19, 2017 / by admin / in News

More cheap apartments in many Vietnam’s cities

Vietnam’s major cities are gearing up to develop homes for workers, planning to construct small studios of some 25-50sq.m at the price of 150 million (6,500 USD) per unit. The Vietnam General Confederation of Labour and Hanoi People’s Committee, at a recent dialogue with workers, said the capital city would develop small apartments at the price of some 5 million VND per sq.m, but with adequate infrastructure and facilities such as schools and supermarkets for workers.

Building more cheap apartments in major cities

This cheered low-income workers but also raised the question on whether the tiny flats would disregard plans and eventually turn into slums. Previously, the Ministry of Construction gave its nod to the construction of tiny studios of 25sq.m while developing technical standards for apartments.

Statistics of the Vietnam General Confederation of Labour showed that there were some 2.8 million workers at industrial zones, of which 1.7 million required homes, but the current supply could meet only 8-10 percent. The rest were forced to live in rented houses, mainly having poor living conditions, which impacted health and productivity.

Because of the high demand of homes for low income workers in major cities such as Hanoi, Ho Chi Minh City, Binh Duong and Dong Nai, efforts were hastened to build affordable homes for workers. The southern province of Binh Duong was the pioneer, building apartments worth 100 million VND for workers and achieving success.

Earlier this year, HCM City began studying the feasibility of building small affordable homes in the city. The southern city’s People’s Committee recently asked the municipal Department of Construction to prepare the plan of housing development for workers by 2020 and submit it within the second quarter of this year.

Hanoi’s Department of Construction, meanwhile, recently proposed to check the available land bank for housing development for workers and raised plans for expansion of the infrastructure system and social facilities such as schools and supermarkets. The capital city’s construction department will also study and introduce model worker apartments, ensuring decent living standard at industrial zones. According to Nguyen Chi Thanh, deputy director of the Vietnam Association of Realtors, developing affordable homes for workers is feasible if there is available land and special mechanisms for developers.

Source: VNA

June 9, 2017 / by admin / in News

How to rent a motorbike in Vietnam?

If you live and work in Vietnam, renting a motorbike is a great opportunity to get off the beaten track and discover on your own. Especially, there are many agents in Ho Chi Minh City and Hanoi having bikes for rent. You will need to fill out a form to rent the bike along with leaving your passport as a deposit. Besides, most places usually offer a selection of manual shift and automatic shift motorbikes. The rentals will also come with a helmet. Remember that using helmet is mandatory in Vietnam.

Here are 5 tips of renting a motorbike for you:

Check your bike

Test the your turn signals and lights and take a quick test drive around the block. When you park in a public area, don’t lose that ticket. If you lose it, you will need to verify the ownership of the bike, which means contacting the place you rented the bike. In Vietnam, people usually use Honda, Nouvo, Lead, etc. from 100cc to 250cc.

Get the contact details

The contact information of the agency is very important if you rent their motorbike. This could be a lifesaver if your bike breaks down or something likes that. Please take the details into account when you decide which bike to hire, ask about bike model and year of manufacturing and don’t just look at prices.

Make sure your helmet is good

Generally, the agency will give you the helmet because using it is compulsory in Vietnam. You should check the condition of this helmet and ask for alternative one if it is not good.

Anticipate your surroundings

Vietnamese drivers don’t really use their wing mirrors so watch out for the traffic ahead of you. Also, slow down through intersections as stopping at a red is more like a guideline as opposed to a rule. The traffic in Ho Chi Minh City and Hanoi is quite busy and narrow, therefore, you should drive carefully.

Hellovietnamese.com

June 2, 2017 / by admin / in Advice

Top 3 best reasons for doing business in Vietnam

Vietnam is a developing country in South East Asia. It is not only challenging but also advantageous for doing business here. Three following reasons will be useful for the businessman to choose Vietnam in his career:

Profound integration

Vietnam is in a profound integration process which results in many huge opportunities for foreigners doing business in Vietnam. Up to now, Vietnam is a member of ten free trade agreements. Five more agreements are still under negotiations. Significantly, European Union and Vietnam reached agreement on free trade deal on August 4, 2015. That is a milestone in financial, economic and investment corporation between Vietnam and EU. This agreement supports European investors doing business in Vietnam to expand their production and business activities. Thanks to the trade deal, the inefficient economy of Vietnam is hoped to have more reforms.

Administrative reform

Most foreign investors find that complicated procedures are the most irritating when doing business in Vietnam. However, the government has determined to reform institutions and administrative procedures dramatically. That shall bring the better conditions for production and business activities. In fact, most of administrative procedures in finance sector have been reformed thoroughly, especially in taxation and customs procedures.

Geopolitical advantages and labor market conditions

Vietnam has geopolitical advantages in the region when locating on the sea route connecting Europe and North-East Asian countries. There are many main point habors such as Hai Phong, Da Nang, Cam Ranh and Sai Gon. Goods can be delivered from Vietnam to many places in the world. Besides, labour market with 54 million young workers is another attractive point to foreigners doing business in Vietnam.

Hellovietnamese.com

May 18, 2017 / by admin / in Advice

Class B Office Buildings actually become more attractive

Class B office buildings have taken the lead in the leasing office segment so far this year, according to real estate experts. In Hanoi, the vacancy rate in Class B office space in Q1 increased significantly with the inaugural of the Horison building with a gross floor area of over 10,570 sqm and usable area of more than 8,000 sq.m. In the coming months, the market will see more large projects including the DSD building with 20,000 sqm, the Discovery Complex (49,000 sqm), Truong Thinh Building (5,400 sqm), and the HUD Tower (70,000 sqm).

Office spaces ranked class A in Vietnam

At the same time, the Class A office space segment saw a rise of 3.3 percent in renting price in the first quarter, with no new supply. Strong absorption rate in the Class A office space reflected the trend of moving for expansion among enterprises, as well as the high demand for large area of startup businesses and new representative offices.

Nguyen Bich Trang, Director of Hanoi office renting department under CBRE company, commented that high quality office buildings are always attractive to customers as they help the firms improve their brand image and attract high quality employees. Buildings with green and LEED (leadership in energy and environmental design) certificates are most popular among customers, she said, adding that the Horison building of Global Toserco is one example.

According to Deputy Director General of Global Toserco Ltd. Nguyen Thi Hong Van, with an advantageous location, 20 percent of the building’s total area has been booked at 25 USD per square metre, mostly by firms in finance and banking.

Source: VNA

May 18, 2017 / by admin / in News

« Previous
1
…
5
6
7
8
9
Next »