News – Page 8 – Officehcm

Investment in Vietnam’s realty market is absolutely popular

In the recent years, the realty market has become more active and dynamic in Vietnam, especially the segments of Hanoi and Ho Chi Minh City. Therefore, instead of putting money in banks, gold or dollars, investment in property is more attractive to the investors.

Minh Hanh of Ho Chi Minh City’s Tan Phu District, for instance, said: “I never put my money into saving accounts because I used to invest in gold and dollars. But now I invest my money in real estate and stocks because gold prices have decreased sharply and the gap between domestic and international prices is too big.” Since 2010, gold has plateaued. The Government has tightened gold management and banks are not allowed to mobilize or borrow gold any more.

This year, the real estate market has gathered pace and been a magnet for investors. Duc Vinh of Ho Chi Minh City’s Go Vap District said last October he had bought a piece of land for VND2.6 billion ($115,000) and planned to build a house. But half a year later, a buyer offered VND3.5 billion ($155,000) for it and he sold it immediately.

However, Vinh’s profit is not considered huge in the current market situation. Hoang An, a broker in District 12, said now everybody wants to buy land because of high profits and liquidity. Things have turned on their head from a few years ago when prices were low yet it was difficult to sell land. “Bank savings interest rates are very low, gold and dollars do not yield high returns and investors are looking for better investment opportunities,” he said.

“Inflation has been controlled well in recent years and buying gold as a hedge has reduced.” Nguyen Hoang Minh, deputy director of the State Bank of Vietnam’s Ho Chi Minh City branch, said the loans given to the property sector in the city are worth VND238 trillion ($10.6 billion) or 10.8 per cent of the total.

The Ho Chi Minh City Real Estate Association reported that in the fist six months of this year lending to the sector increased by 6.35 per cent, 1.35 percentage points higher than in the same period last year. Real estate firms accounted for a full third of the 18,000 companies established in the city in the first six months of this year.

July 26, 2017 / by admin / in News

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

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

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

Latest news: Startups in real estate highly jump

The real estate sector took the lead in the number of startups as well as the growth rate, with 924 firms established in the first quarter this year, up a staggering 55% year-on-year, according to the Business Registration Agency under the Ministry of Planning and Investment.

Highly increase the start-ups in real estate market

After the property sector, new enterprises in the power, water and gas generation and distribution sectors came second in terms of growth rate, with 200 firms, up 32% year-on-year, while the education and training sector took the third position with 640 freshly-established firms, surging 28%. In addition, new businesses in the sectors of finance-banking-insurance and agriculture-forestry-aquaculture stood at 269 and 461 in the first three months, up 26% and 16% respectively.

Data of the agency showed the country had 26,478 newly-established enterprises with total registered capital of around VND271 trillion (US$11.9 billion) in the first three months of this year, up 11.4% in number and 45.8% in capital over the same period last year. Besides, operational firms registered to inject an additional VND325.4 trillion in the period, bringing the total amount of fresh capital registered by businesses in the three-month period to over VND596.6 trillion.

Meanwhile, nearly 9,200 enterprises have resumed operation in the first quarter after a period of suspension. The average registered capital of an enterprise in January-March was VND10.2 billion, a pickup of 30.9% compared to the same period of last year. Last month alone, 12,027 enterprises were registered with total capital of VND118.7 trillion, rising 120% in number and 90.6% in capital against a month earlier.

Source: The Saigon Times

May 12, 2017 / by admin / in News

The unofficial rumors make the land prices of suburban quickly increase

Land prices in Ho Chi Minh City’s suburban areas have recently skyrocketed over rumors of upgrading and merging outlying districts or the implementation of major projects. The prices have increased by 30 to 40 percent, even 100 percent in some areas, in District 2 and District 9, as well as outlying districts including Binh Chanh, Can Gio, Cu Chi, and Hoc Mon.

Increase quickly the land prices in Ho Chi Minh City

Along Nguyen Xien Street in Long Thanh My Ward, District 9, which was previously a secluded neighborhood, land prices have hiked after a rumor that a major realty project would be initiated later this month. Advertisements have filled the area, while brokers hand out leaflets on a daily basis.

According to Van Anh, a broker, houses in a residential area named DV were first put on sale seven months ago. Speculators began buying nearby land slots earlier this year, causing prices to rise, Anh elaborated. Areas along Nguyen Duy Linh Street in District 2 have also been in high demand. Hoang Nam, a local broker, stated that buyers of houses in the neighborhood have been mainly speculators while those having a real demand for residences make up a small portion.

It is noticed that a 20 to 50 percent increase in land prices along National Highway 50 in Binh Chanh District compared to the beginning of the year. National Highway 50 is a major road leading to provinces in the Mekong Delta, Ngan, an experienced broker, explained, adding that Binh Hung Commune in the district is expected to be upgraded, leading to the price surge. A 4m x 16m house, previously sold at about VND500 million (US$22,000), is now hard to find although the price has doubled, Ngan continued. Land prices in outlying Can Gio and Cu Chi District have also spiked due to some hearsay that many developers will carry out their projects in the areas.

Against the backdrop of the “land fever”, real estate experts recommend that buyers should be cautious before opening their pockets. As major investors have occupied all profitable projects in downtown areas, smaller ones will seek for potential property in less prominent neighborhoods such as District 2 or 9, said Nguyen Xuan Loc, general director of Techcomreal, a realty company.

That the city’s authorities are developing infrastructure in suburban areas has been leveraged by brokers, boosting land prices, Loc added. “Buyers should only choose those projects having a legitimate building permit, easy access, and connections to other infrastructure and sign deals with proper contracts to avoid pricing traps”.

Source: Tuoitrenews

May 4, 2017 / by admin / in News

« Previous
1
…
6
7
8
9
Next »