Sunday, March 27, 2016

10 biggest real estate transactions in Vietnam in 2015

10 biggest real estate transactions in Vietnam in 2015

VietNamNet Bridge – In 2015 major real estate firms in Vietnam sought and conducted many large affairs to acquire "golden land" in the center of big cities.
The real estate market in 2015 showed many positive signs. The number of transactions increased in many segments, while the price was relatively stable. According to statistics of 60 real estate enterprises listed on the stock market of Vietnam, total sales in 2015 grew 13%, reaching more than VND37,400 billion.
2015 is also the year of large acquisitions on the estate market.

1. Lotte acquired Diamond Plaza

10 biggest real estate transactions in Vietnam in 2015, vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news
South Korea’s Lotte Group has replaced Posco as the foreign investor in a joint venture which owns and operates the Diamond Plaza, a commercial, office and apartment complex in downtown HCM City.
Lotte has joined the management of the Diamond Plaza after acquiring 70% of the project. However, the amount of money the group had spent on the deal was not revealed.
The Diamond Plaza was inaugurated in August 2000 with 22 floors, including two basements. The building, which overlooks the landmark Notre Dame Cathedral in HCMC’s District 1 and had an initial investment of some US$60 million, was the joint venture between Construction Corporation No. 1 (CC1) and Posco Engineering & Construction Co. (Posec) under Posco Group.
The Diamond Plaza deal is yet another move of Lotte to deepen its involvement in Vietnam’s real estate market, particularly the commercial property segment, via mergers and acquisitions (M&A).
In 2013 Lotte bought a 70% stake of Japan’s Kotobuki at the Legend Hotel Saigon and the remaining 30% is now held by Hai Thanh Company, according to foreign property service providers. The five-star hotel was renamed as Lotte Legend Saigon in April last year and is now under the management of the hotels and resorts arm of Lotte.
The investment amount of Lotte in the 283-room hotel on Ton Duc Thang Street in HCMC’s District 1 remains unknown.
The group is expanding its presence in supermarkets and other areas as well. Retailer LotteMart has opened a commercial center in the Pico Plaza building in HCMC’s Tan Binh District. Earlier, a Pico shopping center in Hanoi was turned into a Lotte property.
At present, Lotte is proceeding with a US$2-billion property complex in District 2, HCMC. The Korean group will cooperate with Japanese investors to develop the Eco Smart City project in Thu Thiem New Urban Area.  
The group has invested billions of U.S. dollars in projects in hotel, food, supermarket, cinema, construction and home shopping sectors in Vietnam.

2. Sacomreal and Thanh Thanh Cong transfers Celadon City for Gamuda Land


10 biggest real estate transactions in Vietnam in 2015, vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news

The Saigon Thuong Tin Real Estate JSC (Sacomreal) and the Thanh Thanh Cong JSC (TTC) have transferred Celadon City to Gamuda Land Vietnam for an estimated VND1.4 trillion ($64.1 million).
On an area of 82 ha, Celadon City is located in Son Ky ward in Ho Chi Minh City’s Tan Phu district. With estimated original investment of VND24.8 trillion ($1.1 billion), the project, which kicked off in 2010, comprises a cultural and entertainment center, education facilities, commercial areas, and sports areas.
Gamuda Land, a division of Malaysian property developer Gamuda Berhad, has many large-scale projects in Hanoi, including the 500 ha Gamuda City and the 323 ha Yen So project.

3. Vingroup acquires 32ha Me Tri project


10 biggest real estate transactions in Vietnam in 2015, vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news
Vingroup, one of the country's largest private businesses, has bought more than 67.1 percent stake in the Hanoi-based Me Tri Sport and Entertainment Development Co., Ltd. for nearly VND560.2 billion (US$24.87 million).
Vingroup’s acquisition of the controlling stake in Me Tri Sport and Entertainment Development Co., Ltd. is its latest effort to expand its business activities in Vietnam, following different acquisitions in retail and health sectors.
In 2007, Me Tri was assigned with 32.1 hectares of land in the city's center to build a $15-million sports and entertainment complex.
However, in 2010, Hanoi's authorities changed the land's designated purposes to only allow non-commercial projects, effectively canceling the original plan.

4. Japanese corporations invest in Nam Long’s Flora Anh Dao project

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Japanese companies Hankyu Realty and Nishi-Nippon Railroad have decided to invest into an affordable apartment project developed by the Ho Chi Minh City-listed Nam Long Investment Company (HOSE: NLG).
The Flora Anh Dao is Nam Long’s first Flora branded-product targeted at middle and upper class earners. The total investment for the project is estimated at VND500 billion ($23.8 million).
Apart from contributing investment, the Japanese companies will also share their ample development experience, as well as providing products based on a 3G concept: gettable, green and greater.
Nam Long chairman Nguyen Xuan Quang said that Flora was an upscale brand of the company’s existing EHome concept which leads the affordable housing segment in Vietnam.
Quang also said that the Flora product would provide profits of 12 to 15 per cent and account for about 15 per cent of Nam Long’s total turnover in 2015.
Located at Nam Long – Phuoc Long B residential area in District 9, Flora Anh Dao has good transport links.
Set for completion in 2016, the 16-floor Flora Anh Dao block will offer 500 units, a Japanese-style garden, community club, children's playground and other amenities. Ranging from 54 to 67 square metres, Flora Anh Dao apartments will cost around VND18.9 million ($900) per square metre.
Nam Long is one of the pioneering township developers in Vietnam. With 23 years of development experience, it is well-known for projects in Ho Chi Minh City, Binh Duong, Can Tho, Long An, Ba Ria-Vung Tau, and Dong Nai, currently holding 572 hectares of land for development.
Having supplied more than 3,300 units since 2008, Nam Long’s EHome brand is known in Vietnam for its affordable flats.
The company intends to develop 6,000 Flora apartments in the next three to five years in Ho Chi Minh City and is keen to acquire suitable land plots to develop this product.

5. Indochina Land transfers four projects for Gaw Capital Partners

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Indochina Land on June 2 announced it has transferred four property projects in Vietnam to Gaw Capital Partners, a real estate fund manager head-quartered in Hong Kong.
Indochina Land said one of its investment fund, Indochina Land Holdings 2 (ILH2), pulled out of Indochina Plaza Hanoi in Hanoi City, Hyatt Regency Danang in Danang City, one project in Quang Nam Province and one in HCMC. They are among a dozen projects that ILH2 has invested in.
Indochina Plaza Hanoi located on Xuan Thuy Street of Cau Giay District has one 16-storey office building and two apartment buildings with 32 and 36 floors. Meanwhile, Hyatt Regency Danang is a resort nearby the Danang beach and comprises of a five-star hotel, 174 apartments and 27 villas.
The two projects were completed and put into operation.

6. Van Phu Invest invests in 1.5 hectares of "diamond land" at 138B Giang Vo

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Hanoi-based real estate investment company Van Phu Invest has purchased a prime land on Giang Vo street, Hanoi, for VND643.8 billion ($29.67 million).
The land is currently the campus of the Hanoi School of Public Health, with a total area of 15,600 square metres. As the Ministry of Health has decided to re-locate the college to another district, the land is being sold in exchange for Van Phu’s investment in the new facility, which is estimated at VND643.8 billion.
Van Phu Invest is expected to hand over the new facility next year. Meanwhile, on the company website, Van Phu Invest has added a new project called the “Giang Vo Complex”, but no information about the development has been updated.
Van Phu Invest is one of the five realty firms that recently bid for the Hoa Binh Tower on Hoang Quoc Viet street, Hanoi. However, the bid was won by An Cu Co Ltd, which paid VND735 billion for the development.

7. Khang Dien House acquires Binh Chanh Construction JSC

10 biggest real estate transactions in Vietnam in 2015, vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news
Ho Chi Minh City-based Khang Dien Housing JSC in late November decided to pay nearly VND800 billion ($38 million) purchase an additional of 32 million shares of the Binh Chanh Construction Investment Shareholding Company (BCI) to raise its ownership rate to 57.3 percent.
The current holding of Khang Dien in Binh Chanh is 20.4 percent equity stake, which translates into 17.7 million shares, making it the largest investor in the company.
Besides owning several realty projects in southern Vietnam, Binh Chanh revealed that it has expanded into infrastructure construction projects under the BOT model. Additionally, the company planned to partner with Cavi Retail Limited to enlarge the presence of the French supermarket chain Big C.

8. Hoanh Son cooperates with Gold Star Rubber Corporation to develop golden land at 231 Nguyen Trai

10 biggest real estate transactions in Vietnam in 2015, vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news
After Hanoi decided to move polluting establishments and factories out of the urban center, the 6.2 hectare plot of land at 231 Nguyen Trai Road of the Gold Star Rubber Corporation was eyed by many real estate firms.
It was predicted that the Gold Star Rubber Corporation would transfer the land or cooperate with a large corporation like Vingroup, FLC Group, T&T, or BRG to develop an estate project on that plot. However, in November 2015, this firm signed a contract with Hoanh Son JSC to build a housing and commercial centre project.
Accordingly, the two sides will set up the Gold Star – Hoanh Son JSC with expected charter capital of VND1,673 billion ($83 million).
Hoanh Son JSC’s Chairman is Mr. Pham Hoanh Son, who was born in 1972 in the central province of Ha Tinh. This businessman is not very popular in Vietnam although his firm has carried out many large projects in the central region.

9. Song Da Thang Long transfers part of Usilk City to Hai Phat Thu Do

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Song Da Thang Long has just transferred the CT2-105 building in Van Khe new urban area (Usilk City) to Hai Phat Thu Do Joint Stock Company. CT2-105 is a block with 50 floors and two basements, providing 752 apartments.
According to initial information, Hai Phat Thu Do has acquired this building for VND50 billion (nearly $2.5 million). This block is part of the Usilk City project developed by Song Da Thang Long JSC, a relatively large apartment complex in Ha Dong district, Hanoi.
Usilk City features 13 buildings from 25 to 50 floors, satisfying the demands of more than 10,000 households. With three connected ground retails over 13 buildings, the project is expected to be an ideal shopping destination in the near future. Also, Usilk City offers two spacious basements over 1 km of Le Van Luong Street, which will provide sufficient parking spaces for both residents and customers.
Usilk City is only 4km from the Trung Hoa – Nhan Chinh urban area. It lies at the intersection of some of the capital’s main roads, including Le Van Luong, Le Trong Tan, Street 72, Thang Long Avenue, Zone 4, etc.

10. SCIC divests from Kim Lien Hotel

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Based on the Vietnamese State’s policy of withdrawing capital from unnecessary fields, in November 2015 the State Capital Investment Corporation (SCIC) announced an auction of a lot of 3.6 million shares of Kim Lien Tourism JSC, the owner of Kim Lien Hotel. The starting price was set at VND30,600 per share, equivalent to VND112 billion ($5 million) in total.
Kim Lien Hotel is located on an area of 3.5 hectares, which is considered the "golden land" in the heart of Hanoi. The auction attracted many giant organizations and individuals. The winner had to spend more than VND1,000 billion, nine times more than the offering, to acquire the shares.

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Monday, March 21, 2016

Resort sales follow realty resurgence

Resort sales follow realty resurgence

Supported by stable economic growth and the upturn of the market, Vietnam’s resort and hospitality segment is expected to see a surge in investment capital this year.


High-end beachfront property sales will likely continue to swell nationwide in 2016 thanks to the increased demand
and the recent recovery of the real estate market   Photo: Le Toan

Segment upswing

According to Nguyen Tran Nam, chairman of the Vietnam Real Estate Association, 2015 saw the local economy stabilise, with an increase in local income. This led to a rise in the demand of the property sector generally, and a marked climb in demand for resort realty.
Duong Dung, director of Research and Consulting for CBRE Vietnam, commented that in 2016 resort development would reach fever pitch.
The basis for this statement lies in the recovery of the residential, retail, and office-for-lease segments of the real estate market in 2014 and its continuation into 2015.
“The resort segment will follow the trend of recovery of those other segments within the next six to 12 months,” Dung told a seminar themed “Resort Property 2016 – Potential and Challenges” organised early this month in Ho Chi Minh City.
Optimism vis-à-vis the resort segment is also attributed to the skyrocketing of tourist numbers to beachfront resorts such as the central cities of Nha Trang and Danang, and the southern island of Phu Quoc.
The latest figures from CBRE Vietnam show that the resort segment ascended sharply in 2015. In Danang, transactions increased 26-fold, from seven units sold in 2014 to 180 units in 2015. In Nha Trang, only 103 units were sold in 2014, compared to 481 units last year. The strongest ascent, however, was reported in Phu Quoc with nearly 850 units sold last year from zero in the previous year.

Great potential

Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, said that Vietnam had great potential in terms of resort development. “With recent regulations allowing foreigners to conduct real estate business in Vietnam, this segment will have added momentum to take off in the near future.”
Vo said, however, that a developer’s success in this segment would depend ultimately on their good brand name and professionalism. Additionally, developers must diversify the types of resort they build, so as to offer more options for new potential customers.
“Vietnamese developers should learn lessons from the development of resorts in other countries like Thailand, and adopt them here,” Vo said.
Peter Mach, vice chairman of Tanzanite International, the developer of The Hamptons in the southern city of Vung Tau, said that Vietnam had a particularly long holiday season. As such, it had vast potential for expanding resort and hotel accommodation. Besides, Vietnam lured about seven million foreign visitors per year with a great demand for resort products and high expenditure on tours. “These factors will spur the strong future development of the local resort market. We have no worries regarding a lack of demand for resorts,” Mach said.
According to Leong Boon Hoe, managing director of CBRE Singapore, Singaporean investors have recently set their sights on Vietnam’s vacation villas, as they are far cheaper than those in other countries.
For instance, a 300-square-metre villa in Sentosa Singapore is sold at between $12.6 million and $14 million, and a three-bedroom apartment is offered at between $500,000 and $840,000. Meanwhile, a similar villa at Sun Group’s Premier Village Phu Quoc Resort, in the Premier Village Danang Resort, or in Premier Residences Phu Quoc Emerald Bay was priced at between $1 million and $2 million; those at InterContinental Danang Sun Peninsula Resort between $3.8 million and $6.5 million; while a Sun Group apartment was offered at between $150,000 to $1 million.
Real estate broker and chairman of G5 Nguyen Quoc Khanh said that even high-end resort villas priced at $700,000 to $1.5 million were sold in their thousands in 2015.
“Buyers are paying attention to the potential gains from re-leasing their resort properties, and not so much as a second home, as was previously the case,” he said. The majority of projects are offering attractive rental yields at present, from 8 to 10 per cent per year.

From the south to the north

The local market has attracted many domestic buyers through the launch of many large-scale resort projects with synchronous infrastructure development and reasonable sales prices. In the south, Phu Quoc, Phan Thiet, Binh Thuan, and Vung Tau loom large on investors’ radar.
The Ho Chi Minh City beachfront villa market has heated up recently with the news that Vingroup received approval from the local people’s committee to become a strategic partner in implementing the 821-hectare Can Gio sea urban area.
During the past three years, a range of three- to five-star resorts have begun construction in the Ho Tram area of Vung Tau, including VietsoPetro, Ho Tram Beach Resort & Spa, Carmelina, Huong Phong-Ho Coc, Saigon-Binh Chau, Sanctuary, River Bay, Loc An, and Marine City. Vung Tau now has over 7,900 hotel and resort rooms, while the city welcomes around 16 million tourists per year.
Phu Quoc has undergone sweeping changes since a master plan for the development of the island was approved by the government in 2004, making it more attractive to tourists and investors from around the world. Major changes on the island include a road network that runs around and through Phu Quoc, the connection of the island with the national power grid, and the construction and upgrade of ports and airports, particularly the international airport.
Hefty investments from Vingroup and Sun Group, together with a long list of other major investors like LDG Group, CEO Group, and BIM Group have livened up the island’s investment environment. One of the island’s most iconic developments to date is Vingroup’s Vinpearl Phu Quoc resort complex on 300ha in Ganh Dau commune.
Sun Group is speeding up work on large resorts like J.W. Marriott, Premier Village Phu Quoc, and Sebel Phu Quoc, along with a water sports complex on Hon Thom and a cable car connecting it with An Thoi town.
According to the Kien Giang Department of Planning and Investment, the southern province has licensed almost 200 investment projects with a combined registered capital sum of around $10 billion.
The central provinces, meanwhile, still boast the country’s most popular destinations. Graced with some of the most beautiful beaches in the world and located in close proximity to world-famous cultural relics such as Hue citadel, Hoi An ancient town, and the holy land of My Son, Danang has continued to attract millions of domestic and foreign tourists. Unsurprisingly, the resort and hospitality sector there continues to go from strength to strength. 
Nha Trang has also been luring many buyers for vacation properties in recent years, which has caused many apartment projects to increase their prices. Some outstanding projects include Costa, Cham Oasis, Stellar, and Muong Thanh. The heating up of the property market in this city has motivated investors to develop their apartment and villa projects by the end of this year, including in Phuc Khanh 1 urban area, Royal Marina, the Riviera, and Mipeco urban area.
Even though the northern provinces have no easily accessible beaches to speak of, developers are still pursuing the sale of resorts here. Syrena Vietnam Investment and Development JSC (Syrena Vietnam), the property development subsidiary under  BIM Group, recently launched its Green Bay Village and Lotus Residences  in the northeastern province of Quang Ninh’s Halong city. These projects have proven quite attractive to second-home buyers.
FLC Group, another real estate heavy hitter, opened its five-star FLC Vinh Thinh resort in the northern province of Vinh Phuc last week, becoming the province’s biggest luxury resort so far. The group also began work on the resort’s second phase of construction, covering 250ha, with the total investment of VND4.6 trillion ($286.4 million).

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Friday, March 18, 2016

Less risks won't harm property market: SBV

Less risks won't harm property market: SBV

The amendments to Circular No 36 are meant to urge commercial banks to strengthen the risk management of lending activities, rather than tighten the credit sources for the real estate sector, said Pham Huyen Anh, Deputy Chief Inspector of the State Bank of Viet Nam

In a draft document from the central bank circulated for public opinions, the risk index of receivable lending for real estate and securities would be raised from 150 per cent (the lowest level) as stipulated in Circular No 36 to 250 per cent.- Photo petrotimes.vn
He made the statement to reassure real estate insiders amidst fears that the new regulations would have negative impacts on the real estate market which has seen signs of recovery.
In a draft document from the central bank circulated for public opinions, the risk index of receivable lending for real estate and securities would be raised from 150 per cent (the lowest level) as stipulated in Circular No 36 to 250 per cent.
The maximum ratio of short- term funds used for medium and long term loans would be reduced from 60 per cent to 40 per cent.
Chairman of the Viet Nam Real Estate Association Nguyen Tran Nam said that since Circular No 36 had come into effect a year ago, the number of transactions in the housing market increased, proving that there was considerable demand for houses.
Outstanding loans in the housing sector were still under control, Nam added, and suggested that the circular be unchanged at the moment.
Pham Duc Toan, general director of the EZ Viet Nam Real Estate Development and Investment Company, said that the amendments would make it difficult for property investors and traders to get loans, which could increase house prices.

Good sentiments

Contrary to the opinions of real estate developers, the amendments received praise from experts and commercial banks.
Nguyen Thi Kim Thanh, member of the Board of Director of the Bank for Investment and Development of Viet Nam (BIDV) and former head of the SBV's Monetary Policy Department, said that the new policy was an indirect method that the SBV could apply to prevent a bubble in the real estate market.
"I think that the market now is over supplied as too many projects are underway while people who have real demand for a house can not afford one due to their low income.
"Housing enterprises must find ways to adapt themselves to new economic and policy conditions," Thanh said.
HSBC Viet Nam General Director Pham Hong Hai said to Thoi bao Kinh te Viet Nam (Vietnam Economic Times) that this was a signal to housing enterprises that they should be more cautious.
"The change in risk index of receivable lending for real estate (250 per cent) is suitable, because a large amount of capital has been poured in the real estate sector."
Enterprises should look at both the supply and demand sides of the market to ensure efficient performance, Hai added.

Good decision

Chau Dinh Linh, a lecturer at the Banking University of HCM City, said that implementing the amendments would be a good decision.
"The new regulations would help not only prevent risks from the property market but also redirect the capital flow in the financial market. We have relied too much on the monetary market as a capital supplying channel while the capital market including bonds and securities is underdeveloped.
"The country's economic development does not depend only on the real estate sector, but on the real production and consumption," Linh said.
"If real estate developers want to have sustainable businesses, they should not count on short-term capital sources to do medium- and long-term investment projects," he added.
Anh said that the amendments were drafted to ensure the banking system's health. If the banking system was not exposed to excessive risks, then enterprises would find it easier to access loans, he explained.

Fire rekindled

According to Anh, monetary policy was not the only way to boost the real estate market's development. He said that the market had got out of the worst situation and real estate companies should not count on bank capital.
Banks have completed their role in "rekindling the fire" and it is necessary to have policies to lure capital from other sources such as foreign investment or remittances into this sector.
A long-term and stable property market needed the consistent implementation of many policies such as fiscal, tax and land.
The SBV official said that they had predicted the response of stakeholders when issuing the draft amendments. However, the SBV would do further research before a final decision and draw a roadmap for the market to have time to adapt, Anh stressed.

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Japanese eye up local estate market

Japanese eye up local estate market

Japanese investors are increasing their presence in Vietnam’s real estate sector by teaming up with domestic partners.

Tokyo-based investment fund Creed Group became the first foreign investor in the Vietnamese property sector so far this year via its participation in a $500-million residential project in Ho Chi Minh City’s District 7. Along with its partners Phat Dat Real Estate Development Corporation and An Gia Investment, Creed Group will develop the River City project in the southern part of the city, which will comprise of 8,000 apartments in 12 blocks.
This not the first time that Creed Group has invested in Vietnam’s real estate sector. Last year, the group gave $200 million to An Gia to develop the Angia Skyline and Angia Riverside properties which, combined, will supply 2,000 units to the Ho Chi Minh City market. A source from the company said that more than 90 per cent of the projects’ units have already been sold.
According to Toshihiko Muneyoshi, chairman of Creed Group, the real estate market in Vietnam has similar potential to those in a handful of other Asian countries. Creed spent more than ten years researching the Vietnamese property market, and found similarities between the local market and the initial period of real estate development in countries such as Japan, South Korea, and Singapore.
“We succeeded in our previous projects, so we decided to participate in this new project,” said Muneyoshi, adding that “the demand for real estate among people and enterprises is huge, requiring the participation of professional investors”.
He also noted that Vietnam was becoming more deeply integrated into the world’s economy, with many trade agreements already signed and taking effect, opening up chances to woo foreign investors to the country. Another draw for property investors are the laws on Housing and Real Estate Business, which have relaxed real estate ownership rules for foreign entities and individuals, and opened up the rights of foreign property firms to conduct business in Vietnam.
According to the Japanese Consulate in Ho Chi Minh City, out of all global investors, Japan last year had the third-largest investment capital sum in Vietnam at a total of $1.84 billion, with 281 newly-registered projects and 129 expanded projects. Real estate is the third-largest sector for Japanese investment, following the manufacturing and construction industries.
Alex Crane, general director of Cushman & Wakefield Vietnam, said that in the past few months, two significant commercial transactions in Ho Chi Minh City and a large debt transfer in Hanoi indicated very strong interest from international groups in Vietnam’s real estate market – particularly South Korean and Japanese firms.
“The cap rate in Ho Chi Minh City is extremely aggressive, with deals reported at a Net Initial Yield below 8 per cent, the first time this has been achieved in an on-market transaction. This level of return is comparable with those in second-tier cities in Australia,” Crane said at a recent seminar on real estate held in Ho Chi Minh City.
The government-owned Japan Finance Corp’s survey of 676 mainly small and mid-size Japanese overseas subsidiaries shows that in its list of the most popular countries for Japanese investment in 2015, 18.6 per cent of Japanese investors expressed an interest in Vietnam, compared to 15.5 per cent in 2014 (see box).
Truong Thi Hoa, a lawyer in Ho Chi Minh City, said that investment capital from Japan  would continue coming to Vietnam’s real estate market this year. However, she also warned that Japanese investors were meticulous, so domestic developers must carefully prepare their portfolios before showing them to Japanese partners in order to have a better chance of clinching investment deals.
In 2015, a range of Japanese companies participated in Vietnam’s property sector, including Daiwa House, Nomura Real Estate Development, Sumitomo Forestry, Hankyu Realty, and Nishi-Nippon Railroad.

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Phu Quoc condotels warming up the market

Phu Quoc condotels warming up the market

Condotels in Phu Quoc are becoming increasingly attractive to foreign investors because of their location in one of the hottest tourism destinations of Vietnam as well as the prestigious developers behind them.
On March 8, a Boeing 787 of Swiss airline TUI Nordic, packed with Northern European tourists, landed at Phu Quoc International Airport. A representative of the airline said that in the last months of 2016 they are going to have weekly flights to Phu Quoc.
Besides being a popular destination for tourists from Russia, Singapore, Malaysia, and Thailand, Phu Quoc has recently started welcoming visitors from Europe. In the past year, many foreign airlines have opened routes or increased the frequency of flights to Phu Quoc because the infrastructure serving tourism, especially accommodation, has improved remarkably.
As the island is looking forward to a boom in tourism, now is a unique time to invest in real estate here. 
In fact, foreign investors from a variety of countries have already shown great interest. At the beginning of 2016, an event to introduce Sun Group’s hospitality real estates in Singapore attracted representatives from more than 200 real estate companies. Leong Boon Hoe, managing director of CBRE Singapore, said that three factors making hospitality real estate in Vietnam attractive to Singaporean investors are their competitive prices, good location, and the prestige of the developers.
In Singapore, a three-bedroom condotel is priced between $500,000 and $840,000 while a similar condotel in Vietnam only costs about 25 per cent of that. 
Sun Group’s condotels are within the resort and close to the seaside. The building density is 30 per cent, while the remaining 70 is reserved for green space and 5-star amenities. The developer commits a profit of at least 9 per cent per year for nine years, and the owner of the condotel gets 135 nights in their estate or a comparable accommodation for these nine years. 
Condotels are also an attractive choice compared to other investment options. If one buys a condo in the city, one remains hard-pressed to think of ways to earn a profit. In case of a condotel, the developer commits a fixed profit. Sometimes the profit one makes is even higher than the committed rate. It could reach 15 per cent per year or higher if the condotels are managed by internationally renowned hotel companies.
The condotel model is a recent addition to the Vietnamese real estate scene, though enjoying international popularity for a while now. Condotels in Singapore, Boracay in Phillipines, Bali in Indonesia, and Sydney in Australia have proved extremely profitable.
Condotels were hot in Vietnam five years ago, when investors raced to get their hands on condotels from international projects, such as Hyatt Regency and Azura in Danang. At that point, the price was $4,500 per square metre. At the end of 2015 condotels made a comeback with Sun Group’s Condotel Premier Residences Phu Quoc Emerald Bay project, and judging by the warm welcome of the market, one can say that condotels have not lost their shine.
With not only Sun Group, but also many real estate companies, such as Vingroup and LDG Group, seeing big opportunities in the condotel segment, investments in the area are poised for a surge in 2016.

Kevin Vu - Kevinvuproperty.com
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Friday, March 11, 2016

Frequently asked questions

FAQs

Why invest in Vietnam Real Estate Market?

The Real Estate market in Vietnam has just open in 2015, it is a new, dynamic market with big room of development.

Who is eligible to purchase Property in Vietnam?

People who entered Vietnam legally is able to buy with leasehold of 50 years and 1 extension up to 100 years. They would have full rights (as Vietnamese): Buy, Sell, Gift, Inherit…

What kind of property that foreigner can own in Vietnam?

Foreigners can own any kind of property which belong to commercial projects: Apartments, Condominiums, Land house… in their own names, provided that the total number of foreign held units does not exceed 30% of the total number of units in a particular condominium block or 250 units of land house in a Ward. The owner of each property obtains a certificate of unit ownership.

What are the Service Charges (maintenance fee) for Condominiums?

Service charges are rather low in Vietnam. They are used to maintain the common areas of the building like lifts, pools and corridors. They vary considerably according to the degree of luxury provided by the existing infrastructure.

Do I need bank account in Vietnam to buy property?

Not necessary. You can open an account in Vietnam to transfer money from outside of Vietnam to the account and from the account to Developer’s. Or transferring money directly to Developer's account from outside of Vietnam (Ask Developer for accepted currency).

Can I sell my property in the future? To Whom?

Of course it is possible to sell your property in the future, the buyers are Vietnamese or Foreigners. If selling to Foreigners, leasehold would transfer directly to new owner and keep the number of years left. If selling to Vietnamese, the leasehold right would convert to Freehold. Tax is 2% on total amount. 

Vietnam Property Taxes

Transfer tax                2% of the registered value of the property.

Register tax and fee    0.65% of registered value. 



DECREE: DETAILED REGULATIONS AND GUIDELINES FOR IMPLEMENTATION OF A NUMBER OF ARTICLES OF HOUSING LAW


Article 5. Documents proving the object is owned houses

1. For organizations, households and individuals in the country when the procedures for granting certificates of land use rights, ownership of houses and other assets attached to land (hereinafter referred to as certificates ) they must have ID papers identify objects under the provisions of the certificate of land legislation.
2. For Vietnam residing abroad must have papers according to the following provisions:
a) Where Vietnam passport must be valid and verifiable stamped immigration authorities of entry and exit Vietnam at the passport;
b) Where a foreign passport must be valid with stamp verifying immigration authorities of entry and exit Vietnam at passport and accompanied by proof of nationality Vietnam or papers confirmation is originally from Vietnam by Department of Justice of the provinces and centrally-run cities, Vietnam representative offices abroad, the management agency of Vietnam people overseas or other prescribed documents Vietnam law.
3. For organizations, foreign individuals must have proof of the object as defined in Article 74 of this Decree; Foreign individual have confirmed the original papers Vietnam, have the right to choose an object of application are Vietnam residing abroad or foreign individuals to determine the ownership of houses in Vietnam.


RESIDENTIAL PROPERTY IN VIETNAM OF ORGANIZATIONS AND INDIVIDUALS ABROAD

Article 74. Documents proving the object and conditions of housing property in Vietnam

1. For foreign individuals must have a valid passport stamped to verify immigration authorities of entry and exit Vietnam and not entitled to the privileges and immunities of diplomatic prescribed Ordinance on privileges and immunities for diplomatic representative offices, consulates and representative offices of international organizations in Vietnam.
2. For foreign institutions must be subject to the provisions of Article 159 of the Housing Law and have the certificate of registration of investment or document issued by the competent authorities of Vietnam to operate in Vietnam valid at the time of conclusion of the transaction for housing (hereinafter referred to as the certificate of registration of the investment).

Article 75. Area which organizations and individuals have rights to own houses

1. Organizations and individuals may only own houses (including apartments and individual houses) in investment projects in commercial housing construction, except for the area to ensure defense and security in accordance with the law of Vietnam.
2. The Ministry of Defense, Ministry of Public Security shall specify the area to ensure security and defense in each locality and written notice to the provincial People's Committee to make based steering DoC specified investment portfolio built commercial housing in the province does not allow organization or foreign individual ownership of housing.

Article 76. The number of housing organizations or individuals to own

1. Based on information from the Ministry of Defense, Ministry of Public Security and the direction of the provincial People's Committee under the provisions of Clause 2, Article 75 of this Decree, the Department of Construction is responsible publicized on the Portal Electronic Information Department of the following:
a) The list of investment projects in housing construction in the locality in the region that organizations and individuals are not allowed to own houses;
b) Number of dwellings (including apartments, detached houses) which organizations or individuals are owned in each investment project housing construction is not subject to regulation at this point a paragraph; number of apartments in each apartment building, the amount of each individual housing projects that organizations and individuals are owned abroad;
c) The number of housing organizations or individuals have purchased, leased, were granted certificates at each investment project housing construction;
d) The number of apartments that organizations and individuals are owned in a case in areas with a population equivalent of a ward-level administrative units have many apartment buildings; number of individual houses which organizations and foreign individuals to own in one case on a region with a population equivalent of a ward-level administrative units that have one or more projects, but total number of houses less individual or equivalent by 2,500 units.
2. Organizations and individuals are entitled to own houses in Vietnam may purchase, lease-purchase housing project investors build houses, buy houses of organizations and individuals provided in Point b Paragraph 4 of Article 7 of this Decree and only inheritance, donation of household housing, personal or donation of housing organizations in the number of houses under the provisions of subsection 3, paragraph 4 of this Article in the investment projects of housing construction is allowed to own; Where organizations, foreign individuals to donate or inherited houses in Vietnam but not entitled to own houses in Vietnam shall be settled as provided for in Article 78 of this Decree.
3. Organizations and individuals are permitted to own no more than 30% of the apartments of an apartment building; case on a region with a population equivalent administrative unit ward that many apartment buildings for sale or lease purchase, the organizations and individuals may only own less than 30% of the apartments of each apartment building and not exceed 30% of the apartments of all the apartment buildings.
4. Where in a region with a population equivalent of a ward-level administrative units that have investment projects construction of commercial housing, including detached houses for sale or lease purchase, the organization, foreign individuals owning number of separate houses according to the following provisions:
a) Where there is only one project that the number of separate houses less than 2,500 units, the organizations and individuals may only own less than 10% of the total number of houses in that project;
b) Where there is only one project that the number of separate houses, the equivalent of 2,500 organizations and individuals may only own less than 250 units;
c) Where there are two or more projects that the total number of separate houses in these projects less than or equal to 2,500 units, the organizations and individuals may only own less than 10% of the number of houses each project.
5. MOC specific instructions how to determine the number of houses that organizations and individuals are owned stipulated in Paragraph 3 and 4 of this article.

Article 77. Extension of period owned houses in Vietnam's organizations, foreign individuals

1. Where a foreign individual ownership of housing as defined in Article 2 point c of Article 161 of the Housing Law, the extension period house ownership is defined as follows:
a) before the expiration of 03 months of ownership housing, if owners wish to extend the application must be clearly stated deadline extension proposal together with a certified copy of the certificate for housing and sent to the provincial People's Committee where the house that consideration and settlement;
b) Within 30 days from the date of receipt of application by the owner, the provincial People's Committee for consideration and written consent deadline extended once owned housing at the request of the owner ownership but not exceeding 50 years from the expiration of the first time home owner stated on the certificate, except in cases provided for in Paragraph 3 of this Article;
c) Pursuant to a written consent for extension of the provincial People's Committee, the competent authority for certificates shall record on the certificate renewal; Certificate authorities to back a copy of the certificate and transfer to the Department of Construction for monitoring.
2. If a foreign organization owned housing deadline prescribed in Clause 2, Article 161 of the Housing Law, the extension period house ownership is defined as follows:
a) before the expiration of 03 months of ownership housing, if owners wish to extend the application must be clearly stated deadline extension proposal together with a certified copy of the certificate for housing and certificates of registered investments were competent agencies of Vietnam to extend the operation and sent to the provincial People's Committee where the house in which to consider and resolve;
b) Within 30 days from the date of receipt of application by the owner, the provincial People's Committee for consideration and written consent deadline extended once owned housing at the request of the owner ownership but not exceeding the time limit stated on the certificate of registration of investment was competent agencies of Vietnam to extend the operation;
c) Pursuant to a written consent for extension of the provincial People's Committee, the competent authority for certificates shall record on the certificate renewal; Certificate authorities to back a copy of the certificate and transfer to the Department of Construction for monitoring.
3. If on the expiry of first ownership by individuals and foreign organizations with competent agencies of Vietnam decided to force the exit or forced termination of operations in Vietnam shall not be extended deadline property as defined in Paragraph 1, Item 2 of this Article; Housing objects are processed in accordance with Clause 3 of Article 8 of this Decree.

Article 78. The case is not recognized ownership of houses in Vietnam

1. Organizations and individuals under circumstances specified below, shall not be granted certification for the houses that can only be sold or donated to these houses to objects owned houses in Vietnam:
a) Organizations and individuals donated to or inherited houses located in areas not subject to ownership as provided for in Article 75 of this Decree or exceed the number of houses under ownership permitted provisions of paragraph 3, paragraph 4 of Article 76 of this Decree;
b) Foreign organizations not operating in Vietnam, foreign individuals are not allowed to enter Vietnam but being donated or inherited houses in Vietnam.
2. Subject to the provisions in point a paragraph 1 of this article are direct or authorize others to sell or donate houses; subjects specified in Clause 1 of this Article may authorize individual or organization residing and operating in Vietnam sell or donate houses.
3. The sale, house donation of objects specified in Paragraph 2 of this Article shall be conducted with the papers according to the following provisions:
a) Contracts awarded for papers on inherited housing is made under the provisions of law on housing and civil laws of Vietnam;
b) Proof of ownership of the donor's house, the bequest under the provisions of the Housing Law and Article 72 of this Decree;
c) There is a written authorization to sell or donate houses made under civil law if the other person authorized to sell, donate houses.
4. The order and procedures for sale, house donation of objects specified in paragraph 2 of this Article shall comply with the provisions of the Housing Law and this Decree.
5. In the case of the object are inherited housing both entitled to own houses in Vietnam and who are not entitled to own houses in Vietnam, the parties have agreed inherited division This residential property in one of the following cases:
a) The parties agree to request the competent authority for certificates for such housing for people entitled to own houses in Vietnam;
b) The parties agree to implement donate or sell these houses to entities eligible to own houses in Vietnam under the provisions of Paragraph 2, Item 3 of this Article to enjoy value.

For any further queries, please contact us via Email: Kevinvuproperty@gmail.com or Tel: (84) 988 060 330


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