Vietnam mulls ban on unfinished home sales

An incomplete mansion in Hanoi
The Ministry of Construction has proposed a new rule that bans project developers to sell land and half-built houses to customers.
Residential property developers must finish construction before being allowed to sell their projects, the rule said.

In its latest report on the real estate market, the ministry found that many people cannot afford a house while some others have been leaving their houses unfinished and unoccupied for a long time, which it said is a waste of land resources.

An inspection of 18 residential projects in Hanoi found that only 80 percent of townhouses and 50 percent of villas were put into use, according to the report.

The Ministry of Construction said it is necessary to control bank loans to real estate projects, especially in the high-end market segment. Uncontrolled credit to luxury housing and resort projects can cause the market to collapse, the ministry warned.

UAE investments in Vietnam have reached $3 billion

The UAE spent $130 million in direct investments in Vietnam, while additional indirect investments such as joint ventures and securities brought the total figure to $3 billion, said Vo Hong Phuc, Vietnamese Minister of Planning and Investments after signing a Memorandum of Understanding with Emirates Gate Investment yesterday. "The aim is to facilitate UAE entrepreneurs to invest in Vietnam," he said, adding that a host of UAE firms are already investing in Vietnam and more continue to show interest.
"Investment from the UAE to Vietnam is modest but I see potential for the future," he told reporters after the event. Key investment sectors include manufacturing, energy and infrastructure, he added.

Vietnam office rents among the highest in the world

HO CHI MINH CITY: The office rent rates in Vietnam’s biggest cities such as Ho Chi Minh City and Hanoi are among the highest in over 100 markets worldwide, according to an annual report released by British real estate services firm Knight Frank last week.
Ho Chi Minh City is the 19th and Hanoi (21st) most expensive markets with prime rents at US$38 and US$36.5 per square metre per month respectively, the report said.
The rates are more expensive than established markets like Manhattan (New York), Frankfurt (Germany ), Shanghai (China ), Brussels (Belgium ) and Rome( Italy), according to the Vietnam news agency.
However, the availability has increased in Vietnam, with both the cities seeing large amounts of new Grade A office supply during 2010.
This has caused vacancy rates to rise and put pressure on Grade A rents.
Meanwhile, demand remains strong in the Grade B and C office sectors, according to the report.
Elsewhere, the rental growth has been led by the world’s major financial centres, with office rents rising in cities such as London, New York, Hong Kong and Singapore, said the report.