HANOI, Sept 25 Asia Pulse - Vietnam is one of the most attractive markets for real estate developers in Asia, foreign and local investors have said.
The investors represent 70 local and foreign real estate groups, who are tracking developments and opportunities in Vietnam's market at a two-day seminar in Ho Chi Minh City, which kicked off on September 23.
They were of the view that the property market in Vietnam offers lucrative opportunities despite volatile prices, which explain why half of $47 billion in FDI pumped in the country in the past eight months went into property development projects.
The bustling economic hub of Ho Chi Minh City saw 90 per cent of its $7.9 billion in FDI in the reviewed period injected in real estate.
A new trend has appeared in the sector with Vietnamese real estate developers partnering with foreign businesses in property development projects.
Tuesday, September 30, 2008
Saturday, September 20, 2008
Businesses give real estate loans cold shoulder
According to the State Bank of Vietnam, outstanding real estate loans of commercial banks now account for only 9% of total outstanding loans of the whole banking system. The Bank for Investment and Development of Vietnam (BIDV) has outstanding real estate loans of 5.87% of its total outstanding loans, while Sacombank 3%.
However, some banks have announced they have resumed real estate credit as capital has become more profuse. VP Bank, for example, has announced VND2tril capital has been set aside for funding real estate projects, while Military Bank said that the bank’s management board has approved a plan to provide real estate credit at up to 10% of its total credit limit. Prior to that, Sacombank and some other banks launched products on funding house purchase plans with payment by installments.
However, some banks have announced they have resumed real estate credit as capital has become more profuse. VP Bank, for example, has announced VND2tril capital has been set aside for funding real estate projects, while Military Bank said that the bank’s management board has approved a plan to provide real estate credit at up to 10% of its total credit limit. Prior to that, Sacombank and some other banks launched products on funding house purchase plans with payment by installments.
Wednesday, September 10, 2008
Foreign real estate brokers practise in VN
Ha Noi — Foreign real estate brokers with valid licences granted by foreign agencies will be permitted to practise in Viet Nam, the Construction Ministry has said.
These licences must be translated into Vietnamese, notarised or certified in accordance with Vietnamese laws, and sent to local agencies in charge of managing real estate business activities, the ministry added.
The Ministry of Construction will issue specific regulations on granting real estate brokerage and appraisal certificates to foreign individuals in the near future.
The present Law on Real Estate Business does not require educational and professional qualifications from individuals applying for real estate brokerage certificates. — VNS
These licences must be translated into Vietnamese, notarised or certified in accordance with Vietnamese laws, and sent to local agencies in charge of managing real estate business activities, the ministry added.
The Ministry of Construction will issue specific regulations on granting real estate brokerage and appraisal certificates to foreign individuals in the near future.
The present Law on Real Estate Business does not require educational and professional qualifications from individuals applying for real estate brokerage certificates. — VNS
Friday, September 5, 2008
Domestic real estate developers have land but no money
Truong Thai Son, Deputy General Director of Hoang Quan Real Estate Corporation, pointed out the three biggest problems of the real estate market.
First, the market is still a fledgling market with insufficient components and few transactions. Moreover, a lot of ‘real estate products’ are still not considered commodities.
Second, there exists a big gap between supply and demand. The national market economy is now developing strongly, and the demand for real estate is increasing, but supply is becoming scarcer.
Some people mistakenly think that the real estate market is now freezing because of oversupply and low purchasing power. In fact, demand still far exceeds supply. The market is now lackluster because of the overly high prices of land and apartments, which prove to be unaffordable for the majority of Vietnamese people.
First, the market is still a fledgling market with insufficient components and few transactions. Moreover, a lot of ‘real estate products’ are still not considered commodities.
Second, there exists a big gap between supply and demand. The national market economy is now developing strongly, and the demand for real estate is increasing, but supply is becoming scarcer.
Some people mistakenly think that the real estate market is now freezing because of oversupply and low purchasing power. In fact, demand still far exceeds supply. The market is now lackluster because of the overly high prices of land and apartments, which prove to be unaffordable for the majority of Vietnamese people.
Tuesday, September 2, 2008
Engel moves into Vietnam
Real estate developer Yaakov Engel is expanding his business ventures in the Far East with the entry to Vietnam. Engel's privately-held real estate company EngelInvest Group, of which Engel holds 72%, and which is managed by Alon Avdani, will invest in three projects with a total of 9,000 high-end apartments in Ho Chi Minh City (Saigon), the largest city in Vietnam. The projects, which will consist of 960,000 square meters of built-up space, will be completed in several stages at a total cost of $1.1 billion. The company expects $1.6 billion in proceeds from the projects.
In the first stage, $450 million will invested in building 400,000 square meters of residential properties, with proceeds estimated at $650 million. Engel told "Globes" today that the projects required shareholder equity of around 30%, so EngelInvest and its partners are providing $135 million in equity for the projects, of which EngelInvest itself is providing 80%, or over $100 million. All three projects are being built on land approved for building and work on them is expected to commence simultaneously in early 2009. Two of the projects are being built in partnership with subsidiaries of local banks, and the third with a local developer.
In the first stage, $450 million will invested in building 400,000 square meters of residential properties, with proceeds estimated at $650 million. Engel told "Globes" today that the projects required shareholder equity of around 30%, so EngelInvest and its partners are providing $135 million in equity for the projects, of which EngelInvest itself is providing 80%, or over $100 million. All three projects are being built on land approved for building and work on them is expected to commence simultaneously in early 2009. Two of the projects are being built in partnership with subsidiaries of local banks, and the third with a local developer.
Subscribe to:
Posts (Atom)