Tran Du Lich, deputy head of the National Assembly representative committee from Ho Chi Minh City, supported the value-based house tax law because it accords with international norms, but he said the law needed to delineate more housing categories to be fair to all residents.
The proposal would tax houses valued between VND600 million (US$33,700) and VND1.2 billion to 0.05 percent of their total value.
Those costing more would be taxed 0.1 percent.
“So owners of a VND10-billion house will pay the same tax as those who own a VND1.3-billion house. But they should obviously pay more,” Vo said.
Thursday, April 30, 2009
Thursday, April 23, 2009
Hanoi: Investors to be compensated for halted projects
Binh reported to the Hanoi People’s Council that under the prime minister’s assignment, the city authorities and the Ministry of Construction reviewed 744 construction plans and investment projects, totalling more than 75,000ha of land. Half of them are real estate projects.
The official said that the Hanoi People’s Committee will make public the inspection results of construction plans and investment projects in expanded Hanoi in June.
A deputy of the Hanoi People’s Council, Pham Thi Loan, asked: “What criteria will the city apply to determine which projects will be implemented, which will be amended and which brought to an end?”
Other questions are: As the city doesn’t have a comprehensive construction plan yet, what will be the foundation for it to licence projects? How will the city compensate investors for projects that will be halted?
The official said that the Hanoi People’s Committee will make public the inspection results of construction plans and investment projects in expanded Hanoi in June.
A deputy of the Hanoi People’s Council, Pham Thi Loan, asked: “What criteria will the city apply to determine which projects will be implemented, which will be amended and which brought to an end?”
Other questions are: As the city doesn’t have a comprehensive construction plan yet, what will be the foundation for it to licence projects? How will the city compensate investors for projects that will be halted?
Wednesday, April 22, 2009
Vietnam considering new law to increase number of overseas nationals who can buy property
The Vietnamese government is considering easing property ownership restrictions for nationals who live abroad to enable them to buy as much real estate as they want.
The National Assembly is discussing proposed amendments to the current housing law which also includes increasing the number of Việt Kiều eligible to purchase houses and apartments in Vietnam.
If the proposals are passed in law it will mean that people of Vietnamese origin will be able to own properties. At present, only overseas Vietnamese acknowledged as making a contribution to Vietnam, such as scientists and experts, and those married to Vietnamese citizen can buy property. Any foreigner who is married to a Vietnamese citizen and resides in Vietnam can also purchase a house or an apartment.
The National Assembly is discussing proposed amendments to the current housing law which also includes increasing the number of Việt Kiều eligible to purchase houses and apartments in Vietnam.
If the proposals are passed in law it will mean that people of Vietnamese origin will be able to own properties. At present, only overseas Vietnamese acknowledged as making a contribution to Vietnam, such as scientists and experts, and those married to Vietnamese citizen can buy property. Any foreigner who is married to a Vietnamese citizen and resides in Vietnam can also purchase a house or an apartment.
Saturday, April 18, 2009
Real estate prices go up and down in accordance with rumours
Real estate has become the investment channel favoured by many people, as the stock prices decreased continuously and the bank deposit interest rate proved to be unattractive.
People think that the real estate price has bottomed out, and it is now the right time to make investments. That explains why real estate centres these days receive a lot of visitors who come to learn more information and seek to buy land and houses. Meanwhile, the centres’ doors were silently shut for the whole day several months ago.
Nguyen Thi Hoa in Thanh Xuan district, who is seeking to buy some houses, related that right before Tet, when banks lowered the deposit interest rates, she withdrew money from the banks to purchase gold.
People think that the real estate price has bottomed out, and it is now the right time to make investments. That explains why real estate centres these days receive a lot of visitors who come to learn more information and seek to buy land and houses. Meanwhile, the centres’ doors were silently shut for the whole day several months ago.
Nguyen Thi Hoa in Thanh Xuan district, who is seeking to buy some houses, related that right before Tet, when banks lowered the deposit interest rates, she withdrew money from the banks to purchase gold.
Friday, April 17, 2009
The central city of Da Nang is preparing to host an exhibition on estate in mid July.
Le Canh Duong, deputy director of the Da Nang Investment Promotion Centre, said the centre has completed plans to hold the Da Nang Real Estate Exhibition 2009 from July 16-18.
The three-day exhibition will help to warm up the city’s real estate market during the current period of economic slowdown, Duong said, introducing investors to real estate projects in the city, investment environment and challenges, as well as Vietnam’s development policy, procedures for selling or leasing property and market values.
Duong said the exhibition will also help the investors develop strategies for property projects in the city, as well as seek partners and new investment opportunities.
The exhibition is expected to attract the participation of 15-25 firms to market their services and issue calls for investment in real estate development projects.
The three-day exhibition will help to warm up the city’s real estate market during the current period of economic slowdown, Duong said, introducing investors to real estate projects in the city, investment environment and challenges, as well as Vietnam’s development policy, procedures for selling or leasing property and market values.
Duong said the exhibition will also help the investors develop strategies for property projects in the city, as well as seek partners and new investment opportunities.
The exhibition is expected to attract the participation of 15-25 firms to market their services and issue calls for investment in real estate development projects.
Wednesday, April 15, 2009
Monday, April 13, 2009
Vietnam facing office property crisis as supply outstrips demand
Office rents in Ho Chi Minh City have plunged by up to 50% and the trend is expected to continue as supply outstrips demand.
Belt tightening due to the global economic downturn is also having an effect, according to forecasts from various international analysts.
Global real estate companies Cushman & Wakefield, Savills and CB Richard Ellis said top quality office space rents have fallen from a peak at the beginning of last year of $70 per square metre to $43 this year and could go as low as $30.
Rents for second-class space have fallen from about $45 per square metre to $28 to $40 and third-class office space from $39 to $14 to $25.
Belt tightening due to the global economic downturn is also having an effect, according to forecasts from various international analysts.
Global real estate companies Cushman & Wakefield, Savills and CB Richard Ellis said top quality office space rents have fallen from a peak at the beginning of last year of $70 per square metre to $43 this year and could go as low as $30.
Rents for second-class space have fallen from about $45 per square metre to $28 to $40 and third-class office space from $39 to $14 to $25.
Saturday, April 11, 2009
The Ho Chi Minh City housing market
The study, on the impact of WTO entry on the city’s realty market done by the HCMC Institute of Development Studies, said 50 percent of all foreign investment in the city in the last two years has flowed into realty.
Foreign firms invested US$1.5 billion in 24 real estate projects in 2007, accounting for 50 percent of all projects and investment in the sector, and double their cumulative investment between 2000 and 2006.
They rose to US$3 billion in 45 projects last year.
In fact, most major projects and five-star hotels are fully or partly invested by foreign firms.
Foreign firms invested US$1.5 billion in 24 real estate projects in 2007, accounting for 50 percent of all projects and investment in the sector, and double their cumulative investment between 2000 and 2006.
They rose to US$3 billion in 45 projects last year.
In fact, most major projects and five-star hotels are fully or partly invested by foreign firms.
Friday, April 10, 2009
WTO entry sees HCM City property market boom
The study, on the impact of WTO entry on the city’s realty market done by the HCMC Institute of Development Studies, said 50 percent of all foreign investment in the city in the last two years has flowed into realty.
Foreign firms invested US$1.5 billion in 24 real estate projects in 2007, accounting for 50 percent of all projects and investment in the sector, and double their cumulative investment between 2000 and 2006.
They rose to US$3 billion in 45 projects last year.
In fact, most major projects and five-star hotels are fully or partly invested by foreign firms.
Though domestic investment is limited, the sharp increase in foreign direct investment in the sector would make an important contribution to the city’s urbanization and infrastructure improvement.
Foreign firms invested US$1.5 billion in 24 real estate projects in 2007, accounting for 50 percent of all projects and investment in the sector, and double their cumulative investment between 2000 and 2006.
They rose to US$3 billion in 45 projects last year.
In fact, most major projects and five-star hotels are fully or partly invested by foreign firms.
Though domestic investment is limited, the sharp increase in foreign direct investment in the sector would make an important contribution to the city’s urbanization and infrastructure improvement.
Friday, April 3, 2009
Untrained brokers hurting real estate market
The lack of professionalism among many local real estate brokers is partly to blame for property market fluctuations that are hurting the industry, experts said at a conference last Saturday.
Speaking at the conference on International Networking and Cooperation in Real Estate Investment and Brokerage in Ho Chi Minh City, Deputy Minister of Construction Nguyen Tran Nam said the presence of untrained brokers focused on earning quick and easy profits was increasing the element of risk in the local real estate market.
Vu Thi Hoa, deputy head of the Ministry of Construction’s housing and real estate market management department, said brokers were not able to perform their proper role as intermediaries because they were not aware of all the functions that this entailed.
Speaking at the conference on International Networking and Cooperation in Real Estate Investment and Brokerage in Ho Chi Minh City, Deputy Minister of Construction Nguyen Tran Nam said the presence of untrained brokers focused on earning quick and easy profits was increasing the element of risk in the local real estate market.
Vu Thi Hoa, deputy head of the Ministry of Construction’s housing and real estate market management department, said brokers were not able to perform their proper role as intermediaries because they were not aware of all the functions that this entailed.
Wednesday, April 1, 2009
Vietnam property market shows signs of recovery
As gloom continues to descend over South East Asian property markets, is Vietnam, which oversaw one of the fastest growing and then most rapidly descending markets going to be the first to bounce back?
Following a year long cycle of decline, the Vietnamese property market is beginning to show signs of life again and they are signs that prices might start to recover in both Ho Chi Minh City and Hanoi. In the capital city, nearly 400 off-plan apartments in Keangnam Tower were sold not long after construction on the building started. Lots in the Van Phu Urban Area and Xa La high-class apartment projects in Hanoi´s newly-merged Ha Dong city have also been magnetic to investors, and prices have gone up nearly 20 per cent since Tet. Last year, investors paid little attention to these and other projects, as land prices were in heavy decline.
“Vietnam real estate entered the downturn in late February 2008 when the State Bank of Vietnam capped lending growth at 30 percent over 2007 levels,” Brett Ashton, managing director of Savills Vietnam says. “Many banks had already experienced lending growth in the first two months at or near this level and so limited new loans to long time clients.
Following a year long cycle of decline, the Vietnamese property market is beginning to show signs of life again and they are signs that prices might start to recover in both Ho Chi Minh City and Hanoi. In the capital city, nearly 400 off-plan apartments in Keangnam Tower were sold not long after construction on the building started. Lots in the Van Phu Urban Area and Xa La high-class apartment projects in Hanoi´s newly-merged Ha Dong city have also been magnetic to investors, and prices have gone up nearly 20 per cent since Tet. Last year, investors paid little attention to these and other projects, as land prices were in heavy decline.
“Vietnam real estate entered the downturn in late February 2008 when the State Bank of Vietnam capped lending growth at 30 percent over 2007 levels,” Brett Ashton, managing director of Savills Vietnam says. “Many banks had already experienced lending growth in the first two months at or near this level and so limited new loans to long time clients.
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