The downturn in the real estate market has created huge opportunities for office tenants, according to real estate services provider Savills Vietnam.
As a result of rapidly diminishing demand and increasing supply, the office market is in decline and has had a significant impact on rental values.
In HCM City, at the market’s peak in 2008, grade B buildings were demanding rents of US$65-75 per square metre. They are now being marketed for $30-35, with room for further negotiation.
"An increase in supply and a decline in demand have meant that developers have had to start offering competitive rentals and large incentives to encourage new tenants and retain existing ones," Robert MacDonald, head of tenant representation and advisory services at Savills Vietnam, said.
Tuesday, March 10, 2009
Wednesday, March 4, 2009
The real estate market in Ho Chi Minh City is warming up
Looking back at Thanh Nien photos in late 2007, with people fighting in queue to buy a condo at The Vista apartment building, I couldn’t keep myself from laughing.
People had to sleep in the line all night to be at the office when the doors opened in the morning, and struggle all day to keep their place so that they could sign a contract to buy a place to live for the rest of their life.
A year further on, buyers are in a better position.
Housing investors have launched many promotions such as big price cuts; helping buyers to finish documents in half a day to borrow from banks at low interest; supporting buyers by paying 4 percent of the interest in the first year; and free refreshments while agents drive customers to inspect properties.
People had to sleep in the line all night to be at the office when the doors opened in the morning, and struggle all day to keep their place so that they could sign a contract to buy a place to live for the rest of their life.
A year further on, buyers are in a better position.
Housing investors have launched many promotions such as big price cuts; helping buyers to finish documents in half a day to borrow from banks at low interest; supporting buyers by paying 4 percent of the interest in the first year; and free refreshments while agents drive customers to inspect properties.
Tuesday, March 3, 2009
Ministry plans incentives for low income housing projects
Deputy Minister of Construction Nguyen Tran Nam said the increasingly high demand of low income housing had become a “headache” as the government lacks both the capital and human resources to ease it.
The newly proposed policies, which would be submitted to the prime minister for consideration at a later date, could exempt developers from land use tax, value added tax and even corporate tax if they build housing for low-income people, Nam said.
“Regulations will be amended so that the paperwork for affordable housing projects will be simplified,” Nam said.
The newly proposed policies, which would be submitted to the prime minister for consideration at a later date, could exempt developers from land use tax, value added tax and even corporate tax if they build housing for low-income people, Nam said.
“Regulations will be amended so that the paperwork for affordable housing projects will be simplified,” Nam said.
Monday, March 2, 2009
Thailand urged to invest in Vietnam
Vietnam encouraged Thailand to invest in the country to help ease the trade imbalance between the two countries, Foreign Minister Kasit Piromya said Thursday.
During his visit to Vietnam this week, Mr Kasit said the Vietnamese government has encouraged Thailand to invest in property, fishery and logistics there.
A more serious cooperation between the two countries will be held after the signing of Asean agreements, he added.
During his visit to Vietnam this week, Mr Kasit said the Vietnamese government has encouraged Thailand to invest in property, fishery and logistics there.
A more serious cooperation between the two countries will be held after the signing of Asean agreements, he added.
Sunday, March 1, 2009
Vietcombank agrees to fund Indochina Plaza Hanoi
Vietcombank representatives signed an agreement in Hanoi on Feb. 19, committing to the provision of $US44 million to fund the development of Indochina Plaza Hanoi, a mixed-used complex managed by Indochina Land.
The $US145 million project, which began last December, consists of two luxury residential towers, an office block and a retail podium.
Peter R. Ryder, CEO and Co-Chairman of Indochina Capital, Indochina Land´s parent company, said that the development of Indochina Plaza Hanoi, as well as a number of other Indochina Land projects across the country, reflects the sustained long-term commitment of the group to investing in Vietnam´s future.
The $US145 million project, which began last December, consists of two luxury residential towers, an office block and a retail podium.
Peter R. Ryder, CEO and Co-Chairman of Indochina Capital, Indochina Land´s parent company, said that the development of Indochina Plaza Hanoi, as well as a number of other Indochina Land projects across the country, reflects the sustained long-term commitment of the group to investing in Vietnam´s future.
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