CBRE Vietnam’s Top Property News Stories – W27/2016

CBRE Newspaper Updates on Residential Ads
       

• 2 new launches:
  • Saigon Metro Park (Thu Duc District)
    • Date of official launch: 5th July, 2016
    • Total area: 3202 sqm with 16 floors and 1 basement
    • Total unit: 319 units
    • Price: from VND 709 million for 2 Bedroom unit (51 sqm)
  • Vinhomes Central Park – Park 7 (Binh Thanh)
    • Date of 3rd launch: 9th July, 2016
    • Total storeys: 47 floors 
    • Price: from VND 40 million psm (excluding VAT) 
• Advertisements:
  • An Phu Apartment Complex (District 6)
    • Consists of 25 storeys and a parking basement of 4000 sm.
    • Total unit: 279 units 
    • Price from VND 1.67 billion for 2 Bedroom unit
  • Diamond Lotus Lakeview (Tan Phu District)
    • Total towers: 3 blocks with each block having 22 storeys 
    • Total size: 16.800 sqm.
    • Amenities: 400 sqm. pool and a 5.000 sqm. sky park connecting 3 towers on 22nd floor

* Prices included VAT
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• 4 new launches:
  • D.' Palais de Louis (Cau Giay District)
    • Unit launched: 242 units
    • ​Scale: one 27-floor building with 4 basements
    • Unit size: 120.9 – 260.8 sqm (2 – 4 bedrooms)
    • Price: VND 80 – 90 million per sqm (Basic furniture) or VND 115 – 120 million per sqm (Fully furnished) 
  • The Two Residence (Hoang Mai District)
    • Unit launched: 550 units
    • Scale: one 30-floor building
    • Unit size: 37 – 126 sqm (1 – 3 bedrooms)
    • Price: VND 20 – 28 million per sqm (Fully furnished) 
  • Thanh Xuan Complex Hapulico 24T3 (Thanh Xuan District)
    • Unit launched: 300 units
    • Scale: one 24-floor building with 3 basements
    • Unit size: 87 – 131 sqm (2 – 3 bedrooms)
    • Price: VND 35 – 37  million per sqm (Fully furnished)
  • FLC Star Tower (Ha Dong District)
    • Unit launched: 400
    • Scale: one 37-floor building with 4 basements
    • Unit size: 58 – 100 sqm (2 – 3 bedrooms)
    • Price: VND 20 – 22 million per sqm (Basic furniture)

* Prices included VAT

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Vingroup, Vietnam’s largest real estate player, has raised a $300-million international syndicated loan. Credit Suisse AG was mandated to arrange the loan, which pays a coupon of Libor +5 per cent per annum. Meanwhile, the Ho Chi Minh City Infrastructure Investment Corp said it was negotiating to secure investment from a South Korean investment fund. The negotiation between the two parties took place in June, CII said without identifying the Korean investor.

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Japan has, for the first time, decided to provide ODA to help Vietnamese buy houses. Nikkei has reported that the Japanese government would join forces with Japanese private businesses to run a financial project which aims to help Vietnamese middle-class buy expensive houses under the mode of official loans at preferential interest rates. The project is capitalized at 20 billion Yen, or USD 192 million. To avoid legal problems, instead of providing loans directly to Vietnamese, Japan would lend money through Vietnamese banks and the credit guarantee organization.

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After a year taking effect, the laws on real estate trading and housing 2014 ensures a transparent legal corridor for companies to invest and do their business, builds confidence for parties to penetrate in the market.  The two laws has been effective since July 1, 2015 aiming to help the real estate market in general and the housing market in particular develop stably, healthily, sustainably as well as overcome problems and shortcomings in the market with investment following trends and  movements, according Vu Van Phan, Deputy Head of the Department of Housing and Real Estate Market Management. [The original article is available in Vietnamese only.]

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The World Bank’s Board of Executive Directors approved a $150 million credit for the Vietnam improved land governance and database project on July 6. The project will develop a national multi-purpose land information system (MPLIS) and make a National land database available to both the government and the public.

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IFC, a member of the World Bank Group, is supporting Vietnam’s renewable energy sector by investing in Gia Lai Electricity Joint Stock Company (GEC), together with Armstrong S.E. Clean Energy Fund (Armstrong), a dedicated renewable energy private equity fund based in Singapore. IFC and Armstrong will take a 16 and 20 percent equity stake in GEC, respectively and for both investors the partnership with GEC will be their first investment in Vietnam’s power sector. As shareholders, they will help the company expand its hydropower portfolio and invest in other renewable energy segments. GEC is one of the largest private sector hydropower players in Vietnam with 85 MW of installed capacity across 15 run-of-the-river small-scale hydro power plants. [The original article is available in Vietnamese only.]

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Tin Nhanh Chung Khoan

In 2014-2015 period, Hanoi land lot market was nearly isolated from the "happy party" of the whole real estate market. However, in 2016, project M&A transactions are being executed, igniting the boom for the city's land lot market. Being a big project in West Hanoi, before being transferred to Sai Dong Urban Development Company (under Vingroup), the Green City project (Nam Tu Liem District), has many times faced suspension and seen no future. However, after the M&A transaction, the project changes its name to Vinhomes Gardenia, and successfully sells over 360 land lots, heating up the shophouse fever in Nam Tu Liem District. [The original article is available in Vietnamese only.]

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Aeon Mall Binh Tan, the second shopping complex of Aeon Vietnam in HCMC and the fourth in Vietnam, lured around 450,000 visitors on the first three days of its opening last week. Aeon Vietnam said the number included 150,000 customers on the opening day on Friday and 200,000 on Sunday. They came to browse for products and enjoy food and entertainment services at the complex in Binh Tan District.

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Dau Tu Online

According to Hanoi People’s Committee, construction licensing authority is enforced as following: Department of construction shall license level I and II projects, FDI projects, projects spanning 2 or more districts, projects adjoining central Hanoi area (Ba Dinh, Hoan Kiem, Dong Da, Hai Ba Trung Districts). Management board of Industrial and Processing zone shall license projects located inside their respective zone. People’s Committee of ward shall license projects, houses and villas located in their area. [The original article is available in Vietnamese only.]

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Opening flying routes from Guangzhou (China) to Phu Quoc
Thoi Bao

July 6th, at the island of Phu Quoc (Kien Giang Province), Phu Quoc International Airport with China Southern Airlines ( CZ ) officially opened the international routes from Guangzhou ( China ) to Phu Quoc with frequency of 3 flights/ week on Wednesday, Friday and Sunday. According to Huynh Quang Hung, Vice Chairman of Phu Quoc’s People’s Committee, opening routes from Guangzhou to Phu Quoc is to develop tourism and trade between the two countries Vietnam and China. [The original article is available in Vietnamese only.]

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HCMC to implement several PPP projects
Bao Dau Thau

A series of projects with great total investment in HCMC are being included in the list of projects calling for investment expected in the form of PPP in the coming period. Opportunities for investors to participate in PPP projects of the City are very wide open. [The original article is available in Vietnamese only.]

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