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CBRE Vietnam Real Estate Spotlight – W20 2018

Real estate in Long Bien district on growth momentum, Daewon Thu Duc House develops $115 million property project in Hanoi, Aeon Mall Vietnam breaks ground in Hai Phong, …

CBRE Newspaper Updates on Residential Ads

         

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    • Sonata Premier (Ha Dong district)                                  

      • Total units: 314 units                                                              
      • Unit size: 70 – 110 sm (2 – 3 bedrooms)                                  
      • Price*: from VND30 million psm                                         
    • HDI Tower (Hai Ba Trung district)                                               
    • Total units: 76 units                                                               
    • Scale: 2,000 sm land area
    • Unit size: 76 – 116 sm (2 – 3 bedrooms)                                   
    • Price*: from VND72 million psm                                            
    • Total units: 648 units
    • Scale: 10,895 sm land area
    • Unit size: 74 – 181 sm (2- 4 bedrooms)
    • Price*: from VND32 million psm
    • Kosmo Tay Ho (Tay Ho district)

          Prices included VAT

          
   

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    • Carillon 7 (Tan Phu District)

      • Total units: 625 (for condos only)
      • Scale: one 27-floor block
      • Unit size: 45.27 – 105.11 sm (1 – 3 bedrooms)
      • Price*: from VND1.8 billion/2BRs
    • Gem Riverside (District 2)
    • Total units: 3,175 (for condos only)
    • Scale: twelve 33-34-floor blocks
    • Unit size: 49.14 – 95 sm (1 – 3 bedrooms)

* Prices included VAT

Note: Selected newspapers include Dau Tu Bat Dong San, Thoi bao kinh te Vietnam, The gioi thong tin bat dong san, CafeF, Tap chi dau tu bat dong san, Vietnamnet, Thi truong Bat dong san & Tai san, Nguoi dua tin, Vnexpress

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Vinhomes’ shares jump 20% shortly after listing on Vietnam’s stock market 
VnExpress

Vinhomes JSC saw its share price rise 20% from VND92,100 to VND110,500 ($4.85) per share in its first trading session after it was officially listed on the Ho Chi Minh Stock Exchange (HoSE) on Thursday morning. The company put 2.68 billion shares on Vietnam’s main bourse HoSE, and by Thursday afternoon, its market cap jumped to more than VND296 trillion ($12.9 billion). This means Vinhomes is now the company with second biggest market cap on the country’s stock market, standing behind its parent Vingroup, which is currently valued at VND333 trillion. An initial equity offering of Vinhomes JSC, the residential property development unit of Vingroup JSC, raised about $1.35 billion in Vietnam’s biggest ever issue, sources told Reuters earlier this month. This eclipsed an equity offering from Vietnam Technological and Commercial Joint Stock Bank, or Techcombank, which raised about $920 million last month.  

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Banks tighten real estate loans amid land fever in Vietnam
VnExpress

Mortgage rates have increased 1-2 percentage points over the past few months. Viecombank and OCB, have set interest rates of around 10.5% and 11.5% respectively for real estate loans over 12-24-month terms. Meanwhile, other lenders offer rates of 12-12.5%. Banks are also offering loans at no more than 70% of the property’s value, instead of the previous 80-90%. They attribute tightened lending to concerns over market risk as real estate credit risk has jumped from 150% to 250% in past few months. Currently, State Bank of Vietnam only allows banks to lend 40% of short-term mobilization funds for long-term loans, instead of 60% in the past. However, real estate loans are usually long-term loans. Banks have also tightened mortgage lending in some of HCMC’s suburban districts because of steep land price hikes compared to last year, like an 85.7% hike in Binh Chanh, 170% in Can Gio District and 140% in Cu Chi District. Provinces around HCMC are also experiencing the same trend with land prices on the main streets of Bien Hoa City in Dong Nai Province now costing nearly as much as in some urban areas of HCMC. Even land prices at Trang Bom District have risen by up to seven times in the past 1-2 years. 

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Mövenpick to plant 815-key Vietnam flagship along HCMC’s Rach Dia river
TTG Asia

The 815-key Mövenpick Hotel HCMC is slated to open in 2020 as the centrepiece of the Kenton Node riverside mixed-use development, currently under construction along the Rach Dia river bank. Offering 288 hotel rooms and 527 serviced apartments, Mövenpick Hotel HCMC will also feature a choice of restaurants and bars, an outdoor infinity swimming pool, a private spa, a fitness centre, and conference and banqueting facilities including a ballroom and several meeting rooms. The surrounding 84,000m2 Kenton Node complex will boast high-end retail malls, restaurants, a multiplex cinema and other leisure facilities, plus office space, residential units, a marina, riverside promenade and parks. The signing of Mövenpick Hotel HCMC is a “key part” of the Swiss chain’s ambitious expansion plans in the country with over 3,000 rooms by 2020. At present, the company is established in Hanoi, but the next few years will see the launch of a series of new hotels and resorts in key destinations across the country, including Cam Ranh, Phu Quoc, Quy Nhon, Quang Binh, Danang and Lang Co. 

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Mandarin Oriental unveils its first five-star hotel project in Vietnam
VIR

Mandarin Oriental Hotel Group officially announced developing its first five-star luxury hotel project in Vietnam at the signing ceremony with Union Square Saigon. Located at Union Square Saigon, the building is known as “The proud gem in the heart of Saigon” for its golden location in the city, with all four façades adjacent to the “golden” streets: Nguyen Hue, Dong Khoi, Le Thanh Ton, and Le Loi. Mandarin Oriental Saigon Hotel will definitely draw the attention of locals as well as domestic and international tourists. Scheduled to open in 2019, Mandarin Oriental Saigon will feature 228 rooms, six restaurants, and bars, spa, gym, and an outdoor pool of international standards. Besides, many other multifunctional spaces for events and conferences will promise invaluable experiences. This high class project shall hopefully be the perfect destination for those who are passionate for luxury resorts and experience.

 

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Aeon Mall Vietnam breaks ground in Hai Phong 
Inside Retail Asia

A groundbreaking ceremony for Aeon Mall Hai Phong Le Chan was attended by Vietnamese Prime Minister Nguyen Xuan Phuc. Covering 9.3ha, the mall is the sixth of its kind for Vietnam, and is scheduled to be opened in 2020. It is expected to generate about 2,500 jobs. The Japanese company expects its mall to attract more than 13 million visitors a year, from not only Hai Phong but also nearby provinces.

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PM okays proposal of hiring consulting units for HCMC Metro line 5
SGGP News

The Metro line 5, spanning from the new Can Giuoc coach station to Sai Gon bridge, has a total length of 26 kilometres. In the first phase, an 8.9km section will be built from Bay Hien crossroad in Tan Binh district to Sai Gon bridge. The line has a total investment of EUR1.562 billion and an implementation time from 2009 to 2027. Under its design, the Metro line 5 will connect with line 2 at Bay Hien crossroad, line 4 at Phu Nhuan crossroad in Phu Nhuan district, Tan Son Nhat airport terminal in Tan Binh district, line 3b at Hang Xanh station in Binh Thanh district and line 1 at Sai Gon bridge station in Binh Thanh district. According to initial estimates in 2007, total investment of the project was VND17 trillion (about US$749 million). However, a recent calculation of Japanese consultant joint venture, verified by a Singaporean independent consultant unit, showed the total cost will be VND47 trillion (US$2.07 billion). So far, 51% of the project’s workload has been completed and the project is scheduled to be finished in 2020. 

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Daewon Thu Duc House develops $115 million property project in Hanoi
VIR

Korean-backed Daewon Thu Duc House has officially announced that on May 14 it had formed a joint venture with Vietnam Manufacturing and Export Processing Company (VMEP) to develop a US$115 million property project in Hanoi. The joint venture named SYM-Daewon Thu Duc Housing Development JSC (DWTD) has a charter capital of $23 million, of which Daewon Thu Duc contributes 49 per cent. Located in La Khe commune of Hadong district of Hanoi, the project will take up more than 40 hectares, and is planned to become a complex of offices and a trading centre, high-rise apartment buildings, townshouses, supermarkets, and other facilities.


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Hanoi approved the plan of 203ha high tech park
CafeF

Chairman of the City People's Committee Hanoi has just approved the revision of Hanoi Biotechnology High-Density Plan in Tay Tuu, Lien Mac, Minh Khai and Thuy Phuong Wards, in northern Tu Liem district. According to the approval, the hi-tech park has the land area of 203.66 ha; the estimated population is about 1,000 people. The planning area is located in the green belt of the Nhue River will provide an open space, an ecological park that combines the functions of scientific research and the essential utility of the research environment.

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Real estate in Long Bien district on growth momentum
VnEconomy

Located at the north-east gateway of Hanoi, Long Bien is one of the leading districts of the capital not only in terms of urbanization and economic growth, but also one of the city's leading cities. technical infrastructure and social infrastructure. The planning of 14 bridges across the Red River and the Duong River also takes this market to new heights. With more and better infrastructure and modern infrastructure, real estate in Long Bien has benefited and is still on the rise and development. However, in terms of general overview, the supply of products is not enough to meet the demand of Long Bien area is always attracting customers and investors. Long Bien area has joined the "big" real estate such as Vingroup, Eurowindow, MIK Group, Him Lam … to help the area become a modern urban stretch. on the north bank of the Red River. Accordingly, many customers are moving from overcrowded, crowded areas to live in Long Bien to enjoy life, from Long Bien to the center of Hoan Kiem just a river.  
 

 

Being cut off a series of incentives, are special zones still attractive?
CafeF

In the new draft, corporate income tax for real estate projects in the special zone will only be entitled to a 17% tax rate for a period of five years instead of ten years. Casino services and betting services will only be entitled to a 15% tax rate within the first five years, after which they will be subject to the same provisions of the laws of Vietnam. The new law will exempt land rents and water surface rents for the whole lease term with specific projects on innovative start-ups, research and development centers and investment projects in the sphere of education – training, vocational training, health care in Phu Quoc special zone meeting the prescribed conditions and investment projects which, according to regulations. The law focuses on incentives for projects in the development priority areas of each special zone with the shortened preferential duration. In particular, the land rent exemption for strategic investment projects in Phu Quoc is only 19 years, whereas those of Van Don and Bac Van Phong are up to 30 years. 

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FOR MORE INFORMATION,CONTACT:

Dung Duong MRICS

Director

T +84 8 3824 6125

dung.duong@cbre.com

 

An Nguyen
Director

T +84 4 2220 0220

an.nguyen@cbre.com

 

 

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