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CBRE Vietnam’s Top Property News Stories – W15/2016

Nam Long Group honoured as Strong Brands 2016, $500 million HCMC real estate deal signed​, Keppel Land to buy over $22 million of bonds from Vietnam property firm…

CBRE Newspaper Updates on Residential Ads

 

  • Two new launches this week:

    • Celadon City Block Block C & D  (Tan Phu District)

      • Date of official launch: April 10th 2016
      • Total scale: 825,000 sm
      • Total number of units: 8577 units
      • Average price: 1.6 billion VND
    • Diamond Lotus Lake View Block C & D (Tan Phu District)

      • Date of official launch: April 11th 2016
      • Including 3 22-storey towers
      • Green Certification LEED
      • Price from VND 1.4 billion per unit (2 bedrooms)
  • Other advertisements:

    • Valeo Dam Sen (Tan Phu District)

      • Total size: 6,000 sm
      • 2 twin-towers with 15 storeys
      • Expected completion time: Q2/2017
      • Price from VND18.8 million per sqm
    • The Gold View (District 4)

      • 2 blocks with 27 storeys in a total land area of 7,168 sqm
      • Price from: VND 33 million per sqm (not included VAT)
      • Total number of units: 1905 units

       


  • No new launch this week
  • Other advertisements:

    • Hateco Hoang Mai (Hoang Mai District)

      • Total number of units: 744 units
      • Unit size: 76.3 – 107.7 sqm (2-3 bedrooms)
      • Average price: VND1.3 billion/2-bedroom and VND1.4 billion/3-bedroom apartment
      • Expected completion: Q4 2016
    • Discovery Complex (Cau Giay District)

      • The building has 5 basements  and in a total area of 10,218 sqm
      • Two buildings: 43 – floor office building and 54 – floor apartment building
      • Total number of apartments: 500 units.
    • Seasons Avenue (Ha Dong District)

      • Four 40 – floor building: S1, S2, S3 and S4
      • Unit size: 67-107 sqm (2-3 bedrooms)
      • Total units: 1,300 units
      • Expected completion: Q2 2017
    • Goldseasons (Thanh Xuan District)

      • Four buildings with total area of 22,371 sqm
      • Average price: VND29-34 million per sqm
      • Unit size: 64-106 sqm (2-3 bedrooms)
      • Total units: 1,500 units

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$500 million HCMC real estate deal signed​
Vietnam Economic Times

 

 

Japanese developer Creed Group has invested in a $500m residential development in Ho Chi Minh City, Vietnam. It has joined forces with Phat Dat Real Estate Development and An Gia Investment for The River City project, comprising 12 buildings with about 8,000 apartments in the city’s District 7. Creed chairman Toshihiko Muneyoshi said Vietnam’s international integration had opened up more opportunities to draw large investors from across the world.

 

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​Keppel Land to buy over $22 million of bonds from Vietnam property firm

 

Thanh Nien News

  Ibeworth Pte. Ltd, a company 100 per cent owned by Singaporean real estate company, Keppel Land Limited and Nam Long Investment Corporation (NLG) last week entered into an agreement, subscribing for VND500 billion ($22.4 million) convertible bonds to be issued by Nam Long pursuant to the proposed private placement of convertible bonds. According to Nguyen Xuan Quang, chairman of Nam Long, the company is proud to be the first and only company in Vietnam that Keppel Land has cooperated with at the corporate equity level.

 

 

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Properties face price-loweing pressure due to tightened banking credit
Cong An Nhan Dan

 

In order to lessen dependence on banking capital and to access other sources of capital to develop projects, thus lowering apartment development costs, on April 8, Ibeworth under Keppel Land – a foreign investor of 19 licensed projects and oriented to develop about 22,000 housing products in Vietnam – has worked with Nam Long Group to buy VND500bn-worth convertible bonds with an annual coupon of 7% and falling due in 2020. Nguyen Thi Van Khanh, Head of Consulting at Savills Vietnam, said that in Q1-2016, HCMC recorded 7,600 apartments launched for sale from 20 projects, up the total number of apartments to 37,400 units, up 82pct y-o-y. However, the number of traded apartments is only 6,300 units, while the absorption of mid- and high-end apartments decreases by 32pct and 34pct respectively. [The orginal article is available in Vietnamese only.]

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Property sector urged to seek other capital sources

 

Biz Hub

With lending to the property sector almost surely to be tightened, analysts are calling on real estate firms to securitizes their projects and list their shares on the stock markets to raise money from the public. In a draft document the State Bank of Viet Nam has circulated to gather opinions from financial institutions, it proposes increasing the risk weightage assigned to loans against property and securities from 150 per cent (the lowest level) to 250 per cent. There are many good reasons for real estate firms to raise funds on the stock markets by securitizing their projects, one of which is that the shares of property companies have become attractive since many housing projects are proving to be highly profitable.

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Nam Long Group honoured as Strong Brands 2016
Nhip Cau Dau Tu

At the annual event held by the newspaper Thoi Bao Kinh Te Viet Nam, Nam Long Group (NLG) was named as Strong Brands 2016, nominated by the newspaper's editors' committee and readers. The award honoured NLG for the company's efforts in developing affordable housing to meet demand of the majority of Vietnamese home-buyers. The success of EHome 3, 4, The BridgeView and Flora Anh Dao projects last year has significantly boosted the growth of NLG. [The original article is available in Vietnamese only.]

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VinaCapital revives delayed Times Square Hanoi project
Vietnam Investment Review

 

VinaLand – a closed-end fund governed by VinaCapital – is attempting to make hay while the sun shines by reviving its $50-million Times Square Hanoi shopping complex, which has been delayed for more than seven years. After a long downturn in Hanoi’s property market, real estate in the My Dinh area, where Times Square Hanoi is located, is taking off, and therefore it is high time for the developer to revisit the project, said David Blackhall, manager at VinaLand. Main reasons for this delay is explained due to the economic factors such as high interest rates and low liquidity, in conjunction with a very challenging real estate market, and the height restrictions for buildings in the My Dinh area surrounding the National Convention Centre.

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Launch of Yen Bai Vincome Shophouse
Cafe F

 

On April 12, Vingroup officially launched their first shophouses in international standard in Yen Bai province. Yen Bai Vincom Shophouse belongs to the Vincom Plaza complex Nguyen Thai Hoc – Yen Bai, which is the first project of Vingroup in the Northwest area, located in the peninsula of Yen Hoa park – center of Yen Bai city. The project includes 104 shop houses with elegant architect and is divided in 2 areas which are Phu Gia and My Gia. All the shop houses, with 3 floors and half and covering an area of 75 m3 to 198.2 m2, are located around the Vincom shopping mall. [The original article is available in Vietnamese only.]

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Hoa Binh won many project bids
Dia Oc Viet Nam

 


 
Gamuda Land Vietnam recently assigned Hoa Binh Company as the main contractor of Design & Build for the high-rise apartment building CT2 (Hanoi's Hoang Mai District), worth over VND730bln. The project is expected to be finished in February 2018, and comprises of a basement floor, two towers with 27 and 30 floors connected each other with an L-shaped building, and 550 apartments

 

 

 


 

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Alibaba buys control of Lazada in US$1 million bet on SE Asia commerce

 

Tuoi Tre News

   

 

Alibaba Group Holding Ltd has agreed to buy a controlling stake in Southeast Asian online retailer Lazada Group for about $1 billion, its biggest deal overseas, as the Chinese ecommerce giant seeks fertile new turf while growth slows at home. According to Thomson Reuters data, under the deal announced on Tuesday, the firm will buy about $500 million of newly issued Lazada shares, while the rest will be bought from current shareholders. Also, Alibaba has the option, 12-18 months after the deal closes, to buy remaining stakes from Lazada shareholders. Additionally, Lazada said in a statement that the deal will help businesses and retailers using Alibaba’s platform access Southeast Asian markets. As the Singapore-based Lazada Group also operates in Indonesia, Malaysia, the Philippines, Thailand and Vietnam.

 

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Inauguration of coastal Sam Son tourism project
VnEconomy

 

On April 8, Inauguration of coastal Sam Son tourism project is held at Hubway 8, Sam Son district, Thanh Hoa province. The coastal Sam Son tourism project is developed according to the BOT model, with Sam Son Committee of People as developer and FLC group as contractor. Accordingly, the whole coastal area located at the West of Xuan Huong road will be renovated to be more modern and environmental friendly. Additionally, the Hubway system is one of the most important features of this project. The Hubways are designed with 1 floor and cover the area of 250 m2 to 300 m2. And each Hubway will provide fast food, café, massage, medical support etc. and bring unique experience for tourists. [The original article is available in Vietnamese only.]
 
   

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NA approves extended US visa rights

 

Vietnam Investment Review

Vietnam is expected to attract more US investments and tourists following the raising of its visa validity for Americans from the existing single-entry, three-month visa to a multiple-entry, one-year version for the purposes of attending workshops, travelling, personal affairs, or working with Vietnam’s organizations and businesses. Before the change, Vietnamese government’s single-entry, three-month visa policy for American citizens is asserted as one of the many obstacles that creates a lots of difficulties for US investors, said Nguyen Viet Ha – Managing directors of BowerGroupAsia Inc. Approval of US visa extension policy also receives favor from many National Assembly members as this would also benefit Vietnamese citizens entering the US.

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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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