ATTRACTION FROM VIETNAM REAL ESTATE

According to experts, Vietnam real estate in 2011 will declare a positive growth in

comparison with 2010. Ministry of Construction, said, as of early September 2010, FDI

in real estate market reached 2.358 billion U.S. dollars, up TO 36.9% over the same

period in 2009. According to the Department of Planning and Investment of HCMC, in

August this year, FDI flows into real estate in Ho Chi Minh City accounting for 68.8% of

total FDI, including 12 projects with total investments of up to 811 million.

Because of the fluctuation of real estate in 2011, investors should be more careful and

wiser in the competitive race. The study of many real estate companies recently showed

that three factors for investors invest capital for buying houses are good quality of the

project, appropriate location; appropriate price, credible investors; building on schedule

commitments, compliance with contract

Apartment for average segment

Though Vietnam real estate has much recovery, not at all segments benefit from this. The market is identified to be of customers- people with real demand. Luxury apartments still remain under no development but apartment s for average segment has stated its growth. Project owners

have made a push in further development for the trend of average houses in coastal area

and suburb.

There are many projects under development process, such as E- Home project in district

9 of Dat Lanh company, Era Town in district 7 of Duc Kha company etc.

Many apartment projects having been built and launched to the market have attracted the

attention of customers, especially the small apartments at the lower size of 50 m2.

Average apartment price is only approximately at 700 USD/m2 so price is at around 400-

800 million, suitable to a wide range of customers.

Real estate for tourism

Another segment of the real estate market which is also quite attractive and attracts the

attention of many investors in 2011 is real estate tourism. Living standard in Vietnam

increases dramatically so demand for luxury holiday after long time of hard working is

obvious.

Son Tra resort and spa in Da Nang is one of the most remarkable projects in tourism. The

project has capital of 650 billion VND, including a 5-star hotel with 500 rooms, and 200

villas luxurious bungalows as well as pools; golf, tennis fields etc. Real estate tourism

does not only take advantage of coastal area but other landscape. For the long term, there

are potential areas such as the Red River Delta, Mekong river, mountains, highlands. All

the above positions have ability to be famous tourist resort.

At the meeting of Association of Vietnam Real Estate on March 10th, 2011, Nguyen Tran

Nam- vice minister of Construction stated “Vietnam real estate would develop for a long

term strategy since demands for house are always very high”

In 2011, the real estate market continues to have signs of prosperity for strong growth for

the following years to meet the requirements of economic development and social

process of urbanization.

Key wors: VIPC, Vietnam capital management, real estate, management, tourism, invest,

investor, vipc managent