realestate market report in 2011_cafefland

7/31/2019 Realestate Market Report in 2011_cafefland

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Real Estate Market

Report in 2011

Main Contents

Macro Economy 1

CPI in 2011 rose 18.58% on year Trade deficit declined sharply thanks to exports State inspected many ministries, departments and large economic

groups.

Total social capital sources will be restructured

Infrastructure News 2

Construction on overhead ring road No 3 Basic completion of National Highway No 32 crossing DienNhon

section Thu Thiem tunnel was officially opened to traffic and East-West

Boulevard completed

Construction on Long Thanh International Airport

News, Highlights 3

Real estate prices in Hanoi dropped sharply

Real Estate Information

Portal- CafeF Land


2/20

Real estate prices in Hanoi dropped sharply

REAL ESTATE MARKET REPORT IN 2011

MACRO ECONOMY

CPI (Consumer price index) in 2011 surged 18.58%

on year

Electricity price saw two increases and gasoline price

increased twice while posting only one slight fall, which

caused pressures on CPI, leading to a year on year CPI rise

of 18.58% in 2011, higher than the inflation ceiling in early

2011 but ranging around the 18% ratio adjusted by the

National Assembly.

Trade deficit eased sharply thanks to exportsThe countrys export turnover in 2011 was estimated at over

$96.3 billion, rising 33.3% year on year.

Export turnover structure of commodities in 2011 saw some

changes from 2010: the proportion of heavy industrial

products and minerals increased 4% on year whereas the

group of light industrial products, agro-forestry and fisheries

State carried out inspections in many ministries,

departments and large economic group

Ministries of finance and industry and trade were audited,

27 economic groups and corporations and commercial

banks were under the list to audit in 2011 such as Vinashin,

EVN, TKV, Vinalines

States inspections in operations of many large economic

groups have gained initial results such as EVNs long term

financial investments were up to nearly 50 trillion VND and

its accumulated loss as of the end of 2011 was up to over 35

trillion VND; petroleum companies made ineffective non-

core investments and auditing agency concluded the

auditing result of petroleum price stabilization fund

Total social capital sources to be restructured

Decree No 59/2011/N-CP dated on July 8, 2011 on


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Real estate market report in 2011

INFRASTRUCTURE NEWS

Overhead ring road No 3 to be

built: project has total length of

8.5km, from Mai Dich to North Linh

Dam. Project is now underconstruction.

Basic completion for National

Highway No 32 crossing Dien

Nhon section: So far, project has

been completed basically to traffic

and expected to fully complete prior

to Lunar New Year.

Overhead urban railway to be

built: Nhon Hanoi Railway Station,

Cat LinhHa Dong

Hanoi

HCM City


4/20


NEWS, HIGHLIGHTS

FDI in real estate in 2011 declined seriously: 2011

saw a serious fall of FDI capital in real estate sector,

marking the lowest figure in the past five years.

Particularly, in 2008, FDI capital in real estate sector

reached about $23.6 billion, in 2009 at $7.6 billion, in

2010 at $6.8 billion while till the end of November

2011, the figure was only $464 million, marking the

record low level over previous years.

"Unmarketable" low income houses: realty

investors are tired of housing projects for low-income

earners while buyers do not have enough money.

Presently, Hanoi has some low income house projectsunder process of receiving house purchase dossier

such as Dang Xa, Dai Mo and Sai Dong. However,

there were not many buyers.

The reason was due to the price of low income houses

still remained high (about 13 million VND/m2),

together with intense payment schedule and

Market News

Hanoi real estate price dropped sharply: the

biggest impact from the tightening credit policy in

real estate sector was the collapse spiral when

liquidity declined, both supply and demand decreased

while bad debts increased. Within only two monthsfrom April to June 2011, land plot price in 70% of

new urban zones in outskirts of Hanoi declined.

Notably, projects in the west saw decline of up to 20-

30% in price such as Kim Chung Di Trach, Gelexinco

Le Trong Tan, Van Phu and Van Canh

So far, with policy to bring property loan ratio down

to 16%, banks are tightening debts. A round of sell-

off of real estate made prices go down. The wave of

sell-off started from the discount of up to 35% of

PetroVietnam Power Land JSC (PVL) and then in

Hanoi, Private Construction Company No 1 also

decided to reduce 5-7 million VND/m2 for apartments

at VP3 Linh Dam project and CT6 Xa La under


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Policy News

Resolution No11 on real estate credit crunch:

facing pressure to control inflation and stabilize

macro economy, on February 24, 2011, government

issued Resolution No11 and on March 1, 2011, the

State Bank of Vietnam (SBV)s governor issued

Directive No01. Accordingly, banks will tight credit

and reduce loans for non-production sectors,

especially real estate sector, in comparison with 2010

(the non-production loan ratio in total loans at

maximum 16% as of December 31, 2011). This

measure has great impacts on the realty market,

leading to big gap between supply and demand,

strong decline of realty prices while buyers are

waiting for further falls in prices.

Government approved master plan for Hanoi: onJuly 26, 2011, prime minister approved the master

plan to build Hanoi to 203 and vision till 2050.

Accordingly, national political and administrative

centre will be still located in Ba Dinh. However,

some ministries and departments will move

headquarters to My Dinh area and the west of West

L k G t l i tit ti ill t b l t d

Business News

Vincom transferred Tower B Vincom CentreHanoi for Techcombank: Vincom sold entire office

area from the seventh floor upwards, lobby area on the

first floor, partly area on first and second floors of

trade centre and some areas and other assets at No191

Ba Trieu, Hanoi for Techcombank. The transfer is

estimated to finished on March 1, 2012.

Vinaconex will merge subsidiaries in real estate

sector: Vinaconex planned to set up a core company

in real estate sector, including investments in urban

zones, housing areas, residential areas, entertainment

areas, real estate management and realty services.

CBRE acquired real estate investment

management division of ING Group: CBRE hasacquired real estate investment management division

(ING REIM) of ING Group NV in Asia, and merged

operations with counterpart department of CBRE.

The payment is part cash and part of loans under

guaranteed credit line, including $800 million of bank

loan raised in March 2011.

Vi l d i t Vi O t b 4


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In 2011, Vietnams economy entered into an

extremely difficult period, GDP growth rate

declined while inflation accelerated, input basic

raw materials prices for productions surged and

labour costs also soared,Therefore, in a bid to tame inflation and stabilise

the macro economy, government issued a

Resolution No11/NQ-CP by late February 2011

and the central bank issued Directive No01/CT-

NHNN in early March 2011. This has had a strong

impact on the entire economy, including finance,stock market and real estate sector.

Limited money supply have caused considerable

difficulties for realty firms in capital mobilisation

while this field always requires a huge amount of

medium and long term capital. Hence, a series of

l t t j t h d t h lt d l t k t

Preliminary statistics showed that in 2011, there

were up to 48,000 enterprises going bankrupt,

including many real estate companies.

For real estate market, the central banks

Directive No01/CT-NHNN ruled commercial

banks to reduce non-production loan ratio

(mainly in real estate and stock market) to 16% of

total loans as of December 31, 2011. This

measure has caused great impact on the real

estate market, leading to more gloomy situation

of real estate market, decreasing supply, lowliquidity and decline of real estate prices.

Housing prices (including apartments, adjacent

houses and villas) in 2011 tended to go down by

averagely 30%-40% from early 2011 in Hanoi

and 5-10% in HCM City.

MARKET OVERVIEW


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Mr. Nguyen Tran NamDeputy minister ofconstruction

Mr. Cao Sy Kiemformer governor of State

Bank of Vietnam (SBV)

Viewpoints from state management agencies

Viewpoint from project developers

Mr. Nguyen Van Ducdeputy director of DatLanh Co

Mr. Tran Minh HoangChairman of Vinaland

In 2012, market thrives or

freezes depending onIn 2012, market is

f t d t t l

If tight credit policy continues

to prolong for long time and

property loans keep falling

like currently, the real estate

market will continue tofreeze, products will be hard

to be completed and sold

below costs and enterprises

may fall into insolvency for

bank loans.

2012 is said to continue a

difficult year, not only for

real estate market. Theunsolved capital problem

and economic restructuring

effort, including banking

system, will cause great

impacts on the market.


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Cn hchung c trong giai on gim gi

In Hanoi

Within one year from early 2009 to early 2010, apartment

price had increased rapidly by 40%, then stood at high level

in 2010. Till the end of 2011, apartment price decreased 10-

30% from early 2011, but falling slightly over early 2010.

Currently, apartment average price in Ha Dong district is

ranging around 17 22 million VND/m2, in Tu Liem

district (My Dinh) ranging 25 32 million VND/m2, in

Dong Da at 30 -40 million VND/m2, Hai Ba Trung (Minh

Khai) at 2433 million VND/m2,

In HCM City

There were no strong discounts and sells-off in the past

time but the market is still witnessing downward tendency,

discounts and payment reschedules. These forms aimed at

supporting customers to stipulate the real demands. In

addition, businesses are accelerating the recovery of cash

fl d l f t t di j t I D b th

Source: Apartment price in Hanoi in Q4/2011 (CBRE

Vietnam)

Apartment market


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Office for lease market and retail space

Office

Office market in HCM City still saw difference

between old and new buildings. New projects such

as Bitexco and Vincom still posted high vacancy

ratio while old buildings in the central area reached

the fulfillment of over 90%. Regarding the office

rental price, this is the third year, office rental

charges have continued to fall and posted the

strongest decline in the fourth quarter of 2011.

According to CBRE, average rental price for Grade

A is currently at $32, Grade B at $18 and Grade C

at $14. New supply is constantly increasing.

In Hanoi, after three quarters of relative stability,the rental price tended to increase slightly and

market performance was quite good. In the fourth

quarter of 2011, office market saw clear

downtrend. New supply continued to increase at

approximately 40% from Q4 previous year (figures

from Savills). Average rental price decreased by

2% f th i t d 3 4%

Source: Office rental price in HCM City in Q4/2011CBRE

Vietnam


10/20


OUTSTANDING PROJECT

The investor said: Currently, all items of project are

being deployed by over 20,000 workers of contractors.

In addition, hundreds of officials and technical experts

are also regularly examining and available for

inspection to monitor the progress and quality of

construction. All are for ensuring for the operation with

the best quality.

Overall perspective of project

Project: Vincom Village

Vincom Village ecology urban zone located on a

total area of more than 183ha is the most modern,

luxurious and high-end urban zone in Vietnam.

With the idea of an urban zone development of not

only beauty, modern and high-class special

standards in facilities but also a perfect habitat,

Vincom Village is organized and planned on

inward basis, focusing on green walking garden,

curving lake with large area.

Designed in the neoclassical style by a team of

talented architects, each villa at Vincom Village is

a work of architecture that is the luxury, elegance,

sophistication and class claims of the employer.

Villas at Vincom Village are the convergence of

quintessence with French architectural style as we

see in tourism areas such as Da Lat, Tam Dao, Sapa

or centre of Hanoi streets

Vi Vill j t d it b i d


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LAND PRICE TABLE OF TYPICAL PROJECTS

Project land price table in Hanoi December 2011

Project Road >10m Road >17m Road >30m

Adjacent Villa Adjacent Villa Adjacent Villa

Ha Dong

Thanh Ha (A, B) 31-35 28-29 30

Duong Noi Zone D 40-45 52-57 70-80

Tay Do Villas 55-60 60-70 70-95

Van Phu 46-63 65-70

Van Khe 90-120

An Hung 63-70 100-115

Park City 92-93

Thang Long Boulevard

Le Trong Tan Geleximco

(A, B, C, D)

A:45-47

C:45-47

D:39-43

A:52-53

C: 40-45

90-100

B A Kh h 63 76 70


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LAND PRICE TABLE OF TYPICAL PROJECTS

Condominium price table in Hanoi December 2011

Location Project/Zone Area (m2) Reference price

Cau Giay Discovery Complex 119.16 52.5-45.5

Indochina Plaza 112 57.2-62.7

Madarin Garden 130.1 45-47.5

Dolphin Plaza 112 45-55

No5 - Vinaconex 146 42-44.6

Dong Da 170 De La Thanh 125 36-37.5

Sky city Tower 112 57-58

Ha Dong Usilk City 79-146 22.5 -26

Van Phu Victoria 96.1 -120 17.8

Xala 77-84 20-27

Mekong Plaza 78 18-20

Sails Tower 14-18

Hai Ba Trung TimesCity 75-108 29.8-34.2

H Bi h G Cit 24 1 27


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Reference land price table in end-2011

Project/Zone Internal Road > 10.5m Internal Road >17.5m Main Road >30m +/-%

HCM City S3.3

Hi L 46 5 70 0
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Reference land price table in end-2011

Project/Zone Internal Road > 10.5m Internal Road >17.5m Main Road >30m +/-%

HCM City S


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Reference land price table of condominium in end -2011

Location Project/Zone Area (m2) Reference

price/m2

+/- %

District 2 Thinh Vuong 76-183 19.8-23.2 2.5 -> 4.8

An PhuAn Khanh 141.6 24.5-25.6 2.1->2.4

An Hoa 75-95-100 19- 21 0.5 -> 4

An Cu 98105 24.325.6 1.35 -> 1.6

Binh Minh 95108 1922.3 0 -> 4.2

Cantavil 98140 31.136.9 -1.3 ->0.27

Thu Thiem Xanh 60120 15.216.5 0

Thao Dien River View 105 - 120 29-31.2 2.4 -> 2.63

Xi RiverView Palace 145 - 202 29.131.2 -5 -> -3

District 7 Phu My 77 - 177 2023.5 -9 -> 0

Hoang Anh Gia Lai 1 77 - 114 19 - 20 0

Hoang Anh Gia Lai 2 118

187.6

1619.5 0

Nam Khang 120 - 121 32 - 34 0

An Vien 73 - 76 19.5 - 21 0

Di t i t 8 Ph L i 74 9 5 10 6 0
http://www.vinalandinvest.com.vn/thongtinduan.php?id=179&t=122http://www.vinalandinvest.com.vn/thongtinduan.php?id=335&t=122http://www.vinalandinvest.com.vn/thongtinduan.php?id=335&t=122http://www.vinalandinvest.com.vn/thongtinduan.php?id=179&t=122


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UPDATED PHOTO GALLERY ON PACE OF PROJECTS IN HANOI

Hapulico Complex completed crude

construction

Van Phu Victoria under constructioin for eighth

floor

B41 Building-Head Department V 28-storey condominium in Thang Long

international village


17/20


Splendora condominium under completion AZ Lam Vien Complex under crude construction

for second floor

Geleximco urban zone under completion foradjacent houses

Hong River Parkview


18/20

GOLD SPONSOR

Page 17

No Project

NameInvestor Total

Investment

Area Location Progress Description

1 Times City Vingroup 5.8 trillion

VND

364.500

m2

458 Minh Khai -

Hai Ba Trung -

Hanoi

Under

construction for

infrastructure

and crude work

for some

buildings

Project includes 9 land plots, including 7 land plots to build

house for living and ancillary works and 2 remaining land

plots to build Vinmedicare international general hospital.

These buildings are planed to have 22 - 35 floors.

2 Vincom

Village

Vingroup 10 trillion

VND

183.5 ha Phuc Loi, Phuc

Dong, Viet Hung,Gia Thuy, Long

Bien, HN

Preparation to

hand overvillas

Project consists of about 1,000 villas ranging an area of

38.2ha, traffic road 50ha, green area and water surface 60ha,Vincom Centre trade centre 45,000m2, 01 Vinmec hospital

and 2 office and condominium areas

3 Mandarin

Garden

Golden Gain

Vietnam

25,886 m2 Southeast Tran

Duy Hung, Hanoi

Under

construction for

seventh floor

Project comprises 4 condominium buildings of from 25-29

floors, and scale of 1,008 high-class apartments and trade

centre

4 Dream City Viet Han 5.8 trillion

VND

2.069,28

ha

Tam Nong, Phu

Tho

Project includes trade complex, office, housing area at 52.31

ha, or 2.53%. Living land area: 341.66 ha, or 16.51 %. Green

area: 1092.54 ha, or 52.97%,

5 Suoi Son Long Dien Real

EstateJS Co

4.575 trillion

VND

117 ha Hoa Binh hamlet,

Giang Dien

commune, Trang

Under

construction for

infrastructure

Construction land area accounts for 56.5ha, including single

villas, adjacent houses and condos. Land area for public

works at 9.89 ha, land area for traffic at 29.2 ha, green park

Appendix: Typical Real Estate Projects


19/20


GOLD SPONSOR

Page 18

Bom, Dong Nai and sport area 15.22 ha and river and lake at 6.19 ha.

6 The Empire Thanh Do Group 10 trillion

VND

51,5 ha Truong Sa street,

Hoa Hai ward,

Ngu Hanh Sondistrict, Da Nang

City

Under

construction for

infrastructure.Fully

completion is

expected in

2018

Project is divided into two zones, zone Q1 is adjacent Truong

Sa street with 30 ha area, including sea view villas, hotel and

apartments, zone Q2 with 21.5 h, villas and hotel,Project was kicked off construction on July 24, 2011. As

expected, in Q2 2013 project will complete walking streets,

townhouses and infrastructure of zone Q2. In Q2 2014,

project will complete villas of zone 1 and complete basically

for villas of zone Q2. In Q4 2016 project will complete hotel

and building complex areas.

7 Phuoc An

urban zone

HUD Group 6 trillion

VND

150 ha Nhon Trach, Dong

Nai

Under

construction

Project is located on two main axises of new city of Nhon

Trach. Urban zone project has the front of road No 1 of 53m,

near administrative centre area, about 25km from HCM Cityon road 25C. Housing area is 66ha, including 512 single

villas, 836 duplex villas and over 1,000 adjacent villas.

Construction density is 44%.

8 IJC

Commercial

Town

Becamex IJC 450 billion

VND

43,923

m2

New City of Binh

Duong

Under

deployment

Project includes 300 townhouses with structure of one ground

floor and two floors and terrace. Land area of each

townhouse is from 125m2 to 145m2, construction floor area is

from 381.5m2 each.

9 Golden Hills Trung NamGroup

$1.67 billion 400ha Hoa Hiep Namcommune; Hoa

Hiep Bac; Hoa

Lien, Hoa Vang,

Lien Chieu

Underconstruction for

traffic

infrastructure

Traffic system at Golden Hills accounts for 25.5% includinginternal road, inter-district road, main road private road of

ecology villa area with width of 7.5m; 11.5m; 13.5m; 15.5m;

30m; 33mCurrently Trung Nam is gearing up construction


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GOLD SPONSOR

Page 19

district, Da Nang of internal road in Zone A.

10 UNI Town Becamex -TDC 1.3 trillion

VND

54,503

m2

Central of Binh

Duog new city

Under

construction

Project comprises 285 townhouses ranging various areas of

105, 108, 110, 131 and 148m2, price is about 4.8 billionVND/unit.

Disclaimer: The information included herein is compiled and edited by CafeF Land Editorial Division on the basis of public sources believed to be reliable and proved to be

valuable for investors. However, we accept no responsibility for any risks or losses of investors when using information in this report.

realestate market report in 2011_cafefland

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