Hochiminh real estate, In real estate getting heated in Vietnam
The real estate market has been largely stagnant. While many real estate companies are looking for ways to get out of the market, many large investors want to join in. The Vietnam Business Forum reports.
According to real estate market experts, from now to the end of 2013, the market will receive a large number of new investors. Some come, some leave, this indicates that M&As will be active at the end of 2013, especially in the field of real estate.
Since the beginning, the real estate market has seen many large M&A contracts, for example the Vietnam Infrastructure and Property Development Group Corporation (VIPD) purchased Vincom Centre A of Vingroup at a price of nearly 10 trillion VND (470 million USD); the Malaysia-based Perdanna ParkCity bought the capital contribution of Vinaconex - Hoang Thanh to entirely possess Hanoi Park City project; the FLC Group spent nearly 300 billion VND acquiring Alaska project of the Alaska Land; and Coma 18 sold VP6 Linh Dam project to Lai Chau Construction Company N°1 of Muong Thanh Group.
Of all, the largest M&A deal must be Vincom Centre A that the Vingroup assigned to the VIPD, the deal is worth nearly 10 trillion VND. This deal has brought the Vingroup an after tax profit of 4.3 trillion VND. Moreover, the Vingroup also has an agreement with Warburg Pincus investment fund, accordingly the fund will spend 200 million USD buying 20 percent of Vincom Retail. It is considered the largest investment of non state joint stock company for a Vietnamese company.
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Besides, there are many M&A deals in which purchasers are investors from Singapore and the Republic of Korea, and the sellers are mainly Vietnamese companies, for example Lotte Hotels & Resorts Group purchased 70 percent of the Legend Hotel (District 1, Ho Chi Minh City) from the Vietnam Opportunity Fund of VinaCapital with an agreement worth 62.5 million USD., Vietnam real estate market
, Vietnam real estate market, Hochiminh real estate, Real estate in vietnam, Apartment for rent in Vietnam Apartment for rent in Vietnam / With the residential market being buoyant towards the end of 2013 amid an upsurge in sales and a number of new launches, property services firm CBRE Vietnam expects a further consolidation this year. nearly 53 million USD, Mapple Tree has successfully bought the office building of CentrePoint (Phu Nhuan district, Ho Chi Minh City). A company from the Republic of Korea also signed a memorandum to purchase the office building of Gemadept (Le Thanh Tong Street, District 1, Ho Chi Minh City).
And there are also many “under the sea” transactions that are little known. These transactions immensely influence the real estate market, as well as create a huge pressure on project owners without large capital capacity.
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About 100 apartments from three operational projects have been brought onto the market this quarter, mainly in grade B and C categories.
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Many projects are still under construction, threatening to worsen the oversupply problem. These include Mandarin Garden (1008 units), D'Palais de Louis (242 units), Mulberry Lane (1,478 units), Golden Land Building (730 units) and Golden Palace Me Tri (1,000, Ha giang vietnam Ha giang vietnam, Voyage au vietnam Vietnam visa online / A new UK visa application centre opened on Thursday, Feb 21, in HCM City in response to continued growth in tourism and business visitor demand. price of land issued by the State will be much stable and avoid households in the same villas raising the land prices," he said.
According to the department, Ha Noi is home to about 1,600 old colonial French villas. Over 560 are privately owned, 1,024 are State-owned and the rest are located in Ba Dinh, the political centre.
Many of the villas are in serious decline. Often, several households share the same villa, leading to disputes and low-quality living conditions for residents.
Multi-million dollar villas left fallow in Hanoi
A lot of luxurious villas worth millions of dollars in Hanoi, which have been left deserted, have reluctantly become the places for street noodle shops or car cleaning workshops.
The Van Khe new urban area, located in the center of the Ha Dong district is considered an ideal place for living with its comfortable utilities and the modern design. However, the occupancy rate in the area remains very low.
On Le Van Luong Road, one can see a lot of half-finished villas and houses, left deserted and located next to the popular beer and bun cha (noodles and grilled meat) shops. The CT3 block is facing a row of 20 villas, but only four of them have people inside, while the others have been either left deserted or leased to others.
Thu, the owner of a bun cha shop here said that the leasing fee here in Van Khe urban area is “dirt cheap, just VND4-10 million a month.
“The landlords dont intend to sell the villas and houses, because the prices have dropped dramatically by 50 percent. Therefore, they are leasing the houses for money while waiting for the prices to increase in the future,” Thu explained.
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Thu herself rents a house at VND10 million a month and re-leased half of the house to another for VND4 million.
A half of the house is still large enough for Thu to run the bun cha shop. While a bun cha shop in the inner city covers an area of 10 square meters only, Thus shop is 30 square meters large.
The leased land area is large enough for both the shop and accommodation. Thus bedroom is on the third floor, where there is only one bed and some clothes.
Long, the man, who rent the other half of the house to set up a motorbike cleaning shop, said the real estate crisis has brought luck to him. “The rents have become so low here. It is much lower than the rent for street front houses,” he explained.
Long said that he receives some 10 clients, who bring cars and motorbikes to have them cleaned. The water from the cleaning, the oil from cars and motorbikes submerged the floor. As such, the atmosphere of the luxurious villa was the mixture of the odor from the roast meat of Thus shop and from the oil and petrol of Longs shop.
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In the Mo Lao urban area in Ha Dong district in Hanoi, which has been well known for the Lang Viet Kieu Chau Au (the European Viet Kieu village) developed by the Viet Kieu (overseas Vietnamese) billionaires, there are numerous street rice shops.
Khoa, the owner of a rice shop, said he mainly serves the construction workers from the construction projects nearby. The shop is located in an unfinished house which Khoa has rent from a landlord at VND6 million.
The luxurious villas have become the ideal places for the poor to accommodate. Its unclear where the landlords are now, but they never turn up to drive the poor people away. Therefore, more and more homeless people have congregated