One of Asia's fastest growing investment houses has signed an agreement with Israel's Alony Hetz to set up a fund investing in Vietnamese real estate, the partners said on Tuesday. The Singapore-based Pacific Star Group and Alony Hetz expect to raise 200 million US dollars from institutional investors by July.
Alony Hetz, listed on the Tel Aviv Stock Exchange and one of Israel's largest real estate holdings, recently invested 40 million US dollars in a fund in India.
Under the deal, Pacific Star and Alony Herz will both manage the fund through a joint venture company that has yet to be established.
"Pacific Star has extensive ... experience in Asia and is an excellent partner for our entry into the region," said Nathan Hetz, founder and chief executive officer of Alony Hetz in a statement.
"The overall outlook of the Vietnamese property market remains bright owing to the accelerated economic growth in the country," Hetz said. (DPA)
Showing posts with label Property - Real Estate. Show all posts
Showing posts with label Property - Real Estate. Show all posts
Sunday, February 22, 2009
Ministry drafts decree to encourage overseas Vietnamese to buy homes
The Construction Ministry has drafted a new decree designed to make it easier for Viet kieu, overseas Vietnamese, to buy residences in Viet Nam.
The draft decree would supersede Decree No 90/2006/ND-CP of September 6, 2006, that expanded the number of Viet kieu eligible to buy houses in Viet Nam, the ministry’s House Management Department director Nguyen Manh Ha told VN News yesterday.
The Viet Nam News understands that feedback to the draft decree has been gathered from other ministries and it is now with the Justice Ministry.
The decree will go to Prime Minister Nguyen Tan Dung for expected approval by the end of April.
The draft decree divides eligible Viet kieu into two categories.
The first is for Vietnamese citizens living abroad, including Vietnamese nationals and foreign-passport holders who retain their Vietnamese nationality.
They will be allowed to own an unlimited number of houses in Viet Nam in the same way as Vietnamese living permanently in Viet Nam.
Vietnamese living abroad, and who have not retained their nationality will be included in this first category if eligible as listed by the Housing Law, Article 126.
The second is for other Vietnamese living abroad and who have been in Viet Nam for at least six months or hold visa-exemption certificates will be allowed to own a single residence.
Prevailing Decree 90 stipulates that only Viet kieu who are long-term investors; scientists or cultural experts; those who have made significant contributions to the country; or those who have been allowed to live in Viet Nam for a long time can own an unlimited number of houses.
It also allows Viet kieu who have been staying in Viet Nam for at least six months in one visit to own a single residence.
Construction Ministry officials are known to believe that the decree fails to identify who is an overseas Vietnamese and lacks detailed supplementary documents to show how long a Viet kieu has been a resident and of which groups he, or she, is a member.
"I have read the regulations. They are quite ambiguous. I don’t know whether I am eligible and what to do to buy a house," said German passport-holder Ho Hiep.
"I think the Government’s policy is very good but its popularisation is more important, said Canadian Viet kieu Nguyen Hoai Bac who has been an investor in Viet Nam since 1992.
"But the policy should be turned into law.
"Decrees are less than a law and I’m afraid that Viet kieu may still face difficulties when working with local authorities."
But demand by Viet kieu to buy residences is difficult to predict.
Hiep said it was not really necessary for him to buy a house because as the chief representative of a German construction company, his rent of more than US$3,000 a month was paid for him.
"But I think I must buy a good apartment in the future if the company changes its policy to transfer a fixed monthly housing allowance to my bank account instead of directly paying the fees," he said.
Nguyen Hoai Bac said he lived in the house of his wife’s family.
The Viet Nam News understands that the draft decree clearly stipulates the documents required to prove a person an overseas Vietnamese.
As such, it is held to be both more practical and more detailed than the ruling decree.
Only about 130 overseas Vietnamese had bought houses since Decree 90 came into effect more than one year ago, said the House Management Department director Nguyen Manh Ha.
The number was too few when compared with a total of about 3.2 million overseas Vietnamese, he said.
Most of the 130 live in southern Viet Nam, especially HCM City.
The proposed changes to the decree would help realise the Government’s policy of considering overseas Vietnamese as an integral part of the Vietnamese community, Prime Minister Nguyen Tan Dung said in his summary of a meeting between representatives of the Construction, Foreign, Public Security and Justice Ministries to discuss changes to the decree last September.
The law asit stands
The legal documents that now govern overseas Vietnamese buying residences in Viet Nam include:
– Housing Law, adopted on November 29, 2005, Article 126 to 130.
– Decree 90/2006/ND-CP, of September 6, 2006, Article 64 to 68. (VNS)
The draft decree would supersede Decree No 90/2006/ND-CP of September 6, 2006, that expanded the number of Viet kieu eligible to buy houses in Viet Nam, the ministry’s House Management Department director Nguyen Manh Ha told VN News yesterday.
The Viet Nam News understands that feedback to the draft decree has been gathered from other ministries and it is now with the Justice Ministry.
The decree will go to Prime Minister Nguyen Tan Dung for expected approval by the end of April.
The draft decree divides eligible Viet kieu into two categories.
The first is for Vietnamese citizens living abroad, including Vietnamese nationals and foreign-passport holders who retain their Vietnamese nationality.
They will be allowed to own an unlimited number of houses in Viet Nam in the same way as Vietnamese living permanently in Viet Nam.
Vietnamese living abroad, and who have not retained their nationality will be included in this first category if eligible as listed by the Housing Law, Article 126.
The second is for other Vietnamese living abroad and who have been in Viet Nam for at least six months or hold visa-exemption certificates will be allowed to own a single residence.
Prevailing Decree 90 stipulates that only Viet kieu who are long-term investors; scientists or cultural experts; those who have made significant contributions to the country; or those who have been allowed to live in Viet Nam for a long time can own an unlimited number of houses.
It also allows Viet kieu who have been staying in Viet Nam for at least six months in one visit to own a single residence.
Construction Ministry officials are known to believe that the decree fails to identify who is an overseas Vietnamese and lacks detailed supplementary documents to show how long a Viet kieu has been a resident and of which groups he, or she, is a member.
"I have read the regulations. They are quite ambiguous. I don’t know whether I am eligible and what to do to buy a house," said German passport-holder Ho Hiep.
"I think the Government’s policy is very good but its popularisation is more important, said Canadian Viet kieu Nguyen Hoai Bac who has been an investor in Viet Nam since 1992.
"But the policy should be turned into law.
"Decrees are less than a law and I’m afraid that Viet kieu may still face difficulties when working with local authorities."
But demand by Viet kieu to buy residences is difficult to predict.
Hiep said it was not really necessary for him to buy a house because as the chief representative of a German construction company, his rent of more than US$3,000 a month was paid for him.
"But I think I must buy a good apartment in the future if the company changes its policy to transfer a fixed monthly housing allowance to my bank account instead of directly paying the fees," he said.
Nguyen Hoai Bac said he lived in the house of his wife’s family.
The Viet Nam News understands that the draft decree clearly stipulates the documents required to prove a person an overseas Vietnamese.
As such, it is held to be both more practical and more detailed than the ruling decree.
Only about 130 overseas Vietnamese had bought houses since Decree 90 came into effect more than one year ago, said the House Management Department director Nguyen Manh Ha.
The number was too few when compared with a total of about 3.2 million overseas Vietnamese, he said.
Most of the 130 live in southern Viet Nam, especially HCM City.
The proposed changes to the decree would help realise the Government’s policy of considering overseas Vietnamese as an integral part of the Vietnamese community, Prime Minister Nguyen Tan Dung said in his summary of a meeting between representatives of the Construction, Foreign, Public Security and Justice Ministries to discuss changes to the decree last September.
The law asit stands
The legal documents that now govern overseas Vietnamese buying residences in Viet Nam include:
– Housing Law, adopted on November 29, 2005, Article 126 to 130.
– Decree 90/2006/ND-CP, of September 6, 2006, Article 64 to 68. (VNS)
Golden Square Complex under construction in Da Nang
Dong A Real Estate Joint Stock Company on January 19 kicked off construction of the Golden Square Complex in central Da Nang city.
The complex is built on 10,600 square metres with total investment of VND 1 trillion.
The complex consists of three towers of 21, 27 and 38 storeys. The five-storey blocks are reserved for trade centres, cinemas, entertainment areas and health care clubs.
The 38-storey central tower has 240 luxurious apartments. The other two towers are for offices and hotels. Total floor space is 118,000 square metres.
Construction of the complex will be completed by 2010.
The complex is built on 10,600 square metres with total investment of VND 1 trillion.
The complex consists of three towers of 21, 27 and 38 storeys. The five-storey blocks are reserved for trade centres, cinemas, entertainment areas and health care clubs.
The 38-storey central tower has 240 luxurious apartments. The other two towers are for offices and hotels. Total floor space is 118,000 square metres.
Construction of the complex will be completed by 2010.
Property sector still sizzling
The property market is showing no signs of cooling off despite concerns that a speculative bubble has been built which could prove unsustainable.
Housing prices, particularly in Hanoi and Ho Chi Minh City, are rising sharply but buyers continue to line up in the hope of cashing in on apartment prices that triple the average wage per square metre.
Last week, around 6,000 people entered into a lucky draw for the 580-unit Hoang Anh Riverview in Ho Chi Minh City’s District 2. Buyers backed themselves to purchase apartments starting from $2,200 per square metre
The new development is a stone’s throw away from the Vista which drew hundreds of potential buyers in a similar draw late last year.
Although the prices are a stark contrast with the country’s annual average per capita income of $834, Savills managing director Brett Ashton said it was not uncommon to see buyers vie for a house when the market was hot and there was little supply.
“I do not think it is abnormal,” he said. “Despite all the talk of more projects, the fact is that few developers are really launching sales and building at the moment.”
“Buyers are looking for good quality projects either for owner occupation, investment, and yes, some speculation. It is normal when good quality developments are rare,” Ashton added.
Condominium prices have gone up sharply. HAGL Land initially expected to sell Hoang Anh Riverview for $1,200 a square metre but the developer decided to lift prices as interest rose.
Condominium prices in the southern hub have risen steadily over the last couple of months. The Lancaster sold for $4,500 a square metre in the fourth quarter last year, Avalon for $4,300 and Saigon Residences $3,800 or 20-30 per cent higher than the second quarter. The Vista sold for $1,350 in the second quarter and is now going for $3,200, according to CB Richard Ellis.
Housing prices in Hanoi are also rising by $200 to $400 per sqm over the last month. Happy House Garden in Long Bien district which drew little buyer attention a year ago is now capitalising on strong demand to go to $600 per square metre compared to around $400 two months ago.
Phan Truong Son, general director of Hop Phu Investment and Development Company, said the price increases were because of rising building material prices and housing shortages in the capital city.
Hanoi saw few new projects launched last year while grandiose development such as Ciputra International City and West Westlake were crippled by land compensation problems. In particular, Ciputra has not been able to continue construction of its second phase since the end of 2006 due to local residents protesting compensation plans.
Nguyen Thanh Quang, general director of Dragon Land, the developer of the 64-hectare Dragon City in Ho Chi Minh City, said housing prices were also on the increase because laws now require developers to finish construction of housing foundations before starting sales leading to developers’ higher initial investments.
Dragon Land has yet to start selling but is drawing strong buyer interest as it is located next to the Phu My Hung, a successful township development where a villa can fetch as much as $3,800 a square metre.
Last year saw a surge in real estate investment, particularly into the construction of townships and residential high-rises, which are expected to improve supply this year and next.
Singaporean developer Keppel Land has entered into joint ventures with Tien Phuoc Company for the development of 1,500 apartments in District 2, with Tan Truong for 2,400 apartments in District 7 and An Phu Corporation for 1,940 units in District 2.
Keppel Land is also clearing sites and working on development plan for Saigon Sports City, an integrated township with 3,000 apartments in District 2. The developer claims it is well on the way to building around 25,000 homes in Vietnam.
Another Singaporean developer, CapitaLand, has also set up joint ventures to build 600 apartments in District 7 and 1,200 apartments and 300 villas in District 9.
Korean developers are moving en masse, building such projects as the Mark with 2,040 apartments in District 7 and GS Metro City on 349 hectares in Nha Be district.
Local developers are going on a new height with bigger developments such as the 1,340-apartment Richland Hill and 4,000-apartment Phu Hoang Anh in District 7.
Many of these projects will start sales this year but market observers do not expect housing prices to ease. (Dau Tu Newspaper)
Housing prices, particularly in Hanoi and Ho Chi Minh City, are rising sharply but buyers continue to line up in the hope of cashing in on apartment prices that triple the average wage per square metre.
Last week, around 6,000 people entered into a lucky draw for the 580-unit Hoang Anh Riverview in Ho Chi Minh City’s District 2. Buyers backed themselves to purchase apartments starting from $2,200 per square metre
The new development is a stone’s throw away from the Vista which drew hundreds of potential buyers in a similar draw late last year.
Although the prices are a stark contrast with the country’s annual average per capita income of $834, Savills managing director Brett Ashton said it was not uncommon to see buyers vie for a house when the market was hot and there was little supply.
“I do not think it is abnormal,” he said. “Despite all the talk of more projects, the fact is that few developers are really launching sales and building at the moment.”
“Buyers are looking for good quality projects either for owner occupation, investment, and yes, some speculation. It is normal when good quality developments are rare,” Ashton added.
Condominium prices have gone up sharply. HAGL Land initially expected to sell Hoang Anh Riverview for $1,200 a square metre but the developer decided to lift prices as interest rose.
Condominium prices in the southern hub have risen steadily over the last couple of months. The Lancaster sold for $4,500 a square metre in the fourth quarter last year, Avalon for $4,300 and Saigon Residences $3,800 or 20-30 per cent higher than the second quarter. The Vista sold for $1,350 in the second quarter and is now going for $3,200, according to CB Richard Ellis.
Housing prices in Hanoi are also rising by $200 to $400 per sqm over the last month. Happy House Garden in Long Bien district which drew little buyer attention a year ago is now capitalising on strong demand to go to $600 per square metre compared to around $400 two months ago.
Phan Truong Son, general director of Hop Phu Investment and Development Company, said the price increases were because of rising building material prices and housing shortages in the capital city.
Hanoi saw few new projects launched last year while grandiose development such as Ciputra International City and West Westlake were crippled by land compensation problems. In particular, Ciputra has not been able to continue construction of its second phase since the end of 2006 due to local residents protesting compensation plans.
Nguyen Thanh Quang, general director of Dragon Land, the developer of the 64-hectare Dragon City in Ho Chi Minh City, said housing prices were also on the increase because laws now require developers to finish construction of housing foundations before starting sales leading to developers’ higher initial investments.
Dragon Land has yet to start selling but is drawing strong buyer interest as it is located next to the Phu My Hung, a successful township development where a villa can fetch as much as $3,800 a square metre.
Last year saw a surge in real estate investment, particularly into the construction of townships and residential high-rises, which are expected to improve supply this year and next.
Singaporean developer Keppel Land has entered into joint ventures with Tien Phuoc Company for the development of 1,500 apartments in District 2, with Tan Truong for 2,400 apartments in District 7 and An Phu Corporation for 1,940 units in District 2.
Keppel Land is also clearing sites and working on development plan for Saigon Sports City, an integrated township with 3,000 apartments in District 2. The developer claims it is well on the way to building around 25,000 homes in Vietnam.
Another Singaporean developer, CapitaLand, has also set up joint ventures to build 600 apartments in District 7 and 1,200 apartments and 300 villas in District 9.
Korean developers are moving en masse, building such projects as the Mark with 2,040 apartments in District 7 and GS Metro City on 349 hectares in Nha Be district.
Local developers are going on a new height with bigger developments such as the 1,340-apartment Richland Hill and 4,000-apartment Phu Hoang Anh in District 7.
Many of these projects will start sales this year but market observers do not expect housing prices to ease. (Dau Tu Newspaper)
Khanh Hoa lands $230 million beach resort
T&M Van Phong Investment and Tourist Joint Stock Co will build a beach resort and entertainment complex at a cost of VND3.72 trillion (US$230 million) in the Van Phong Economic Zone in the southern province of Khanh Hoa, pursuant to an investment licence granted by the zone’s management board on Monday.
The Hon Ngang-Bai Cat Tham project, on an area of 295ha of land and 160ha of water in Van Ninh District’s Van Thanh commune, would become the largest tourism development in the economic zone, said an official from the provincial Department of Planning and Investment.
"When completed, the complex is projected to attract 300,000 tourists a year," said T&M Van Phong Co director Nguyen Chi Thanh. "All technology and services in the complex will be modern but close to nature so that visitors can feel the natural atmosphere when coming to the complex."
The project would be built in three phases. During the first phase of 2008-10, a five-star ocean and mountain resort would be built with 250 rooms. The first phase would also include technical infrastructure, wharf and sea port. The cost for this first phase was estimated to be VND580 billion ($36 million).
Four other resort areas with 500 rooms were planned for the second phase through 2015, along with the Hon Tre entertainment complex. Total cost for this phase was estimated at more than VND1.2 trillion ($75 million).
The last phase was planned fo 2015-18 and would include construction of 150,000sq.m of leasable commercial space at a cost of nearly VND2 trillion.
"Designers and consultants for the project are experienced ones from international and domestic companies. We are now considering an international consultant for our specific design," said Thanh.
T&M Van Phong Co is a subsidiary of T&M Group. The company expects to employ local labourers in the construction of the project, Thanh said, and the finished project would provide long-term employment in the area. (VNS)
The Hon Ngang-Bai Cat Tham project, on an area of 295ha of land and 160ha of water in Van Ninh District’s Van Thanh commune, would become the largest tourism development in the economic zone, said an official from the provincial Department of Planning and Investment.
"When completed, the complex is projected to attract 300,000 tourists a year," said T&M Van Phong Co director Nguyen Chi Thanh. "All technology and services in the complex will be modern but close to nature so that visitors can feel the natural atmosphere when coming to the complex."
The project would be built in three phases. During the first phase of 2008-10, a five-star ocean and mountain resort would be built with 250 rooms. The first phase would also include technical infrastructure, wharf and sea port. The cost for this first phase was estimated to be VND580 billion ($36 million).
Four other resort areas with 500 rooms were planned for the second phase through 2015, along with the Hon Tre entertainment complex. Total cost for this phase was estimated at more than VND1.2 trillion ($75 million).
The last phase was planned fo 2015-18 and would include construction of 150,000sq.m of leasable commercial space at a cost of nearly VND2 trillion.
"Designers and consultants for the project are experienced ones from international and domestic companies. We are now considering an international consultant for our specific design," said Thanh.
T&M Van Phong Co is a subsidiary of T&M Group. The company expects to employ local labourers in the construction of the project, Thanh said, and the finished project would provide long-term employment in the area. (VNS)
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