The country’s real estate market in 2018 will maintain mid-term stability, while merger and acquisition in the sector will continue to see strong development. This was revealed in the Top 10 Reputable Property Developers, Building Material Companies and Contractors 2018, which was announced by Viet Nam Report and online newspaper VietnamNet on Tuesday. The surveyed top 10 firms said real estate developers would enjoy opportunities of high economic growth rate, newly-signed Comprehensive and Progressive Agreement for Trans-Pacific Partnership trade agreement to attract more foreign investment and approval for establishment of special administrative economic zones. However, the survey also said local property developers would face challenges of macro-economic instability in the region, State divestment making capital dispute more severe and virtual money affecting the market and condotel, officetel and hometel segments with potential risks due to lack of clear management policies. … [Read more...] about Property market expected to be stable in 2018
Real clear markets
Document 563 sought tighter control over credit growth to meet the SBV’s target of 17 per cent for 2018, Photo: Le Toan According to experts, real estate firms need to apply more effort to cope with more stringent lending requirements starting this year, and with the coming influx of new supply. The State Bank of Vietnam (SBV) recently asked credit institutions and local offices of foreign banks to give lending priority to production and business and to strictly monitor the acquisition of consumer loans that are used, in reality, for investment and trading in real estate and/or securities. SBV’s recent Document No.563/NHNN-TTGSNH, issued in January by SBV, asked for tighter control over credit growth in order to meet its target. The credit growth target for 2018 was set at 17 per cent, lower than the growth rate of 18.17 per cent the year prior. SBV Governor Le Minh Hung has instructed financial institutions to lessen the focus on real estate and construction and … [Read more...] about SBV restricts real estate and construction loans
The proposal was made at a working session with the Central Economic Committee and the Central Steering Committee on Housing Policy and Real Estate Market, the General Department of Land Management under the Ministry of Natural Resources and Environment yesterday. Association chairman Le Hoang Chau said that after three years of implementation, the law had showed some shortcomings in need of repair including project transfer regulation. HCMC now has about 500 projects which have been stopped but there are no reasonable and efficient solutions to tackle them. Project transfer is transaction among investors not between investors and house buyers. So if sellers have not completed investment procedures, buyers will continue doing that. Therefore, HoREA proposed to permit investors to transfer all or part of their projects to other investors after completing site clearance. Project transfer should be considered as a normal activity in the investment and … [Read more...] about Law amendment proposed to clear congestions for real estate market
Viet Nam News Nguyễn Mạnh Hà, vice chairman of the Housing and Real Estate Market Management Agency, speaks to Thời báo Kinh tế Việt Nam (Việt Nam Economic Times) about the pros and cons of building tiny flats in Việt Nam Do you think that the Ministry of Construction's decision to give a nod to the construction of an apartment of 25 square metres goes against the 2004 Housing Law? Under the 2004 Housing Law, the minimum construction floor area for an affordable housing apartment shall be 30sq.m and that of a commercial housing apartment shall be 45sq.m. However, under the 2014 Housing Law, such specific regulations were abolished. It now says "the standard area of each commercial residential house shall be decided by the project investor in conformity with the detailed construction zoning plan, construction standards and regulations, and the document approving the investment project. As such, the minimum area for each house type shall be decided by the investors themselves and … [Read more...] about Do tiny flats solve market demand?
An Gia Investment and Japan’s Creed Group Investment Fund completed the acquisition of seven blocks of the Lacasa project in Ho Chi Minh City’s District 7 from the Van Phat Hung Group (VPH) on March 12. In March 2015, An Gia bought two blocks of the Lacasa project to develop its Angia Riverside and Angia Skyline projects and then bought the remaining five blocks. This is the sixth merger and acquisition (M&A) deal An Gia has concluded in recent years. Vietnam’s real estate market has witnessed a flood of capable developers intensifying their M&A activities in order to secure projects with favorable locations. According to some experts, many property enterprises lack sales experience and have been unable to continue projects because they aimed at the wrong segment. Vietnam’s real estate market, as a result, has seen a host of M&As through cooperation between many investors, with numerous successful transactions conducted. Favored approach … [Read more...] about M&A deals – primary method of investors entering VN estate market.