Short supply, rising prices A recent report by the Ho Chi Minh City Real Estate Association (HoREA) showed that the municipal city’s real estate market was on a declining trend in the first nine months of 2019. Meanwhile, the market witnessed a scarcity in housing supply in the central business district (CBD) despite high residential demand. Being rolled out since the end of 2018, The Grand Manhattan is one of few projects in District 1 achieving impressive sale performance Nguyen Hoang, director of DKRA Vietnam’s R&D Division, said that real estate products in the CBD remain in limited supply. Land bank in the CBD are becoming scarce compared with District 2, or the southern and western areas of the city. Another reason is the local authorities’ tight control over granting licenses for new housing projects in the CBD to relieve population pressure on transportation, electricity, water, and infrastructure. Due to the scarcity, most projects in the CBD are … [Read more...] about Real estate in Ho Chi Minh City CBD: Optimism for the long-term
Real estate investment trust dividends
Real estate firms are rushing to issue corporate bonds, which analysts say shows their thirst for capital. But there are risks. A report of the State Securities Commission (SSC) showed that VND60 trillion worth of corporate bonds were issued in the first half of the year. Meanwhile, according to Military Bank Securities, the figure is VND70 trillion. Real estate firms are rushing to issue corporate bonds, which analysts say shows their thirst for capital. But there are risks. The high bond interest rate is what analysts find worrying. Kim Chi Real estate firms switch to bonds due to less bank loans Bond issuance is becoming an ideal channel for real estate firms to raise capital as credit policies for property development are gradually being tightened, experts said. Strong desire for M&A deals in real estate Foreign investment flows into Vietnam’s property sector through merger and acquisition transactions have been reported to be on a strong … [Read more...] about What’s behind real estate firms’ race to issue corporate bonds?
Illustrative image (Source: Internet) Luring the largest proportion of investment from local enterprises has been the wholesale and retail sector which has enjoyed investment of US$110.6 million, accounting for 25.6 per cent of the total figure. Following this, the science and technology sector ranked second with US$83.4 million, with the agro-forestry-aquatic sector with US$64.1 million of investment in third, followed by the real estate with US$56.9 million. Among the 30 countries and territories globally that Vietnamese financiers were active in during the reviewed period, Australia proved to be the largest recipient with US$140.6 million, accounting for 32.6 per cent of the total figure, trailed by the United States with US$59.9 million, Spain with US$59.8 million, Cambodia with US$50.6 million, and Singapore with US$35.6 million. These figures indicate that local firms have made great strides in injecting their money into new markets. Examples of this can be seen with US$4.8 … [Read more...] about Vietnamese firms invest over US$430 million abroad in nine months
A MB Securities Co's trading room. The company was among the top three underwriters for corporate bond issuance in the January-October period. — Photo thoibaotaichinhvietnam.vn The total value of corporate bonds was VND178.7 trillion (US$7.7 billion) in January-October this year, according to SSI Retail Research. Commercial banks remained the biggest bond issuers with VND79.4 trillion worth of bond issuance, accounting for 44.4 per cent of the total figure. Real estate companies issued VND61.27 trillion worth of corporate bonds, accounting for 34.3 per cent of the total. The remainders were infrastructure developers, securities firms and other types of business. In 2010, more than VND17 trillion worth of corporate bond notes was issued with about 55 per cent of the total belonging to real estate firms. The biggest issuers included Vinametric Co Ltd, the owner of Saigon Prince Hotel in HCM City. The company issued VND3.7 trillion worth of two-year bonds with yield rate set at … [Read more...] about Firms issue total US$7.7 billion worth of bonds in 10 months
Commercial banks’ purchase of real estate corporate bonds is considered indirect lending to real estate firms, experts say. Corporate bond rush The interest rates for the following years will be calculated by the average interest rate of three banks plus 4.8 percent. The bond interest rates of 10-14.5 percent per annum have caught special attention from the public because they are double bank deposit interest rates. However, the real interest rates bond holders can receive won’t be that high after they pay fees to banks. The HCMC Infrastructure Investment JSC issued VND200 billion worth of bonds with the interest rate of 11 percent for the first year. The interest rates for the next years will be calculated by the TP Bank’s one-year deposit interest rate plus 3.5 percent. Risks Kim Chi What's behind real estate firms’ race to issue corporate bonds? Real estate firms are rushing to issue corporate bonds, which analysts say shows their thirst … [Read more...] about VN banks told to be careful with corporate bonds