A high-end apartment project in Ho Chi Minh City which is in crisis after its main contractor quit. The real estate slowdown in the early 2010s was the main cause of bad debt in Vietnam. Photo by VnExpress A new statement issued by the State Bank of Vietnam said lenders should avoid focusing on stock and real estate customers and maintain credit growth in these sectors within safe limits. They have to keep track of their debtors' finances and the progress of their projects, it said. “Credit expansion should go hand in hand with strict supervision to ensure loans are used for the purposes they are intended for and do not add to bad debt,” the statement said. The bank’s warning comes in the wake of a property development crisis in Ho Chi Minh City, where the main contractor American General Construction Inc. halted all operations in the city earlier this month claiming it had only been paid 60 percent of its fee for a high-end apartment project. Concerned parties are … [Read more...] about Vietnam orders banks to tighten lending in stock, real estate markets
Wake county real estate
Real estate sector expects record FDI in 2018
FDI flows into real estate have been very high so far this year, and a new record is expected to be set this year. According to the Ministry of Planning and Investment, US$1.255 billion has come into the sector. “The real estate market has mostly attracted FDI through M&A activities,” Nguyen Hoang, R&D director, DKRA Viet Nam, told Dau Tu (Viet Nam Investment Review) newspaper. “It is more and more popular as it can combine foreign investors’ strength in finance and experience with local enterprises’ huge lands and knowledge of the local investment process.” This year, investors are expected to start a series of projects on lands they had bought last year, such as Dai Phuoc Lotus in HCM City, which was bought by the China Fortune Land Development from investment funds: VinaLand Limited and VinaCapital Viet Nam Opportunity Fund Limited last April; Future Otis Hotel in the central city of Nha Trang by Taiwanese P.H Group; and apartment projects … [Read more...] about Real estate sector expects record FDI in 2018
Greening out real estate projects
Developers in Ho Chi Minh City are trying to realise the dream of greening out their real estate projects. Ho Chi Minh City is considered the leader in green real estate projects. Among those, Phuc Khang Construction and Investment Corporation is a pioneer in applying the American LEED green building standards in its two projects called Diamond Lotus Riverside (District 8) and Diamond Lotus Lakeview (Tan Phu District). In particular, Diamond Lotus Riverside handed over properties to more than 700 homebuyers by the end of 2017. In addition, the An Nhien Garden eco-urban complex, developed by Thang Loi Group, including the three sections An Phu-An Loc-An Dien, is a green community in the heart of the city with tree and traffic densities of nearly 40 per cent. EverRich Infinity of Phat Dat Real Estate Development Corporation, which is located in the centre of District 5, has been covered with green spaces surrounding the windows, not to mention a system of interconnected watercourses … [Read more...] about Greening out real estate projects
SBV restricts real estate and construction loans
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
Las Vegas shooter used real estate investments to fund gambling, guns
To the Texas brokers who met him in 2004, Stephen Paddock was an unremarkable man looking to buy an unremarkable property near Dallas, hardly distinguishable from other casually dressed Californians who flocked to the area to make investments. After touring the 111-unit apartment complex in Mesquite, Texas, with the brokers, Paddock bought it for $8.4 million, partly with the proceeds from selling some smaller properties in Los Angeles. When he sold Central Park Apartments a decade later, he had likely made $5 million to $6 million in profits, according to financial records reviewed by Reuters. Paddock's lucrative real estate ventures, which helped underwrite his high-stakes gambling, may have also allowed him to buy tens of thousands of dollars' worth of rifles and bullets in advance of his attack in Las Vegas on Sunday. A complete picture of his finances is still being assembled by investigators who are trying to fathom what drove an apparently wealthy retiree to haul … [Read more...] about Las Vegas shooter used real estate investments to fund gambling, guns