In the first six months of 2016, the total newly-registered foreign direct investment (FDI) capital in Vietnam reached US$11.28 billion, up 105.4% on-year. Real estate is the second most preferred sector with 25 new projects worth US$604.8 million, making up 5.3% of the total FDI volume, according to the Ministry of Planning and Investment. “If we look at where the money is being dispersed, it is going across all sectors, especially commercial and hospitality sectors. Indeed, Cushman and Wakefield (C&W) Vietnam has received more requests from foreign investors who are looking for grade A offices, downtown retail space, big industrial parks, and prime residential development sites,” said Alex Crane, general director of C&W Vietnam. In the first half of 2016, a series of M&A deals have been obtained by foreign investors. Remarkably, Singaporean developer Mapletree Investments Pte acquired a 50% stake in Kumho Asiana Plaza, a serviced apartment, office, … [Read more...] about M&A real estate deals on the rise
Real estate answering service
Illustrative image (Source: VNA) HCM City (VNS/VNA) - The Ho Chi Minh City Department of Construction (DoC) has asked real estate companies, brokers and trading floors in the city to strengthen preventive measures against money laundering and terrorist financing. The department asked the bodies to strictly follow regulations on customer identification, updating customer information, reviewing transactions and carefully monitoring transactions by high-risk customers. They were also told to send reports on suspicious transactions and reports on cash transactions worth 300 million VND (12,800 USD) or more to the Department of Housing and Real Estate Market Management under the Ministry of Construction and the State Bank of Vietnam's Anti-Money Laundering Department. The municipal department also asked real estate firms to send reports on national risk assessment on money laundering and terrorist financing at their own organisations to the departments before September … [Read more...] about HCM City to combat laundering in real estate
There has been a shortage of affordable residential buildings and apartment complexes in HCMC for the past two years. Many projects have been postponed indefinitely due to complications in procedures. More specifically, 126 housing projects had their funding cut between July 2015 and August 2018 despite having official Decisions for investments due to failures in executing legal procedures, making their construction plans not approved. About 124 projects were allowed to be continued in March 2019, however there were still several ones not under constructions. In 2018, the Ho Chi Minh City real estate market plummeted, with only 19 projects given to investors, 59 projects approved for investment and 53 projects granted construction permits, with 39,959 houses covering 3,263,212 m², which means 42% down in number of projects, 40% down in number of apartments and 74% down in total land area compared to 2017. In addition, only 8 projects were approved for investment with an area of … [Read more...] about Law change proposed to improve real estate market in Vietnam
Recent real estate M&A transactions Recently, Quoc Cuong Gia Lai Joint Stock Company’s stock price has been on a constant increase, propelling it from under VND4,000 ($0.18) to VND14,200 ($0.62) on May 12 (ticker QCG on HoSE). One of the reasons for this galloping rise was mentioned in the firm’s audited consolidated financial statement. In particular, QCG had received $50 million of deposit in order to transfer 100 per cent of its ownership in the Phuoc Kien project (Nha Be, Ho Chi Minh City) to Sunny Island Investment. This deposit helped QCG to pay off a VND1.352 trillion ($59.5 million) debt to the Bank of Investment and Development of Vietnam (BIDV). Phuoc Kien is a sizable residential project on a 93-hectare area. Nguyen Thi Nhu Loan, chairman of QCG, said that the firm has put a lot of effort and placed high expectations on this project. However, up till now, the project has not finished paying land use fees and site clearance compensation. Thus, the … [Read more...] about M&A abuzz in real estate market
By Dr. Tung Bui, Faculty Director of Vietnam Executive MBA, University of Hawaii The year 2014 has been so far a great start for most of the world’s real estate markets. As 2013 was a great year for the stock markets, many investors are cashing in profits and moving some of their funds to real estate. Sell high, buy low, as one would say it. Illustrative photo. Apartment buildings in Hanoi Most notably, foreign investments in the real estate market have been just astounding. Chinese investors made the headline this morning in Australia as they spent almost $US.5.5 billion in Australia’s real estate market last year. According to ABC News in Australia, about 12% of new homes in Australia were bought by Chinese nationals in 2013. Credit Suisse reports that Chinese purchased 18% and 14% of new homes in Sydney and Melbourne respectively. Facing slower growth forecasts at home, and thanks to the new government policy called “Go Global”, Chinese are now in a … [Read more...] about NEWS BRIEF & COMMENT: Reviving the lackluster real estate in Vietnam with foreign investments?