assessment report real estate in viet nam

7/30/2019 Assessment Report Real Estate in Viet Nam

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ASSESSMENT REPORT REAL ESTATE IN VIET NAM

MODULE ASSIGNMENT COVERSHEET

PART 1

Students Name: NGUYEN HOANG PHUONG THO

Students Number:

Module Tutor: Michael L. FarringtonModule Title / Assignment Number: Business research method

Submission Date: Monday, 31 October 2011

Extension Date (including authorising signature):

The submission of this assignment is a statement that it is compliant with HKICHEs assessment regulations.

You are responsible for ensuring that the assignment is submitted in its entirety, and are advised to numberpages in the format Page x of y (e.g. Page 3 of 12).

PART 2

For completion by the Module Tutor: Ensure provisional mark is recorded. Keep blue copy. Returnassignment and white copy to student.

Feedback with reference to assessment criteria and suggestions for improvement

.

Tutors signature Date

Second Marker (if appropriate) Date

Provisional MarkSubject to approvalby HKICHE

CONTENTS PAGE

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A. INTRODUCTION..3

B. CONTENTS...3

PART 1. PURPOSE AND METHODS OF STUDY.4

PART 2. MACRO-ECONOMIC SITUATION AND CURRENT REAL ESTATE.5

PART 3. MARKET OVERVIEW AND UPDATED PHOTOS ON PACE OF PROJECTS..11

PART 4. DEMAND FORECAST OF HOUSING AND REAL ESTATE FUTURE.15

PART 5. CLASSIFICATION OF STOCK REAL ESTATE BUSINESS LARGEST

NUMBER 500 IN VIET NAM ENTERPRISES (VNR 500)17

C. CONCLUSION..17

LIST OF FIGURES

Vietnams economic indicator..5

Chart of asking price.7

Par chart of asking price8

Chart of rental rate.8-9


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NEEDS ASSESSMENT AND NEEDS HOUSING INVESTMENT CURRENT

ACKNOWLEDGMENTS

The development of the channel finance stocks, real estate to have a strong influence of

macroeconomic countries. In the real estate housing is imperative to meet the needs of the social

security as well as investment properties have the greatest value to most investors and

households .In developed countries at higher prices than 4 times and 8-12 times in the developing

countries compared to average annual income of a household . So people just buy the house if the

payments are broken down in the long run.

The difficulty for the current housing needs for people are a matter of urgency to the need for social

security. Although past state housing policy for low-income but not working use, because housing

prices are too high today is not suitable for people with low incomes .And this factors development

investment lending market needs to buy a home is a necessity in Viet Nam in the near future .

However, the issue of mobilization and management of real estate investment channels especially

in conditions of real estate over-development, such as price hikes in Viet Nam in the major urban

Ho Chi Minh or Ha Noi is a complex issue should be studied in depth and professional.

This is the report "reviews the current housing needs and vision development trends in 2012." We

thank you most sincerely for the advice and material support from their colleagues in the industry

any estate and the teachers listen to students of the class. In the course of this report we certainly

make mistakes, we are happy to have suggestions for articles to help this report is complete and

accurate.

Please thank .

A. INTRODUCTION

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The development of the economy means that the development of infrastructure and urban planning.

In the years from 2007 to present economic challenges Viet Nam suffered by the impact of the

global economic crisis , monetary policy tightening, the stock decline, and real estate market has

gone through many ups and downs and is now frozen. So now is the investment channel in the area

for residents and these are difficult issues to investors today.

B. CONTENTS

PART 1. PURPOSE AND METHODS OF STUDY

a. Overview problemUrban housing market have a direct relationship with the market as financial and credit markets,

building materials market, consumer market ... economic role of housing development has a huge

role to an social welfare.

The state should adopt policies for the development of social needs that means for the development

of infrastructure planning of the country has shown that human life civilized Viet Nam. We can say

that Real estate is a key factor for the development of the urban scale.

b. Purpose for research

Purpose of research given the importance of real estate have great influence on the national

economy, adding that the investment needs and trends of real estate development in the future.

Real estate development and investment positive if properly developed and it will make great

contributions to economic development.

Business properties make big profits so easily attract investment from foreign capital and the

social classes.

State revenues, and better management of land resources.

Market the property under the management and control of the state will develop a healthy

business and underground phenomenon deleted.

House and land in the areas of economic, so management and proper development of real estate

market will lead to positive development of many other sectors and we can use land for the purpose

of ensuring the state planning policy, ensuring social security, creating urban civilization.

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c. The methods of Research

The method we used in the report as methods of analysis, synthesis methods and systems of the

actual methods to further elucidate theoretical problems.

PART 2. MACRO-ECONOMIC SITUATION AND CURRENT REAL ESTATE

a. Macroeconomic

CPI (consumer price index) in July 2011increased

1.17% from June mainly due to the impacts of the

group of food (up 3.2%) and catering services

(1.78%).

In comparison with December 2010, CPI in July surged 14.61% and soared 22.16% from the

same period last year. Average CPI in Jan-Jul 2011 increased 16.89% year on year.

Trade deficit in Julywas estimated to reach $200 million, equaling to 2.4% of the exports.

The trade gap in the first seven months of this year was $6.64 billion, equivalent to 12.9% of

the countrys total export turnover. If excluding gold item, the trade gap in Jan-Jul was

estimated at $8.4 billion, equaling to 16.9% of total export turnover.

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Actualized investment capitalfrom the State Budget in July was estimated to reach 17.4

trillion VND. Totally in Jan-Jul, the figure was 92.1 trillion VND, or 49.4% of the years plan.

Index of Industrial Production (IIP) in July 2011

soared 6.1% from June and surged 9.6% against the same month last year. IIP in Jan-Jul

increased 8.8% yo-y.

Inventory index as of July 1, 2011of processing and manufacturing sectors increased 16%

year on year. Of which, sectors with high inventory included furniture

production (up 92.4%), production of non-alcoholic drinks (up 84.4%), production of

electrical cables and insulated electrical wires (up 73.5%) and brewing (up 71,6%).

Total retail sales of consumer goods and services in the first seven months of this year

were estimated toreach 1,065.8 trillion VND, up 22.3% from the sameperiod last year. If

excluding the price factor, the risewas 4.6%.

State budget deficit in Jan-Jul 2011was estimated at about 33.5 trillion VND. Total

budget collection in Jan-Jul reached 386.8 trillion VND, equaling to 65% of the years

estimate while the tota l budget expenditures in the first seven months were 420.3 trillion

VND, or 57.9% of the years estimate. From the report on the state is tightening interest rates to

ensure macroeconomic.

b. Current real estate market

Apartment market remains groomy

The condominium apartment market in Hanoi and HCM City continued the lackluster

situation. Transactions on the secondary market remained low, occurring in only the average

price segment

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In HCM City, major supply for apartment market is still mainly in districts 7, 8,

and Binh Tan. Withsignificant market share of 77%, medium cost apartments will

be still main supply in the near future.

Land prices in Ha Noi see standstill

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Land price in July saw a standstill and slipped to low level. Land price in areas of Hoai Duc,

Dan Phuongand An Khanh hovered averagely 36 50 million VND/m2, Me Linh DongAnh

areas at 16 -20

million VND/m2. These two areas are considered to

offer the largest supply in the future.

Rental rates of office for lease slip slightly

Average rental price for office Grade A in Hanoi is currently at $37-38, Grade B at $26-28,

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and it is about $34 for office Grade A and $18 for office Grade B in HCM City.

Office rental rates in HCM City continued to decline by 10% from the same period last

year. Presently, the average rental price is at $28/ m2/month. The market of offer for leasereached high fulfillment ratio mainly for Grade c.

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INFRASTRUCTURE NEWS

HANOI Nhat Tan bridge to be completed stage 4 2013,expanded national highway 5 : to finish

ground clearance before August 15 and to be fully completed in June 2013

HO CHI MINH

In souther sector a few big projects is forming such as: Highway of Ho Chi Minh Long

Thanh Dau Giay and project of Long Thanh international airport with large scale of covering

a site of 5000 hectares with a maximum estimates capacity of 100 millions passengers and

five millions tones of cargo per years.

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Long Thanh International Airport.

View of Ho Chi Minh Long Thanh Dau Giay

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PART 3. MARKET OVERVIEW AND UPDATED PHOTOS ON PACE OF

PROJECTS

a. Market Overview

Hanoi: market still remained lackluster with falling

transactions on trading floors and centers of the city,

causing many real estate trading floors and centers to

halt operations. Housing and land prices continued to

slip slightly from previous month with notable decline

in some projects such as Van Canh HUD and Thanh Ha

Cienco 5, New Tay Do Kim Chung Di Trach, Ha Phong, AIC, Viet Hung.

The fall in price ranged between 1-2 million VND per square meters.

HCM City: Like Hanoi, the real estate market in

HCM City is falling in gloomy situation. According to

the statistics of Vinaland Invest Co, up to 90% of real

estate lists stood still in price and there were almost no

transactions.

b. Updated Photos On Pace Of Projects

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Chelsea Park(under comletion period July 2011)

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Euroland Condominium (under completion July 2011)

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Van Phu Condominium(under construction for basement July 2011)

European Overseas VietNamese Village( July 2011)

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Golden Palace Me Tri Is drilling for piles construction July 2011

PART 4. DEMAND FORECAST OF HOUSING AND REAL ESTATE FUTURE

a. The need of Housing

According to the 2020 GDP per capita of about $ 3,000 - $ 3,200, the housing needs of the people

will rise sharply.

As forecast in the master plan for urban development system to Vietnam in 2025 with a vision to

2050 has been approved by, the urbanization rate to the country in 2015 reached about 38%, and

five 2020 is 45%, in 2025 was 50%. Thus, in 10 years to the speed of urbanization and population

shift from rural mechanics will increase faster in urban compared with the period from 2001 to 2010

(projected average of 1.5% / year ).

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By 2015, total floor area of the country at about 1,970 million m2, in the metropolitan area of about

905 million m2, in the rural area of about 1,065 million m2. If the coefficient of land use in urban

areas about 50%, the demand for land in the calculation of about 180,000 to 190,000 ha (targets

given land use is 179,000 ha)

By 2020, total floor area in the country increased by about 2,400 million m2, in urban areas and

1,260 million m2 in the rural area of about 1,140 million m2. If the coefficient of land use in urban

areas reached 55%, the demand for land area is about 220,000 to 230,000 ha (targets given land

use is 202,000 ha)

According to calculations by the Ministry of Construction, the total area of housing in rural areas

between now and 2020 will not increase significantly. Hence the need to develop housing in rural

areas is negligible. According to reports, in 2010 an area of about 550,000 ha in the years to have

increased, mainly due to the determination of accredited area gardens and ponds on the same

parcel of land with houses in accordance with the Land Law.

Report on land use planning was also specified, in the period of 10 years, housing demand will

increase due to higher GDP growth, people have higher demands for housing. According to current

statistics the total floor area of 1,415 million m2 in the country, housing area per capita is 16.7 m2,

in urban areas is 19.2 m2. In the 10 to be projected per capita GDP will increase 2.2 times

compared to today in about 3000 to 3200 USD, the household will need to improve the quality of

life. Forecasts to 2015 the average housing area is 22m2/person, 26m2/person urban areas, and in

2020 the urban area is 25m2/person, 29m2/person

b. Forcasting for real estate market 2012

May 8-2011 inflation at the national level is considered 23% of the peak in 2011 and is expected to

decline gradually from May to end in 2011 9-2011 and inflation will range from 18.8% - 19 , 9%.

From the fact that I think the tight credit policy of the state to ensure macroeconomic because Viet

Nam is still on track to abuse Viet Nam 2012 phat.Bat estate generally remain on track bleak risk .

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PART 5. CLASSIFICATION OF STOCK REAL ESTATE BUSINESS LARGEST NUMBER 500 IN

VIET NAM ENTERPRISES (VNR 500)

1.TanTao Investment and development Company of Industry

2.Kinh Bac Joint Stock Companies Business Development

3.Him Lam Joint stock Company

4. VinCom Joint Stock Company

5. Investment and Trading house Joint Stock Company

6.Song Da - Thang Long Corporation

7. Nam Long Investment Joint Stock Company

8. Real Estate Corporation Century 21-CenGroup

C. Conclusion

With a population density such as Viet Nam housing needs are great though Viet Nam is in

economic recession and true real estate situation is still frozen but I believe that future time the

property will soon recover. The overview report on the status of the property will be the subject of

practical insights on the status of real estate today.

Sources by: daily real estate report document.Viet newspapers,VNexpress online newspapers,

Colleagues from Real Estate Consultance Company .

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assessment report real estate in viet nam

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