Monthly Real Estate News I October 2022

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Eastern HCMC: focal point of Northern investors www.cafeland.vn

The investors from the North are extending geographic range to buy properties, especially those areas having completing infrastructure and upcoming projects of large developers. In a report of investment sentiment by Batdongsan, 46% of Hanoi investors tend to seek opportunity in other cities and localities. According to Mr. David Jackson - CEO, Colliers (Vietnam), the market attractiveness comes from solid foundations for economic development, high demand for housing and improving infrastructure.

Denmark inaugurated its first 17 million USD factory in An Giang www.vneconomy.vn

On Sep 30, 2022, the Denmark company - Specter, specializing in the production of outdoor sportswear, inaugurated its first factory in An Giang province after two years of design and construction. Specter garment factory is the first FDI project of Denmark in An Giang, with a total investment of 17 million USD.

Remove 2 major bottlenecks to develop logistics for Ho Chi Minh City www.congthuong.vn

Logistics sector in HCMC needs to remove 2 blockages in infrastructure and labor force, while improving regional connectivity and supporting logistics. This comment was made at the 1st HCMC Logistics Forum on Sep 30 held by the Department of Industry and Trade. Accordingly, with geographic advantages HCMC has potential to become a domestic freight center and import-export center of Southern localities. However, the insufficient road system and the labor shortage are 2 bottlenecks in the city's logistics development.

Ben Luc - Long Thanh Expressway: aim to complete in 2024 www.vnexpress.vn

During a site inspection in Dong Nai on Oct 2, the investors of the Ben Luc - Long Thanh Expressway told the leaders of the National Assembly that they will try to complete the project in 2024. The largest expressway in the South was expected to be completed in 2019, but has been stopped constructing for the past three years due to difficulties in capitals and policies. Recently, the investor asked to delay the completion date to Q3/2025.

Vietnam -

2022

Top Daily Updated Real Estate News Colliers Vietnam’s Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

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Specter garment factory is built with high standards of social responsibility (CSR).

Long Thanh airport phase 1 is expected to operate in 2025

Daily Real Estate News Highlights

Vietnam - 04 October 2022

The gaps in proptech space in Vietnam www.thesaigontimes.vn

Considering the features of real estate market in Vietnam, using proptech to digitize the physical transactions is quite challenging. In this sector, many startups have quit the game despite receiving a lot of interests when raising capitals. To be successful, this model needs more time for the market to get used to the new platforms. Mr. David Jackson - CEO, Colliers (Vietnam) said that the secondary market depends on traditional brokerages and agents through a complex system of exchanges. The challenge for Proptechs, therefore, is huge when it comes to transforming and digitizing the entire physical trading model mentioned above. This requires a team that understands both technology and traditional real estate, not only PropTech but also all stakeholders such as investors, developers, and service providers.

Over 90% businesses believe the year-end retail to be positive www.nhipcaudautu.vn

Total retail sales of consumer goods and services in September was estimated at 493.1 trillion VND, up 2.9% over the previous month. In a recent survey conducted by Vietnam Report, 53.8% retailers achieve business performance equal and exceed the pre-pandemic levels. 91.7% retail businesses believe the market outlook of retail sector in the last months of 2022 will be better than the same period in previous years.

950 billion VND needed to upgrade the route connecting Can Tho - Dong Thap www.thuongtruong.com.vn

The Ministry of Transportation just approved the project of upgrading the Cao Lanh - Lo Te route crossing Dong Thap province and Can Tho city to reorganize the traffic. The route has 28.8km in length and costs

950 billion VND from the state budget, expected to be completed in 2025.

Real estate decreased in both prices & liquidity www.thanhnien.vn

The prices decrease just slightly, but liquidity is poor in nearly all segments, resulting in the real estate market to go into "hibernation" for months. According to some experts, many commercial banks have increased deposit rates after the State Bank raised input interest rates, so cash is flowing to the banking channel instead of other investment types. As signs of slowing down are showing in the stock and real estate market, more people are shifting to saving cash, thus liquidity and real estate prices are unlikely to increase in the short term.

Top Daily Updated Real Estate News Colliers Vietnam's Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

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Consumers have returned to in-store shopping.

Mr. David Jackson Chief Executive Officer Colliers (Vietnam)

News Highlights

HCMC: M&A transactions are 3 times higher than direct investment www.cafeland.vn

According to HCMC Statistics Office, in the first 9 months of 2022, newly registered capital of foreign investors in HCMC just reached 348 million USD, but investment through capital contribution and share purchase transactions (often referred to M&A) reached 1.129 billion USD, 3.2 times higher than the number of newly licensed FDI projects.

In real estate industry, Mr. David Jackson - CEO, Colliers (Vietnam) shared that M&A is happening in every segment but most notably in residential projects. For acquirers who are foreign investment funds and big developers, M&A is a fast and effective growth strategy to diversify their portfolio and strengthen their financial capability.

Hanoi: Underpass at Le Van Luong - Ring road 3 intersection open to traffic www.vnexpress.vn

On October 5, Le Van Luong underpass with an investment of 700 billion VND started to open to traffic, helping to reduce congestion at the intersection with Ring Road 3. This is the fourth underpass in Hanoi put into operation.

Collecting people's opinions on the revised Land Law at the beginning of 2023 www.baodautu.vn

The Standing Committee of National Assembly just drafted a plan to submit to the National Assembly for consideration and approval of the Land Law (amended). The plan states that the revised contents will be open for the public to give opinions before the 8th Congress session (December 2022). All points of view should be collected fully and correctly, studied and explained thoroughly to complete the Land Law (amended).

Thailand's Central Retail leads rush of global retailers to Vietnam www.ndh.vn

Thailand's Central Retail plans to more than double its footprint in Vietnam, joining the long line of retail multinationals expanding their presence in a promising market with a wide margin for growth.

Top Daily Updated Real Estate News Colliers Vietnam’s Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Colliers News

Mr. David Jackson Chief Executive Officer Colliers (Vietnam)

Le Van Luong underpass began to open to traffic from the morning of October 5.

Daily

Estate News Highlights

Vietnam - 06 October 2022

Top Daily Updated Real Estate News

Colliers Vietnam's Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

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Investment opportunities arise for real estate developers in Vietnam www.reatimes.vn

According to Colliers experts, Vietnam is offering opportunities for industrial, retail, residential and office real estate not only in the CBD but new urban areas as well. Besides becoming one of the most promising markets in APAC, Vietnam also has potential for long-term growth to be a logistics hub within ASEAN.

Ben Cat town, Binh Duong: Polish company invests in a cold coffee factory www.thanhnien.vn

ILD Coffee Company - a cold coffee manufacturer, plans to build a factory in Protrade International Industrial Park with a total investment of 80 million USD. The project is expected to begin in early 2023.

Ha Noi commences a 780 billion VND underpass crossing Giai Phong street www.dantri.com.vn

Investment opportunities arise for real estate developers in Vietnam

On Oct 6, Ha Noi commenced an underpass crossing 2.5 Ring Road and Giai Phong street. Funded by the city's budget, the project has 890 meters in length with 4 lanes.

Ho Chi Minh City learns from Singapore's low-cost housing model www.plo.vn

After visiting Singapore, HCMC People's Committee vice chairman asked 2 Departments of Construction and of Internal Affairs to study and propose a specialize model of developing social housing.

UOB: Upgrading Vietnam's GDP forecast for 2022 to 8.2 percent www.vir.com.vn

Against global fluctuations affecting monetary policies and foreign trade, UOB still raised the full-year GDP growth for Vietnam to 8.2%. The sharp rebound of GDP in Q3 laid the ground for a strong performance for 2022.

Ben Cat town, Binh Duong: Polish company invests in a cold coffee factory

News Highlights

Vietnam - 07 October 2022

Rental apartments become popular again www.bds.tinnhanhchungkhoan.vn

The increasing prices lessen the chance for homebuyers, but experts believe that this may open a new trend in rental apartments in Vietnam. With rapid urbanization and strong population growth, more young people and families will choose to rent apartments instead of purchasing - shared Mr. David Jackson, CEO of Colliers (Vietnam). Besides domestic tenants, potential customers also include foreign tourists and expats.

Land prices in Da Lat are rocketing www.zingnews.vn

Investors said that land prices in Da Lat are increasing sharply in recent years. In central area prices reach 400-500 million VND/sqm, causing big investors to "dodge" this location.

Types of apartment ownership needed to be diversified www.laodong.vn

A few high-rise projects are being implemented in the center of Da Lat city.

Economic experts believe that the draft of revised Land Law needs to study thoroughly different housing needs and diversify the types of ownership to meet the people's demand. Opinions are mixed regarding the term of apartment ownership as the 3 types of use right, apartment ownership and land use right should be suitably and clearly designed.

5 routes connecting Ho Chi Minh City and Long An to be implemented soon www.sggp.org.vn

In conclusion of the meeting between HCMC and Long An People's Committee on collaboration to develop socio-economy, two localities will work closely on a waste treatment project and 4 traffic projects including Ring Road 4, new Northwest route, Vo Van Kiet extension road and Le Van Luong road.

Binh Dinh approves the planning of VND 720 bln Hoi Van hot spring resort www.vietnamfinance.vn

The 1/500 planning of a 17ha resort in Phu Cat district was approved on Oct 5. The total investment is 727 billion VND, developed by Onsen Hoi Van Ltd Company.

Top Daily Updated Real Estate News Colliers Vietnam’s Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Colliers News

Mr. David Jackson Chief Executive Officer Colliers (Vietnam)

Daily

Estate News Highlights

Prospects of rental apartments in the next 5-10 years

www.bds.tinnhanhchungkhoan.vn

The escalating house prices may be a trigger for the demand for rental apartments. On this matter, Mr. David Jackson – CEO, Colliers (Vietnam) commented that the Vietnam real estate market is expected to receive a variety of product lines in which the rental apartments with different terms are widely accepted to fulfill the strong housing needs of new urban citizens. Specifically, small-scale apartments of 25 – 40 sqm with a streamlined design and essential functions can attract and retain a lot of tenants in the long run.

Aeon plans to triple Vietnam malls

www.vnexpress.vn

The Japanese retailer plans to triple to 16 malls in Vietnam by 2025 as part of its expansion strategy, Nikkei Asia reported. With 200 stores including 6 shopping malls, Aeon will open a new mall in Hue in 2024. The company is also considering increasing its supermarkets in Hanoi to 100 by 2025, about 10 times the current number.

Vietnam: M&A market is vibrant www.laodong.vn

Many experts believe that investment capitals will continue to pour into the Vietnam in the last months of 2022 when a series of M&A are under negotiation, focusing on real estate, retail, e-commerce, logistics, food, and energy. Specifically in real estate market, more investors see the potential for raising capitals by linking financial resources. Domestic M&A deals still account for the majority.

Officially revoking tax decisions for 2 businesses winning in Thu Thiem land auction

www.thanhnien.vn

The HCMC Tax Department officially revoked the tax decisions for 2 businesses winning land auctions in Thu Thiem Urban Area (Thu Duc City). Previously, HCMC People's Committee had canceled the winning results of those 2 businesses as they did not pay the above amount to the budget, those 2 businesses lost the deposit.

Da Nang plans to build an airport tunnel

www.zingnews.vn

The Management Board of Investment and Construction Projects of Da Nang Traffic Works is collecting opinions on the adjustment of Da Nang airport masterplan (1/2000 ratio) before submitting to competent authorities and central ministries for approval. Specifically, the transport system from Trung Nu Vuong St. to the airport will be made underground and combined with the MRT subway line.

Vietnam - 10 October 2022

Top Daily Updated Real Estate News Colliers Vietnam's Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

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AEON mall in Binh Tan District, Ho Chi Minh City.

Mr. David Jackson Chief Executive Officer Colliers (Vietnam)

Real Estate

Highlights

Colliers News

Commercial real estates in coastal urban areas attract more investors

www.diendandoanhnghiep.vn

More than a tourism model combining Meetings, Incentives, Conferences and Exhebitions, MICE has become a leverage for economic development for many countries including Vietnam.

Prices of social housing in HCMC doubled within 5 years

www.vnexpress.net

First launching to the market with VND 13.8-18 mil/sqm, social housing apartments are now offered at VND 29-30 million. A survey by VnExpress shows that the prices of completed social housing projects in HCMC have increased sharply compared to that in the primary stage.

HCMC: Acquiring over 16 hectares for Tan Son Nhat T3 station

www.vnexpress.net

HCMC People's Committee approved the plan for land acquisition, starting from October. Accordingly, the Ministry of Defense will give the 1st phase of 14.7 hectares and the 2nd phase of 1.3 hectares.

Nhon Trach: Proposing to recall 27 projects www.nld.com.vn

Nhon Trach People's Committee proposed to recall 27 stalled projects to avoid affecting the local development timeline and causing a waste of land resources.

Coca-Cola starts construction of a 136 million USD factory in Long An www.plo.vn

On 14 October, Coca-Cola Vietnam commenced constructing of its 4th factory in Vietnam. Located in Phu An Thanh IP, Long An, the new 19 ha plant applies smart and high-tech model.

Vietnam's Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Commercial real estates in coastal urban areas attract more investors

Le Thanh An Lac social housing area, Binh Tan district, Ho Chi Minh City.

Colliers News

Real estate developers reckoning on 2 'oxygen tanks' of capital www.diendandoanhnghiep.vn

When credit loans for real estate are being narrowed, funding from the investors or foreign capitals such as M&A are 2 possible solutions for the developers to overcome challenges. Sales deals and promotions are increased to stimulate more purchases. More developers also look for FDI capitals or M&A channel for funding. Mr. David Jackson - CEO, Colliers (Vietnam) shared that M&A seems to be the best answer for investors and developers to incorporate financially. This collaboration would guarantee the projects to move forward.

Ha Noi aims to bring Gia Lam and Dong Anh to District in 2023

www.tienphong.vn

The capital city is determined to support Dong Anh and Gia Lam especially in budget adjustment rates to be qualify to become district in 2023.

HCMC: Depot & stations of Metro 1 expected to complete in Q1/2023

www.thesaigontimes.vn

Ha Noi aims to bring Gia Lam and Dong Anh to District in 2023

The Management Authority for Urban Railways (MAUR) said that the entire progress of project Metro No. 1 (Ben Thanh - Suoi Tien) has currently reached over 92% of the work volume, and the depot and stations are expected to be completed in the first quarter of 2023.

Thanh Hoa: Adjusting Van Ha Town and Phuc Thinh Industrial Clusters

www.congthuong.vn

Thanh Hoa Provincial People's Committee decided to adjust the implementation progress of the technical infrastructure construction investment project of Van Ha town & Phuc Thinh industrial clusters. According to the Decision, there will be 2 phases for the projects to be processed.

HoREA: Propose to expand the credit room by 1-2% despite high interest rates www.zingnews.vn

The Ho Chi Minh City Real Estate Association (HoREA) suggested the State Bank of Vietnam (SBV) and the Government to consider loosening the credit ceiling by 1-2% to have more capitals, using about 100-200 trillion VND to support the economy in the peak year end.

-

2022

Daily Updated Real Estate News Colliers Vietnam’s Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Mr. David Jackson Chief Executive Officer Colliers (Vietnam)

Estate News Highlights

Vietnam - 13 October 2022

Top Daily Updated Real Estate News

Colliers Vietnam's Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

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Real estate businesses 'struggle' to raise capital www.reatimes.vn

Limited credit loans, 'clogged' cashflows from both homebuyers and foreign investment, many real estate businesses are making every effort to raise money without issuing stocks and bonds. M&A activities appear to help businesses and the real estate in general. According to Mr. David Jackson - CEO, Colliers (Vietnam), M&A should be considered as the most possible solution to ensure the projects to move forward.

HCMC proposes to the Central Government on establishing a specialized company for social housing development www.phunuonline.com.vn

HCMC People's Committee suggests to a long-term, stable fund with favorable interest rates to support the investors. HCMC also suggests the establishment of specialized company under the city's authority for investment, development and management of social housing.

Hanoi: Study on the construction of No.6 metro line Noi Bai - Ngoc Hoi www.congthuong.vn

Hanoi People's Committee requested relevant units to study the new line (Noi Bai - Ngoc Hoi) using non-refundable ODA from the Australian government through the World Bank.

The North-South expressway phase 2: Urgent land acquisition & choosing contractors to commence in December www.vneconomy.vn

Deputy Prime Minister, Mr. Le Van Thanh noted that localities must hand over 70% of the ground area before November 20, 2022 to start the construction of the North-South Expressway in the East, phase 2, right in December. If one stage is in slow progress, it will be very difficult to make up for the next step of construction later on the site.

Too many problems at 6 urban railway projects www.cand.com.vn

Hanoi and Ho Chi Minh City have been implementing 6 projects of urban railway lines so far. The total investment of these projects belongs to the criteria of national important projects. However, all of them are behind schedule and a series of problems remain.

Mr. David Jackson Chief Executive Officer Colliers (Vietnam)

HCMC proposes to the Central Government on establishing a specialized company for social housing development

Going upstream, the office market recorded positive signs in Q3/2022 www.toquoc.vn

The market of offices for rent witnessed positive changes while real estate market is showing signs of deceleration and sideways.

Ms. Nhung Vu, Associate Director of Office Services at Colliers (Vietnam) commented: “The demand for office spaces grows constantly since March and thus contributing to the rapid recovery of the office segment in three major markets in Vietnam. Notably, high flexibility and global interactivity has led to a change in office arrangement, with co-working space is most preferred by SMEs or startups in large cities while activity-based working model is considered by multinational companies.”

Money collected from transfer tax of property doubled www.vov.vn

The accumulated income tax revenue from real estate transfer, inheritance, and acceptance in the first 8 months of 2022 reached more than VND 26.86 trillion, up 96.4% y-o-y. On average, a transfer price is 3 times higher than that of People's Committee in declaration file

Bung bridge of over 500 billion VND opened to traffic, easing the congestion of HCMC's northwest gateway www.thanhnien.vn

On Oct 16, the opening ceremony of the bridge branch 2 and the new construction of Bung Bridge connecting Binh Tan district - Tan Phu district was organized. Once completed, the project will reduce traffic congestion and contribute to completing the transport infrastructure system and inter-regional connectivity in the northwest area of HCMC.

VSIP Group approved investment policy in an IP in Can Tho www.thesaigontimes.vn

VSIP Group has received the investment license to develop a new industrial park (period 1) in Vinh Thanh District, Can Tho City where its orientation for socio-economic development to be a center for trade and services in the Mekong Delta by 2030.

Hau Giang established criteria for investors in industrial parks www.plo.vn

In terms of selecting investors for the construction of industrial facilities, Hau Giang province requires investors to have hands-on experience in industrial localities with 60% of occupancy rates.

Colliers News

Ms. Nhung Vu Associate Director of Office Services Colliers (Vietnam)

The Ministry of Finance said that real estate transfer tax revenue increased sharply.

Top Daily Updated Real Estate News

Colliers Vietnam's Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Colliers News

Industrial real estate shines bright in the market www.vtv.vn

Industrial segment continues to thrive in the Vietnam real estate market in Q3/2022 with positive occupancy rates and increasing rents of average 7%-10% annually. According to Mr. David Jackson - CEO, Colliers (Vietnam), as the global supply chain is shifting, demand is growing in logistics facilities, data centers and cold storages. Yet, challenges remain for localities to come up with strategic solutions regarding infrastructure development and administrative procedures.

Unable to find loan capital, the real estate market is at risk of a freeze www.vov.vn

Real estate businesses rely their fundings heavily on bank loans, stocks and bonds while homebuyers also need to lend money. Thus, the tightening cashflows have made double impacts on the real estate market. Selling prices of apartment segment continue to rise as demand outstrip supply, yet low liquidity was recorded.

New regulation on bank guarantee of housing projects www.tienphong.vn

The newly issued Circular 11 on bank guarantees stipulates that the guarantee amount for a housing project to be formed in the future is up to the total amount the investor is allowed to receive in advance from the buyers.

Suggesting to invest VND 14,700 billion to expand HCMC - Long Thanh expressway www.vnexpress.net

The Vietnam Expressway Development Investment Corporation (VEC) has proposed to arrange more than VND 14,700 billion by itself to expand the HCMC - Long Thanh expressway to 8-10 lanes. The implementation period is from Q4/2022 to the Q1/2026.

Trung Luong - My Thuan expressway phase 2 is proposed to invest by state capital www.baodautu.vn

Regarding the investment plan, Tien Giang People's Committee said that the Central Government is currently investing in the highways of My Thuan - Can Tho, Can Tho - Ca Mau, Chau Doc - Can Tho - Soc Trang, Cao Lanh - An Huu with the state capital. Hence, the province found that the phase 2 of expanding Trung Luong - My Thuan using state budget would be suitable for the factual condition of the project.

Mr. David Jackson Chief Executive Officer Colliers (Vietnam)

Unable to find loan capital, the real estate market is at risk of a freeze

Top Daily Updated Real Estate News Colliers Vietnam’s Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Daily Real Estate News Highlights

Vietnam - 19 October 2022

Top Daily Updated Real Estate News Colliers Vietnam's Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Colliers News

Colliers: Vietnam is one of the most attractive retail markets in the world www.vietnambiz.vn

Big players like Central Retail, Aeon and Lotte are all planning to expand their scale and increase their coverage in most of Vietnam's provinces and cities. These expansion contribute to the heat of retail market in Vietnam.

Binh Duong approved the scheme to recognize Di An city as a class-two urban area

www.vnexpress.vn

Binh Duong province officially recognized Di An as a class-two city (Provincial Cities) on October 19. This will create a driving force to promote the city's potential and develop its socio-economic and urban areas.

Cat Lai bridge to be replaced by 2 other bridges www.plo.vn

Buy at WinMart+.

The city is studying to build two bridges crossing Dong Nai River from District 7 and Thu Duc City to replace Cat Lai bridge. The HCMC Department of Transport explained that the previous plan would not feasible and the project might cause traffic jams on the route and Cat Lai port.

Real estate businesses suffer from faulty land regulations www.thanhnien.vn

In a meeting with HCMC Party Committee and the Ministry of Natural Resources and Environment, many real estate businesses specified a series of problems related to land laws and legislations such as Land Law and Law on Real Estate Business.

Hai Phong: Prolonged land resettlement to be resolved

www.diendandoanhnghiep.vn

Many projects in Hai Phong conducted land acquisition before resettlement. Meanwhile, the resettlement projects are mostly behind schedule, forcing people to be ousted from their place. To solve this problem, Hai Phong aims to facilitate resettlement projects to catch up with development speed of the City.

Part of Di An city, Binh Duong province.

Estate News Highlights

Vietnam -

Retailers are 'on the race' to the suburbs www.brandsvietnam.vn

In a report by Colliers in APAC markets, in the retail real estate sector, many leading international brands are expanding their stores, causing rent recovery and low vacancy rates in markets such as Singapore, Australia, Hong Kong, China and India.

In addition to the increased purchasing power from tourists, retail activities are also boosted by the gradual lifting of social distancing measures, increasing the number of visitors to shopping centers. Ms. Trang Do, Head of Retail Services Colliers Vietnam, said that although the growth rate of the retail industry may be slowed down under prolonged inflation pressure and labor shortage, retailers are still closing in on prime locations before the rent increases. They also take advantage of this time to rearrange the store to enhance the shopping experience.

Social housing development: Breakthrough policy needed www.sggp.org.vn

The development of social housing aims to create conditions for people with low incomes to have the opportunity to own houses. This policy has been attracting great attention from society, but the results so far have not been as expected.

Real estate is "confronting" with interest rate www.baodautu.vn

Although being quiet since the beginning of 2022, the real estate market has been confronted with more difficulties as interest rates were increased. This created a financial burden on the investors who took bank loans for their real estate investments.

The North-South expressway phase 2: Urgent land acquisition & choosing contractors to commence in December www.vneconomy.vn

Deputy Prime Minister, Mr. Le Van Thanh noted that localities must hand over 70% of the ground area before November 20, 2022 to start the construction of the North-South Expressway in the East, phase 2, right in December. If one stage is in slow progress, it will be very difficult to make up for the next step of construction later on the site.

Top Daily Updated Real Estate News Colliers Vietnam's Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Colliers News

Social housing development: Breakthrough policy needed

Retailers are 'on the race' to the suburbs

Highlights

REIT - the neglected source of capital: The trust gap

www.vietnammoi.vn

The real estate market is in the ‘thirst’ for capitals due to tightening fiscal policies while the demand for income-producing real estate keeps increasing. The model of REIT (Real Estate Investment Trust) has emerged in such context as the solution to diversify investment channels and maximize the power of abundant cashflows.

Sharing on this topic with Vietnammoi, Mr. David Jackson – CEO, Colliers (Vietnam) said that the rise of REITs recently will help small and individual investors access large-scale assets such as industrial facilities, shopping centers, and office buildings. Although having the advantage of clear policies on fund management and investment portfolio, REITs still have some limitations and Mr. David gave some recommendations for investors.

Requesting payments of real estate transactions and leases to be made via bank

www.vnexpress.vn

To prevent money laundering, the Economic Committee proposed to add government regulations on banking transactions with the purchase and lease of real estate; business mergers, and acquisitions.

Ho Chi Minh City proposes a series of policies on land

www.zingnews.vn

The Ministry of Natural Resources and Environment had a working session with the HCMC Party Committee regarding the renovation and improvement of institutions and policies, improving the effectiveness and efficiency of land management and use. At the meeting, Chairman of the City People's Committee Phan Van Mai said that the management of land and environment is an issue that the city considers as vital in the development process of the city, and proposed many important contents.

To prevent risks, the Ministry of Finance and the Ministry of Construction jointly supervise the issuance of real estate bonds

www.vneconomy.vn

The Ministries of Finance and Construction will cooperate to provide information on the real estate market and strengthen supervision of bond issuance activities. In a recent dispatch to MOC, the MOF reported on the management and supervision of bond issuance by real estate businesses.

Top Daily Updated Real Estate News Colliers Vietnam’s Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Colliers News

Mr. David Jackson Chief Executive Officer Colliers (Vietnam)

Daily Real Estate News Highlights

Vietnam

Colliers News

Need to allocate more land banks to build logistics facilities in industrial parks

www.vietnammoi.vn

In a recent report on the prospect of industrial real estate in Vietnam, Colliers experts said that the trend of shifting supply chains from neighboring countries has made the demand for developing logistics facilities in Vietnam increase rapidly. However, most of the industrial land fund is currently being used for production purposes instead of additional allocation for the construction of logistics facilities or ancillary works.

VCCI: Regulating on the term of apartment will intervene the ownership right

www.vnexpress.com.vn

Regarding the regulation of the term of apartment ownership, VCCI had 4 opinions on disagreement. First, it will intervene the ownership right. Second, it will damage on sales and liquidity of condominium segment. Third, there will be other ways to renovate old buildings. Finally, it will give rise to more administrative procedures for apartment owners.

Mr. Chi Vu

Senior Manager | Industrial Services Colliers (Vietnam)

Bien Hoa - Vung Tau expressway project will hand over the site clearance pile before Nov 20 www.vneconomy.vn

Component 2 project of Bien Hoa - Vung Tau expressway has completed topographic, geological, and hydrological surveys and is preparing a feasibility study report and related procedures to complete approval in November 2022.

Two billion VND apartments are about to "extinct"?

www.nhipsongkinhdoanh.vn

Affordable housing, affordable housing priced at less than 2 billion VND/unit (under 30 million VND/m2) disappeared from the market for many years, making the "thirst" for affordable housing supply in the capital and HCMC become serious. Meanwhile, high-end housing increasingly dominates. Housing prices have increased continuously in the last 5 years. Although housing transactions have shown signs of deceleration, slowing down, and quiet, housing prices are still "anchored" to keep high prices.

The Ministry of Construction pointed out the 'disturbing factors' that prevented people from buying houses www.tienphong.vn

Summarizing the first 9 months of the year, the Ministry of Construction assessed that the real estate market was unstable, and social housing was still seriously lacking. Accordingly, leaders of the construction industry made an urgent request in the last 3 months of the year.

Top Daily Updated Real Estate News Colliers Vietnam’s Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Apartment market in the East of Ho Chi Minh City.

Daily

Estate News Highlights

Demand for rental locations in industrial parks increased sharply www.hanoimoi.com.vn

According to Colliers latest Quarterly Knowledge Report, the segment of industrial real estate thrived in Q3/2022. Especially, the demand for rental locations in industrial zones tends to increase sharply.

Mr. Chi Vu, Industrial Services Senior Manager of Colliers (Vietnam) said: “The development of infrastructure and logistics facilities have helped the processes of mass production and transportation easier and more convenient in Vietnam. As a result, we have seen inquiries from foreign investors seeking locations for rent in industrial zones increased sharply since Q2/2022, and this trend is likely to continue until next year.”

The newly issued decree on bonds raises hope for real estate www.plo.vn

After the Government issued Decree 65/2022 on the private placement of bonds, the Vietnamese bond market was marketed by experts, evaluators that will help improve professionalism, transparency, and self-responsibility in the participation of investors in the market.

Record-high real estate prices pose challenges for real homebuyers www.thesaigontimes.vn

The turbulence in housing prices continues, making it difficult for the market's growth target at the end of the year. People wishing to buy a house do not have opportunities when the source of social housing is severely lacking and the price of commercial housing is still increasing despite the difficulties of the market.

Despite breaking ground, many social housing projects lay "motionless" due to problems

www.phunuonline.com.vn

According to the Department of Construction of Ho Chi Minh City, in 2022, the People's Committee of HCMC requested to focus on implementing 18 housing projects belonging to the groups of housing for workers, social housing, and investment projects to build new apartments to replace the old one. In which, there are 8 projects in HCMC that have focused on directing and units have carried out the ground-breaking ceremony, groundbreaking, and inauguration on the occasion of April 30 and September 2, 2022. The remaining 10 projects are being continued by the Departments to quickly remove obstacles and procedures to soon complete investment procedures.

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Colliers Vietnam’s Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Mr. Chi Vu

Senior Manager | Industrial Services Colliers (Vietnam)

Daily Real Estate News Highlights

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Colliers Vietnam's Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

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Slowed down market yet house prices are still 20 times higher than social average income www.tienphong.vn

Although the market has shown signs of "slowing down", the affordable house prices are still 20 times higher than the social average income. Experts recommend that this time is really not favorable for investing in real estate and capital should be preserved.

According to Mr. David Jackson - CEO, Colliers (Vietnam), there are different outlooks for Vietnam real estate market in short and long term. Specifically, activities will be less vibrant due to short supplies, yet the market has large room to growth in the long run.

Retail giants eye expansion as economy looks up www.vnexpress.vn

Retailers are planning to expand in Vietnam where is forecasted to be one of the world’s 10 largest consumer markets. Japanese Uniqlo said it would open a store at Vincom Ba Trieu mall in Hanoi this week and two others at Vincom Royal City and Vincom Tran Duy Hung to take the total number of its fashion stores in Vietnam to 15.

Removing legal barriers for hospitality real estate to develop www.reatiems.vn

Tourism development is one of Vietnam's growth strategy, yet tourism properties are facing many legal obstacles in terms of Law on Real Estate Business, Law on Land, Law on Housing, Law on Investment, Law on Bidding, Law on Construction and many other legal regulations under the law.

Da Nang: auctions 14 large land plots, many in prime locations www.thanhnien.vn

On October 25, Da Nang People's Committee accounced that it had approved the list of land funds for the second auction of land use rights in 2022. Accordingly, Da Nang City will offer to auction 14 large land plots, including locations in the city center.

Can Tho: Presenting the Investment Certificate of Vinh Thanh Industrial Park project

www.laodong.vn

On the afternoon of October 25, Can Tho City People's Committee awarded the Investment Certificate for Vinh Thanh Industrial Park Project, Can Tho City with an area of phase 1 of 293.7 hectares to investors - VSIP Group.

Mr. David Jackson Chief Executive Officer Colliers (Vietnam)

Customers at Uniqlo Aeon Mall Hai Phong, which opened in May, 2022. Photo courtesy of Uniqlo

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Estate News Highlights

Vietnam - 27 October 2022

Serviced apartments regained growth momentum

www.reatimes.vn

As the first choice of foreign experts for long-term stay in Vietnam, serviced apartments are regaining growth momentum and are forecasted with bright prospects in the future.

Mr. Morgan Ulaganathan, Head of Asset Services and Hospitality Advisory, Colliers Vietnam said: “Considering the growing number of foreigners and expats coming to Vietnam with different demands on accommodation (location, quality, lease term, etc.), the long-term prospect of the serviced apartment market in Vietnam is still very large. Notably, the abundant supply of rental apartments contributes to increasing competition in the serviced apartment segment.”

Rental warehouses shine brightest in the real estate market

www.plo.vn

Commenting on the prospects of industrial real estate in Q4/2022, ACBS assessed that rental locations in IPs maintains a positive outlook thanks to favorable factors such as geographical advantages, relatively stable condition, young and abundant labor force and sufficient trade agreements.

Suggesting digital transactions over the certificate of house and land use rights

www.nhipcaudautu.vn

The new supply of real estate is predicted to move away from the regions traditional

According to the draft Law on Electronic Transactions (amended), it is suggested to expand the scope of the application of electronic transactions to all civil activities.

Is investment in suburban bare lands coming to an end?

www.thesaigontimes.vn

The demand for land plots in the neighboring provinces of HCMC is decreasing sharply. As cash flow is facing many challenges, there is opinion that the investment wave in the outskirts is experiencing a recession, yet other experts have different explanations.

HoREA: Banks are "pouring" capitals to high-end housing projects

www.vneconomy.vn

HCMC market has been dominated by high-end housing projects, resulted in the imbalance credit capital pouring into. Nearly 70% customers of this segment are secondary investors or people buying for rent or resell. This imposes difficulties for homebuyers with real needs to access bank loans.

Top Daily Updated Real Estate News Colliers Vietnam’s Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Colliers News

Mr. Morgan Ulaganathan Head of Asset Services and Hospitality Advisory | Colliers (Vietnam)

Daily Real Estate News Highlights

Real estate sell-off is necessary to make pricing more reasonable www.phunuonline.com.vn

The quiet market with decreasing transactions have caused the real estate investors in difficulty have to sell off to to cut losses. Experts accessed that this fact would help market pricing to return to its true value.

Mr. David Jackson - CEO, Colliers (Vietnam) shared that amid rising interest rates the investors relying on financial leverages have to lower the prices and resell their investments as quickly as possible. On the other hand, the decreasing price opens up the opportunity for secondary buyers to get their desired property with good price.

Ho Chi Minh City Industrial Park will attract 2.4 times capital by 2025 www.vnexpress.vn

HEPZA has set a target of the investment capital per hectare of industrial land to increase from 6.32 million USD to 15 million USD by 2025. By 2030, HCMC's IPs will be transformed to ecological and high-tech models, applying technological innovation, improving added values and being environmentally friendly.

The Ministry of Construction requires to tighten controls over funding activities of real estate businesses www.cafeland.vn

The MOC asked related units to supervise closely the funding activities of real estate companies on the stock market to prevent the risks of speculation, manipulation and ramping.

Money spent on building rental houses at year end www.plo.vn

As house purchases continue to be difficult, rental properties are expected to thrive in the last months of 2022 and onwards. Many investors have shifted their focus from bare lands to apartments, landed houses and warehouses thanks to growing rental demand. However, experts note that financial leverages should not be used when investing in rental real estate as cap rates may not catch up with interest rates and devaluation.

Ho Chi Minh City inspects over 60 real estate exchanges www.tienphong.vn

The HCMC Department of Construction will check the activities and organizing on purchase, sell and lease of real estate transactions, including promoting, listing, publicly provide information about real estate to participants wishing to transact.

Vietnam - 28 October 2022

Top Daily Updated Real Estate News Colliers Vietnam's Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Colliers News

Attracting investment capital of Industrial Park in HCMC

Mr. David Jackson Chief Executive Officer Colliers (Vietnam)

Daily Real Estate News Highlights

Vietnam

The market does not lacking capital for M&A deals www.antt.vn

Although the volatile macro context has slowed down the pace of M&A activities, Mr. David Jackson - CEO, Colliers (Vietnam) shared that there is no shortage of capital for real estate M&A. Moreover, the most vibrant activities focused on industrial - logistics, residential, and office segment and the investors are having high hopes thanks to its full potentials.

He also assessed that with special qualities of the real estate sector, foreign investors with a long-term vision always want to find reputable and capable partners for long-term cooperation and development in Vietnam.

The real estate market is 'refining' investors www.phunuonline.vn

The falling demand and rising interest rates have caused some sell-offs in the real estate market. Mr. David Jackson - CEO, Colliers (Vietnam), recommends buyers who want to invest in bare lands and agricultural lands to highly consider their financial capability, legal and planning status, and transaction history of the plot in the context of socio-economic factors will continue to impact on the market in the coming time.

Lotte Group expands investment to Dong Nai www.baodautu.vn

Soonly after commencing a 900 mln USD complex project in Thu Thiem (HCMC), Lotte Group plans to build more complexes near Long Thanh Int' Airport. The conglomerate is working with landowners and developers whom have existing residential and industrial projects to transfer.With large-scale projects in Hanoi, Ho Chi Minh City, and Dong Nai soon, it can be seen that this group is turning its ambition into reality.

Real estates in a seismic wave of price decrease

www.vnexpress.vn

In October, many individual investors reduce house prices by 30% while businesses give discounts of 40-50% to sell off goods. Over the past month, the real estate market in HCMC has witnessed a wave of lowering prices for properties with an unprecedented reduction and discount (down 44-50% of the listed price). Previously in July, the phenomenon of falling prices only appeared in a small group of individual investors. But in October, the bearish underground wave is showing signs of getting stronger.

Top Daily Updated Real Estate News Colliers Vietnam’s Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Colliers News

In 2022, there are still large M&A deals worth hundreds of millions of dollars.

Mr. David Jackson Chief Executive Officer Colliers (Vietnam)

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