#iamhcmc gazette may 2016

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BY LOCALS, FOR LOCALS - YOUR MONTHLY HCMC GAZETTE

citypassguide.com

Volume 7 | May 2016

MAY LOCAL INSIGHT:

REAL ESTATE

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“BUY LAND, THEY’RE NOT MAKING IT ANYMORE” - MARK TWAIN

A GUIDE TO HCMC’S DISTRICTS

TOP HOUSING KNOW-HOWS

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TOP REAL ESTATE WEBSITES

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News • Living • Features • Meet the Experts Reviews • House It Going • Events

PUBLISHED BY


#iAMHCMC

NEWS

#iAMHCMC

By Locals, For Locals

The following news items are provided by

News Around Saigon Photo by Bach Duong

EDITOR-IN-CHIEF Patrick Gaveau

This month we explore the hot topics of real estate: are we facing another bubble? What are the real estate challenges HCMC faces? Shall we buy now or later? Are foreign investors finally welcome? And is green construction heading our way? Read on, to uncover these questions and more.

To provide an innovative and interesting English portal of local insight for HCMC’s working professionals. CORE VALUES »»

Usability: We present interesting, engaging ideas in a relatable way

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Unity: We bring our readers together under the “Saigonese” identity

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Enjoyment: We infuse our work with lighthearted fun

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Safety for tourists

Breakthrough discovery

Ho Chi Minh City has once again vowed to

Vietnamese and Russian archaeologists have

strengthen security after a downtown robbery

discovered artifacts that they said belonged

made headlines in March. A 21-year-old Egyptian

to ancient humans around 800,000 years ago

woman had her bag snatched by two men while

in the Central Highlands. The traces of homo

walking with a friend in District 1. Her story

erectus or “upright man” included fossils and

and several photos of her crying helplessly went

more than 200 stone tools. The discovery from

viral, prompting the city’s officials to make a

a two-year excavation has been described by the

public apology and announce stronger measures

scientists as “the biggest and most important”

to protect visitors. New police data showed that

archeological breakthrough not only for Vietnam

criminals did prey on tourists: nearly half of the

but Asia.

victims of robberies reported in the first quarter were foreigners.

Bridge disaster

Air quality concerns

The transport ministry is working around the clock to build a US$13.5 million rail bridge across

HAVE FEEDBACK? CONTACT ME AT PATRICK@INNOVO.VN EDITOR-IN-CHIEF Patrick Gaveau CONTENT MANAGER Aleksandr Smechov COORDINATOR Hannah Hayes WRITERS Keith Hancock Zoe Osborne Michael Sieburg Timo Schmidt Eric Le Dréau Fong-Chan Zeuthen Le Thi Quynh Thu ILLUSTRATOR Zoe Osborne Luke Nguyen DESIGNERS Pham Mai Trang CITYPASSGUIDE.COM 42/37-38 Hoang Dieu, District 4, HCMC sales@citypassguide.com No part of this publication may be re-produced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission in writing from the publisher.

DAN TRI PUBLISHING HOUSE No. 9, Lane 26, Hoang Cau Street, Dong Da District, Hanoi Office: 347 Doi Can Street, Ba Dinh District, Hanoi Responsible for publishing: Bui Thi Huong Responsible for content: Nguyen Phan Hach Editor: Vu Thi Thu Ngan Registration publishing plan number: 780-2016/ CXBIPH/19-25/DT Publishing permit number:780-19/QĐXB/ NXBDT issued on 15th April 2016 ISBN: 978-604-882719-9 Printed 5000 copies at Nhan Dan Printing House D20/532P, Hamlet 4, Phong Phu Ward, Binh Chanh District, HCMC

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Hanoi’s air pollution has worsened over the

the Dong Nai River to replace the century-old

past decade. The Real-time Air Quality Index

Ghenh Bridge, which was struck by a vessel and

recently ranked pollution in the capital city as

collapsed in March. Works are slated to complete

“unhealthy” and at times “very unhealthy.” That

it by July 15. The disaster severed the country’s

means outdoor activities should be limited for

only north-south rail link. Passengers heading

everyone. Local authorities warned about the city’s

north now have to take a bus at the Saigon

air quality in 2004 when the level of pollutants

Railway Station to Dong Nai’s Bien Hoa Station

first went beyond the safe limit. Following studies

and resume their journey from there.

have confirmed that the once green city has been heavily polluted.

New art center

Bad Vietnamese tourists

A 1,000-square-meter art center has been inaugurated in HCMC’s District 2, becoming

The Vietnam Tourism Association is set to

the biggest of its kind in the city. The Factory

publish a guide including 30 dos and dont’s

Contemporary Art Center, or FCAC, on Nguyen

that Vietnamese tourists can find useful when

U Di Street offers a much-needed venue for art

traveling to a foreign country. Most are just

exhibitions, visual performances and private

simple rules about queuing, saying sorry and

spaces for team working and art creations. A

thank you, public hygiene, or tipping. The

second center is expected to be opened in Hanoi

industry is trying to change the “awful” behavior

soon. three months, followed by South Korea and

of many Vietnamese tourists abroad. More than

Japan. Tourism revenue increased by more than

six million Vietnamese traveled overseas last year,

21 percent to over VND109 trillion ($4.9 billion)

according to official figures.

in the first quarter.


NEWS

New leadership

Being good neighbors

The National Assembly has elected Deputy Prime

Under new rules introduced by the construction

Minister Nguyen Xuan Phuc as the country’s new

ministry, residents of apartment buildings are

prime minister. Phuc, 62, replaced Nguyen Tan

now banned from swearing in public, fighting

Dung, who officially stepped down in April after

or being too loud. They are also not allowed to

serving two terms. The legislature has also sworn

hang clothes on their balcony or windows. Critics

in Minister of Public Security Tran Dai Quang,

have dismissed the rules as “impractical,” saying

60, as the new president. Nguyen Thi Kim Ngan,

that similar regulations issued internally by many

62, has become the country’s first parliament

buildings in Vietnam are not easy to enforce.

chairwoman. The newly-elected leaders pledged

#iAMHCMC

Underground shopping zone

to improve Vietnam’s business climate and step up anti-corruption efforts.

Japan’s Toshin Development has sought HCMC’s

Pedestrian zone

permission to build a $377-million underground shopping zone between two stations Ben Thanh and Saigon Opera House of the upcoming Ben

HCMC is considering banning vehicles from

Thanh-Suoi Tien metro line. If approved, works

entering the famous backpacker precinct, including Bui Vien and Pham Ngu Lao streets,

Photo by Minh Nam

and finish in early 2024, according to the plan.

after 7 p.m. every day. The ban has been supported by many officials and business owners who believe

on the four-story structure will start in late 2019

Yellow big bus

the area ticks all the boxes to become a vibrant pedestrian-only tourist zone. It will also be safer

HCMC has launched a new bus service between

for tourists to walk around and explore the many

Tan Son Nhat Airport and its central business

shops and eateries if cars and motorbikes are

district. The so-called “high quality” service uses

banned, they say.

brand new buses imported from South Korea

Toshin suggested the city contribute around 60 percent of the total investment.

and is operated by an English-speaking staff. The Da Nang City

yellow buses run between 5:30 a.m. and 1:30 a.m. the next day, connecting the airport and popular sites such as Ben Thanh Market and the backpacker streets. Tickets cost VND20,000 for a full journey. The new unsubsidized route comes amid disappointing public transport figures. The

Competitiveness ranking

number of bus passengers dropped 5.6 percent to 134.7 million in the first quarter, compared to

HCMC has slipped two places to the 6th position on the 2015 Vietnam Provincial Competitiveness Index, an annual survey conducted by the Vietnam

One Pillar Pagoda

the same period last year.

Public urination crackdown

Chamber of Commerce and Industry and the US

Record tourist arrivals Foreign arrivals to Vietnam rose 20 percent from a

Agency for International Development. A total

Officials in District 1 appear to have had enough

year ago to nearly 2.46 million in the first quarter,

of 11,700 local private and foreign companies

with public urination. In March they started a

according to new data from the General Statistics

around the country were asked to rate 63

crackdown, sending out officers to catch and fine

Office. That was the biggest number ever recorded

provinces and cities in terms of ease of doing

violators. Offenders were fined VND200,000

for the period and a strong recovery after a small

business, economic governance and administrative

($9) and ordered to clean the spots they had

annual decline of 0.2 percent in 2015. Mainland

reform. The central city of Da Nang topped the

urinated on. There are more than 200 public

China was Vietnam’s biggest market in the first

list for the third year in a row, followed by the

toilets in the city, many of which fail to meet

three months, followed by South Korea and

Mekong Delta province of Dong Thap and the

required hygiene standards. Many residents tend

Japan. Tourism revenue increased by more than

northern province of Quang Ninh. Hanoi inched

to choose to either restrain themselves or simply

21 percent to over VND109 trillion ($4.9 billion)

up two spots to 24th.

sneak behind a tree, a wall or a bus.

in the first quarter.

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#iAMHCMC

LIVING

Guide to the Districts Apart from work and social life, finding quality accommodation in a suitable area of town is one of the most crucial factors in choosing a place to live in HCMC. The city has a plethora of options available to suit all tastes and budgets from low-cost studio apartments to international-standard luxury homes. The decision will depend on several factors: what type of accommodation you prefer to live in and can afford, what part of town you want to live in, and what amenities come with your future home. Different districts offer different vibes, from the hectic night-life and tourist buzz in D1 to the almost suburban peace of D2 about 20 minutes away from the central business district (CBD).

District 1

District 2

District 3

Wards: 10

Wards: 11

Wards: 13

Area: 7.72km2

Area: 49.74km2

Area: 4.92km2

Population in 2011: 185,715

Population in 2011: 136,497

Population in 2011: 188,898

The reverse L-shaped D1 is the location of

Rife with modern high-rise developments, D2

Bordering D1 in the centre of HCMC, D3 is

HCMC’s Central Business District (CBD) and

is the up and coming district in town. Passing

quieter, more local, and a touch more scenic

where the bulk of the city’s Western restaurants,

under the Saigon Tunnel and seeing the dust in

than its manic neighbour. The tree-lined avenues

clubs, and bars, along with tourist destinations, are

the distance will give an indication of the city’s

snake around a smattering of foreign consulates,

situated. It is not surprising that rental prices here

plans to create a second CBD, about a 20 minute

French colonial buildings, and up and coming

are the highest in the city, while backpacker and

drive from D1. Expat enclave Thao Dien ward

dining venues, creating a modern and progressive

tourist accomodation is plenty. Another notable

contains two of the most prestigious international

atmosphere to compete with D1’s plethora of

area of D1 is what is described as HCMC’s Little

schools, villas, and compounds along with a fair

tourist attractions and historical monuments,

Tokyo located on Le Thanh Ton Street.

bit of western restaurants and bars.

buildings and museums.

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LIVING

#iAMHCMC

District 4

District 5

District 7

Wards: 15

Wards: 15

Wards: 10

Area: 4.18km2

Area: 4.27km2

Area: 35.69km2

Population in 2011: 183,043

Population in 2011: 175,217

Population in 2011: 265,997

The smallest district in HCMC, D4 is sandwiched

Just to the west of D1, this district is also known

D7 feels like a sort of alternate universe, especially

between Districts 1 and 7. This densely populated

as Cholon, and is home to the city’s Chinese

in contrast to other sections of town. The streets

district had a reputation as one of the roughest

population. A teeming hub of activity, this

are wide and the atmosphere is mostly free of the

districts in the city due to its past with organised

district hosts the largest market in Vietnam, a

blaring horns of downtown Saigon. The district

crime but has cleaned up quite a bit in the past few

deluxe shopping mall, along with several Chinese

is home to a large population of Korean expats

years. It is also known for its cheap eats and has

pagodas. It is also known for its cheap and

and is the place to go for great Korean food.

some of the best street food in the city. Be careful

delicious Chinese restaurants, and can be easily

Inside D7 is the satellite city of Phu My Hung

with your possesions here but don’t be afraid to

visited on the no.1 bus from Cong Quynh street.

which is characterised by tall apartment blocks

visit this beautiful slice of real HCMC life.

Definitely worth a visit!

and modern shops and restaurants.

Phu Nhuan District

Binh Thanh District

Tan Binh District

Wards: 15

Wards: 20

Wards: 15

Area: 4.88km2

Area: 20.76km2

Area: 22.38 km2

Population in 2011: 175,631

Population in 2011: 479,733

Population in 2011: 430,350

Bordering D1 but not at all central, Phu Nhuan is

This district is heavily used for transit from

Tan Son Nhat International Airport is located in

about a 15 minute drive from the central business

Districts 1 and 2. However, it has become a

this district. Once the largest district in the city, it

district (CBD). This bustling district has one of

magnet for higher-end apartment blocks such

was broken up in two parts to create Binh Tan and

the highest population densities in the city and

as the Manor and Saigon Pearl due to its close

Tan Phu districts in 2003. The Japanese shopping

can be a bit manic to live in. But the streets are

proximity to D1. Though the area is known for

mall, Aeon Mall is also located here and is known

interesting, the people friendly and the street food

being densely populated, it is also home to the

as one of the best malls in town.

is delicious, and if you are looking for some escape

Thanh Da Island area which has some of the

from the madness, Phu Nhuan has a number of

greenest spaces in town. Binh Thanh is a great

Find out more about living, in the HCMC Resident

quiet parks to chill out in.

district for cheap, delicious street food.

Guidebook, available at Annam Gourmet.

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#iAMHCMC

LIVING

Housing Know-How There is some general useful advice when living in Ho Chi Minh City than any resident should keep in mind. We candidly answer a few pressing questions those residing in the big city might have - before it’s too late.

is to find an unfurnished place and negotiate to have it furnished how you want it.

How can you establish and maintain good relations with vietnamese neighbours? In general, good relations with Vietnamese neighbours do not require much effort compared with other nationalities. Apart from the principle

What should you pay attention to when living with a vietnamese family?

that you should treat others the way you wish to be treated and the general rules about Vietnamese culture, note the following: Be sure that the neighbourhood is suitable for

Meals are generally eaten at fixed hours and often earlier than in Western countries. Lunch is at 11:30 a.m. and dinner around 6:00 p.m. There might be some food under a plastic strainer and rice kept warm in a cooker for family members who work odd hours. If you are around, you will be invited for dinner. If you are feeling homesick for some Western food, it is probably best to have

you before buying/renting a house or flat. Go there in the evening when people return from work and use your observation skills (i.e., listen for loud karaoke). Say hello and goodbye to your neighbours with a sincere smile every time you meet. Show interest in their lives by asking a few questions, including questions that might seem strange for expatriates.

some cooking skills as they probably don’t know how to cook food from your country, and they may be (politely) delighted by your offerings. If the family is feeding you, it is appreciated if you help with some household bills. Vietnamese tend to get up early and it might not be appropriate to come home too late after a night out. You will be asked to attend celebrations that honour memories of the elderly, such as death anniversaries. Make sure you attend as a sign of respect.

How can you negotiate your rent?

in the same building, you pretty much become a If there is a dispute, be patient and firm. Don’t raise your voice or make them “lose face”. If a

de facto member even to the point of being called brother, sister, son or daughter.

suitable agreement cannot be reached, ask for help from the residence management board, To dan pho, or the ward’s People’s Committee. They will handle the mediation/conciliation. Offer your best wishes for special occasions such as Tet (and don’t forget to give some small li xi – lucky money – for children in the family).

What about security? Violent crime against foreigners is rare, but petty theft can be a problem. Even shoes are at risk! In some parts of town it would be wise to leave your Christian Louboutins tucked away – expensive

Offer small gifts when returning from a long trip

shoes left in front of the door have been known to

(not necessarily a bottle of Chanel No. 5 – it is

disappear. Apartment blocks are more secure than

the thought that counts)

flats and houses thanks to security measures such as CCTV cameras, security guards and enclosed

Once you have narrowed down your decision, it is time to negotiate your rent. Negotiation is dependent on three factors: furnishings, required

What are the advantages of living with a vietnamese family?

deposit and contract length. Also note that the first

parking areas. Also, many of the villas in D2 and D7 employ 24-hour security. If you are looking for a place to live, take a look at the windows in the surrounding buildings. If you see bars on the

price the landlord offers is not necessarily the one

Living with a Vietnamese family can be very

windows, this could be an area that gets burgled

they will agree to. It is a tricky balancing act and

rewarding as it gives you a look into the daily

frequently. Also, a hem with a dead end is better

you can generally achieve positive results on two

lives that many expatriates never experience.

for security as there is only one avenue of escape

of the three factors. A common negotiating tactic

Family is very important here and when you live

for a would-be thief.

Kona Real Co., Ltd

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LIVING

#iAMHCMC

An Awkward Real Estate Market BY PATRICK GAVEAU

Anyone who’s lived long enough in our city probably wonders how logic plays out when it comes to real estate value and developments.

Photo by Huy Nguyen

Making sense of it all is a pretty daunting task, I guess. But Vietnamese think otherwise since economical performance uses real estate as its barometer. Look around, count how many properties are in the making and evaluate how well our economy is doing!

“A key issue to understand the local real estate market model is property valuation” My perception of a proper system is based on market supply and demand cannot really apply here. It is the root of the misunderstanding between Western and local culture. For most Vietnamese, land value can be explained as, “my neighbour’s price is the right one.” The reason behind such awkward reasoning lies in the complex process of land acquisition and compensation. My family in law owns a beautiful patch of land and after five years they are still waiting for a license to build! And most, if not all foreign investors often give up trying to understand or see value in these exhausting, costly and lengthy land clearance activities.

The city is growing so fast and upward, are we

property prices were already then up the roof.

on the verge of a major market shift similar to

Now they are even more expensive. How far can

the one that Hong Kong, Singapore and Bangkok

it go? That remains to be seen. What we know

currently cope with? Large local developers

is that HCMC is still an emerging market where

disagree. They continue investing in the apartment

substantial growth potential exists. Fortunately for

buildings, villas and condominiums complexes

us, improvements have been made to stabilise the

that pop-up weekly. How can this be? Some

market, the legal framework is strengthening and

point out, and rightly so, that most completed

the FDI is increasing, even if it remains marginal.

housing developments remain mostly empty of lights at night, regardless of the fact that they are

Citypassguide.com & #iAMHCMC apologises

effectively sold to “ghosts”. Then why shall they

for an error in our last edition on Education. For

continue to develop as much as they currently do?

our Meet the Expert article with Ellen Thompson,

“Many believe that property value is

we put her as Head Teacher of SSIS, when the

inflated and ready to implode.”

name of the school should have been Saigon Star. We apologise to both schools for this mistake.At

Vietnamese simply factor it in the overall value,

This is a non-logical issue, which I cannot explain.

which explains why land often comes with such

And let’s be honest with each other, most of

a hefty price tag.

us who were here 5-10 years ago believe that

Launching a New

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Enrolling IB students now www.ishcmc.com +84 (8) 3898 9100

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#iAMHCMC

MEET THE EXPERT

Everything You Need to Know About Real Estate in HCMC BY PATRICK GAVEAU & ALEKSANDR SMECHOV

We sat down with property experts Mauro Gasparotti and Rudolf Hever from Alternaty (alternaty.com) for a deep exploration of Ho Chi Minh City’s real estate scene. To read the full fasinating 4,000 word interview, head over to iamhcmc.com/realestate.

Photo by Manh Hai

Do you think Vietnamese people as a whole have a different perception on land value? Mauro: Yes. Valuation is probably the most important and sensitive subject for Vietnamese. I think the true definition of value, which is what a willing buyer and seller would pay for is not applicable. It’s more of what the people are asking for next door. The other thing that affects the value is the process of the acquisition of land, the years of pain of getting the land from a certain status to a much more sellable status. From a valuation point of

the land; for foreigners it’s what the price is that

in the back. That’s when you see speculation,

would make their project feasible on this land.

you see a bubble, you see overpriced land, and

view, foreigners don’t consider this when they come in. You could spend years on relationships and a lot of money to get this land, so there is a mismatch to what a normal developed country would perceive as value and what the Vietnamese think of it. Vietnamese want to get paid for this process, and that’s why a lot of development comes at such a high prices, because this would make the project feasible.

There’s no transparency. That’s why the big guys like Vincom who get the land easier can also move the process along faster than the single developer who has spent 10 years trying to get

not many transactions. And now you see an oversupply in the hotel business; two years ago there was an undersupply. Vietnam is past this stage now and much better than before.

the approval and now he wants to get paid for

Cambodia is different. It’s easier to get the land

this 10 years.

process approval. You know exactly how much it will cost you, so Cambodia is an easier market

Is there in your experience any other country that is similar to Vietnam in the market’s disregard

to do business with, and they rely on foreign business as well.

The Vietnamese also put a future value into the

to value?

asking price. They put what the value will be

Mauro: Myanmar. We have been asked to open

Is the average land value in the primary streets in

in 5-10 years time, they try to put the growth

an office there. I clearly saw the dynamic of the

HCMC overvalued?

of the country as a factor. It’s a long exercise to

market when I was there. Nobody can tell the

Mauro: Yes, but if you asked me this question

understand value from both sides. For Vietnamese

real value of the land, everybody is relying on the

five years ago I would have said yes as well, and

it’s what has been the history they needed to go

future value it, as well as how easy it is to build

now the value is 30% more, so I was wrong then.

through to get to this point where they can sell

on it, how clean it is - also a lot of corruption

I could be wrong now. The reality is that if I run

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MEET THE EXPERT a cash flow model on any commercial property,

#iAMHCMC

Photo by Tri Nguyen

and I pick US$20,000 per square metre of land, there’s no way I’ll recover from that. Do you think this system is sustainable? Rudolf: I look at it in a more optimistic way. It is what it is, but it is changing, the market is developing, there are more laws being passed encouraging foreign investment, and you can see this in the statistics of FDI [Foreign Direct Investment]. I think over time, in terms of the big picture, we are an emerging marketing. We are going the right way, although it’s a rollercoaster, but over the long term it’s getting more developed and transparent. FDI is increasing? By how much?

We were doing a project in Cambodia one year

Malls are popping up everywhere. Is there an

Rudolf: I don’t know off hand but real estate is

ago, a satellite city with a townhouse. We were

oversupply?

usually the second or third largest recipient after

amazed to see the amount of support the low-

Mauro: I don’t think there is an oversupply,

manufacturing. Real estate is one of the major

income buyers got from the banks to buy these

I think there is a lack of demand and even the

benefactors of FDI.

low-cost townhouses. There was a whole structure

right design. There is no mall where I want to

of payment set up according to the salary the

spend more than two hours at, as opposed to in

people had and there was a lot of cooperation

Thailand, where I can spend all day in one. In

from the developers and banks coming together

Vietnam the feeling of a mall is still just a box

to help this structure. I don’t think Vietnam is

where you can buy something and get out. There

there yet. I think it’s more based on the personal

is a lot of room for further development, for

relationship between the buyer and his bank, than

example open malls where the space is outside

a sustainable, clear structure. As a foreigner living

and there are bars and clubs, basically something

in Vietnam, or as a foreign company, it’s not an

that makes the entire place more than just a

easy structure - so there’s a lot of improvement

location to buy something and leave. I think

to be done at that level.

retail is the most difficult to make work, but

How important is the real estate market for the Vietnamese economy? Mauro: [Pause] I think it’s crucial, I think [the Vietnamese] look at it closely as an indication of how strong the economy is itself. They are very attached to the land as core value, and I think it’s a good way to move the money out of the stock market, which seems very risky at the moment. “If you see what’s happening in District 2, it’s a beautiful example of a new satellite city. So there is a lot of good news out there, I wouldn’t be

there is a lot of potential. Which real estate sector suffers the most in HCMC today?

For a land lease for foreign companies, you are

Mauro: To me it’s the malls. It’s still not truly

given 50 years. What happens after 50 years?

developed. The demand is not there on the

Mauro: It’s funny because as a foreigner you buy

Vietnamese side. The mixed tenants are not

leasehold, but if you sell to locals it converts to

there. Usually there is the same type of tenants.

freehold. This structure makes the whole system

You don’t see what you get in Thailand: where

open to hope that you never really lose the value

Is local financing still too weak to support real

people can spend all day at a mall, where there is a

even if you are foreign investor. So within 50 years

estate development?

large variety of shops and a large food court, with

you have a likely chance to sell it.

Mauro: I think yes, I think there are banks that

everything from low-priced items to the branded

rush into something when they are asked, and

level. I don’t think retail in Vietnam is a sound

then they step out as quick as they rush in. There

market yet - land is too expensive for the amount

is really no long term strategy for the bank itself,

of land retail needs. Considering the land price

and they only support a certain level of buyer,

you need to go high-rise to make your money. I

which is the mid- to high-end buyer that has easier

think the only retail outlet that has proven to be

access to the bank, while the people that really

nice is AEON Mall. I think that was a good shot.

need it, it’s much more difficult for them.

But it took a long time to be executed.

too worried. And being here for eight years I passed two big bubbles: 2008-2009, and then 2011-2012, so I am very realistic about the market, but I see a lot more educated buyers and developers now.

So you don’t think we’re in a real estate bubble now? Rudolf: Globally it’s been risky for the past five years. But if you keep saying there is a crisis every day, in five years you are going to be right at some point. There are always cycles, and I think the gloom and doom scenario is possible but highly unlikely.

Santa Fe Vietnam T: +84 8 3933 0065 E: vietnam@santaferelo.com www.santaferelo.com

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MEET THE EXPERT

An Architect’s Perspective: HCMC’s Real Estate Challenges BY PATRICK GAVEAU & ALEKSANDR SMECHOV a case of wondering who would be left holding

Archetype Group is a multidisciplinary construction consultancy. Ranked 74th in the world among architectural companies, it has just acquired the Asia Pacific operations of Dutch company Tebodin, bringing its number of employees from 500 to around 1,100.

on to them. This time it is different, I don’t see people rushing in to buy apartments by the dozen. What are the main challenges that the real estate business faces in Ho Chi Minh City? As an architect I think there are two problems: there is the bubble of course that needs managing. To do this, we prefer a more regular economy and level of growth. The second, and biggest, problem is the regulation itself as a killer of creativity. We obviously want to get as much

Our Editor-in-Chief Patrick Gaveau met with Archetype’s Director of Design Jean Francois

from the land that is purchased. For example, there is always a height restriction. So we have to take the shape of the land and extrude it. We

Chevance.

cannot make fancy shapes or have a hole in the What is your relationship with Vietnam?

building. So we end up with so many buildings

buildings wouldn’t be allowed in other countries.

I came for the first time in 1990 when I was

that are just cubes. The regulations should allow

They use thin glass and single glaze the windows.

still a student in Thailand. I started coming back

for more creativity.

There is also no insulation in the walls. So this

and forth, before getting my diploma in 1994. Then I moved to Hanoi in 1995. I met Francois, who is one of our partners today, and we started working together for a French architect. We were in a very small office of just six or seven

is a really big challenge for us. It is surprising as There so many residential buildings going up, will there be enough people to fill them? Not likely. Our clients tell us that in some of their

Vietnam has a very good regulation, the Energy Efficient Building Code. It already exists but nobody is really applying it.

buildings a third of the apartments are empty for most of the year. They are owned by foreigners

What are the hurdles that you face when trying to

and Viet Kieus who don’t live here, just maybe

get all the people together to start a new project?

they come for a few months each year. These

It is not us but the client that has these problems.

are the discussions that we have when talking

It is not really the paperwork; it is very time

about services. Should we have a centralised air-

consuming to get decisions made on new buildings.

How do costs of building in Ho Chi Minh City

conditioning system or a split system? They always

Now when you show people a model, they want

compare with other cities?

go for a split system because otherwise they will

to know about the materials, they want to see

Construction costs in the city are probably about

be running air-cons when there is nobody there.

how it will look at night from the outside.

20% cheaper here than say in Bangkok. In District

Buildings are still being sold, but not used. Take

1 though, the land prices are crazy, they are so

Saigon Pearl for example, that was completely

high, probably even higher than in Bangkok.

sold very quickly, but look at it at night and you

architects. Archetype was founded in 2002 in Hanoi, then moved to HCMC. We have offices in 13 countries, all in Asia apart from France now, but still consider HCMC to be our headquarters.

can see how much is unused.

How has the development of the Metro changed the way buildings are being built? I think that even before the metro was started people knew where it was going to be. So all the

Is there any over supply of construction projects? The last bubble has probably burst, but I think

Electricity supply is a big problem for Ho Chi

way out to District 9 things are being built. It

another may be growing at the moment. Last time

Minh City. How does this impact on your work?

has played a major role. The development looked

it was like musical chairs; people were rushing

Energy conservation represents a huge challenge

crazy when I first saw it, but now as the Metro

to buy apartments in large numbers, and it was

for us. The types of glass used in most of these

gets closer it all makes sense.

The most comprehensive guide to Ho Chi Minh City ever composed • 700+ questions answered • Expert advice on living, shopping, business & more • Local perspective on expats living in HCMC 42/37-38 Hoang Dieu, D4, HCMC • +84 (0) 838 254 316 • resident@citypassguide.com

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Is Sustainable Architecture in HCMC Possible? BY PATRICK GAVEAU

Today, the demand for more sustainable design in HCMC is steadily getting off the ground. Charles Gallavardin of T3 Architecture Asia sat down with #iAMHCMC to give his perspective on green buildings in Vietnam.

climate is totally different and that they have to create their own style to make their building more appropriate to the climate, to save energy, save costs and make the building more comfortable. Do you think one of the main challenges to building green buildings in Vietnam has to do with people’s perception? Yes. I think when you discuss this with most Vietnamese, of course they want more parks

Charles and his wife started T3 Architecture in

and more green areas. But in reality, in urban

France in 2007, specialising in green architecture.

development in Vietnam, this is still considered

When Charles arrived in Vietnam in 2011 to

a quantity issue. Which means they try to plant

begin T3 Architecture Asia, the demand for

vegetation to increase the number of green area per

green building was low, although interest was

square meter per inhabitant, but without having

growing. We spoke with Charles to determine

in mind that it’s better to have many small parks

what changes were taking place to catalyse this

than having long green areas along the highway.

newfound interest.

It is the same story with green buildings: a green roof doesnæt make your building green.

What is the definition of a green building for you? It’s a building well integrated into the place

Do you think one of the main concerns for people

it’s set up at. It should take the landscape into

who don’t understand green buildings too well is

consideration - the shape of the building is quite

the fear of additional costs?

important, to be protected from the sun and

I don’t think so, because finally we can do green

allow for natural ventilation. The idea is to avoid

buildings quite cheap, depending on the material

direct light in a hot tropical climate; that’s why

you use. But the green principles are very basic

we design overhangs or balconies, to take the

and you can find it everywhere in the traditional

facade away from the sun, so you keep your main

architecture of Vietnam. Traditionally you

walls in the shadows.

have your long and narrow plot, with the shop

Secondly, you have to take care of the roof, and make sure there is a double ventilated roof to keep the air flow and make the top floor always cool. Then, ideally, you try to use green building materials, sourced not too far from where you are.

to increase electricity costs, especially for poor people, it’s a real way to make developers and private investors more concerned about energy savings. Almost none of the existing high-rises in Ho Chi Minh City are really environmentally friendly. If the price of energy rises, most of these building will have to be rebuilt or adapt to the new demands. And you provide this service? Yes, full renovation to adapt an existing building and make it less costly in terms of energy, and most important of all we make it more comfortable for people!

facing the street, the house on the backside and a courtyard in the middle. The air ventilation is efficient and you have natural light in your house and your shop. The house is far from the street so it’s far from the noise. For 20-30 years, Vietnamese have lost their knowledge of how to

Is the government aware and sensitive about the

create a green house, but recently some young

need to do something about that?

Vietnamese architecture firms take traditional

Yes, they are. There are many discussions about

building materials and traditional Vietnamese

this. But if you’re a private investor and you

architecture and incorporate it in a more modern

finance infrastructure, the government cannot

sense to make the house more green.

complain too much about what you do. You try to optimize your plot as much as possible.

Energy consumption is growing, meaning the price has to go up, which means it makes sense

Why does Saigon need such type of construction?

to have more energy efficient practices and

Saigon is one of the more polluted cities in Asia

buildings, correct?

now. There is a huge issue concerning air pollution.

Yes, this happens in every city. When energy

The demand of energy is getting higher than what

prices go up, green houses and buildings become

can be produced. What we can see for many years

more and more normal. Of course, for Vietnam,

is that Vietnam is mainly doing a “copy-paste”

electricity cost is very low, even compared to

of buildings they saw in Western countries with

the standard of life. One issue, even though it’s

full glass facades but they didn’t realise that the

never easy for government to say that they have

10


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FEATURES

Can Vietnam Ever Become Green? BY MICHAEL SIEBURG & ALEKSANDR SMECHOV Photo by Matt Walker

Content Manager Aleksandr Smechov met with Solidiance’s Michael Sieburg to determine whether Vietnam, and in particular HCMC, can ever become truly green. Here is the transcript of Michael’s comments: Solidiance is a consulting firm that works with clients across industries. There are three industries we focus on. One is simply called industrial, which includes construction, chemicals, and all that. That’s the core of what we do. Then there is healthcare, especially in Vietnam. And what we call technology. In total we have 12 offices across Asia. Within the industrial stuff we do, our research in green tech and buildings are really driven by two

clients are often innovating and making these

going green is when property developers create

technologies, and part of these projects involves

buildings for somebody else. The developer’s

green building output. They want to sell their

incentive is to keep costs down and cut corners

products and part of their line is more energy-

where they can, because operating costs are

efficient stuff.

somebody else’s problem.

Most of the certified green buildings in Vietnam

When there is that mismatch of the developer

have been factories. And it’s not like there are

and the user of the building, it can be harder to

thousands of green factories, but they are the

make it green because the immediate incentive is

biggest component, and I think part of it is that

not there. You can argue that there is an incentive

when you’re a company developing a factory,

that you price the units higher when you sell them

you’re also using that factory and they consume

- President’s Place proved that correct.

a lot of energy. It makes sense to find ways to save on that, even though electricity prices are low here, for now. A lot of these companies also have global standards that they must adhere to.

“Our research in green tech and buildings are really driven by two things: our personal interest and by our belief that this is where the country is going”

things: our personal interest and by our belief

One of the biggest factors in pushing green

that this is where the country is going. We think

building practices is electricty prices. The

Southeast Asian countries will be using these

government is currently subsidizing, which won’t

technologies more and more - green cities, clean

go on forever. I think it needs to be balanced

cities, however you want to describe them. Our

with low-income residents. For example, energy

CEO is personally interested in this. He’s doing an

prices in Cambodia and the Philippines are high.

online course with Harvard University to learn more

And that hurts manufacturing investment there.

about this subject. I don’t know when he sleeps.

Once electricty prices rise, there is a point when

“When there is that mismatch of the developer and the user of the building, it can be harder to make it green because the immediate incentive is not there”

wind power become profitable, and at some point

We are also a consulting company - we have clients who want to be where our other clients are - large multi-nationals. These companies are

(economists figure out this point) you see further adoption of energy efficient machinery.

At the moment there are not really well-defined mandates in Vietnam. In Singapore there are mandates - any new building must meet green standards. Everything here is left up to the developer, if they want to build green or not. If you talk to the architects around here, the younger generation is getting it, but not yet necessarily at all levels. What you do see here is that a building might not be certified green, but the water heaters are solar. There is a move towards that. A lot of hotels are doing that - they probably have some hybrid electric-solar water heater when it’s not a sunny day, but as a way to save electricity costs.

“The younger generation is getting it, but not yet necessarily at all levels.” So factories also have that. The biggest solar plant in Vietnam at the moment is Intel’s factory, which is saying something. Vietnam is a sunny place; you can’t run the whole country on solar, but is

Calling for a country to raise electricity prices

there a gap between what there is and what there

where many people cannot afford it is a difficult

could be? Definitely.

thing to do, which is why the government treads slowly.

Young people are interested in sustainable development, which is good to see. Saigon in some

at the forefront of developing more efficient air

The cost of making a building is a bit more

ways doesn’t have to follow the same practices as

conditioners, elevators, eco-friendly paint, smart

expensive - how much? That depends on what

other countries - they have the luxury of learning

grid technology, electric cars and batteries. Our

you’re doing. I think the real issue in buildings

from others’ mistakes, one would hope.

3 locations in Thao Dien, D2, HCMC 09 0395 7316, Ms Joke (Yoko) smartkids@smartkidsinfo.com - www.smartkidsinfo.com

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ADVERTORIAL

Improve Your Home Enhance Your Value

Homeowners usually think of their dwelling as a place to relax and unwind after a hard day out, spend a bit of quality family time, and have the occasional meal.

#iAMHCMC

BY ALEKSANDR SMECHOV

2.1 Functional change of space: The project

2.3 Open kitchen: An open kitchen also helps

began with the demolition of one bedroom and

make the space look bigger, as it connects with

the creation of a multi-purpose space – this new

other sections of the apartment.

working/reading room can be used as a guest bedroom when needed.

But have you ever thought a home can be an extension of one’s personality, a space to feel refreshed after a long day, something that inspires you instead of acting like a permanent hotel? Interior design’s focus is to enhance an indoor space to make it not only more pleasing on the eyes, but bring its inhabitants together and seamlessly connect separate spaces. Below we take an interior design project in Binh Duong New City, where an existing apartment layout goes through several modifications to maximise both space and function. 2.4 Overview: This “open concept” does not only create a connection between spaces but also 2.2 Working room: The working room is an open space, connected with other sections of the apartment: the kitchen, the dining area, bedrooms and the living rooms. Privacy for the working room can still be kept using a partition and bookshelf.

connects family member together – while mom is cooking, she can talk or look after her kids, and also speak with her husband in the working room at the same time. All spaces are connected together without boundary, and this creates a roomier feel in the apartment.

1. Existing condition: The existing condition of

3. The value created: A simple change in layout can

the space was a three bedroom apartment for a

create a big difference for your apartment, yourself

young family. There were long, narrow corridors,

and for others who are engaging in this space.

too many solid walls that made the public area smaller and tighter for anyone passing through. There were no true spaces for working, reading or entertainment.

The above project was completed by OP3 Interior Design & Construction. The firm’s belief is that a home should tell a story about the owner, while at once refreshing those who

2. Solution: As the inhabitants were a young

live there, connecting family together with a

family with a small child (and possibly another

seamless space that take into account the natural

coming), changes were made in the layout in order

elements of the earth. You may learn more about

to create a functional space that could fulfill the

their home enhancing projects at op3vietnam.

needs of a small group of closely knit people. For

com. For further consultation, you may contact

this an “open” concept was used.

OP3 Vietnam at marketing@op3vietnam.com.

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#iAMHCMC

ADVERTORIAL

Fong-Chan was born in Denmark, a country world famous for its attention to design detail in architecture and furniture design. Moving to Vietnam 14 years ago was an eye opener for her. She quickly found that the country’s perception of quality design was very much different from her own.

KAZE on Quality BY ALEKSANDR SMECHOV & FONG-CHAN ZEUTHEN matters. It’s one thing to have a piece of wood,

at the time. All these chairs were designed and built

another matter entirely to shape this wood into

for the human body - with special attention to the

a quality product, such as refined, affordable

chair’s proportions. Quality is something made

and sturdy flooring.

with purpose - function and form combined to

“There is no building that has intelligent design in this city.”

give us a human experience. Not just something that looks pretty.

A State of Preservation

Six years ago she founded KAZE, which means

Many property developers and investors have

wind in Japanese. The interior design firm’s

yet to realise that there is a process in-between

mission is to push for quality in function, design

the raw material and the result. You may have a

Saigon and Hanoi are European cities - and so

and purpose, something that has not been paid

house with stone fixtures and marble columns,

are unique in Southeast Asia. They have what

much attention to in Vietnam. We sat down with

but where are you going to sit, sleep, how do

other cities in the region do not: a city centre. In

Fong-Chan to discuss KAZE’s take on quality.

you move through the space, how is the space

European tradition, everything is built around

moving you? Fong-Chan has been focusing on

the church and from that you would have the

these questions ever since finishing her Masters

important boulevards and roads that connect the

in Architecture.

urban infrastructure. The city develops through

“There is no building that has intelligent design in this city.” Fong-Chan lets me quote her on that. She means that no building here has paid much attention to sustainable practices or invested in consultants with sufficient knowledge of the environment they are building in; everything has been built in a mad rush to cut costs for as fast a return as possible; and developers have chickened out of paying extra

The Challenge of Quality Quality, according to Fong-Chan, consists first of

Singapore had this, but only a few of the old

“how things originate”. Terms must be defined

buildings remain - the vast majority had been

when talking about quality.

demolished in favor of contemporary high-rises

Quality is when we learn from our experience and make an effort to develop a design with

The Perception of Quality

all necessary details. We incorporate our understanding of the natural laws of gravity,

Real wood, real stone and not “Made in China”

function, existing permissions, and through that

- or what the locals jokingly say, “made in

develop a shape, space, chair, house, building or

District 5”. This is what most Vietnamese - and

tower that relates itself to the surroundings and

interestingly enough, many other nationalities

its end user, the Human.

including Americans - will answer when asked

“Saigon and Hanoi have what other cities in the region don’t: a city center.”

great references and understanding the history of

as soon as the price tag on sustainable, quality design reared its head.

trade and if possible, a trade port is built.

and city blocks. This is exactly what is happening in Saigon today, and we are looking on sadly as the city’s heritage is being demolished in front of our eyes in the name of “development”.

A Shift in Idea A shift in the idea of quality is taking place, from superficial and cost-saving practices, to the world

At one point during our talk, Fong-Chan pointed

of right proportions, practical function, intelligent

behind me at a poster: A Century of Danish Chairs.

design and sustainable material. Let’s hope Ho Chi

You can control the quality of hardwood

“That’s quality.” We got up and scanned the 105

Minh City learns from its neighbors (and itself)

flooring in a home, but not so much for one

chairs in the poster. Fong-Chan would point out a

and begins to understand that cutting corners will

thousand apartments. It’s the craftsmanship that

chair and explain why it had been so revolutionary

never work in the long term.

what a quality home consists of.

21 Thao Dien, D2 | kaze.com.vn | info@kaze.com.vn | +84 8 6281 9690

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#iAMHCMC

Top 10 Real Estates Websites in HCMC BY LUKE NGUYEN

Buying, selling or renting a house in Vietnam, easy though it sounds, can be a challenge for a foreigner.

quick market updates and details on upcoming

The country’s real estate transactions have been

real estate projects all over the country with a few quick clicks. The only downside is that they

Cafeland is one of the leading real estate sites

don’t have an English user-friendly interface, but

in Vietnam. Besides housing information, the

as mentioned earlier, Google Translate can be a

website also provides up to date news and

good way to explore.

market analysis from experts in the field. The

based heavily on the traditional method of having an agent (or “co” - the housing stork) do all the

site also has a portfolio section which provides

3. zita.vn

work. People are now becoming more proactive Zita is one of the newest additions to the

advantage of online information to save costs

Vietnamese real estate field. With its clean, sleek

and time.

layout including a city view home page video, Zita

websites in Vietnam. Despite the fact that only a limited number of them have a proper English interface, their information is valuable and can be translated easily using Google Translate. Check out the 10 sites below:

key details on real estate with specific and neatly presented information.

in their choice of creating a home and taking

Here are our top 10 picks for quality real estate

7. cafeland.vn

sets itself apart from the other competitors. The information on the site is presented beautifully with a neighborhood browsing feature and an interactive map for visitors.

4. dothi.net

8. diaoconline.vn Dia Oc Online aims to contribute to the sustainable growth of information-sharing and real estate infrastructure in Vietnam. Besides housing listings and information, consultancy on decoration, interior design and feng shui are also provided to users for reference. The featured agents section is also very interesting

1. batdongsan.com.vn

Do Thi provides the fastest and most accurate advanced site browser, users can find all about

When it comes to housing and real estate, Bat Dong San is no doubt the number one portal in Vietnam. With the largest amount of information in its field, continuously updated and presented

buying, selling, renting across all provinces and

Besides real estate information, it also provides visitors advice on architecture, construction, interior and exterior decoration, legal issues and feng shui.

9. dinhgianhadat.vn

cities in the country. News and featured projects sections are updated daily to keep visitors informed on the latest buzz in the field.

professionally in both Vietnamese and English, it satisfies a wide range of enquiries from visitors.

and informative.

market information in Vietnam. Through the

This website lives up to its good name by providing qualified property valuation software to assist customers with making buying decisions

5. nhadat24h.net Nha Dat 24h specialises in online real estate transactions, featured VIP promotions, advertising

easier. Besides real estate news and tips, Dinh Gia Nha Dat also features a cheap land and housing section and a promotion and auction space for buyers and investors.

updates and latest market news.

2. muabannhadat.vn

6. 123nhadat.vn

With a friendly website layout, Mua Ban Nha Dat

With over 2 million real estate listings and an

is a great source providing online solutions for

average of 5,000 housing posts per day, 123

marketers and real estate brokers. For investors,

Nha Dat provides market information, and post-

brokers and individuals who are active in the

purchase education and lease-free housing. Users

field, this site is one of their first choices to get

can search for land, houses and apartments.

10. kenhbds.vn Kenh BDS supplies a wealth of resource materials for home buyers and sellers for big cities in Vietnam. The website is presented so that both buyers and sellers can make the most of its userfriendly interface and information.

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#iAMHCMC

Hong Kong and Singapore Investors Seek Opportunities in Vietnam BY TIMO SCHMIDT

Vietnam’s new ownership laws for foreigners, released in July 2015, have already had great impact on the local housing market in the country

In Singapore and Hong Kong the governments

Southeast Asia. With excellent yield potential and

reacted as early as 2009 with a variety of cooling

prices at a fraction of those in Hong Kong and

measures, which included:

Singapore, investors can purchase multiple units

»»

Increase of Buyer’s Stamp Duty (BSD) for

at the value of one property in their home markets.

“Vietnam is seen as one of the most attractive destinations for property investment in Southeast Asia”

purchases of multiple properties of up to 15% in Singapore and 8.5% in Hong Kong

Particularly, investors from within the region are

respectively, particularly for non-resident

amongst the first ones to actively seek investment opportunities in the country. Savills Vietnam has

»»

seen great interest and real demand from foreign buyers based in Singapore and Hong Kong. To better understand the reasons for their aggressive moves it is important to look at the local housing market in these respective countries.

foreigners and entities.

Savills Vietnam was among the first real estate

Seller’s Stamp Duty (SSD) on resale of

agencies to take advantage of this by creating an

properties with short holding periods in

international sales department to actively promote

Singapore for periods of less than one year,

Vietnam’s properties in these key markets; in

which was later increased to three years. And

collaboration with Savills regional offices.

in Hong Kong from two to three years. »»

Limits on loan-to-value for multiple unit

Property markets in Singapore and Hong Kong

purchases, meaning that buyers could not

have been heating up over the last decade due to

leverage purchases by using bank loans.

ever-increasing demand from local and foreign

Especially relative to foreign buyers or those

investors. While Singapore is a preferred investment

who purchased multiple units.

destination for buyers from Malaysia, Indonesia

“We have seen great interest of local developers to market their projects abroad, and have scheduled a series of sales events in Hong Kong and Singapore over the year 2016. Our offices in both countries are excited to promote Vietnam’s properties given that the easing of restrictions

These measures were specifically introduced to curb

allows foreign investors to take advantage of low

property investment and speculation - particularly

prices and excellent yields in comparison to their

by foreign investors - rather than preventing first-

local markets,” says the head of International

home buyers from purchasing units. The effects

Residential Sales for Savills Vietnam. “Since

are finally starting to show with transactions and

inception of the department we’ve transacted

prices decreasing in both markets, and talks of a

nearly US$20 million in sales to foreigners without

property market crises making the rounds. More

bringing projects abroad. We are confident that

importantly, the yield potential in these markets

this number will increase dramatically over the

has declined due to the additional purchasing costs.

coming months.”

destinations have put cooling measures in place.

Taking into consideration that Hong Kong and

The opening of the Vietnamese property market

These are now showing effect with a considerable

Singapore investors are amongst the most active

to foreign investors is expected to draw more

drop in transactions, and prices are expected to

in the region, Vietnam is seen as one of the most

foreign investment into Vietnam from private

drop in both countries.

attractive destinations for property investment in

and institutional investors.

and mainland China, the market in Hong Kong has seen tremendous investment from the latter.

“Property markets in Singapore and Hong Kong have been heating up over the last decade” To react to the social problems caused by the price increases - such as lack of affordability for first-home buyers - governments in both

NO. OF UNITS SOLD BY DEVELOPERS

Hongkong Property in 2015

Data provided by Savills.

Singapore Property in 2015

25,000 22,197 20,000 16,161 14,688

15,000

16,292 13,646

11,046

16,857

15,904

16,826

14,948 12,968 11,046

10,880

10,000 7,316 5,000

0

7,440

4,264

2008

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2009

2010

2011

2012

2013

2014

2015


FEATURES

A Legal Overview for Foreign Investors in HCMC

#iAMHCMC

www.indochinalegal.com

BY ERIC LE DRÉAU & LE THI QUYNH THU on their official website the projects where foreigners cannot own houses, detailed numbers of apartments or separate houses eligible for foreign ownership, and the number of houses where foreign ownership has been recorded. To our understanding, the database is not yet completely developed for all cities and provinces in Vietnam. Meanwhile, payment for purchase or lease of residential houses shall be made via credit institutions operated in Vietnam. So far there has been no specific instruction on foreign exchange control for relevant inbound and outbound foreign funding of residential housing. photo by Manh Hai

Despite certain remaining limitations, the NHL has provided a more open approach to ownership

Are you a foreign investor and want to know about real estate laws in HCMC? Confused by the new Property Law? Indochina Legal clears up the confusion: One of the most notable changes introduced by Vietnam’s new 2014 property law and its regulations is the revision of the right for overseas Vietnamese, foreign individuals and organisations to own residential houses, as follows:

Vietnamese citizens or to Viet Kieus are entitled to an indefinite term, whereas foreigners who are not can only own residential housing for a period of 50 years. This can be extended for another

of residential housing for foreigners. The hope is that these changes will ultimately defreeze the real estate market and create a new wave of foreign investment in Vietnam.

50 years, subject to approval by the provincial People’s Committee where the house is located. Unlike other foreigners, those who are married to Vietnamese citizens are also exempt from notifying the housing administration authority at the district level prior to leasing their houses to others. Apart from that, the new legal framework grants foreigners the same rights of Vietnamese in the cases of subleases, mortgages, etc. of

Overseas Vietnamese (or Viet Kieus) can now own residential houses in the same way as Vietnamese citizens without further residency requirements or any limitations on the type or quantity of houses, or the terms of ownership. They must hold a valid passport with an entry verification stamp marked by the Vietnamese Immigration Department (VID) and a document evidencing their Vietnamese origin.

residential housing.

Foreign organisations are allowed to own houses provided that (i) ownership term shall not exceed the period stated in their investment certificates issued by Vietnamese competent authorities, including any extensions; (ii) use of the houses is for residential purposes only, for their personnel; and (iii) lease-out of the houses is not permitted.

Foreign individuals have the right

It is worth noting that foreign organisations and

to own residential houses, subject to certain

individuals shall not collectively own more than

restrictions as compared to Vietnamese citizens

30% of the total number of apartments in an

and Viet Kieus. In order to own houses, a foreigner

apartment building or not more than 250 separate

is required to have a valid passport with an entry

houses in an area where population is equivalent

verification stamp marked by the VID and cannot

to that of a ward. In addition, house ownership

fall under diplomatic or consulate preferences and

beyond real estate projects (e.g. a villa built by

immunities. Requirements of residency, investment

individuals) is not allowed. For national defense

in Vietnam, work permit, social contribution and/

and public security purposes, foreign individuals

or marriage to a local Vietnamese is not necessary

and organisations cannot own houses in certain

for residential housing ownership. However, as

areas. With respect to these limitations, the

to ownership duration, foreigners married to

local Department of Construction will publish

16


#iAMHCMC

HOTCHPOTCH

House It Going BY ZOE OSBORNE, LUKE NGUYEN & DAVID PERRY

No worries. The cockroaches only come out at night!

17 | subscribe at iamhcmc.com/gazette


HOTCHPOTCH

Events

#iAMHCMC

Our selections of events in HCMC this month VIETNAM INTERNATIONAL CAFE SHOW SAIGON EXHIBITION AND CONVENTION CENTER (SECC) 799 NGUYEN VAN LINH ST, TAN PHONG WARD, D7 MAY 12 TO 14 | 9 A.M. TO 5:30 P.M.

FORBES UNDER 30 SUMMIT GEM CENTER, 8 NGUYEN DINH CHIEU, D1 MAY 12 | 8 A.M.

Forbes Vietnam “30 under 30” 2016 is a list of 30 people under the age of 30 who are featured

Vietnam International Cafe Show is the very first coffee

in different fields in Vietnam. The Under 30

dedicated exhibition ever held in Vietnam. The exhibition will

Summit will be organised as an international

function as a multi-platform space for coffee, tea, beverage,

event with the participation of the brightest stars

bakery, raw material, machine and equipment, dessert, cafe

from both local and international locations. Last

interior, and franchise and start up businesses. Also taking

year, UNICEF Goodwill Ambassador and global

place at the event space will be the Vietnam National Barista

superstar Katy Perry joined the stage with her

Championship (VNBC), sanctioned by the World Coffee Event

encouraging story about raising the voice of

Free entrance.

(WCE). This will be the national competition’s first time in

young generation on important issues.

+84 8 3823 6064

Vietnam. The Vietnam International Cafe Show establishes

Price: VND825,000 per person.

+84 8 3823 6050

Vietnam’s place in the international cafe scene, not only as a

Phone: +84 9 0244 0175

Email: rinnie@exporum.com

world leader in robusta coffee production but also as a location

info@cafeshow.com.vn

for excellence in cafe culture.

LATE NIGHT SESSIONS VINSPACE 6 LE VAN MIEN, THAO DIEN, D2, HCMC TUESDAYS STARTING 26 APRIL 2016 | 6:30 P.M.

THE COMPLETE WORKS OF SHAKESPEARE (ABRIDGED)

ESCAPE MUSIC FESTIVAL SUMMER RHYTHM 2016 LOT 13 TAN TRAO, PHU MY HUNG, D7 MAY 21 | 3 P.M. - MIDNIGHT

Vin Space’s Studio 7 is launching a new series of

SAIGON PLAYERS’ 3RD FLOOR, VISTA WALK 628C XA LO HANOI, D2 MAY 12-14 | 7 P.M. (2 P.M. EXTRA SHOW ON MAY 14)

late night art sessions on Tuesday evenings. Aimed

To commemorate the 400th anniversary of his

pumping night out. Kill the heat at the Pool Party

to bring creative people together to learn in a

death. The Saigon Players are proud to present:

and feel the beat from DJs Heatbeat and two other

social and relaxed atmosphere. Learn a range of

3 Actors. 37 Plays. 1223 Characters. 90 Minutes.

veteran DJs. Price: VND500,000++

art practices including design, print, sculpture and

In a feat never before attempted in Saigon! Come

Booking: ticketbox.vn/escape-summer

animation. Drop by, enjoy a few beers and by all

watch as 3 actors attempt to perform ALL of

means bring your friends. This event is open to

Shakespeare’s plays in a mere 90 minutes.

people of all backgrounds and skill levels.

Email: saigonplayerstickets@gmail.com

Escape Summer Rhythm 2016 will start your summer with all you need for an adrenaline-

Phone: +84 9 0772 9846 Email: info@vin-space.com

THAO DIEN ULTRA RUN REUNIFICATION CELEBRATION IN THE SKY NEAR THU THIEM CHURCH, SAIGON RIVER, D2 APRIL 28 - 30 | VARIOUS

SAIGON OUTCAST, 188/1 NGUYEN VAN HUONG, D2 APRIL 24 | FROM 5:30 A.M. TO 3 P.M.

This serious test will push your limits and is open to members of a running club who are from 18 year old. Individual Male/Female and Relay (team

Enjoy a Reunification Fireworks Dinner Flight 60

of 4 members with at least 1 Female). Individual

metres up in the sky. Menus have been specially

entrants: Every runner must run around the 5km

designed by internationally celebrated Chef Andy

loop of the Thao Dien residence within 8 hours.

O’Brien, star mixologist Greg Jacob and exciting

Those who cover the highest mileage will be

and innovative Vietnamese, Chef Hai Anh.

the winners. Relay entrants: members will take

Priced from $288 to $1000

turns to run every 5km during the 8 hours. The

Phone: +84 8 7300 7998

team who runs the greatest total distance will be

Website: ticketbox.vn/event-in-the-sky/en

crowned champions. Email: saigon.outcast@gmail.com

ALCHEMY’S WHISKEY AND SAIGON CIGAR CLUB SHOWCASE

FEST IN BREIZH

SAIGON CIGAR CLUB, SORAE LOUNGE, D1 MAY 11, 2016 (TBC) | REGISTRATION: 8-10 P.M.

CARGO BAR, 7 NGUYEN TAT THANH, D4 MAY 21 | 4:30 P.M. - 3:30 A.M.

Sample three of Scotland’s finest single malts: The

The Breton Day, “Gouel Breizh” will be celebrated

Macallan, Highland Park and Glenrothes enjoyed

at Cargo Bar this May. It features a performance

with a quality cigar, either a Partagas Habaneros

by more than 30 musicians and singers covering

or Cigar Roller. These can be enjoyed along with

the full spectrum of celtic music from traditional

Complimentary canapes whilst taking in the

songs to modern sounds. Price: VND100,000 per

fantastic panoramic views over the HCMC skyline.

person, At door: VND150,000

18


#iAMHCMC

ADVERTORIAL

The Ideal Riverfront Lifestyle

Swimming pool

Riviera Point - Artist’s impression

Set amidst a tranquil haven along the Ca Cam River, Riviera Point is a 15-minute drive to District 1 and is well-connected to other districts via Phu My Bridge. Jointly developed by Singapore and Vietnam’s leading developers, Keppel Land and Tan Truong, Riviera Point features an urban oasis and a modern resort lifestyle. Enjoy direct connectivity to the downtown area and international schools in Phu My Hung via Phu Thuan bridge, and to Crescent Mall via the new link bridge to be completed in 2016.

development offers the convenience of having a

Riviera Point was conferred the Green

mini mart, cafe, nail spa and ILA English centre

Mark Gold Award by the Building and

at your doorstep. Residents can also enjoy the

Construction Authority of Singapore in 2012.

amenities at Phu My Hung Township, which

As a responsible green developer, Keppel Land

is just a five-minute drive away.

has incorporated thoughtful design and eco-

Families with children going to school will

friendly technology into the development.

also appreciate the development’s proximity

Flexible payment scheme

to many international schools, including the

»»

payment*

British Vietnamese International School and the Royal Melbourne Institute of Technology. Medical facilities are also within reach at the Franco-Vietnam Hospital. The entire waterfront development, to be developed in

Immediate move-in with only 40% down

»»

Pay just VND 28 million per month and enjoy 0% interest

*Special payment scheme is for limited period only. Terms and conditions apply.

phases, consists of a total of 2,099 units spread across 12 residential towers. When completed,

Visit the Riviera Point Sales Gallery at 584

Residents can indulge in a wide range of

Riviera Point will be the tallest development

Huynh Tan Phat, District 7 (Open daily from

recreational facilities such as a swimming

in District 7. Riviera Point phase 1A, featuring

9 a.m. – 6 p.m.)

pool, gym, sky gardens, BBQ pits, riverfront

549 waterfront apartments, was completed

www.rivierapoint.com.vn

promenade and children’s playground. The

and handed over to residents in early 2015.

rp@kepland.com.vn | +84 8 3773 8777

|

19 | subscribe at iamhcmc.com/gazette

799 Nguyen Van Linh St, Tan Phong Ward, D7


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#iAMHCMC

ADVERTORIAL

Somerset Ho Chi Minh City Gets A Major Upgrade BY ALEKSANDR SMECHOV

In a day and age where internet connection has become a necessity, newly installed optic fiber cables ensure the fastest connection possible within the entire property.

Renovated Linkway and New Amenities The linkway connecting the three blocks and all the facilities in Somerset Ho Chi Minh City will receive a makeover to create an enhanced guest and resident experience. More green spaces, a new international indoor and outdoor No. 8A Nguyen Binh Khiem Street, D1, Ho Chi Minh City | enquiry.hochiminh@the-ascott.com | www.somerset.com | +84 8 3822 8899

restaurant, an improved children’s play area and several other areas will be the main focus

Somerset Ho Chi Minh City, one of the city’s most well-known family-friendly serviced residences, has recently received a US$11 million renovation upgrade. Operating for over 20 years, the serviced residence is currently undergoing a major makeover for a more contemporary look and feel. Furthermore, its facilities are being renovated for a more positive guest and resident experience.

linkway; new amenities; and a newly built residents’ lounge and renovated reception area.

Contemporary Look and Feel One of Somerset Ho Chi Minh City’s three blocks

will be located beside the outdoor children’s play

- Block B - has already been reimagined last year,

area, therefore allowing residents exercising to

with all 198 apartments due to finish by the end

keep an eye on their children.

of this year. Designers have chosen neutral, clean tones (off-white, beige and brown) accentuated by hues of blue and grey to create an airy and

“Vietnam’s Leading Serviced Apartment Brand”

walkway halogens to make for more natural and

award for three consecutive years; the serviced

energy-efficient lighting.

Excellence awards, as well as the 2015 Golden Dragon Award.

canopy will create a more pleasurable outdoor experience for guests and residents alike. The gym

modern feel. LED lights have replaced room and

recent 2016 Travellers’ Choice and Certificate of

alongside a renovated convenience store. New floor tiles and a contemporary, spacious

The World Travel Awards gave Somerset the

residence has also received TripAdvisor’s most

of the linkway renovation. A bakery will be built

Rooms now feature bamboo flooring, lending a

Speaking of families, Somerset Ho Chi Minh City and its sister properties have a total of 140 children - making it the residential space with the most families in the entire city. The familyoriented environment now presents an even more inviting and exciting atmosphere for children and parents to live in.

clean, chic look, along with matching upholstered furniture. Beds have new linens and pillows, and lamps and curtains have been replaced to be more

New Reception and Residents’ Lounge

Nestled in the heart of the Central Business

in line with the updated look. Appliances including

District, Somerset Ho Chi Minh City is minutes

kitchen equipment, fans, air-conditioners, and

The reception area in Block A will be expanded

away from Diamond Plaza, Kumho Asiana Plaza,

the sound system and television have all been

and renovated to match the style of the rooms

Saigon Tower, several consulates and other key

replaced with up-to-date components. In addition

and corridors throughout the property, featuring

business locations. There have been three main

the ensuite bathrooms are completely redesigned

a lotus leaves inspired ceiling installation amidst

focuses with this massive renovation: a more

and modernised.

a wood finish and bronze mirrors. In addition to

contemporary look and feel; a renovated outdoor

The luxurious refurbished apartments combine the elements of space, comfort and privacy with the services and convenience of a premium quality hotel. The overall feeling one now gets is a brighter, more open, and a more pleasant aesthetic experience. Moreover, paintings of idyllic

21 | subscribe at iamhcmc.com/gazette

the space, the renovated Residents’ Lounge will allow residents to come down and watch sports or movies with an LCD projector, access one of several computers and unwind either indoors or on the outdoor porch overlooking the outdoor children’s play area.

natural life in Vietnam create a sense of ease. The

This renovation is by far the biggest Somerset

fully-equipped kitchen - with white oak laminate

Ho Chi Minh City has had in 20 years, and from

cabinets and polished black granite countertops

the finished rooms and corridors in Block B of

- and separate living and dining areas allow

the property, it looks to be one well worth the

residents to return to a home away from home.

investment.


ADVERTORIAL

#iAMHCMC

Deutsches Haus: German World-Class Design in HCMC BY ALEKSANDR SMECHOV be used throughout the building for brighter and more energy-efficient lighting; the building’s air will be cleaned through a superior hospital grade filtration system; personal comfort is pushed to the forefront with particular attention to localised temperature control, centralised dehumidification, shading and daylight control and integration of all non-life systems; rooftop solar panels will be able to power the building’s lobbies during normal business hours; and a thorough plan for the building’s water system includes rainwater harvesting, grey water flushing systems and the reuse of treated sewage for irrigation and cooling. The building will feature premium office space; a residential living space on the top floors; an

33 Le Duan, D1 | +84 8 3821 9309 | deutscheshausvietnam.com

international dining space with the largest rooftop

Deutsches Haus is “the symbol of the strategic partnership and friendship between Vietnam and Germany.”

terrace in the city; an activity pool and a fitness

On the 1st of August 2017 Deutsches Haus,

Manitoba Hydro Place, quoted by CBC News as

workspaces; coffee shops; a driver lounge and

Southeast Asia’s most eco-friendly and well-

one of “the most energy-efficient office towers in

mobile washing station for cars and motorbikes

constructed building, will open its doors on

the world”; and Kohinoor Hospital, Asia’s first

parked at one of the four basement parking

the corner of Le Duan and Le Van Huu in

LEED Platinum certified hospital.

levels; raised floors (functioning to hide wires and

District 1, Ho Chi Minh City, right beside the InterContinental Asiana Saigon Hotel.

Currently, there are only a total of 40 green certified buildings in the country, based on two

and yoga center; a multi-functional conference, exhibition and event-space; public areas with

regulate room temperature); and a fully-featured lobby. The building will also be the new home for the German Consulate and other German and

The 25-storey, 40,000 sq m building represents the

certifications: LEED, and LOTUS (a certification

union of the Vietnamese and German governments,

similar to LEED, but more attuned to Vietnam’s

showcasing modern German technology and

climate and conditions). The first building to

The Deutsches Haus is to be an environmentally

acting as a model of sustainable design.

garner a LEED certification in Vietnam was

and culturally sound representation of the city’s

a manufacturing facility owned by Colgate-

international future - and it seems to have been

Palmolive. The Diamond Lotus is a LEED-

entrusted to the right hands for the job.

For the past five years, Germany has been Vietnam’s biggest trade partner in the European Union, totaling a trade volume of US$8.92 billion in 2015 alone. The Deutsches Haus is to be the central platform for German and Central European

certified condominium project that will have three connected apartment complexes covered in bamboo, to be built in the coming years.

companies doing business with Vietnamese and

The design of Deutsches Haus has been entrusted

other ASEAN businesses, as well as the place to

to world-renowned architect Meinhard von

be for cultural exchange and relations.

Gerkan, who has over 50 years of experience.

The project aims to receive the USGBC LEED Platinum certification - the highest level of green certification possible. This will be the first building in Vietnam to receive LEED’s Platinum level, and is one of a few in Southeast Asia. LEED

Gerkan has designed Tegel Airport, Lingang New City, the National Museum of China, the Hanoi Museum, Hamburg Airport, both the National Assembly and the National Convention Center in Hanoi, and many others.

(Leadership in Energy and Environmental Design)

The building’s double façade will eliminate the

is a globally recognised certification that ensures

heat of the sun while allowing a great deal of

buildings use less energy.

sunlight to pass through, minimizing artificial

Examples of LEED Platinum certified buildings include the Phipps Conservatory and Botanical Gardens in Pittsburgh, U.S., which contain the

European institutions.

light usage while ensuring a comfortable interior. In addition, this “double skin” will reduce noise and provide superior thermal insulation.

world’s only Platinum certified greenhouse; the

This façade is unique in Vietnam and is to be a

massive Taipei 101 building in Taiwan; Canada’s

milestone for future developments. LED lights will

22


S I G N A T U R E

C O L L E C T I O N

Artist’s Impression

A NEW LIFT TO LIFE Discover a luxurious lifestyle matched by unparalleled convenience.

Live in the most desirable address in the prime District 2 of Ho Chi Minh City, where a host of retail and recreational possibilities are at your doorstep. At the Estella Heights’ Signature Collection, there’s always something thoughtfully designed for everyone.

• Close proximity to the Central Business District, International Schools, upcoming An Phu Metro Station and Metro Hypermarket • Ample parking space with one carpark lot for every apartment •

Ultimate resort lifestyle with a wide range of modern facilities: two 50m swimming pools, lazy pool, two children’s pools, 400m jogging track, golf putting green, sky garden, entertainment lounge, multi-purpose room, movie room, gymnasium and more

• Exclusive access to sky gym and sky lounge • Personalised concierge services Artist’s Impression

• Fully-fitted apartments with thoughtful design and luxurious fittings

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