Recognize condotel in accordance with the nature of tourist accommodation service business

Recognize condotel in accordance with the nature of tourist accommodation service business

If condotel is recognized as a real estate, a product in real estate business must implicitly be granted a "pink book", while this is a product of tourist accommodation service business.


In the afternoon session of June 4, before the question of QAQ on the legality issue of condotel, Construction Minister Pham Hong Ha said that the revision of relevant standards and regulations, promulgated management regulations operating to new types of real estate (condotel, ...). will be completed in 2019.



Lawyer Truong Anh Tu


Commenting on the above problem, Lawyer Truong Anh Tu - Director of TAT Law Firm said that when hearing the National Assembly deputies questioning Minister Pham Hong Ha, I found that most of the questions only Concerned about a problem when completing the policy mechanism for the condotel and not mentioning the implications of that as well as giving their opinions on this type of real estate. Therefore, the Minister answered that the Ministry of Construction will develop a regulation on condotel management in 2019.


“As I have previously commented, the management rules for management of certain condotel must be handed to the Ministry of Culture, Sports and Tourism, which has functions, authority and management experience. with tourism. Thus, the Ministry managed the condotel" said Lawyer Tu. Lawyer Tu also expressed his views: "First of all, we need to understand what products are in the real estate market? In my view, the real estate market includes land, villas, townhouses, apartments, residential land...


If the real estate market only includes these components, it is clear that the legal corridor of the condotel will not affect. Because condotel is essentially a tourism product, it is a resort activity, a hotel stay activity, one of the services of the tourism industry.


We need to separate condotel, which is not a real estate product, so the State's policy and legal mechanism with this product will not affect the market. However, this long time, people are still exchanging the concept that makes us misunderstand.


Condotel at Phukhet, Thailand


Besides, Tu also commented: “I think that, if from the Ministry of Construction's perspective, the construction of condotel can go towards the" shaping "condotel as a real estate product. And if this is a real estate product, it will lead to the following consequences:


Firstly, about land, infrastructure and population planning. As we know, before building a residential area or a tourist service business area, the central competent authorities or the provinces and cities have to develop specific development plans and plans. The Condotel has the nature of this type of business and service, so when it is built, it must be in accordance with the planning and construction plan to develop tourism in each locality and in accordance with the land fund for development. this profession. If condotel is recognized as a real estate, a product in real estate business must implicitly be granted a "pink book", to confirm ownership of long-term housing property for the owner, accordingly. with planning on housing, residential land and residential area management. In case of issuing "pink book" to condotel apartments, it will "destroy" the overall planning of the locality, greatly affecting the management, planning, land use plan and following population.


Secondly, there is a potential for arising disputes. If the certificate of land use right for condotel apartments is issued while these apartments are used for the purpose of staying and there is a great attachment to the investor, it is easy to create disputes. Disputes between investors and "buyers" in the process of managing and using management costs. The risks of ownership ownership are shared separately between the investor and the condotel buyer. In addition, there are potential risks when investors use apartments to mortgage banks without the ability to pay debts and risks arising when investors do not comply with commitments on profits...


Third, on management and use. Who will be responsible for repairing and maintaining the apartment when degraded. Who will be obliged to pay the management and service fees of the apartment. What if the owner wants to stay in condotel for a long time and turn the hotel into a residential area... A series of problems for this type of mixture is difficult to solve, if the law is amended to consider the condotel hiring to buy and sell hotel apartments to grant "pink book" to condotel. “I think that the law needs to adjust the condotel according to its nature, in the direction of positioning this type of tourism accommodation service business.


At the same time, adjust the contract of "buying and selling apartments" as the investor does today into an apartment-hotel lease contract. We should not because of the mandatory situation but add conflicting concepts such as "uninhabited residential land", Lawyer Tu said.


According to Tien Anh

 Which trends does the housing market 2019 follow?

Which trends does the housing market 2019 follow?

Mr. Duong Duc Hien, Director of Savills Hanoi Housing Division, pointed out the five main trends of residential real estate in 2019, notably the mid-end segment is still the main segment of the market...

Intermediate is still the key segment of the market


According to Hien, high population growth, declining household size and rapid growth of the middle class are prerequisites for 2019 to continue to be considered the year of the mid-end apartment market.


In the five trends of housing development in 2019, the experts commented, notably, the mid-end segment is still the key segment of the market and the high-end segment with many positive prospects...


In addition, the products of townhouses, townhouses or near-convenience development products, social security will also attract customers with real needs.


The high-end segment has many positive prospects


In 2019, the high-end housing segment has many positive prospects due to the increasing demand for housing upgrading from better-off households. Besides, the investment demand of foreigners also increased strongly. Many recently launched high-end projects have completed quotas of 30% of foreigners buying houses right in the launch event.


While the demand for high-class housing is still quite large, the HCM City government has a policy of restricting the licensing of new urban projects, causing the supply to become limited. However, the approved development projects, in the plan will continue to be deployed and this will be an advantage for investors who are developing products in this segment.


According to Savills, the future supply of high-end housing will meet the demand if the investor's project implementation process is carried out smoothly.


The importance of geographical factors is declining


According to Mr. Hien, until now, the position of the project is still the top priority when choosing housing real estate. However, in the context of the developed market, the transport infrastructure is upgraded and optimized, the distance will no longer be a barrier for residents in the city.


On the other hand, customers also need to have a more open view of housing products, especially when buying for long-term investment. The disadvantage of today's position may be a premise for real estate to increase in the future when infrastructure develops. It is important for customers to have thorough research and inquiry.
Pure holiday products come back.


Mr. Hien said that the market no longer developed "hot" derivative products but is gradually returning to pure resort products. The nature of derivative real estate products is usually only trending. So over time, there are products that will be eliminated, there are also products that will change to suit the tastes, trends and development of the economy.


In the process of development, derivative real estate products also face many difficulties and obstacles, in which the biggest barrier is in the law. With new product lines, sometimes regulations and policies cannot keep up, so the legal framework for many derivative products is still unclear and consistent.


On the other hand, products are always the root of the real estate market, all human activities are associated with real estate: staying, working, doing business ... So pure products will be the core core, never change of the market.


Adjusted in the model of sea resort real estate products


Mr. Duong Duc Hien said there are no new models expected to appear on the market. If so, it is likely that real estate products will be resorted to the marine market. Instead, existing products will be adjusted to better suit the needs of customers and the general trend of the world.


For example, narrowing the space of three-bedroom apartments in an area of 90 m2 has long revealed many shortcomings, which will gradually disappear in the market; or apartment design will expand balconies, loggia and windows to catch natural light; or the gradual commitment of profit in resort projects with re-leasing programs ... These trends are expected to be more sustainable directions of the housing market.


According to Minh Thu

Which resort property will become a "hot spot"?

Which resort property will become a "hot spot"?

According to experts, resort real estate has many development potentials. In the coming time, investors will head to Quy Nhon, Tuy Hoa, Phu Yen or Phan Rang, Phan Thiet ... familiar markets such as Da Nang and Nha Trang will be saturated.


The potential for real estate development is still great


Information at the seminar "New trends and opportunities for real estate investment in the second half of 2019", said Nguyen Manh Khoi - Deputy Director of the Department of Housing and Real Estate Market Management (Ministry of Construction), said the property is on holiday. Condotel nursing and resort resorts are two investment trends in recent years, receiving the attention of many domestic and foreign investors.


According to experts, the potential for tourism property development in the remaining months of 2019 is still very large...


According to Mr Khoi, incomplete statistics show that in 2018 more than 8,000 condotel condos were opened for sale in about 12 localities, mainly localities with many tourist investment opportunities such as Da. Nang, Khanh Hoa, Ba Ria - Vung Tau, Kien Giang, Phan Thiet, Quang Ninh, especially Quang Ninh account for 19%, Da Nang 14%, Khanh Hoa more than 26%.


More than 7,800 apartments were traded in 2018, the absorption rate was more than 92%, which proves that in 2018 the real estate sector has received a lot of attention. Only in the first quarter of 2019, the number of open condotels sold in the southern markets was higher than in the north, the southern provinces, especially from Da Nang, with more transactions.


Given that the potential of tourism property development in the remaining months of 2019 is still very large, Mr. Khoi pointed out a series of advantages in tourism property development of the remaining months in 2019 for a number of reasons such as: Nhu demand for vacation tourism is increasing; Secondly, Vietnam is starting some new types of tourism such as sightseeing tours, medical tourism, spiritual tourism, shopping tourism...; Thirdly, the legal basis of tourism real estate types is clearer than before, only the problem of condotel regulations is not complete and not clear. Mr. Khoi stated that condotel is a tourist apartment, not a house. Fourth, now many localities are calling for investment, organizing invitations to invest in tourism real estate very much.


Along with that, the government's policy of considering tourism development is a spearhead industry - one of the policies that has always been paid special attention by the Government with the goal of not only improving the quantity and quality but also being raised.


Although there are many potentials, but according to Mr. Khoi, the current market is also facing many difficulties, which are a number of legal grounds that the Prime Minister deals with such as the Land Law, including the certification. Currently, the new units are studying to amend the Land Law, it must be completed in 2020; limited investment capital, credit... 


However, Assoc. Tran Dinh Thien - Member of the Economic Advisory Group of the Prime Minister predicts that this year tourism will continue to grow well, this will have a positive impact on the tourism property market. “Vietnam real estate market in big cities and resort markets will become a place to receive much attention. In particular, recently when Japanese investors are moving from industry to stronger in tourism real estate. Therefore, the potential of Vietnam in the coming time still receives the attention of international investors. We have a basis for optimism but need to be cautious" Mr. Thien noted.


According to experts, any "hot" resort property depends on whether we correct the law.


Which area will become the "hot spot" of resort real estate?


From the perspective of management, Deputy Director of the Housing and Real Estate Market Management Department said, Vietnam has 4 types of sea tourism - river - mountain - field, each type has a unique advantage but generally 4 types are development if infrastructure develops.


"However, in the short term, marine real estate is still a remarkable point, the new provinces have many potentials, especially from Da Nang. These provinces have land fund and are calling for investment, such as Binh Dinh, Phu Yen ... all have airports,  said Mr. Khoi.


GS. Dang Hung Vo, former Deputy Minister of the Ministry of Natural Resources and Environment, said that any area that becomes a hot spot depends on whether we correct the law. “If the Land Law fixes this type of business for only 50 years, the market will stop immediately. Regarding the region, we are familiar with the "hot" points of the market such as Da Nang and Nha Trang, but these markets will be saturated. In the coming time, the market will move to Quy Nhon, Tuy Hoa, Phu Yen ... which are areas with faster growth. Besides, I see some potential points will have faster development speed like Phan Rang and Phan Thiet” Mr. Vo said.


According to Mr. Duong Duc Hien, Director of Housing Business Division of Savills in the North and Central, Vietnam has too many segments that we have not fully exploited, such as golf tourism, need to be the top owners. private orientation for development; Real estate not only developed exclusively for tourism, all development areas can relax and develop many other types.


According to Minh Thu

"Not worrying about real estate bubble, the market appears a new investment trend."

"Not worrying about real estate bubble, the market appears a new investment trend."

"The remaining months of 2019 are not worrying about real estate bubble, the market will develop more firmly, more sustainably and appear new investment trends...", which is one of the judgments of Mr. Nguyen Manh Khoi, Deputy Director of Housing and Real Estate Market Management Department (Ministry of Construction).


Information at the "Overview of Vietnam's real estate and financial market forum 2019" on May 4 morning, said Nguyen Manh Khoi, Deputy Director of the Housing and Real Estate Market Management Department (Ministry of Construction). In 2019, there were many developments in real estate (real estate) in many types, however, the State Bank's report showed that the outstanding loans for industrial real estate projects and export processing zones projects Vacation calendar, loan for land use rights at the end of 2018 decreased compared to the beginning of the year.


Specifically, outstanding loans for industrial parks and resorts decreased by 22%; but the loan balance for buying land use rights decreased by 28%. Meanwhile, outstanding loans for other types of real estate such as housing, rental buildings... increased by 10%; Especially, outstanding loans for urban construction increased by 24% compared to early 2018.


The state management agency said that the remaining months of 2019 are not worrying about real estate bubble, the market will develop more firmly, more sustainably and appear new investment trends…


Regarding the transaction, Mr. Khoi assessed that in the beginning of 2019 and 2018 there was a decrease compared to 2017. Specifically, in Hanoi market, in quarter 1/2019, there were 14 new projects eligible to sell, with more than 5,000 apartment; compared to 2018, accounting for about 20%; low-rise houses are equivalent to 14% over the same period in 2018. While in Ho Chi Minh City, in quarter 1/2019, more than 3,300 apartments were certified as qualified to sell, equivalent to 12% compared to the same period of 2018; also low-rise houses equivalent to 20%.


"Thus, the transaction volume and supply of 2019 decreased more than 2018. This is due to the review of legal procedures over the past time, reviewing projects in the process of making investment procedures ... so The volume of transactions has not increased " said Mr. Khoi.


What will the real estate market be like in the remaining months of 2019 when the State changes many policies that may affect the real estate market?


According to the Deputy Director of the Housing and Real Estate Market Management Department, the Prime Minister recently signed two directives and Directive 09 to ensure the growth target for the remaining 9 months of 2019 and Directive 11 on a number of solutions to promote the real estate market. The Prime Minister assigned many ministries to deploy; In which, there are some amendments, such as the amended Investment Law and the amended Enterprise Law, the Prime Minister assigned the Ministry of Planning and Investment to submit to the National Assembly in May in addition. Construction will also be submitted by the Ministry of Construction in July.


"The Prime Minister also assigned the Ministry of Construction to study and amend the Housing Law. Accordingly, the revision trend is to expand the form of social housing investment..." Mr. Khoi more information.


Also according to Mr. Khoi, the revision of some policies under the authority of the Government such as the amendment of Decree 15 on public-private cooperation, and by the end of 2018, there were 60 resolutions on suspending public-private cooperation projects. In general, only those projects that have signed contracts before December 31, 2018 have been implemented and have many impacts on the real estate market.


Because, the real estate projects related to BT are also stopped, including new projects, social housing projects, renovating old apartment... Therefore, Mr. Khoi said that the upcoming is likely The form of BT will be more limited, will shift to auctioning land use rights rather than transferring land fund for the project, except for special projects. In addition, restricting short-term loans to switch to medium and long-term loans will also affect the real estate market.


According to Mr. Khoi, in 2019, the real estate market is not more outstanding than in 2018, it is just restructuring the real estate, clearly defining the types of real estate, without the story of Condotel, Officetel... like the beginning of 2018. At the same time, after the State reviews the legal mechanism, the supply will be more secure and safer, but in general it is nothing more outstanding than in 2018.


“There may be a tendency to invest in real estate tourism in provinces and localities with tourism potential. But the report of the State Bank shows that the loan balance in this segment decreases, where is the capital source? I suppose, there must be from M&A projects. However, because banks are tightening loans for real estate, it may be difficult for real estate enterprises in terms of initial capital, but this is also an opportunity for enterprises to restructure their products, investment sources and bodies. Redefining the investment strategy by the next time, the State will control more closely credit sources with real estate… this to avoid bubble and investment in the trend” Mr. Khoi added.


Leaders of the Department of Housing Management said that recently, some areas have speculation and trading plots... but the state has more experience in regulating so the real demand for the next time will definitely increase. Therefore, it is necessary to invest in low cost housing.


“The Ministry of Construction is researching to develop low-cost housing for rent to get incentives for businesses. Social housing development is necessary but the supply is very low in the past year due to the lack of preferential loans, enterprises have not paid much attention ... therefore, it is necessary to study other types of investment to have more products to market. school Enterprises also need to research industrial property investment, especially when foreign investors invest in Vietnam” said Mr Khoi.


Given that, in 2019 is the year when the real estate market has many difficulties and advantages, this is also the 10-year cycle since the quiet real estate market in 2009, Mr. Nguyen Manh Ha, Chairman of Real Estate Association Vietnam estate said that with the experience gained in the effort to overcome difficulties in the period of 2008-2013 both from the state management agencies and from the enterprises, Vietnam real estate market will surely keep growing steadily.


According to Mr. Ha, real estate prices may increase slightly due to a shortage of supply in Hanoi and Ho Chi Minh City because the demand for residential properties is still high, especially in big cities and administrative areas. new economy. Influence of US-China trade war creates a wave of shifting production facilities to Vietnam to help the industrial property market increase strongly, accompanied by housing and service facilities for workers , workers in industrial zones will have the opportunity to grow.


At the same time, more tightly controlled real estate credit will make the quality of real estate loans more quality and healthier, reduce bad debts, and will stimulate other capital sources to invest in real estate such as capital. private, remittances, foreign investment, real estate securities.

According to Minh Thu

Investment needs to know: 2021 - 2023 is an extremely sensitive period of finance and real estate

Investment needs to know: 2021 - 2023 is an extremely sensitive period of finance and real estate

Source: Internet

Dr. Le Xuan Nghia said that from now until 2021 there will be no signs of "collapse" of the real estate market. However, the predictions of the world financial experts, during the period 2021 - 2023 is an extremely sensitive period for both the financial market and the real estate market. Sharing at the Forum Overview of Vietnam's real estate and financial market recently, Dr. Le Xuan Nghia - former Vice Chairman of the National Supervision Committee said that the real estate market is still stable and there are no signs of concern about "bubble" or "collapse".


“Demand for real estate still increases with normal levels. At least from now until 2021, there will be no signs of the real estate market collapsing. There will be a huge shift in capital flows from the stock market, the gold market to the real estate market, but it may take until 2019 to begin, quickly, it will last until 2021, and slowly, until 2023 ".


"That means, the period from 2021 to 2023 the new real estate market peaked and there is a risk of bubbles, and now is not possible," Mr. Nghia said.


Dr. Le Xuan Nghia said that credit should not be controlled strictly on real estate, but should control total credit in general. From now until 2021, there will be no signs of "collapse" of the real estate market. However, the predictions of the world financial experts, during the period 2021 - 2023 is an extremely sensitive period for both the financial market and the real estate market.


"The upcoming orientation of the real estate market, short-term and medium-term may still be housing but the long-term prospect of tourism real estate is huge. The Government should focus resources to build infrastructure. tourism development ", Dr. Le Xuan Nghia further analyzed.


From a management perspective, Mr. Nguyen Manh Khoi - Deputy Director of the Housing and Real Estate Market Management Department (Ministry of Construction) also said that the market is witnessing the trend of transferring investment from abroad into Vietnam. In the first quarter of 2019, Vietnam attracted 1.1 billion USD of foreign investment in real estate, up 36% over the same period last year. The money is pouring into 2 main areas: industrial real estate and used for M&A of projects.


Mr. Khoi also mentioned that the Prime Minister recently assigned the Ministry of Finance to study a number of financial institutions such as Housing Savings Fund, Real Estate Investment Fund, Real Estate Trust Fund... this will help the Dynamic resources for the real estate market.


However, the State Bank is tightening credit in the real estate sector. Accordingly, the State Bank has just released a draft of the circular stipulating loans of commercial banks with home buyers, buying land with the amount of more than VND 3 billion according to the risk factor. up to 150% (tightening credit for buying a home loan over 3 billion VND).


At the same time, the State Bank also limited short-term mobilized capital of commercial banks to lend into real estate in the medium and long term. Mr. Khoi said that this restriction of the State Bank will make businesses face difficulties in capital.


According to Minh Thu

Smart urban flourishes in Vietnam

Smart urban flourishes in Vietnam

The use of new technology platforms in real estate development inevitably creates new market data, enabling customers to easily access products and markets. According to Jones Lang Lasalle (JLL), Ho Chi Minh City and Hanoi are among the cities with the largest number of young tech-savvy people in the world. The two largest cities of Vietnam have about 70% of the population under 35 years of age, of which the literacy population from 15 to 35 years old accounts for 98.5%.


The flourishing of smart urban areas has a direct impact on Vietnam's real estate market


The 2017 Consumer Payment Behavior Report shows that 84% of Vietnamese surveyed said they bought goods online at least once a month. This rate is only 1% lower than Thailand and the second highest in Southeast Asia. The above consumer behavior is the basis for many real estate developers to quickly realize the potential and trend of technology with residential real estate. Therefore, they are making moves to keep up with the technology revolution and build smart urban areas to attract young customers.


In Vietnam, a series of smart housing projects have been launched to the market since the beginning of the year as projects of Sunshine Group. This developer has built smart houses with smart ecosystems by integrating new technology into products such as Sunshine Cab vehicle application, intelligent butler functions, online supermarket ...


In early April this year, Vingroup upgraded the 280 ha project into a smart urban area called Vinhomes Smarty City in the west of Hanoi. The project uses artificial intelligence (AI) with facial recognition features and a technology center to provide full information and services to residents, from air quality monitoring to the scene. environmental pollution report.


In the near future, it is expected that many smart urban projects will continue to be introduced in the market such as BRG Smart City in Hanoi, Ecopark Smart City in Hung Yen, Dragon Smart City in Da Nang and Thu Thiem Eco Smart City at Ho Chi Minh City. These projects are expected to provide a range of new technological features including intelligent landscape planning with advanced infrastructure, to build modern and environmentally friendly cities where residents can enjoy integrated services with just a few walking steps.


According to JLL, smart urban areas offered by domestic investors have impressive liquidity. Since its debut in 2016, Hanoi real estate market has welcomed over 10,000 smart housing units with an average selling rate of 70%.


The flourishing of smart urban areas has a direct impact on Vietnam's real estate market. Technology housing can be a good choice for investors, but it is important for buyers to note that each real estate developer will provide different technology solutions at different levels, depending on their investment strategy. Besides, not applying any smart technology can meet the practical needs or improve the efficiency of living ecosystems for residents. Therefore, customers need to thoroughly understand the application before deciding to settle.


In fact, the government and many businesses are trying to change the urban landscape by incorporating technology into construction works to improve the living environment. For future real estate projects, the application of smart technology will not only be a trend but also an important "must-have" element in the project.


Using new technology platforms creates new, more accessible market data, which is the key to improving the transparency of Vietnam's real estate.


According to Thuy An – Dien dan doanh nghiep

Vietnam needs large-scale private enterprises to invest in transport infrastructure

Vietnam needs large-scale private enterprises to invest in transport infrastructure

Source: Internet


In the coming time, investment capital for infrastructure development is still very lacking, according to calculations, the state budget can only meet 20%. So how to continue to call, mobilize private investors to participate in this game is still a difficult problem?


In this regard, we had an interview with Standing Member of the Economic Committee of the National Assembly Do Van Sinh.


Sir, recently General Secretary and State President Nguyen Phu Trong requested "do not discriminate against the private economy". As someone who spoke many times about this issue, what do you see from this message?


This means it is time to open all the mechanisms and policies for the private economy to develop. That is the inevitable trend. All developed countries now have to rely on the private economy. For Vietnam, the reality has proved that the state economy is currently less effective than the foreign-invested private and economic economies. So in the long-term orientation, it is necessary to equitize SOEs. The state only keeps the core areas, areas related to national security and defense, national defense, the rest is delivered to private people, people will do better. From such a big orientation, it is necessary to identify the private economy as the backbone, the driving force to build the country "strong and rich people". Accordingly, in each specific policy, the state must aim to implement that goal.


Saying "don't discriminate" means that there is actually discrimination for the private sector. Representing the watchdog in this area, can you generalize what are the manifestations of discrimination?


The first is from the mechanism. Compared with other economic cities, foreign enterprises have invested in red carpet investment, land allocation is easy, tax exemption... SOEs are also allocated capital and land, while private enterprises have to remove all resources. access to the project, access to information... is not easy. Secondly, in principle, the law does not discriminate between economic cities but the implementation method is very problematic. In fact, people, businesses, including private enterprises are allowed to do everything that the law does not prohibit, but in reality, there are many administrative procedures, child licenses... that make it difficult for businesses.


The policy of mobilizing private resources to participate in economic development has been implemented for many years, typically in the field of infrastructure development. But in fact the re-application reveals many problems, causing frustration. Where does the "handshake" between private investors and the state have not yet produced such sweet fruits?


The problem is to reform from the institution. There must be regulations to support private participation in this area in the context of private enterprises still have weaknesses. The National Assembly has enacted the Law on Support for Small and Medium Enterprises, the law takes effect from January 1, 2018, but unfortunately, the promulgation of documents guiding the law is still slow. Therefore, in the short term, it is necessary to implement the law well in order to have active support from the state so that the country has private enterprises with good scale, good capacity, good governance and good operation.


There are many opinions that, during the recent BOT crisis, the fact that the state has not really been with the enterprises so far many investors are "discouraged", others are not assured, ready for the cooperation. next work. And in fact, in the coming period, despite the lack of capital, but the infrastructure projects will still be difficult to call private capital to participate?


In fact, in all recent BOT and BT projects, the state has protection. Firstly, the fare is a state regulated on a revenue basis, at a certain time, if the ticket sale is not enough, the state must give a fare increase or to extend the collection time. money. Then, during the investment process, if the borrower is still charged interest, if the project is delayed, interest will be calculated. However, the story here is the weakness in affiliate activity. Infrastructure projects often require large costs, the implementing units must have good management and organizational capacity, so a small investor will not meet the requirements.


Also about the story of attracting private resources to invest in infrastructure, recently Quang Ninh and local leaders have been in the position of champion for 2 years in the rankings of competitiveness (PCI) shared, know-how. deciding to use the capital from each budget they use to help attract more 8-10 other capital to build an airport, a highway, a bridge, a port... is a commitment to support and maximize investors. What does this story remind you of?


I think that here, the problem is first of all the geographical factors, in which the participation of local authorities is very important. Quang Ninh has cooperated with enterprises, spread red carpet to welcome investors, carry out land clearance and land allocation quickly. After that, this locality also picked people to "choose the golden sender". I know Quang Ninh has chosen a strong strategic investor, such as Sun Group.


In the coming time, investment capital for infrastructure development is still very lacking, according to calculations, the state budget can only meet 20%. So how to continue to call and mobilize private investors to participate in this game when many businesses are discouraged by the "bitter fruits" received?


Need to make more transparent projects. After supervision of traffic BOT projects, the National Assembly has issued a resolution, consistently not doing BOT with renovation projects on the old road and requiring transparency, the project must be appraised. from the stage of project proposal, technical design, total cost estimate... on bidding basis. The authorities are doing it and we have to... wait.


Thank you Sir!

According to Hung Dung – InfoNet

MIKGroup CEO: "Home buyers are deciding the market"

MIKGroup CEO: "Home buyers are deciding the market"


Mr. Nguyen Vinh Tran - General Manager of MIKGroup


“I know that real estate prices in Vietnam are still quite low compared to some countries in the region. Therefore, the story of our house price is reasonable or not is an abstract concept, can not have a specific answer. All decisions are now on home buyers.”


The above point of view was given by General Director of MIKGroup Nguyen Vinh Tran before the conflicting opinions about housing prices in Vietnam today, in which there are many opinions that house prices are still too high as one of the The cause of the market is less active and at the same time reducing the opportunity to buy houses of many young families.


Talking with us, Mr. Tran said: "I see the psychology of home buyers in Vietnam today is quite open, much more open than before. Recently, many people can accept the price. but before real estate developers themselves and investors did not think about it, now many people may be willing to spend money to buy houses with prices from 5 to 10 thousand USD/m2 or VND 30-50 billion to buy a villa, this really made us quite surprised. Therefore, we realize that the issue of selling price is not a story that is too important for the real estate market as before. In the market, the segments from affordable to high-end always have a certain percentage of customers, every segment has good liquidity. In my opinion, this is a positive signal for the real estate market.


Does this mean that the income of people and buyers has increased markedly, sir?


Mr. Nguyen Vinh Tran: I think it's not just a matter of income, because people's income comes with GDP growth of the whole economy. The story here is the rise of many factors, including the increased macro indicators, which make people feel much more confident. Along with that, the people's wealth accumulation has also been significantly improved, through which many people have the conditions to improve their accommodation, buy new and more beautiful, modern and spacious houses. There is one more notable point that I hope the early management agency will get statistics on the number of first-time home buyers, because I think this number is also quite large. These are the real potential objects of the real estate market.


In response to the question of the National Assembly delegate at the ongoing session of the house price is still quite high, the Minister of Construction Pham Hong Ha said that, in order to reduce the price, there is only way to increase the supply. In your opinion is this view reasonable?‘

Mr. Nguyen Vinh Tran: Indeed, that is the general principle of the market. With a product in the same segment that has many projects, forcing real estate developers to reduce prices to compete. The reality of the market in the past few years has also happened in most segments. In fact, the market still exists a lot of products with prices ranging from 20 million/m2 to 200 million/m2. The choice lies in the buyer, depending on their needs.


Do you think that rising or falling house prices still depend on the psychology of home buyers?


Mr. Nguyen Vinh Tran: This is a normal thing in the marketing problem of a project. This trend is also a selling tactic of many real estate developers. However, I think that home buyers are now very smart, they understand the market, understand the product and the selling price. They are decision makers so if they find it appropriate, they will buy it. Therefore, for real estate developers like MIKGroup, we always try to create products that suit the tastes and needs of customers, including buyers to stay and buyers to invest, foreigner… To develop a project in the current period requires more factors than before, it does not stop at the price story.


Many people said that the current high house price is because real estate enterprises are still making big profits, even super profits?


Mr. Nguyen Vinh Tran: In fact, the concept of super profits should also be understood very broadly. If a project owner gets five seven hundred billion in profit on a revenue of tens of trillions of dong, that's not super profit. So, for example, an investor can make a profit of a project up to 50%, that is super profit, but if that 50% is only worth 50 billion, it is not really super profitable. A suitable profit margin of a current project is usually at 15%. Therefore, the profitability of real estate businesses now depends on the quantity of products sold or not, not the selling price.


Vietnamese house prices are still low


What do you think about the current price level? Is it reasonable and can it be reduced?


Mr. Nguyen Vinh Tran: As I said, the story is reasonable or not for buyers. But on the investor side, they always have a desire to sell at a certain price in order to achieve the proposed profit, so they will find ways to limit the risks and reduce the expenses. fees in the process of investment and project construction. And the buyer they will see the price of a certain project they can buy it is reasonable. It is impossible to say that a project costing VND 20 million/m2 is reasonable when the project is too far from the center and the quality of reconstruction is too poor. In contrast, there are projects that sell for 200 million VND/m2 but in prime locations, in the center, high quality, for many people it is reasonable.Therefore, reasonable housing prices are an abstract concept, there cannot be a specific answer. In fact, current market decision makers are home buyers, and real estate developers are the only ones who make plans for consumers to decide.


So is it difficult for you to own a house in Hanoi or Ho Chi Minh City today?


Mr. Nguyen Vinh Tran: At present, the story of buying houses in Hanoi and Ho Chi Minh City relates to location and traffic issues. If you want to buy a house at a moderate price, you must buy in suburban areas, away from the center. For example, 10 years ago, housing prices in District 9 were very cheap, but now thanks to the developed transportation and road infrastructure, the price here is quite expensive. Hanoi is similar. Areas such as Long Bien, Gia Lam or the western area like My Dinh and Me Tri... gradually become centers, so they have to go farther.


From the point of view of a real estate business, do you think the current market is worth investing?


Mr. Nguyen Vinh Tran: I think the current market is really worth investing. And in fact, domestic investors are following foreign investors one step, because they have seen the potential of Vietnam's real estate market many years ago and they bought quite a lot. Vietnam real estate prices are still quite low compared to surrounding markets. I also think that the year-end market will be quite positive, there will be more breakthrough products. We have also experienced market up and down cycles. Currently the market is also quite large, there are many domestic and foreign developers participating, so the possibility of bubbles is unlikely to happen as before when the supply is limited. Along with that, some measures of management agencies also help the school "reduce heat" as soon as there are signs of fever.


Thank you, sir!


According to Nhat Minh – Tri Thuc Tre

Earn billions of money by investing in townhouses and villas

Earn billions of money by investing in townhouses and villas


In the past 3 years, the rapid increase in the price range of the house segment in Ho Chi Minh City has helped many long-distance investors make money in the product line of townhouses and villas.


At the end of 2016, to help an acquaintance, Ms. Thu Thuy, Head of Finance Department of an Overseas Study Consultancy Company in District 1 agreed to buy a villa in Bung Ong Thoan area, Phu Huu Ward, District 9. This investment of 4.3 billion dong is considered as a savings account. Unexpectedly, after less than 3 years, Thuy's villa is now priced at 13 billion VND, bringing a profit of over 9 billion VND.


"At the end of 2017, there were customers asking to buy this villa for nearly VND 7 billion. At that time, I was quite surprised because the price was high but there was no financial demand, so it was not resold. Unexpected 2 years later, the price increased by nearly VND 6 billion, this is an increase that I have never expected to acquire when buying this land, "said Ms. Thuy.


Investing in buying land to save, in 2015 Mr. Pham Thong - a retired official in Cu Chi chose to buy 2 townhouses under a project in Hiep Binh Phuoc peninsula with the price of only VND 32 million/m2. At that time, the market only recovered soon, investors still have not completely regained their confidence in real estate, so spending tens of billions on 2 grounds is considered reckless.


"At that time, I just thought of buying to save later for my children, not counting the high interest rates. Even the salespeople only dare to advise that after 2-3 years, the project will gradually improve, the price may increase. From 50-100% compared to the time of purchase, who would expect my street houses to be nearly 3 times higher than the purchase price, "Mr. Thong said.


According to a survey of Batdongsan.com.vn, the market of residential houses in Ho Chi Minh City recorded a continuous growth trend from 2017 to the present. If quarter 1/2018, the price of primary villas and townhouses recorded an increase of 35% over the same period of 2017, then in quarter 1/2019, the price of townhouses/villas continued to increase nearly 30% compared to the same period of 2018 Particularly for the secondary market, house prices associated with land continue to increase by nearly 50-60%. The most impressive growth is built commercial townhouses. Specifically, if 2017, the primary selling price reaches USD 2,400/m2, the end of 2018 will increase to USD 5,300/m2, an increase of 2.2 times compared to 2017. In the first three months of 2019, the price of commercial houses trade increased by 2-3% compared to the end of 2018.


According to the survey of PV, the East area has the widest price range of villas and townhouses. In Thu Duc district, KĐT Van Phuc Riverside City project is located along the axis of National Highway 13 with selling prices increasing dramatically in the last 3 years. Specifically, in August 2016, a townhouse in this project was offered at VND4.4-5.5 billion (equivalent to VND50-53 million/m2). At the same time in 2018, the above areas offered price of 8-9.5 billion (up to 94-110 million/m2), currently at 10-13 billion dong/unit. Particularly, the beautiful locations in the Southeast have prices of up to VND 15-17 billion (equivalent to VND 120-135 million/m2). If compared with the price of 28-35 million/m2 at the beginning of the sale, the current price of land in this project has increased at least twice and the highest is 4 times.


Shophouse is the strongest product line in the project with an average of 135-160 million VND/m2. At the time of July 2017, the price of shophouse on Nguyen Thi Nhung street with an area of 140m2 is 10 billion dong, currently offering from 19.5-22 billion dong. Primary price of commercial townhouses at the end of 2017 is only about 72 million/m2, 2018 increased to 110 million/m2 and now touches 140-160 million/m2.


With the area of District 2, the single villa area of 322 m2 in the Sala Mai (Mai Chi Tho) project in July 2018 has been recorded at VND 62 billion/unit, by March 2019, the average price has reached about VND 65 billion/unit, up nearly VND 3 billion after only 6 months. Area of Diamond Island, in early 2018 Saigon Mystery Villas project offered for sale at VND 83-110 million/m2 is now at VND 120-200 million/m2. Commercial townhouses in the D2Eight Dong Van Cong project in 2018 also cost VND 170 million/m2, which has now reached an average of about VND 250 million/m2. Villa Park project (district 9) in January 2018 offered primary price of 43-47 million/m2, now increased to 65-70 million/m2. Townhouses and villas of projects located near the center are priced at 81-120 million VND/m2.


The tendency to increase the price of terrestrial houses is considered to be due to the supply of this segment has become less and less, the inventory has declined sharply while the new project has not yet come out. In addition, the continuous increase in land prices in coastal provinces is also a factor affecting the price of HCMC land.


The scarcity of supplies may be resolved in the coming years when many large land banks in Ho Chi Minh City have been approved for implementation. Although there is more new supply, housing prices in Ho Chi Minh City will be difficult to reduce or slow down due to high demand and housing prices in neighboring provinces also tend to increase.


According to Phuong Uyen – Dien dan doanh nghiep