Developers, District 9 Is Up for Grabs!

By: Keely Burkey

For developers, much attention falls on one particular sector: District 9, a 114 k2 block of land which lies on top of District 2. Many reasons draw their attention to this uprising section: the land is cheap, the parcels are large and as of now, not much of it has been seriously developed.

Although land development stopped in this space during the global financial crisis of 2007 and 2008, recently builders have seen a major upswing in market interest for district 9. Troy Griffiths, the Deputy Managing Director for Savills Vietnam, explains the area’s current situation. “To be honest,” he admitted, “I think that District 9 is starting to run out of these large available parcels of land.”

District 9

If you look at a map of Ho Chi Minh City, you’ll notice something striking: the districts in the centre of the map, like Districts 1, 3 and 4, are smaller than the outlying districts, like Districts 9, 12 and Binh Tan.

This development is normal, and follows established historical patterns seen in other cities, like Paris and London. When transportation was limited, districts needed to be smaller. Now that we have motorbikes, cars and a metro on the way, larger spaces can be carved onto the map; and it’s these larger spaces that are catching the eye of developers and real estate consultants not only across the country, but also across the world.

Expansion Plans

Griffiths shares his view on this development strategy. “It’s the pattern of the city’s development,” he said. “There are nodes with density that have grown and then become filled and occupied so that developers are now having to look for cheaper land. And this pushes them further and further away from those established nodes.”

District 9 apartment

And who’s taking advantage of it? “Everyone,” Griffith asserted. “You’ve got the local developers and then you’ve got your internationals, your Keppels and your CapitaLands.”

Land Grab

The parcels of land might be sold with ease, but that doesn’t mean that District 9 will be the new District 1 in a year’s time. The Vinh Tran, an employee at the Ministry of Construction, recently reported that although the government has a large stock of land in District 9, that is the way it will stay in the foreseeable future.

Rather than developing the stock, the city municipal department, along with other companies who have invested in District 9’s land plots, prefers to bide its time for the moment, focusing on other projects closer into the city. One big reason for this seems to be transportational issues. The construction of the metro is a big topic in Ho Chi Minh City at the moment, and even now, years before the metro will be finished, it’s affecting real estate prices.

As VietnamNet reported, 37 percent of apartment units for sale are along the Metro Line No.1, which connects Ben Thanh Market to Suoi Tien Park in District 9. When you add the metro to the recently completed Ho Chi Minh City-Long Thanh-Dau Giay highway system, a 55-kilometre-long road that connects District 9 to District 2 and Dong Nai, it’s clear that developers see big plans for this district.

District 9 industrial zoneImage source: zing.vn

District 9’s Top New Projects

Condos

Name: Sun Tower; Developer: N.H.O. Khang Viet; Year of Completion: 2018; Units: 379; Price: US$650 per square metre.

Name: Him Lam Phu An; Developer: Him Lam Land; Year of Completion: 2017; Units: 1,092; Price: US$900 per square metre.

Villas and Townhouses

Name: Lucasta; Developer: Khang Dien; Year of Completion: 2019; Units: 140; Price: US$800 per square metre.

 


Hong Kong and Singapore Investors Seek Opportunities in Vietnam

By: Timo Schmidt

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

Particularly, investors from within the region are 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.

Property markets in Singapore and Hong Kong have been heating up over the last decade due to ever-increasing demand from local and foreign investors. While Singapore is a preferred investment destination for buyers from Malaysia, Indonesia 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 destinations have put cooling measures in place. These are now showing effect with a considerable drop in transactions, and prices are expected to drop in both countries.

In Singapore and Hong Kong the governments reacted as early as 2009 with a variety of cooling measures, which included:

  • Increase of Buyer’s Stamp Duty (BSD) for purchases of multiple properties of up to 15% in Singapore and 8.5% in Hong Kong respectively, particularly for non-resident foreigners and entities.
  • Seller’s Stamp Duty (SSD) on resale of properties with short holding periods in Singapore for periods of less than one year, which was later increased to three years. And in Hong Kong from two to three years.
  • Limits on loan-to-value for multiple unit purchases, meaning that buyers could not leverage purchases by using bank loans. Especially relative to foreign buyers or those who purchased multiple units.

These measures were specifically introduced to curb property investment and speculation - particularly by foreign investors - rather than preventing irsthome buyers from purchasing units. The effects are finally starting to show with transactions and prices decreasing in both markets, and talks of a property market crises making the rounds. More importantly, the yield potential in these markets has declined due to the additional purchasing costs.

Photo by: Tri Nguyen

Taking into consideration that Hong Kong and Singapore investors are amongst the most active in the region, Vietnam is seen as one of the most attractive destinations for property investment in Southeast Asia. With excellent yield potential and prices at a fraction of those in Hong Kong and Singapore, investors can purchase multiple units 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”

Savills Vietnam was among the first real estate agencies to take advantage of this by creating an international sales department to actively promote Vietnam’s properties in these key markets; in collaboration with Savills regional offices.

“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 allows foreign investors to take advantage of low prices and excellent yields in comparison to their local markets,” says the head of International Residential Sales for Savills Vietnam. “Since inception of the department we’ve transacted nearly US$20 million in sales to foreigners without bringing projects abroad. We are confident that this number will increase dramatically over the coming months.”

The opening of the Vietnamese property market to foreign investors is expected to draw more foreign investment into Vietnam from private and institutional investors.


A KAZE Perspective: 2019 Interior Design Trends in Vietnam

By: Katie Kinnon

Find out what it takes to be an interior design trendsetter in Vietnam

KAZE Interior Design Studio creates trends from District 2 of Ho Chi Minh City

The upcoming interior design trends for 2019 in Vietnam, according to KAZE

With any design industry, whether it’s fashion or interior design, people always want to know what the upcoming design trends are. Follow City Pass Guide as we speak with the team at KAZE Interior Design Studio in Saigon to understand some of the major interior design movements of 2019.

KAZE Interior Design Studio recently reached their 10-year milestone since the founding of this innovative firm. With over 100 high-profile projects across Vietnam and Cambodia completed during the last decade, KAZE is undoubtedly one of the top interior design studios in Vietnam.

KAZE Upcoming Design Trends

What It Takes to Be an Interior Design Trendsetter in Vietnam

While design trends come and go, such as the industrial style design we currently see everywhere in Saigon, Fong-Chan Paw Zeuthen, the owner of KAZE Interior Design Studio in Ho Chi Minh City’s District 2, explains that she doesn’t like being tied down to what’s popular.

“I hate to be a prostitute to anything trendy.” She has never wanted to be a fan of other people and even from a young age, she has always believed that people should be a fan of themselves.

She doesn’t consider herself to be trendy in any way; in fact, her husband is the trendier one of the two them, in her opinion. However, Fong-Chan does believe that her trends are born out of functionality first and then followed by unique design.

“Interior design in Ho Chi Minh City is vastly different to that in Europe and doesn’t always focus on function first. That’s where KAZE really stands out from the crowd because it targets what people want and need. But they don’t always know it until they experience it.”

KAZE Upcoming Design Trends

Creating Trends at KAZE Interior Design Studio in Saigon’s District 2

Fong-Chan believes that what she calls “positive” trends come from making a person feel good. In terms of KAZE Interior Design Studio’s measurement of success, if the intended users of a project like it and feel good when they walk into the room, then Fong-Chan and her team have done their job.

For KAZE’s larger projects with notable companies like Marriott, branding guidelines have to be adhered to, which can be rather restrictive. So, finding the balance of designing something innovative within certain limitations is often a challenge, but it’s one that can be inspiring.

KAZE Upcoming Design Trends

A great example of this is KAZE Interior Design Studio’s work for the MIA Resort in Mui Ne. Fong-Chan strives to tell a story in her projects, which can encompass everything from the ambiance of a space, to the way a person sits on a chair and how they feel when they do so. MIA Resort’s rooms and bungalows are at a high rate of occupancy on a year-round basis. Guests love the resort and come back because they like the way they feel when they stay there. Whether it be the casual beachside ambiance or the calming colours that reflect the ocean, every detail of a KAZE project’s story is carefully thought out and intricately placed into the interior design of a space.

KAZE Upcoming Design Trends

Walking around the KAZE Interior Design Studio office, based in Saigon’s trendy District 2, there are a lot of brightly coloured fabric samples scattered over the team’s desks. In the corner of the room, one person is watching a video on how to find the perfect lighting to create a specific ambiance. On the other side of the room, two team members are sat around a computer discussing how to improve the detailing of the furniture in a digital sketch. The decisions these people make have been influenced by their own interpretation of things they have seen, felt and experienced themselves.

Interior Design Trends in Vietnam 2019, according to KAZE

When asked, “What are the upcoming design trends for 2019?”, KAZE’s project designer Maria explains that nature will be a huge design theme for the year: “As people are focused more than ever on their environmental impact, so they will turn to nature for inspiration. Colours like moody hues of blue, forest green and cheery yellow will be introduced to our design palette, and calming earthy tones like mushroom grey will be used in materials. You may also see a lot of wood incorporated in our interior design projects this year.”

Designers and construction teams are also becoming more aware of their waste and construction trash production, and so they are finding new ways to be more sustainable and eco-friendly. KAZE Interior Design Studio is a leader in this sustainable movement. Fong-Chan explains that she has always pushed the company to be environmentally conscious and aims to use materials that are sustainable and long-lasting. However, she insists that there is more to be done and everyone can always improve.

KAZE Upcoming Design Trends

KAZE Interior Design Studio’s junior designer Duong believes that the upcoming designs trends in 2019 will include block colours and in particular, the shade ‘living coral’, which is a retro orangey-pink, as well as stylized graphics. More specifically, Duong explains that vhils are on the rise. Originally created by a Portuguese street artist, vhils are typically made by scratching the surface of building exteriors to create faces or skylines and make the exterior beautiful again. Duong expects to see more digital interpretations of vhils in 2019 with fresh, exciting patterns used in the background. He envisions seeing physical or digital versions of them in hotels as well as restaurants and cafes.

When a Trend is More than a Trend - Saigon’s KAZE and Sustainability

It’s clear to see that KAZE Interior Design Studio is one of the major style and design influencers in Vietnam. The choices they make in their large scale projects will likely filter down and inspire smaller design firms and individuals. Fong-Chan hopes that others will start to take into account that KAZE’s success is largely to do with the team’s ability to put their customers first and focus on functionality before aesthetics.

It is clear that a major design trend for 2019 is likely to be a strong emphasis on the colours in nature. But what does that mean on a deeper level? Fong-Chan tries to encourage her team to see beyond just the “Instagram appeal” and focus on what’s behind the pretty picture. For example, the emphasis on nature-inspired design can also be used as a turning point for many people in the design industry to reevaluate their environmental impact as an homage to the beauty of their surroundings. In this way, KAZE Interior Design Studio hopes to enhance the experiences of people in Saigon not just through trends of fantastic form and function, but also creating enduring positive effects through sustainability.

Image source: KAZE Interior Design Studio


How to Buy a House or Land in Vietnam?

By: City Pass Guide

Foreigners who are living in Vietnam may purchase houses for the expressed purpose of dwelling in it. By Vietnamese law, land is a national good, so you can only own the structure built on a property, not the land that it is on. You can enjoy a “land use right” for up to 50 years. This duration can be renewed. Also note that if you’re married to a Vietnamese citizen or a Việt kiều, you will have the same ownership rights as Vietnamese citizens.

Seek professional advice to ensure that all steps are properly taken to ensure a troublefree property transfer.

Alternatively, according to Vietnam’s Housing Law, every foreigner who has a Vietnamese visa stamp on their passport can buy a property in Vietnam. However, if you enjoy diplomatic or consular immunities and privileges, this does not apply.

Besides individuals, foreign companies, branches, representative offices of foreign companies, foreign investment funds and branches of foreign banks that are operating in Vietnam are also entitled to purchase property of residential projects.


A serviced apartment in Diamond Island Luxury Residences

What are the limits of foreigners’ rights on residential property in Vietnam?

The law states that foreign individuals and entities may only buy, receive or inherit apartments and houses in commercial projects and not in areas that limit or ban foreigners.

Although the limit of one property per foreigner has been repelled, the new Housing Law sets a limit on the proportion of foreigners who may live in a determined area: the total number of units owned by all foreign buyers must not exceed 30% of the units in one apartment building, or 250 landed property units in one ward.

The duration of the tenure is supposed to be equal to the land use right owned by the developer, most likely 50 years, with an option to extend the land use right at the end of it. The exact conditions for the extension are still unclear and will be detailed in further regulations.


Crescent Residences in D7, HCMC

An expatriate may lease his/her property for any purpose that is not banned by law, but he/she must inform the provincial house management agency before leasing the property. In this case, he/she is subject to Vietnam’s property taxes. If you are an overseas Vietnamese or if you are married to a Vietnamese citizen, you are entitled to a freehold tenure on the property.

If you bought it, you could of course decide to live in the house but also lease it or pass it through inheritance to someone else without any difficulties. To lease it, you will need an administrative authorisation from the Housing Department of the People’s Committee where your property is located.

Can foreign-invested enterprises purchase residential properties in Vietnam?

Foreign-invested enterprises that operate in Vietnam under the investment law but are not engaged in real estate, can purchase residential houses for their employees. They must possess investment certificates or written certifications of investment activities as appropriate to investment forms specified by the investment law granted by a competent Vietnamese state agency. They can buy properties to house their employees, but are not able to use them for leasing or other purposes.

HCMC properties
Housing in Ho Chi Minh City. Photo: GettyImage

What are the steps to purchase a house in Vietnam?

1. Once you have chosen the property, you will have to sign a reservation agreement.

This legally links the buyer and seller and may include paying a deposit to the seller. Examine closely the reservation agreement before paying the deposit. It prescribes that if the buyer changes his mind, he will lose the deposit, and if the seller changes his mind, he will have to pay twice. You’re well advised to notarise this document to protect your interest.

2. Due diligence is the next step.

You will check the reliability of the seller by examining their ID or registration certificate along with the property’s certificates (for example the ownership certificate). You should also ask for a bank guarantee or insurance to ensure the seller is trustworthy.

3. Once due diligence has been satisfied by both parties, they confirm their engagement and interest by signing the housing contract.

An annex related to facilities that go with the apartment is advised. Make sure the agreement is signed by all related parties and if not, then by the representative who is mandated by the related persons. The contract on residential house purchase and sale must be in Vietnamese, so you will need a Vietnamese translator to help examine its content. Although many developers provide a bilingual version of the contract for a better understanding by all parties involved, only the Vietnamese version is valid under Vietnamese regulations. To help you with the complications involved with the contract, we list some details to look for before signing:

- Is it stated that the seller has the ownership certificate of the apartment and does he give a guarantee over this ownership?
- Is the apartment also a security for a loan?
- What are the responsibilities of the seller in case of dispute over the apartment ownership due to his fault?
- Methods used for payment?
- What are the responsibilities for tax and fees?
- What is the delivery time?

4. Paying taxes and fees.

Normally, if there is no other agreement between parties, the buyer pays the registration fee and the seller pays income tax. The payment shall be made at the tax department of the district where the house is located.

5. The last step is to apply for an ownership certificate.

Both parties can agree on how to handle issuance of the new certificate, although it is most likely that a buyer will have to take it up.


Buying Property in Vietnam

By: City Pass Guide

Vietnam property ownership for expats is a dilemma that has been here as long as the expats themselves. You come to Vietnam, fall in love with the country and settle down. But where will you live? Is it going to be rental property forever? You don’t intend on leaving so why not buy? It may surprise quite a few to realise that it is not as fraught with danger as you may think. It is certainly easier than in Thailand, and there is a lot less chance of you losing your hard earned money.

Vietnam Property Law Changes

The government changed the rules in July 2015, enabling foreigners to buy their dream home here, provided they match a few criteria. Anyone buying property here now has a lease of 50 years, with the ability to sell-on and transfer the lease.

Conic Residental Building in Binh Chanh (Photo by Đức-Huy)

According to the new law, foreigners and foreign entities will only be allowed to buy or take ownership of apartments and houses in commercial projects. They will still not be allowed to buy in areas that limit or ban foreigners. A maximum of 30% of apartments within a given block and 250 houses in a given ward will be available to expats. The 50 year lease will be able to be extended in the future, although details of exactly how this will be done will change over time.

People may think that not being able to buy the land and only the building upon it is unfair, but this is the same for the local population. The government maintains ownership of the land here. Since the announcement, a property market that was already heating up has really opened up and enabled foreigners to join the Vietnam property ladder. The country already had a strong economy and a very strong and vibrant middle class.

These new rules also apply to long term Vietnamese who, living abroad, have kept up their Vietnamese citizenship. With 4.2 million Vietnamese living overseas and about 30,000 high earning foreign executives working and living here (CNBC), the potential for local real estate companies is huge.

Big Changes for Ho Chi Minh City

The drive to modernise the city has meant that developments are springing up everywhere. The new prestigious tower being built in District 1 by Vinhomes is seen as a symbol of the future. At 461 metres, the Landmark 81 tower will be the tallest building in Southeast Asia.

Photo by Vinhomes 

Vietnam’s economy has a steady growth rate of over 5-7% per year. Almost 42,000 apartments were launched in 2015 with a record 36,000 of them being sold (Vietnambreakingnews.com). Vietnam does certainly look like a great place in which to invest. In Ho Chi Minh City, The top end properties are priced at $3,000 to $5,000 per square metre. This is way below the $9,375 per square metre you would have to cough up in Bangkok (Financial Times). And yet, rental yields here are 1.5-2.5% higher than those in Bangkok, Hong Kong and even Singapore, according to VinaCapital.


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. The country’s real estate transactions have been based heavily on the traditional method of having an agent (or “co” - the housing stork) do all the work. People are now becoming more proactive in their choice of creating a home and taking advantage of online information to save costs and time.

Here are our top 10 picks for quality real estate 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:

1. batdongsan.com.vn

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 professionally in both Vietnamese and English, it satisfies a wide range of enquiries from visitors. Besides real estate information, it also provides visitors advice on architecture, construction, interior and exterior decoration, legal issues and feng shui.

2. muabannhadat.vn

With a friendly website layout, Mua Ban Nha Dat is a great source providing online solutions for marketers and real estate brokers. For investors, brokers and individuals who are active in the field, this site is one of their first choices to get quick market updates and details on upcoming real estate projects all over the country with a few quick clicks. The only downside is that they don’t have an English user-friendly interface, but as mentioned earlier, Google Translate can be a good way to explore.

3. zita.vn

Zita is one of the newest additions to the Vietnamese real estate field. With its clean, sleek layout including a city view home page video, Zita 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

Do Thi provides the fastest and most accurate market information in Vietnam. Through the advanced site browser, users can find all about buying, selling, renting across all provinces and cities in the country. News and featured projects sections are updated daily to keep visitors informed on the latest buzz in the field.

5. nhadat24h.net

Nha Dat 24h specialises in online real estate transactions, featured VIP promotions, advertising updates and latest market news.

6. 123nhadat.vn

With over 2 million real estate listings and an average of 5,000 housing posts per day, 123 Nha Dat provides market information, and post-purchase education and lease-free housing. Users can search for land, houses and apartments.

7. cafeland.vn

Cafeland is one of the leading real estate sites in Vietnam. Besides housing information, the website also provides up to date news and market analysis from experts in the field. The site also has a portfolio section which provides key details on real estate with specific and neatly presented information.

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 and informative.

9. dinhgianhadat.vn

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

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 user-friendly interface and information.


Tags

IS THERE A STORY OR TIP

YOU WOULD LIKE TO SHARE WITH US?

GET IN TOUCH