Vietnam Property Market Monitor - Q4 2012

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  • 1. /pulse/Vietnam Property Market Monitor4Q12Vietnam Nearly one million out of work: According to the Labour Force Key Economic IndicatorsSurvey Report 2012, nearly one million workers remained GDP Growthunemployed. The unemployment rate was higher in urban areas than (2012, y-o-y, in real terms)5.03%in the countryside, showing 3.3% and 1.4% the first three quarters ofCPI Growth9.21%2012, respectively.(2012, y-o-y) The central bank announces minimum lending rate: The minimum Trade Surplus0.25% (2012, % of export)lending rate will be lowered to 12% after 24 December. The Index of Industrial Productionrefinancing and discount rates will drop to 9% and 7% per year, 4.80% (2012, y-o-y)respectively. The actions are part of the efforts of the central bank to Retail Sales Growth6.20%ease the difficulties working against businesses.(2012, y-o-y, in real terms) International Visitor Growth Vietnam FDI disbursements approach USD 11 billion: According to 9.50% (2012, y-o-y)the Ministry of Planning and Investment’s Foreign Investment Agency,FDI disbursements reached about USD 10.46 billion in 2012, lower Source: General Statistics Office, Jones Lang LaSalle Research, 4Q12than the USD 11 billion seen in 2011. Remittances flow into the nation at a fast pace: According to theWorld Bank’s remittance report update for 2012 released last Key Investment TransactionsNovember, the remittances going to Vietnam this year were forecast toNamePrice ($ mil)be USD 9 billion, ranking the country ninth of the top 10 recipients ofGia Phu Apartment- 12.0migrant remittances worldwide. HCMCHo Chi Minh City (HCMC)Source: Jones Lang LaSalle Research, 4Q12 The city’s CPI increases upwards by 0.17%: HCMC’s CPI wasestimated to have increased by 0.17% in December, extending thecity’s 2012 CPI to 4.07%. Garments and footwear saw the sharpest rise of 0.96%, followed by household appliancesand goods. Culture entertainment and tourism increased just 0.29% even at year end. Manufacturing Purchasing Managers’ Index (PMI) rises to a 14-month high: According to HSBC Vietnam,November’s Manufacturing PMI stayed above the neutral 50.5 value for the first time, reaching the highest levelrecorded in 14 months. The improvement in operating conditions indicates that both production levels and neworders resumed in November. Spain cuts funding for Metro Line No. 5: As Spain is experiencing a debt crisis, the country can only provide EUR200 million (USD 256 million) to fund HCMC’s Metro Line No. 5 project instead of the EUR 500 million previouslyplanned. However, Spain plans to help HCMC access other sources of capital, such as banks in Europe. The MetroLine No. 5 project will be developed with total investment capital of some USD 1.85 billion. As Spain’s ODA is onlyequal to around 40% of the amount needed for Phase 1 of the project, HCMC will have to look for additional funding. Big C Pandora opened: On 4 November 2012, Big C Truong Chinh, the chain’s sixth supermarket in HCMC,opened at No.1/1 Truong Chinh Street, Tan Phu District. Big C Truong Chinh occupies over 12,000 sqm on the firstand second floors of Pandora City. Launched during 4Q12 in the Tan Phu District, Pandora City is the newestshopping centre to enter HCMC and features Big C, Megastar and branded food and beverage outlets. Ascott expands in Vietnam with new properties: Ascott announced that it was awarded a contract to manage aserviced residence in HCMC. Under the contract, the new 100-unit Somerset Vista is slated to open in December.The project is part of The Vista, which is being developed by an alliance formed between CapitaLand, Thien DucTrading Construction Company and Phu Gia Investment JSC. Ascot will also manage Vista Residence, a 168-unitproperty within The Vista.
  • 2. Hanoi Hanoi’s December CPI edges up 0.26% m-o-m: Hanoi’s CPI in December is estimated to have increased by 0.26%m-o-m and 6.29% since December 2011. The capital city’s average CPI in 2012 was kept in single digits and wasrecorded at 8.57%. During the year, the education segment posted the strongest rise, registering above 12.5%,followed by the apparel products, hats and footwear segment, which recorded an increase of 10.67%, and thehousing, electricity, water, fuel and construction materials segment, which rose 10.47%. Korean investor launches a new urban area project: The Republic of Korea’s T.H.T limited company officially heldthe ground-breaking ceremony for an urban area in Hanoi with a total investment of USD 2.5 billion. The Starlakeproject will be built on an area of 207.66 ha to the west of the West Lake. The project will reserve 46 ha for theconstruction of commercial projects, financial centres and offices. A land area of 26 ha has been specially set asidefor the development of high-rise apartment buildings, houses and villas, which will serve around 25,000 people. Pullman Hanoi opens its doors: Accor, the largest international hotel operator in Asia Pacific and Vietnam,announced the opening of Pullman Hanoi, the first Pullman hotel in Vietnam. Previously known as Hanoi HorisonHotel, Pullman Hanoi recently completed a comprehensive refurbishment that transformed it into one of the city’smost modern properties. Pullman Hanoi is located just 10 minutes from Hanoi’s historical quarter and comprises 242rooms and meeting rooms that can service up to 1,000 people. VinaCapital seeks to divest from Hanoi Metropole:Da Nang Da Phuoc cancels plans to develop a golf course: The Da Phuoc International Township project receivedapproval from the Da Nang Municipal People’s Committee to cancel plans to develop an 18-hole golf course.Because of tough economic conditions, Daewon Cantavil Company - the developer - wanted to focus on developingan urban area instead of a golf course. The authorities allowed the developers to transform part of the former golfcourse project into landed houses and high-rise buildings, while taking back 10-ha to develop a software centre. Tourism in Danang still shows growth in 2012: In 2012, the number of tourists visiting Danang reached 2.7 millionpeople, increasing 12% y-o-y. 600,000 of these tourists were foreigners, a rise of 18% y-o-y. Danang seeks loans for a second economic corridor: Danang is seeking capital from the Asian DevelopmentBank to develop the East-West Economic Corridor 2 (EWEC 2) project to support economic growth in the centralregion. Danang wants to have ODA funds to build EWEC 2, which will run through Danang Port, the 14B and 14Dnational highways, the Dac Oc border gate in Quang Nam, the Boloven Highlands in Laos and the Chong Mek-Nakhon-Bangkok in Thailand.Other Provinces Phu Quoc: A new airport on the southern resort island of Phu Quoc was opened to the domestic flights of VietnamAirlines and Air Mekong on 2 December, just four years after Kien Giang Province launched its mammoth project.The Phu Quoc International Airport can handle bigger aircraft and some 2.65 million passengers a year. Binh Duong: Binh Duong, one of the country’s southern provinces attracted an estimated USD 2.6 billion FDI during2012. According to the Provincial Peoples Committee, this amount far exceeds the province’s target of USD 1 billion.Faced with the difficulties of the global economy, Binh Duong’s strong inflow of FDI shows that the provinceresponded to the demands of investors and developed a safe and secure investment environment. Lam Dong: Lam Dong Province decided to stop two projects, Lam Dong Loc Phat Golf Course and Lam Dong LocPhat Hill State. With investment capital estimated to total USD 15.8 million, Lam Dong Loc Phat Golf course had atotal land area of 392 ha and would have featured a 72-hole golf course, a 320-room hotel and a 300-seat conventioncentre. Lam Dong Loc Phat Hill State would have developed a 5-star hotel with 300 rooms on an area of 164 ha. 2
  • 3. /pulse/ Vietnam Property Market Monitor 4Q12Vietnam Property Market Monitor is a quarterly publication providing a factual summary of news and headlines for thepast quarter, with a focus on key developments and trends in the Vietnam real estate market on a country-wide basis. It ispart of the comprehensive research package from Jones Lang LaSalle Research that covers Vietnam, along with othermajor countries in Asia Pacific.Geographic ProductPublicationFrequency Contents AvailabilityCoverage Coverage Real estate headlines & newsProperty Market Monitor VietnamAll QuarterlyPublicly available summaryProperty Market Brief * Vietnam cities All Quarterly Stock, vacancy, prices, rentsPublicly available Stock, vacancy, prices, rents,Property Market ReportVietnam cities All QuarterlySubscription-based project detailsAsia Pacific Property Asia Pacific Investment Quarterly Stock, vacancy, prices, rentsPublicly availableDigestincluding VietnamgradeAsia Pacific InvestmentStock-weighted rental value andThe Office Index QuarterlyPublicly availableincluding Vietnamgrade capital value indicesAsia Pacific InvestmentThe Residential Index (Vietnam to be Quarterly Capital value indexPublicly available gradeincluded)Real Estate IntelligenceAsia Pacific InvestmentStock, vacancy, prices, rents, QuarterlySubscription-basedService including Vietnamgrade yields, total returns, forecastsAsia Pacific Real estate headlines & newsReal Estate DailyAll DailySubscription-basedincluding VietnamsummaryReal Estate Global Every two Country transparency scores & AllPublicly availableTransparency Indexincluding Vietnamyears rankings* from 4Q12 onwards, the quarterly Economic Brief will be merged into the Property Market Brief.Property Market Monitor is also published in other countries in the region under the Pulse product line.Visit us at:www.joneslanglasalle.com.vnwww.research.joneslanglasalle.comFor subscription details and enquiries, please contact:Chris MurphyTrung ThaiHead of Valuation and Advisory Services Manager, Research & ConsultingLevel 26, Saigon Trade Center Level 26, Saigon Trade Center37 Ton Duc Thang, D1, HCMC, Vietnam 37 Ton Duc Thang, D1, HCMC, Vietnam+848 3910 3968 ext 911+848 3910 3968 ext 927chris.murphy@ap.jll.com trung.thai@ap.jll.comThe information in this publication has been compiled from various sources deemed reliable. However, no representation or warranty is made to theaccuracy thereof. This publication may not be reproduced in any form or in any manner, in part or as a whole without the written permission of thepublisher, Jones Lang LaSalle Vietnam, Ltd.3
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