For instance, Ho Chi Minh City-based Construction and Investment 8 Joint Stock Company (CIC8) is encouraging shareholders to share the difficulties by using last year’s dividends to buy the unsold condos and land lots. But CIC8 will still pay cash dividends for those who don’t join the plan for one year with a monthly interest of 2 percent.

Phat Dat Property Development Corporation, which had to revise down its targets of VND1.1 trillion in sales and VND360 billion in pre-tax profits for 2011 to a meager VND148 billion and VND8 billion last November, has decided to cut down this year’ investment plan to VND400 billion from the initial VND1.4 trillion.

It has also announced its plan to invest in forest and agricultural tree planting projects, which is a brand new area of investment for this company.

Phat Dat Chairman and General Director Nguyen Van Dat said in addition to real estate, which will remain its core business, the company needs to look for new investment channels. Rubber cultivation is an option under consideration as this promises higher returns under current circumstances.

Dat said the development of the agricultural industry has been encouraged by the Government, so his firm may be able to break even after 6 to 7 years of rubber farming.

According to Phat Dat deputy General Director Vo Tan Thanh, investing in the agriculture sector is a great change for his enterprise, which is expected to help diversify investments and sources of incomes to pull the company out of the current woes.

Observers said the plan sounds rational but the question is whether leaders of Phat Dat will be able to persuade their shareholders to jump on the bandwagon.

Meanwhile, Hoang Anh Gia Lai, a well-known property developer, has already been involved in rubber plantation for years. The agricultural sector does not guarantee high and quick profits as the property sector, but it is highly stable.

The Agency of Housing and Real Estate Market under the Ministry of Construction pointed out an imbalance in the housing structure as reflected in a shortage of medium and small-sized condos with reasonable prices.

Among the 35,000 apartments completed before 2011 in HCMC, around 37 percent of them are classified as high-class, 38 percent as medium-cost and 25 percent as low-cost.

Le Hoang Chau, chairman of the HCMC Real Estate Association (Horea), said each housing segment has its own customers. The reality is that the medium-cost housing segment has been doing good business given strong demand.

Local traders said housing demand remains huge, especially for the medium-cost segment, in big cities. The lackluster property market over the past 4 years has eroded the confidence of individual secondary investors.

Therefore, numerous investors have managed to focus on medium and small-sized apartment projects, and adjusted existing schemes to meet the actual needs of consumers.

Saigon Thuong Tin Tan Thang Investment Real Estate Joint Stock Company (TTJSC) last week started marketing its Celadon City condo project covering over 82 hectares with about 7,000 units in HCMC’s Tan Phu District. To meet demand, the developer plans to narrow the area of each apartment from 90 square meters to 65 square meters.

Similarly, Thu Duc Housing Development Corporation (Thuduc House) will develop low-cost housing projects alongside the medium segment. These small condos cost VND500 million to VND600 million per unit.

Singapore’s CapitaLand is targeting middle-income people for its projects, with an apartment building in District 2 and another in Binh Chanh District.

source form: vov

Le Hoang Chau, chairman of Horea, told the Daily that his association had yet to receive any official information regarding this suggestion from the city’s construction department to the Ministry of Construction as reported by local media after the Tet holiday.

However, he stressed that it is unsuitable for the application of housing taxes at this time.

“Applying housing taxes for the time being only worsens the dreary realty market,” Chau told the Daily on Tuesday. He noted this proposal was no longer new because the National Assembly used to consider and treated it as a pending issue last year.

Along with many other kinds of taxes, imposing housing taxes is regarded as one of solutions to minimize the speculation in the property sector, which is believed to be one of causes pushing up the housing price in the recent past.

According to Chau, all citizens have to pay taxes as one of their duties for the State, the community and the society and other nations have already collected this kind of tax from residents.

The biggest difficult of the real estate market is weak liquidity, proven by the fact that products are abundant but have failed to attract home buyers. Those in need of housing cannot borrow money to buy homes while sellers are thirsty for capital to complete on-going projects.

There are few secondary investors in the market as Marc Townsend, managing director of CB Richard Ellis Vietnam, used to comment that investing in realty is not the game for yellow-bellies.

Chau and many people agreed there would be more ordeals for this year’s realty market since the monetary tightening policy will continue in line with Resolution 11. He hinted at the access to capital resources being restricted while the property market itself lacks of other capital mobilization channels.

source form: thesaigontimes

In the long term, real estate developers should seek investment from various capital sources instead of depending on banks for funds, Hieu said.

Nguyen Van Duc, deputy director of Ho Chi Minh City-based Dat Lanh Real Estate Company, agreed that developers have to accept low prices, and even losses. At the same time, they should review their business strategies to cut construction costs, he added.

According to Vietnamnet, home prices went down in 2011 but the cuts were not enough to drive buyers back to the market. In some cases, the very small price cuts were merely marketing ploys, it said.

In Hanoi, only about 3,600 real estate purchases were made during the first three quarters of last year, Vietnamnet reported.

Nguyen Quoc Hiep, chairman of GP Invest, said many real estate companies have already gone bankrupt, though official announcements have yet to be made.

As sales dropped and bank loans were due, those companies could not afford to stay in the market, he said.

Construction Minister Trinh Dinh Dung has said the market could continue to slump in the first half of this year. He said the bright spot of the market in 2012 will be the low-income housing segment.

source form: thanhniennews

Such a goal can be achieved only when liquidity of the banking system has been improved, he said.

“Under these circumstances, policies should be loosened,” he said, adding that credit needs to be eased.

Loans expanded around 11 percent last year. The central bank is aiming for a credit growth of 15-17 percent in 2012.

Ngoan said while polices designed to stabilize the economy are taking effect – as evidenced by the low monthly inflation rates in the past five months – 2012 is expected to be another tough year for businesses.

The declines of both the stock and real estate markets will put more pressure on the banking system, making it difficult for companies to take out loans, he said.

“Apart from focusing on providing loans to the agricultural sector and exporters, the State Bank needs to consider easing credit for consumers and certain segments of the real estate market, and especially for small to medium-sized enterpries,” Ngoan said.

The economy is likely to grow 5.6-5.9 percent in 2012, he said, adding that a growth of 6-6.3 percent is possible if global conditions improve.

Ngoan also said the exchange rate could fluctuate by between 5 and 6 percent, calling for measures to manage the gold market more effectively to keep the dong stable against the dollar.

source form: thanhniennews

High end property prices are falling in Shanghai and Hong Kong but rising in Jakarta, Bangkok and Mumbia, the latest report on Asian real estate shows.

Average capital values rose marginally by 0.2% in the fourth quarter of 2011, according to the latest Asia Pacific Residential index from Jones Lang LaSalle which tracks eight luxury residential markets in the region.

Beijing, Bangkok, Jakarta and Mumbai saw an increase in capital values during the quarter, prices remained stable in Singapore and Kuala Lumpur and declined in Hong Kong and Shanghai.

‘We expect a multi speed luxury residential market in the Asia Pacific region in 2012. We think prices in China will soften further, though developers are likely to introduce only moderate price discounts due to limited supply in prime locations,’ said Jane Murray, head of Asia Pacific Research at Jones Lang LaSalle.

‘Prices in Hong Kong and Singapore are expected to decline over the year due to projected rental correction, tighter credit and government measures. That said, generally low holding costs will limit the extent of price correction. Whilst prices in Kuala Lumpur and Bangkok are expected to stay flat, we anticipate Jakarta prices to be boosted by Indonesia’s strong economy,’ she added.

Overall Hong Kong prices edged down by 3.3% quarter on quarter due to tighter credit and weakening investor sentiment.

In Singapore average prices in the city state’s luxury prime market remained stable for the sixth consecutive quarter despite slight rental correction.

But in China with tightening policies remaining in place and falling sales volumes in the China Tier I markets, capital values for luxury apartments in Shanghai fell by 0.5% quarter on quarter while average prices in Beijing were largely flat.

Jakarta saw high end residential prices saw growth of over 14% over the full year of 2011 boosted by the country’s strong economic growth.

source form: rol

The number of European Union and Chinese buyers of prime central London property declined over the course of last year while the number of purchasers from the UK and Russia grew, according to the latest report from Hamptons International.

The results highlight a change in the buying habits of both European Union and Chinese buyers throughout 2011. The proportion of European Union buyers fell by 19% per cent throughout the year. Chinese buyers demonstrate a similar trend, peaking at 13% of all purchases in the second quarter but falling to just 2% in the last three months of 2011.

Conversely, the report highlights growing numbers of buyers from the UK, the Middle East and Russia. UK buyers returned to the sector in the second half of 2011, peaking at 44% of all purchases in the third quarter. Middle Eastern buyers were the only nationality to increase quarter on quarter throughout 2011, peaking at 16% in the fourth quarter.

The report demonstrates that the biggest jump in buyers between the third and fourth quarter were the Russians, whose purchases increased by 11% in the last three months of 2011 compared with the previous quarter.

‘The results of our nationality tracker are a fascinating insight into the confidence levels of international buyers. As different regions around the world experience times of economic or political uncertainty, prime London residential property has offered more than just a safe bet as prices grew on average by 13% last year alone,’ said Adam Challis, head of research at Hamptons International.

‘For example, political uncertainty in the lead up to Russian elections in March 2012 has led to a jump in the number of Russians buying prime property stock in central London. Meanwhile, British buyers are taking advantage of one of the rare ways to protect capital at the moment as Prime property has and is expected to outperform most other asset classes,’ he added.

According to Andrew Phillips, London director at Hamptons International, the drop in Chinese buyers at the end of 2011 sees this buyer group resume to more normal levels. ‘We have seen a shift from Hong Kong to Singapore and surrounding countries and the impact is filtering through to the London property market,’ he said.

‘The continued mix of nationalities operating in the Prime Central London market continues to highlight that the global market still sees London as the world’s number one city in which to invest when it comes to property,’ he added.

source form: rol

Property prices in Australia’s eight capital cities decreased by 1% in the fourth quarter of 2011, according to preliminary estimates from the Australian Bureau of Statistics published today (Wednesday 01 February).

The quarterly figures show there was considerable regional variation in prices. Prices fell by 1.6% in Melbourne and Adelaide, by 1% in Sydney, by 1.3% in Brisbane and by 1.4% in Darwin. They increased by 0.5% in Perth, by 0.7% in Canberra and by 0.8% in Hobart.

‘Today’s update does bear some resemblance to the annual declines evident in late 2008 and early 2009,’ said Harley Dale, chief economist of the Housing Industry Association (HIA), the voice of Australia’s residential building industry.

‘There are, of course, enormous variations in house prices within and across cities and regions in Australia, but as was the case in 2008/09, the widespread price plunge portended by some for 2011 predictably never emerged,’ he explained.

He believes that lower interest rates will feed into an improved environment in 2012. ‘Although we won’t see a return to widespread strong house price growth,’ he added.

The capital city project new)house price index rose by a bare 0.2% in the December 2011 quarter to be up by 1.5% on a year earlier.

Across capital cities, in the December 2011 quarter the project new house price index increased by 0.7% in Sydney, 0.1% in Adelaide, 0.4% in Perth, and 0.1% in Darwin. Prices were flat in Brisbane, Hobart, and Canberra, and fell by 0.3% in Melbourne.

New home sales are also falling. The HIA JELD-WEN New Home Sales Report, based on a survey of Australia’s 100 largest builders, showed a decline of 4.9% in total seasonally adjusted new home sales in December 2011. ‘New home sales were essentially flat over the December 2011 quarter, inching up by 0.2%.. Meanwhile, building approvals will record a fall for the December quarter and new home loans will likely do the same,’ said Dale.

Detached house sales fell by 7.7% in December 2011, but rose by 2.1% over the quarter. Multi unit sales jumped by 29.4% in the final month of last year, but dropped by 15.7% over the December 2011 quarter. The volume of detached house sales declined in three out of five mainland states, falling by 4% in New South Wales, 10.5% in Victoria, and 20.5% in Queensland. Sales increased by 12% in South Australia and by 6.8% in Western Australia.

‘The intensification of bad news regarding Europe, question marks over labour market prospects in Australia, and avoidable delay and uncertainty as to whether banks were going to pass on the Reserve Bank’s second rate cut conspired to drive a fall in new housing contracts as the holiday season approached,’ explained Dale.

‘Weakness in the new home building sector reflects a combination of subdued demand and an excessive cost base driven by high and inefficient taxation, the latter of which was further highlighted in 2011 by the modest decline in existing property values. Short term monetary and fiscal policy stimulus together with a revitalised programme of longer term structural reform is required in early 2012. Such action would instil confidence in the sector during what is a very good time to build a new dwelling for those who are financially set to take that decision,’ he added.

source form: rol

Residential property prices in the UK fell by 0.2% in January but are 0.6% higher than a year ago, according to the latest house price index from the Nationwide Building Society published today (Wednesday 01 February).

‘Given the challenging conditions prevailing in late 2011, with the UK economy contracting in the final three months of the year, it’s not surprising that house price growth softened at the start of 2012,’ said Robert Gardner, Nationwide’s chief economist.

‘The demand/supply balance may move further in favour of buyers in the months ahead. The economy is not expected to gather much momentum until the second half of 2012 at the earliest, which suggests that labour market conditions and buyer sentiment may be slow to improve,’ he explained.

‘Nevertheless, with the flow of properties coming onto the market still more of a trickle than a flood, house prices are likely to continue to move sideways or only modestly lower in the months ahead,’ he added.

Finding a deposit is still a major hurdle for many would be buyers and the poor economic outlook and jobs market in the UK is affecting the real estate market.

‘The decline in long-term interest rates has helped to provide some relief for borrowers. Indeed, interest rates for new lending are currently at a record low, which has helped to improve initial mortgage affordability,’ said Gardner.

source form: rol

The property rental market in Portugal is surging due to strong demand as the country’s sales market remains downbeat, according to the November Portuguese Housing Market Survey.

Activity in the lettings market is benefiting from the continued fallout in the sales market and letting transactions are set to increase further, says the report from the Royal Institution of Chartered Surveyors and Confidencial Imobiliário.

In terms of property sales respondents reported a continued fall in demand, supply, and prices. Sales activity declined at the fastest pace since the survey began in September 2010 as the National Price balance fell from -64 to -70, while the National Confidence index remained stable at -60, just above the lowest level on record.

House price declines continue to be driven by falling demand. The reports says that rising supply is not presently an issue, with new vendor instructions falling consistently this year.

Until September, new home prices had been falling less sharply than prices for existing homes. However, the November survey provides additional evidence that developers are now becoming less resilient to market conditions. Indeed, new home prices are now falling more rapidly than existing homes.

But the lettings market continues to benefit from the fallout in the sales market. Tenant demand and new landlord instructions continued to increase further, albeit at a slower pace than last month, as did letting transaction expectations.

However, rents are falling quite sharply and rent expectations turned increasingly negative. The report says this could reflect an excess of rental stock on the market but there is also anecdotal evidence of a mismatch between the type stock offered and that in demand.

The regional data tends to be more volatile than the national data, but during November, respondents in the Algarve saw the sharpest house price falls while those in Lisbon saw the sharpest falls in rents.

‘Although sales volumes in the housing market continue to fall, volumes in the lettings market are rising as households who cannot access mortgage finance are opting for rented accommodation instead,’ said RICS senior economist, Josh Miller.

Given the deteriorating macro economic backdrop with unemployment at 12.9% and the tightening in credit conditions already underway, the lettings market is likely to continue experiencing high volumes of activity for the time being,’ he added.

CI spokesman Ricardo Guimaraes points out that December is the deadline for the Portuguese Government to change the lease law, which should improve market confidence, especially regarding the default risk from tenants.

‘This is moving agents’ expectations. At the same time, the most commented topic remains the financial wrangling between potential buyers and banks, as well as the amount of houses directly sold by financial institutions, which is having a negative effect on prices,’ he explained.

source form: rol

Pham Nhat Vuong, head of real estate firm Vingroup, remained the richest Vietnamese this year in terms of stock assets.

As of December 30, Vuong owned 168.5 million shares worth around VND16.68 trillion (US$797.1 million).

Vuong held the top position for the 2nd year in a row with his total assets increasing by VND905 billion ($46.98 million) from last year.

The stock value Vuong owned in the last trading session of the Vietnamese stock market in 2011 was almost equal to the combined assets of the 5 runner-ups on the list.

Vuong, a member of the Board of Directors of Vincom Joint Stock Co. (coded VIC) owns shares in both VIC and Vinpearl Joint Stock Co. (coded VPL).

In preparation for the merging of VPL and VIC, trading of VPL shares has been halted since December 23.

The value of one VPL share is equal to 0.77 of the value of a VIC share.

Following Vuong were Doan Nguyen Duc, Chairman of Hoang Anh Gia Lai Group (coded HAG), with total share value of VND4.348 trillion.

Duc’s stock value dropped almost 70 percent compared to last year due to the sharp fall in the value of HAG shares as a result of the stagnant Vietnamese real estate and stock markets in 2011.

Vuong’s wife, Pham Thu Huong, jumped from No. 6 to No. 3 with VND2.89 trillion, up VND550 billion compared to last year.

Huong was also the richest woman in Vietnam this year.

The remaining positions were Masan Group’s shareholders, Nguyen Hoang Yen and Ho Anh Hung, whose stock values leaped from No. 12 and 13 last year to No.4 and 6 this year with VND1.97 trillion and VND1.789 trillion respectively.

At No.5 was Pham Thuy Hang, the sister of Pham Thu Huong, who owned VND1.9 trillion worth of VIC shares.

The rise of OGC shares in the last trading session helped Board Chairman of Ocean Group, Ha Van Tham overtake Nguyen Thi Nhu Loan, Quoc Cuong Gia Lai’s head, to No. 10 with VND862 billion.

Loan dropped to No.12 with VND814 billion.

Along with the leave of Loan from the Top 10 were 2 familiar faces in recent years, Nguyen Duy Hung, Chairman of Saigon Securities Co., and Dang Thi Hoang Yen, Chairwoman of Tan Tao Group, who ranked at No.22 and 37 this year with VND443.5 billion and VND247 billion respectively.

Along with Dang Thi Hoang Yen, her brother Dang Thanh Tam, Chairman of Kinh Bac Urban Investment and Development Corp., also suffered big losses of more than 70 percent in stock asset value compared to 2010 to nearly VND1.4 trillion.

Tam, the former richest Vietnamese in terms of stock assets in 2007, was ranked at No.8.

Though real estate developers had a difficult year in 2011, the Top 100 richest on the stock market included nearly 30 representatives from real estate, a dominant presence compared to other sectors.

The total assets of these 30 individuals were over VND34 trillion, equal to nearly 63 percent of the total assets of the Top 100.

source form: tuoitrenews