Real Estate News January 2017

Here you will find a few headlines from the Vietnamese market:

Vietnam 2016: Real estate sees spate of M&As, investment platforms
Investments into Vietnam’s real estate market saw a flip in 2016 due to stable economic conditions, a rising middle class and improved legislation climate. New foreign direct investment (FDI) in the real estate sector is estimated at $1.3 billion for 2016, declining 44 per cent over the prior year. However, real estate was still the second largest industry in terms of attracting foreign investment, and the disbursement of capital was also higher than last year, according to the local association of foreign invested companies.

Hue: Lisence VND 1,000-billion project at begining of the year 
Hue Amusement & Beach Park project total scale of VND 1,060 billion. Total unit: 1,000 hotel rooms (4 – 5 stars), 93 high – end villas and others entertaining services. According to Hue Plan and Investment Departure, the project will start in Q2/2017. This project is expected to improve Hue’s tourism environment and attract more.

Japanese investors keen on Vietnam's market
New Land Vietnam will provide modern cold chain logistics services by using its own four-temperature (room temperature, fixed temperature, refrigerated, and frozen) logistics centres and trucks to consistently manage temperatures across all food product operations, from storage to store shipment. The management of New Land envisions reaching US$9.7 million annual sales within 10 years, said the news release.

Ho Chi Minh City to move 10,000 manufacturing facilities from residential areas 
Authorities in Ho Chi Minh City have announced a plan to relocate 10,000 manufacturing facilities away from residential areas in a campaign to minimize pollution and ensure citizen safety. The decision to move manufacturing facilities from residential areas has sparked concern among many of the small scale businesses who will be affected by the relocation.

Disbursement of housing stimulus on time
The disbursement of the housing stimulus package, valued at VND30 trillion (US$1.4 billion) in preferential loans, will finish on schedule, according to the State Bank of Vietnam. Also, this source stated that, as of the end of November, VND29.239 trillion had been disbursed, with outstanding loans remaining at VND24.116 trillion. The package is believed to contribute to the recovery of the property market, reducing stockpiles, removing difficulties for developers, as well as for the recovery of the economy. It enabled more than 50,000 households to purchase affordable homes.

Credit growth goal set at 18 percent for 2017
The State Bank of Vietnam (SBV) has set a credit growth target of 18 percent for this year and it pledged to continue measures to keep credit growth suitable to the country’s economic development. Credit management has succeeded in curbing the rise of lending to the real estate sector and shifting the capital flow to production industries.

Housing stimulus package interest rate remains at 5% 
The State Bank of Vietnam (SBV) will keep the interest rate of the VND30 trillion (US$1.32 billion) preferential credit package for low-income homebuyers at 5 per cent in 2017. Loans to home buyers under the package which was disbursed before December 31, 2016 will enjoy a 5 per cent interest rate. Those who have signed credit contracts for the package but have their disbursements made after December 31, 2016 will be applied commercial interest rates according to their agreement with banks. The package’s disbursement was terminated at the end of last year. By the end of 2016, the disbursement was estimated at some VND30 trillion. On November 30, 2016, the package’s disbursement was more than VND29.2 trillion and total outstanding loans were more than VND24.2 trillion.