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By LocaLs, for LocaLs - your MonthLy hcMc Gazette
published by
citypassguide.com
news • Living • features • Meet the experts
reviews • house It Going • events
MAY LocAL InsIght:
real estate
Volume 7 | May 2016
top housing know-hows
top real estatewebsites
/ “Buy land, they’re not making it anymore” - mark twain /
5 153
a guide to hCMC’s distriCts
#iAMhcMc news
#iAMHCMCBy Locals, For Locals
editor-in-ChiefPatrick Gaveau
Content Manageraleksandr smechov
Coordinatorhannah hayes
writersKeith hancockzoe osborneMichael sieburg timo schmidt eric Le Dréau fong-chan zeuthenLe thi Quynh thu
illustratorzoe osborneLuke nguyen
designersPham Mai trang
Citypassguide.CoM42/37-38 hoang Dieu, District 4, hcMc [email protected]
editor-in-ChiefPatrick Gaveau
to provide an innovative and interesting
english portal of local insight for hcMc’s
working professionals.
core VaLues
» usability: We present interesting, engaging
ideas in a relatable way
» unity: We bring our readers together under
the “saigonese” identity
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reliable content
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lighthearted fun
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illustration and design
haVe feeDBacK? contact Me at [email protected]
No part of this publication may be re-produced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission in writing from the publisher.
dan tri publishing house no. 9, Lane 26, hoang cau street, Dong Da District, hanoi office: 347 Doi can street, Ba Dinh District, hanoi
responsible for publishing: Bui thi huong
responsible for content: nguyen Phan hach
editor: Vu thi thu ngan
registration publishing plan number: 780-2016/cxBIPh/19-25/Dt Publishing permit number:780-19/QĐxB/nxBDt issued on 15th april 2016
IsBn: 978-604-88-2719-9 Printed 5000 copies at nhan Dan Printing house D20/532P, hamlet 4, Phong Phu Ward, Binh chanh District, hcMc
news around saigonThe following news items are provided by
safety for tourists
ho chi Minh city has once again vowed to
strengthen security after a downtown robbery
made headlines in March. a 21-year-old egyptian
woman had her bag snatched by two men while
walking with a friend in District 1. her story
and several photos of her crying helplessly went
viral, prompting the city’s officials to make a
public apology and announce stronger measures
to protect visitors. new police data showed that
criminals did prey on tourists: nearly half of the
victims of robberies reported in the first quarter
were foreigners.
air quality concerns
hanoi’s air pollution has worsened over the
past decade. the real-time air Quality Index
recently ranked pollution in the capital city as
“unhealthy” and at times “very unhealthy.” that
means outdoor activities should be limited for
everyone. Local authorities warned about the city’s
air quality in 2004 when the level of pollutants
first went beyond the safe limit. following studies
have confirmed that the once green city has been
heavily polluted.
bad Vietnamese tourists
the Vietnam tourism association is set to
publish a guide including 30 dos and dont’s
that Vietnamese tourists can find useful when
traveling to a foreign country. Most are just
simple rules about queuing, saying sorry and
thank you, public hygiene, or tipping. the
industry is trying to change the “awful” behavior
of many Vietnamese tourists abroad. More than
six million Vietnamese traveled overseas last year,
according to official figures.
breakthrough discovery
Vietnamese and russian archaeologists have
discovered artifacts that they said belonged
to ancient humans around 800,000 years ago
in the central highlands. the traces of homo
erectus or “upright man” included fossils and
more than 200 stone tools. the discovery from
a two-year excavation has been described by the
scientists as “the biggest and most important”
archeological breakthrough not only for Vietnam
but asia.
bridge disaster
the transport ministry is working around the
clock to build a us$13.5 million rail bridge across
the Dong nai river to replace the century-old
Ghenh Bridge, which was struck by a vessel and
collapsed in March. Works are slated to complete
it by July 15. the disaster severed the country’s
only north-south rail link. Passengers heading
north now have to take a bus at the saigon
railway station to Dong nai’s Bien hoa station
and resume their journey from there.
new art center
a 1,000-square-meter art center has been
inaugurated in hcMc’s District 2, becoming
the biggest of its kind in the city. the factory
contemporary art center, or fcac, on nguyen
u Di street offers a much-needed venue for art
exhibitions, visual performances and private
spaces for team working and art creations. a
second center is expected to be opened in hanoi
soon. three months, followed by south Korea and
Japan. tourism revenue increased by more than
21 percent to over VnD109 trillion ($4.9 billion)
in the first quarter.
Photo by Bach Duong
This month we explore the hot topics of
real estate: are we facing another bubble?
What are the real estate challenges HCMC
faces? Shall we buy now or later? Are
foreign investors finally welcome? And is
green construction heading our way? Read
on, to uncover these questions and more.
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#iAMhcMcnews
new leadership
the national assembly has elected Deputy Prime
Minister nguyen xuan Phuc as the country’s new
prime minister. Phuc, 62, replaced nguyen tan
Dung, who officially stepped down in april after
serving two terms. the legislature has also sworn
in Minister of Public security tran Dai Quang,
60, as the new president. nguyen thi Kim ngan,
62, has become the country’s first parliament
chairwoman. the newly-elected leaders pledged
to improve Vietnam’s business climate and step
up anti-corruption efforts.
pedestrian zone
hcMc is considering banning vehicles from
entering the famous backpacker precinct,
including Bui Vien and Pham ngu Lao streets,
after 7 p.m. every day. the ban has been supported
by many officials and business owners who believe
the area ticks all the boxes to become a vibrant
pedestrian-only tourist zone. It will also be safer
for tourists to walk around and explore the many
shops and eateries if cars and motorbikes are
banned, they say.
Competitiveness ranking
hcMc has slipped two places to the 6th position
on the 2015 Vietnam Provincial competitiveness
Index, an annual survey conducted by the Vietnam
chamber of commerce and Industry and the us
agency for International Development. a total
of 11,700 local private and foreign companies
around the country were asked to rate 63
provinces and cities in terms of ease of doing
business, economic governance and administrative
reform. the central city of Da nang topped the
list for the third year in a row, followed by the
Mekong Delta province of Dong thap and the
northern province of Quang ninh. hanoi inched
up two spots to 24th.
being good neighbors
under new rules introduced by the construction
ministry, residents of apartment buildings are
now banned from swearing in public, fighting
or being too loud. they are also not allowed to
hang clothes on their balcony or windows. critics
have dismissed the rules as “impractical,” saying
that similar regulations issued internally by many
buildings in Vietnam are not easy to enforce.
yellow big bus
hcMc has launched a new bus service between
tan son nhat airport and its central business
district. the so-called “high quality” service uses
brand new buses imported from south Korea
and is operated by an english-speaking staff. the
yellow buses run between 5:30 a.m. and 1:30
a.m. the next day, connecting the airport and
popular sites such as Ben thanh Market and the
backpacker streets. tickets cost VnD20,000 for
a full journey. the new unsubsidized route comes
amid disappointing public transport figures. the
number of bus passengers dropped 5.6 percent
to 134.7 million in the first quarter, compared to
the same period last year.
public urination crackdown
officials in District 1 appear to have had enough
with public urination. In March they started a
crackdown, sending out officers to catch and fine
violators. offenders were fined VnD200,000
($9) and ordered to clean the spots they had
urinated on. there are more than 200 public
toilets in the city, many of which fail to meet
required hygiene standards. Many residents tend
to choose to either restrain themselves or simply
sneak behind a tree, a wall or a bus.
underground shopping zone
Japan’s toshin Development has sought hcMc’s
permission to build a $377-million underground
shopping zone between two stations Ben thanh
and saigon opera house of the upcoming Ben
thanh-suoi tien metro line. If approved, works
on the four-story structure will start in late 2019
and finish in early 2024, according to the plan.
toshin suggested the city contribute around
60 percent of the total investment.
record tourist arrivals
foreign arrivals to Vietnam rose 20 percent from a
year ago to nearly 2.46 million in the first quarter,
according to new data from the General statistics
office. that was the biggest number ever recorded
for the period and a strong recovery after a small
annual decline of 0.2 percent in 2015. Mainland
china was Vietnam’s biggest market in the first
three months, followed by south Korea and
Japan. tourism revenue increased by more than
21 percent to over VnD109 trillion ($4.9 billion)
in the first quarter.
Photo by Minh nam
Da nang city
one Pillar Pagoda
2
guide to the districtsApart from work and social life, finding quality accommodation in a suitable area of town is one of the most crucial factors in choosing a place to live in
HCMC. The city has a plethora of options available to suit all tastes and budgets from low-cost studio apartments to international-standard luxury homes.
The decision will depend on several factors: what type of accommodation you prefer to live in and can afford, what part of town you want to live in, and what
amenities come with your future home. Different districts offer different vibes, from the hectic night-life and tourist buzz in D1 to the almost suburban peace
of D2 about 20 minutes away from the central business district (CBD).
district 2
Wards: 11
area: 49.74km2
Population in 2011: 136,497
rife with modern high-rise developments, D2
is the up and coming district in town. Passing
under the saigon tunnel and seeing the dust in
the distance will give an indication of the city’s
plans to create a second cBD, about a 20 minute
drive from D1. expat enclave thao Dien ward
contains two of the most prestigious international
schools, villas, and compounds along with a fair
bit of western restaurants and bars.
district 1
Wards: 10
area: 7.72km2
Population in 2011: 185,715
the reverse L-shaped D1 is the location of
hcMc’s central Business District (cBD) and
where the bulk of the city’s Western restaurants,
clubs, and bars, along with tourist destinations, are
situated. It is not surprising that rental prices here
are the highest in the city, while backpacker and
tourist accomodation is plenty. another notable
area of D1 is what is described as hcMc’s Little
tokyo located on Le thanh ton street.
district 3
Wards: 13
area: 4.92km2
Population in 2011: 188,898
Bordering D1 in the centre of hcMc, D3 is
quieter, more local, and a touch more scenic
than its manic neighbour. the tree-lined avenues
snake around a smattering of foreign consulates,
french colonial buildings, and up and coming
dining venues, creating a modern and progressive
atmosphere to compete with D1’s plethora of
tourist attractions and historical monuments,
buildings and museums.
#iAMhcMc LIvIng
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district 7
Wards: 10
area: 35.69km2
Population in 2011: 265,997
D7 feels like a sort of alternate universe, especially
in contrast to other sections of town. the streets
are wide and the atmosphere is mostly free of the
blaring horns of downtown saigon. the district
is home to a large population of Korean expats
and is the place to go for great Korean food.
Inside D7 is the satellite city of Phu My hung
which is characterised by tall apartment blocks
and modern shops and restaurants.
binh thanh district
Wards: 20
area: 20.76km2
Population in 2011: 479,733
this district is heavily used for transit from
Districts 1 and 2. however, it has become a
magnet for higher-end apartment blocks such
as the Manor and saigon Pearl due to its close
proximity to D1. though the area is known for
being densely populated, it is also home to the
thanh Da Island area which has some of the
greenest spaces in town. Binh thanh is a great
district for cheap, delicious street food.
district 5
Wards: 15
area: 4.27km2
Population in 2011: 175,217
Just to the west of D1, this district is also known
as cholon, and is home to the city’s chinese
population. a teeming hub of activity, this
district hosts the largest market in Vietnam, a
deluxe shopping mall, along with several chinese
pagodas. It is also known for its cheap and
delicious chinese restaurants, and can be easily
visited on the no.1 bus from cong Quynh street.
Definitely worth a visit!
phu nhuan district
Wards: 15
area: 4.88km2
Population in 2011: 175,631
Bordering D1 but not at all central, Phu nhuan is
about a 15 minute drive from the central business
district (cBD). this bustling district has one of
the highest population densities in the city and
can be a bit manic to live in. But the streets are
interesting, the people friendly and the street food
is delicious, and if you are looking for some escape
from the madness, Phu nhuan has a number of
quiet parks to chill out in.
tan binh district
Wards: 15
area: 22.38 km2
Population in 2011: 430,350
tan son nhat International airport is located in
this district. once the largest district in the city, it
was broken up in two parts to create Binh tan and
tan Phu districts in 2003. the Japanese shopping
mall, aeon Mall is also located here and is known
as one of the best malls in town.
find out more about living, in the hcMc resident
Guidebook, available at annam Gourmet.
district 4
Wards: 15
area: 4.18km2
Population in 2011: 183,043
the smallest district in hcMc, D4 is sandwiched
between Districts 1 and 7. this densely populated
district had a reputation as one of the roughest
districts in the city due to its past with organised
crime but has cleaned up quite a bit in the past few
years. It is also known for its cheap eats and has
some of the best street food in the city. Be careful
with your possesions here but don’t be afraid to
visit this beautiful slice of real hcMc life.
#iAMhcMcLIvIng
4
#iAMhcMc LIvIng
Kona Real Co., Ltd
housing know-howThere is some general useful advice when living in Ho Chi Minh City than any resident should keep in mind. We candidly answer a few pressing questions those residing in the big city might have - before it’s too late.
what should you pay attention to when living with a vietnamese family?
Meals are generally eaten at fixed hours and
often earlier than in Western countries. Lunch is
at 11:30 a.m. and dinner around 6:00 p.m. there
might be some food under a plastic strainer and
rice kept warm in a cooker for family members
who work odd hours. If you are around, you will
be invited for dinner. If you are feeling homesick
for some Western food, it is probably best to have
some cooking skills as they probably don’t know
how to cook food from your country, and they
may be (politely) delighted by your offerings. If the
family is feeding you, it is appreciated if you help
with some household bills. Vietnamese tend to get
up early and it might not be appropriate to come
home too late after a night out. you will be asked
to attend celebrations that honour memories of
the elderly, such as death anniversaries. Make sure
you attend as a sign of respect.
how can you negotiate your rent?
once you have narrowed down your decision,
it is time to negotiate your rent. negotiation is
dependent on three factors: furnishings, required
deposit and contract length. also note that the first
price the landlord offers is not necessarily the one
they will agree to. It is a tricky balancing act and
you can generally achieve positive results on two
of the three factors. a common negotiating tactic
is to find an unfurnished place and negotiate to
have it furnished how you want it.
how can you establish and maintain good relations with vietnamese neighbours?
In general, good relations with Vietnamese
neighbours do not require much effort compared
with other nationalities. apart from the principle
that you should treat others the way you wish
to be treated and the general rules about
Vietnamese culture, note the following:
Be sure that the neighbourhood is suitable for
you before buying/renting a house or flat. Go
there in the evening when people return from
work and use your observation skills (i.e., listen
for loud karaoke). say hello and goodbye to your
neighbours with a sincere smile every time you
meet. show interest in their lives by asking a few
questions, including questions that might seem
strange for expatriates.
If there is a dispute, be patient and firm. Don’t
raise your voice or make them “lose face”. If a
suitable agreement cannot be reached, ask for
help from the residence management board, to
dan pho, or the ward’s People’s committee. they
will handle the mediation/conciliation. offer your
best wishes for special occasions such as tet (and
don’t forget to give some small li xi – lucky money
– for children in the family).
offer small gifts when returning from a long trip
(not necessarily a bottle of chanel no. 5 – it is
the thought that counts)
what are the advantages of living with a vietnamese family?
Living with a Vietnamese family can be very
rewarding as it gives you a look into the daily
lives that many expatriates never experience.
family is very important here and when you live
in the same building, you pretty much become a
de facto member even to the point of being called
brother, sister, son or daughter.
what about security?
Violent crime against foreigners is rare, but petty
theft can be a problem. even shoes are at risk! In
some parts of town it would be wise to leave your
christian Louboutins tucked away – expensive
shoes left in front of the door have been known to
disappear. apartment blocks are more secure than
flats and houses thanks to security measures such
as cctV cameras, security guards and enclosed
parking areas. also, many of the villas in D2 and
D7 employ 24-hour security. If you are looking
for a place to live, take a look at the windows in
the surrounding buildings. If you see bars on the
windows, this could be an area that gets burgled
frequently. also, a hem with a dead end is better
for security as there is only one avenue of escape
for a would-be thief.
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Enrolling IB students now www.ishcmc.com+84 (8) 3898 9100
For students 2 – 18 years old
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Launching a NewExciting&Secondary Campus
By patrick gaveau
Anyone who’s lived long enough in our city probably wonders how logic plays out when it comes to real estate value and developments.
Making sense of it all is a pretty daunting task,
I guess. But Vietnamese think otherwise since
economical performance uses real estate as
its barometer. Look around, count how many
properties are in the making and evaluate how
well our economy is doing!
“A key issue to understand the local real estate market model
is property valuation”
My perception of a proper system is based on
market supply and demand cannot really apply
here. It is the root of the misunderstanding
between Western and local culture. for most
Vietnamese, land value can be explained as, “my
neighbour’s price is the right one.”
the reason behind such awkward reasoning
lies in the complex process of land acquisition
and compensation. My family in law owns a
beautiful patch of land and after five years they
are still waiting for a license to build! and most,
if not all foreign investors often give up trying
to understand or see value in these exhausting,
costly and lengthy land clearance activities.
Vietnamese simply factor it in the overall value,
which explains why land often comes with such
a hefty price tag.
the city is growing so fast and upward, are we
on the verge of a major market shift similar to
the one that hong Kong, singapore and Bangkok
currently cope with? Large local developers
disagree. they continue investing in the apartment
buildings, villas and condominiums complexes
that pop-up weekly. how can this be? some
point out, and rightly so, that most completed
housing developments remain mostly empty of
lights at night, regardless of the fact that they are
effectively sold to “ghosts”. then why shall they
continue to develop as much as they currently do?
“Many believe that property value is inflated and ready to implode.”
this is a non-logical issue, which I cannot explain.
and let’s be honest with each other, most of
us who were here 5-10 years ago believe that
property prices were already then up the roof.
now they are even more expensive. how far can
it go? that remains to be seen. What we know
is that hcMc is still an emerging market where
substantial growth potential exists. fortunately for
us, improvements have been made to stabilise the
market, the legal framework is strengthening and
the fDI is increasing, even if it remains marginal.
Photo by huy nguyen
citypassguide.com & #iaMhcMc apologises
for an error in our last edition on education. for
our Meet the expert article with ellen thompson,
we put her as head teacher of ssIs, when the
name of the school should have been saigon star.
We apologise to both schools for this mistake.at
citypassguide.com & #iaMhcMc we strive to
be accurate as possible.
#iAMhcMcLIvIng
an awkward real estate Market
6
#iAMhcMc Meet the expert
By patrick gaveau & aleksandr smechov
We sat down with property experts Mauro Gasparotti and Rudolf Hever from Alternaty (alternaty.com) for a deep exploration of Ho Chi Minh City’s real estate scene. To read the full fasinating 4,000 word interview, head over to iamhcmc.com/realestate.
Do you think Vietnamese people as a whole have
a different perception on land value?
Mauro: yes. Valuation is probably the most
important and sensitive subject for Vietnamese.
I think the true definition of value, which is what
a willing buyer and seller would pay for is not
applicable. It’s more of what the people are asking
for next door.
the other thing that affects the value is the process
of the acquisition of land, the years of pain of
getting the land from a certain status to a much
more sellable status. from a valuation point of
view, foreigners don’t consider this when they
come in. you could spend years on relationships
and a lot of money to get this land, so there is a
mismatch to what a normal developed country
would perceive as value and what the Vietnamese
think of it. Vietnamese want to get paid for this
process, and that’s why a lot of development
comes at such a high prices, because this would
make the project feasible.
the Vietnamese also put a future value into the
asking price. they put what the value will be
in 5-10 years time, they try to put the growth
of the country as a factor. It’s a long exercise to
understand value from both sides. for Vietnamese
it’s what has been the history they needed to go
through to get to this point where they can sell
the land; for foreigners it’s what the price is that
would make their project feasible on this land.
there’s no transparency. that’s why the big guys
like Vincom who get the land easier can also
move the process along faster than the single
developer who has spent 10 years trying to get
the approval and now he wants to get paid for
this 10 years.
Is there in your experience any other country that
is similar to Vietnam in the market’s disregard
to value?
Mauro: Myanmar. We have been asked to open
an office there. I clearly saw the dynamic of the
market when I was there. nobody can tell the
real value of the land, everybody is relying on the
future value it, as well as how easy it is to build
on it, how clean it is - also a lot of corruption
in the back. that’s when you see speculation,
you see a bubble, you see overpriced land, and
not many transactions. and now you see an
oversupply in the hotel business; two years ago
there was an undersupply. Vietnam is past this
stage now and much better than before.
cambodia is different. It’s easier to get the land
process approval. you know exactly how much
it will cost you, so cambodia is an easier market
to do business with, and they rely on foreign
business as well.
Is the average land value in the primary streets in
HCMC overvalued?
Mauro: yes, but if you asked me this question
five years ago I would have said yes as well, and
now the value is 30% more, so I was wrong then.
I could be wrong now. the reality is that if I run
everything you need to know about real estate in hCMC
photo by Manh hai
7 | subscribe at iamhcmc.com/gazette
#iAMhcMcMeet the expert
a cash flow model on any commercial property,
and I pick us$20,000 per square metre of land,
there’s no way I’ll recover from that.
Do you think this system is sustainable?
Rudolf: I look at it in a more optimistic way.
It is what it is, but it is changing, the market
is developing, there are more laws being passed
encouraging foreign investment, and you can
see this in the statistics of fDI [foreign Direct
Investment]. I think over time, in terms of the big
picture, we are an emerging marketing. We are
going the right way, although it’s a rollercoaster,
but over the long term it’s getting more developed
and transparent.
FDI is increasing? By how much?
Rudolf: I don’t know off hand but real estate is
usually the second or third largest recipient after
manufacturing. real estate is one of the major
benefactors of fDI.
How important is the real estate market for the
Vietnamese economy?
Mauro: [Pause] I think it’s crucial, I think [the
Vietnamese] look at it closely as an indication of
how strong the economy is itself. they are very
attached to the land as core value, and I think it’s
a good way to move the money out of the stock
market, which seems very risky at the moment.
“If you see what’s happening in District 2, it’s a
beautiful example of a new satellite city. so there
is a lot of good news out there, I wouldn’t be
too worried. and being here for eight years I
passed two big bubbles: 2008-2009, and then
2011-2012, so I am very realistic about the
market, but I see a lot more educated buyers
and developers now.
Is local financing still too weak to support real
estate development?
Mauro: I think yes, I think there are banks that
rush into something when they are asked, and
then they step out as quick as they rush in. there
is really no long term strategy for the bank itself,
and they only support a certain level of buyer,
which is the mid- to high-end buyer that has easier
access to the bank, while the people that really
need it, it’s much more difficult for them.
We were doing a project in cambodia one year
ago, a satellite city with a townhouse. We were
amazed to see the amount of support the low-
income buyers got from the banks to buy these
low-cost townhouses. there was a whole structure
of payment set up according to the salary the
people had and there was a lot of cooperation
from the developers and banks coming together
to help this structure. I don’t think Vietnam is
there yet. I think it’s more based on the personal
relationship between the buyer and his bank, than
a sustainable, clear structure. as a foreigner living
in Vietnam, or as a foreign company, it’s not an
easy structure - so there’s a lot of improvement
to be done at that level.
Which real estate sector suffers the most in
HCMC today?
Mauro: to me it’s the malls. It’s still not truly
developed. the demand is not there on the
Vietnamese side. the mixed tenants are not
there. usually there is the same type of tenants.
you don’t see what you get in thailand: where
people can spend all day at a mall, where there is a
large variety of shops and a large food court, with
everything from low-priced items to the branded
level. I don’t think retail in Vietnam is a sound
market yet - land is too expensive for the amount
of land retail needs. considering the land price
you need to go high-rise to make your money. I
think the only retail outlet that has proven to be
nice is aeon Mall. I think that was a good shot.
But it took a long time to be executed.
Malls are popping up everywhere. Is there an
oversupply?
Mauro: I don’t think there is an oversupply,
I think there is a lack of demand and even the
right design. there is no mall where I want to
spend more than two hours at, as opposed to in
thailand, where I can spend all day in one. In
Vietnam the feeling of a mall is still just a box
where you can buy something and get out. there
is a lot of room for further development, for
example open malls where the space is outside
and there are bars and clubs, basically something
that makes the entire place more than just a
location to buy something and leave. I think
retail is the most difficult to make work, but
there is a lot of potential.
For a land lease for foreign companies, you are
given 50 years. What happens after 50 years?
Mauro: It’s funny because as a foreigner you buy
leasehold, but if you sell to locals it converts to
freehold. this structure makes the whole system
open to hope that you never really lose the value
even if you are foreign investor. so within 50 years
you have a likely chance to sell it.
So you don’t think we’re in a real estate bubble now?
Rudolf: Globally it’s been risky for the past five
years. But if you keep saying there is a crisis
every day, in five years you are going to be right
at some point. there are always cycles, and I
think the gloom and doom scenario is possible
but highly unlikely.
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By patrick gaveau & aleksandr smechov
an architect’s perspective: hCMC’s real estate Challenges
Archetype Group is a multidisciplinary construction consultancy. Ranked 74th in the world among architectural companies, it has just acquired the Asia Pacific operations of Dutch company Tebodin, bringing its number of employees from 500 to around 1,100.
our editor-in-chief Patrick Gaveau met with
archetype’s Director of Design Jean francois
chevance.
What is your relationship with Vietnam?
I came for the first time in 1990 when I was
still a student in thailand. I started coming back
and forth, before getting my diploma in 1994.
then I moved to hanoi in 1995. I met francois,
who is one of our partners today, and we started
working together for a french architect. We
were in a very small office of just six or seven
architects. archetype was founded in 2002 in
hanoi, then moved to hcMc. We have offices in
13 countries, all in asia apart from france now,
but still consider hcMc to be our headquarters.
How do costs of building in Ho Chi Minh City
compare with other cities?
construction costs in the city are probably about
20% cheaper here than say in Bangkok. In District
1 though, the land prices are crazy, they are so
high, probably even higher than in Bangkok.
Is there any over supply of construction projects?
the last bubble has probably burst, but I think
another may be growing at the moment. Last time
it was like musical chairs; people were rushing
to buy apartments in large numbers, and it was
a case of wondering who would be left holding
on to them. this time it is different, I don’t see
people rushing in to buy apartments by the dozen.
What are the main challenges that the real estate
business faces in Ho Chi Minh City?
as an architect I think there are two problems:
there is the bubble of course that needs managing.
to do this, we prefer a more regular economy
and level of growth. the second, and biggest,
problem is the regulation itself as a killer of
creativity. We obviously want to get as much
from the land that is purchased. for example,
there is always a height restriction. so we have
to take the shape of the land and extrude it. We
cannot make fancy shapes or have a hole in the
building. so we end up with so many buildings
that are just cubes. the regulations should allow
for more creativity.
There so many residential buildings going up, will
there be enough people to fill them?
not likely. our clients tell us that in some of their
buildings a third of the apartments are empty for
most of the year. they are owned by foreigners
and Viet Kieus who don’t live here, just maybe
they come for a few months each year. these
are the discussions that we have when talking
about services. should we have a centralised air-
conditioning system or a split system? they always
go for a split system because otherwise they will
be running air-cons when there is nobody there.
Buildings are still being sold, but not used. take
saigon Pearl for example, that was completely
sold very quickly, but look at it at night and you
can see how much is unused.
Electricity supply is a big problem for Ho Chi
Minh City. How does this impact on your work?
energy conservation represents a huge challenge
for us. the types of glass used in most of these
buildings wouldn’t be allowed in other countries.
they use thin glass and single glaze the windows.
there is also no insulation in the walls. so this
is a really big challenge for us. It is surprising as
Vietnam has a very good regulation, the energy
efficient Building code. It already exists but
nobody is really applying it.
What are the hurdles that you face when trying to
get all the people together to start a new project?
It is not us but the client that has these problems.
It is not really the paperwork; it is very time
consuming to get decisions made on new buildings.
now when you show people a model, they want
to know about the materials, they want to see
how it will look at night from the outside.
How has the development of the Metro changed
the way buildings are being built?
I think that even before the metro was started
people knew where it was going to be. so all the
way out to District 9 things are being built. It
has played a major role. the development looked
crazy when I first saw it, but now as the Metro
gets closer it all makes sense.
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#iAMhcMcMeet the expert
By patrick gaveau
is sustainable architecture in hCMC possible?
Today, the demand for more sustainable design in HCMC is steadily getting off the ground. Charles Gallavardin of T3 Architecture Asia sat down with #iAMHCMC to give his perspective on green buildings in Vietnam.
charles and his wife started t3 architecture in
france in 2007, specialising in green architecture.
When charles arrived in Vietnam in 2011 to
begin t3 architecture asia, the demand for
green building was low, although interest was
growing. We spoke with charles to determine
what changes were taking place to catalyse this
newfound interest.
What is the definition of a green building for you?
It’s a building well integrated into the place
it’s set up at. It should take the landscape into
consideration - the shape of the building is quite
important, to be protected from the sun and
allow for natural ventilation. the idea is to avoid
direct light in a hot tropical climate; that’s why
we design overhangs or balconies, to take the
facade away from the sun, so you keep your main
walls in the shadows.
secondly, you have to take care of the roof, and
make sure there is a double ventilated roof to
keep the air flow and make the top floor always
cool. then, ideally, you try to use green building
materials, sourced not too far from where you are.
Is the government aware and sensitive about the
need to do something about that?
yes, they are. there are many discussions about
this. But if you’re a private investor and you
finance infrastructure, the government cannot
complain too much about what you do. you try
to optimize your plot as much as possible.
Why does Saigon need such type of construction?
saigon is one of the more polluted cities in asia
now. there is a huge issue concerning air pollution.
the demand of energy is getting higher than what
can be produced. What we can see for many years
is that Vietnam is mainly doing a “copy-paste”
of buildings they saw in Western countries with
full glass facades but they didn’t realise that the
climate is totally different and that they have to
create their own style to make their building more
appropriate to the climate, to save energy, save
costs and make the building more comfortable.
Do you think one of the main challenges to
building green buildings in Vietnam has to do
with people’s perception?
yes. I think when you discuss this with most
Vietnamese, of course they want more parks
and more green areas. But in reality, in urban
development in Vietnam, this is still considered
a quantity issue. Which means they try to plant
vegetation to increase the number of green area per
square meter per inhabitant, but without having
in mind that it’s better to have many small parks
than having long green areas along the highway.
It is the same story with green buildings: a green
roof doesnæt make your building green.
Do you think one of the main concerns for people
who don’t understand green buildings too well is
the fear of additional costs?
I don’t think so, because finally we can do green
buildings quite cheap, depending on the material
you use. But the green principles are very basic
and you can find it everywhere in the traditional
architecture of Vietnam. traditionally you
have your long and narrow plot, with the shop
facing the street, the house on the backside and
a courtyard in the middle. the air ventilation
is efficient and you have natural light in your
house and your shop. the house is far from the
street so it’s far from the noise. for 20-30 years,
Vietnamese have lost their knowledge of how to
create a green house, but recently some young
Vietnamese architecture firms take traditional
building materials and traditional Vietnamese
architecture and incorporate it in a more modern
sense to make the house more green.
Energy consumption is growing, meaning the
price has to go up, which means it makes sense
to have more energy efficient practices and
buildings, correct?
yes, this happens in every city. When energy
prices go up, green houses and buildings become
more and more normal. of course, for Vietnam,
electricity cost is very low, even compared to
the standard of life. one issue, even though it’s
never easy for government to say that they have
to increase electricity costs, especially for poor
people, it’s a real way to make developers and
private investors more concerned about energy
savings.
Almost none of the existing high-rises in Ho Chi
Minh City are really environmentally friendly. If
the price of energy rises, most of these building
will have to be rebuilt or adapt to the new
demands. And you provide this service?
yes, full renovation to adapt an existing building
and make it less costly in terms of energy, and most
important of all we make it more comfortable
for people!
10
3 locations in Thao Dien, D2, HCMC09 0395 7316, Ms Joke (Yoko)
[email protected] - www.smartkidsinfo.com
Can Vietnam ever become green?
By michael sieburg & aleksandr smechov
Content Manager Aleksandr Smechov met with Solidiance’s Michael Sieburg to determine whether Vietnam, and in particular HCMC, can ever become truly green. Here is the transcript of Michael’s comments:
solidiance is a consulting firm that works with
clients across industries. there are three industries
we focus on. one is simply called industrial,
which includes construction, chemicals, and all
that. that’s the core of what we do. then there
is healthcare, especially in Vietnam. and what
we call technology. In total we have 12 offices
across asia.
Within the industrial stuff we do, our research in
green tech and buildings are really driven by two
things: our personal interest and by our belief
that this is where the country is going. We think
southeast asian countries will be using these
technologies more and more - green cities, clean
cities, however you want to describe them. our
ceo is personally interested in this. he’s doing an
online course with harvard university to learn more
about this subject. I don’t know when he sleeps.
“when there is that mismatch of the developer and the user of the building, it can be harder to make it green because
the immediate incentive is not there”
We are also a consulting company - we have
clients who want to be where our other clients
are - large multi-nationals. these companies are
at the forefront of developing more efficient air
conditioners, elevators, eco-friendly paint, smart
grid technology, electric cars and batteries. our
clients are often innovating and making these
technologies, and part of these projects involves
green building output. they want to sell their
products and part of their line is more energy-
efficient stuff.
Most of the certified green buildings in Vietnam
have been factories. and it’s not like there are
thousands of green factories, but they are the
biggest component, and I think part of it is that
when you’re a company developing a factory,
you’re also using that factory and they consume
a lot of energy. It makes sense to find ways to
save on that, even though electricity prices are
low here, for now. a lot of these companies also
have global standards that they must adhere to.
“our research in green tech and buildings are really driven by two things: our personal interest and by our belief that this is where the country is going”
one of the biggest factors in pushing green
building practices is electricty prices. the
government is currently subsidizing, which won’t
go on forever. I think it needs to be balanced
with low-income residents. for example, energy
prices in cambodia and the Philippines are high.
and that hurts manufacturing investment there.
once electricty prices rise, there is a point when
wind power become profitable, and at some point
(economists figure out this point) you see further
adoption of energy efficient machinery.
calling for a country to raise electricity prices
where many people cannot afford it is a difficult
thing to do, which is why the government
treads slowly.
the cost of making a building is a bit more
expensive - how much? that depends on what
you’re doing. I think the real issue in buildings
going green is when property developers create
buildings for somebody else. the developer’s
incentive is to keep costs down and cut corners
where they can, because operating costs are
somebody else’s problem.
When there is that mismatch of the developer
and the user of the building, it can be harder to
make it green because the immediate incentive is
not there. you can argue that there is an incentive
that you price the units higher when you sell them
- President’s Place proved that correct.
at the moment there are not really well-defined
mandates in Vietnam. In singapore there are
mandates - any new building must meet green
standards. everything here is left up to the
developer, if they want to build green or not. If
you talk to the architects around here, the younger
generation is getting it, but not yet necessarily at
all levels. What you do see here is that a building
might not be certified green, but the water heaters
are solar. there is a move towards that. a lot of
hotels are doing that - they probably have some
hybrid electric-solar water heater when it’s not a
sunny day, but as a way to save electricity costs.
“the younger generation is getting it, but not yet necessarily at all levels.”
so factories also have that. the biggest solar plant
in Vietnam at the moment is Intel’s factory, which
is saying something. Vietnam is a sunny place;
you can’t run the whole country on solar, but is
there a gap between what there is and what there
could be? Definitely.
young people are interested in sustainable
development, which is good to see. saigon in some
ways doesn’t have to follow the same practices as
other countries - they have the luxury of learning
from others’ mistakes, one would hope.
#iAMhcMc FeAtures
photo by Matt walker
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2.3 open kitchen: an open kitchen also helps
make the space look bigger, as it connects with
other sections of the apartment.
2.4 overview: this “open concept” does not
only create a connection between spaces but also
connects family member together – while mom
is cooking, she can talk or look after her kids,
and also speak with her husband in the working
room at the same time. all spaces are connected
together without boundary, and this creates a
roomier feel in the apartment.
3. the value created: a simple change in layout can
create a big difference for your apartment, yourself
and for others who are engaging in this space.
the above project was completed by oP3
Interior Design & construction. the firm’s
belief is that a home should tell a story about
the owner, while at once refreshing those who
live there, connecting family together with a
seamless space that take into account the natural
elements of the earth. you may learn more about
their home enhancing projects at op3vietnam.
com. for further consultation, you may contact
oP3 Vietnam at [email protected].
#iAMhcMcAdvertorIAL
By aleksandr smechov
improve your home enhance your Value
But have you ever thought a home can be an
extension of one’s personality, a space to feel
refreshed after a long day, something that inspires
you instead of acting like a permanent hotel?
Interior design’s focus is to enhance an indoor
space to make it not only more pleasing on
the eyes, but bring its inhabitants together and
seamlessly connect separate spaces. Below we
take an interior design project in Binh Duong
new city, where an existing apartment layout
goes through several modifications to maximise
both space and function.
1. existing condition: the existing condition of
the space was a three bedroom apartment for a
young family. there were long, narrow corridors,
too many solid walls that made the public area
smaller and tighter for anyone passing through.
there were no true spaces for working, reading
or entertainment.
2. solution: as the inhabitants were a young
family with a small child (and possibly another
coming), changes were made in the layout in order
to create a functional space that could fulfill the
needs of a small group of closely knit people. for
this an “open” concept was used.
2.1 functional change of space: the project
began with the demolition of one bedroom and
the creation of a multi-purpose space – this new
working/reading room can be used as a guest
bedroom when needed.
2.2 working room: the working room is an
open space, connected with other sections of the
apartment: the kitchen, the dining area, bedrooms
and the living rooms. Privacy for the working
room can still be kept using a partition and
bookshelf.
Homeowners usually think of their dwelling as a place to relax and unwind after a hard day out, spend a bit of quality family time, and have the occasional meal.
12
#iAMhcMc AdvertorIAL
kaze.com.vn | [email protected] | +84 8 6281 9690
By aleksandr smechov & Fong-chan Zeuthen
kaZe on QualityFong-Chan was born in Denmark, a country world famous for its attention to design detail in architecture and furniture design.
Moving to Vietnam 14 years ago was an eye
opener for her. she quickly found that the
country’s perception of quality design was very
much different from her own.
six years ago she founded Kaze, which means
wind in Japanese. the interior design firm’s
mission is to push for quality in function, design
and purpose, something that has not been paid
much attention to in Vietnam. We sat down with
fong-chan to discuss Kaze’s take on quality.
“there is no building that has intelligent design
in this city.” fong-chan lets me quote her on
that. she means that no building here has
paid much attention to sustainable practices
or invested in consultants with sufficient
knowledge of the environment they are building
in; everything has been built in a mad rush to
cut costs for as fast a return as possible; and
developers have chickened out of paying extra
as soon as the price tag on sustainable, quality
design reared its head.
the perception of Quality
real wood, real stone and not “Made in china”
- or what the locals jokingly say, “made in
District 5”. this is what most Vietnamese - and
interestingly enough, many other nationalities
including americans - will answer when asked
what a quality home consists of.
you can control the quality of hardwood
flooring in a home, but not so much for one
thousand apartments. It’s the craftsmanship that
matters. It’s one thing to have a piece of wood,
another matter entirely to shape this wood into
a quality product, such as refined, affordable
and sturdy flooring.
“there is no building that has intelligent design in this city.”
Many property developers and investors have
yet to realise that there is a process in-between
the raw material and the result. you may have a
house with stone fixtures and marble columns,
but where are you going to sit, sleep, how do
you move through the space, how is the space
moving you? fong-chan has been focusing on
these questions ever since finishing her Masters
in architecture.
the Challenge of Quality
Quality, according to fong-chan, consists first of
great references and understanding the history of
“how things originate”. terms must be defined
when talking about quality.
Quality is when we learn from our experience
and make an effort to develop a design with
all necessary details. We incorporate our
understanding of the natural laws of gravity,
function, existing permissions, and through that
develop a shape, space, chair, house, building or
tower that relates itself to the surroundings and
its end user, the human.
at one point during our talk, fong-chan pointed
behind me at a poster: a century of Danish chairs.
“that’s quality.” We got up and scanned the 105
chairs in the poster. fong-chan would point out a
chair and explain why it had been so revolutionary
at the time. all these chairs were designed and built
for the human body - with special attention to the
chair’s proportions. Quality is something made
with purpose - function and form combined to
give us a human experience. not just something
that looks pretty.
a state of preservation
saigon and hanoi are european cities - and so
are unique in southeast asia. they have what
other cities in the region do not: a city centre. In
european tradition, everything is built around
the church and from that you would have the
important boulevards and roads that connect the
urban infrastructure. the city develops through
trade and if possible, a trade port is built.
“saigon and hanoi have what other cities in the region don’t: a city center.”
singapore had this, but only a few of the old
buildings remain - the vast majority had been
demolished in favor of contemporary high-rises
and city blocks. this is exactly what is happening
in saigon today, and we are looking on sadly as
the city’s heritage is being demolished in front of
our eyes in the name of “development”.
a shift in idea
a shift in the idea of quality is taking place, from
superficial and cost-saving practices, to the world
of right proportions, practical function, intelligent
design and sustainable material. Let’s hope ho chi
Minh city learns from its neighbors (and itself)
and begins to understand that cutting corners will
never work in the long term.
21 Thao Dien, D2 | kaze.com.vn | [email protected] | +84 8 6281 9690
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#iAMhcMcFeAtures
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.
14
hong kong and singapore investors seek opportunities in Vietnam
By timo schmidt
#iAMhcMc FeAtures
Vietnam’s new ownership 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 first-
home 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.
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.
hongkong property in 2015singapore property in 2015
0
5,000
10,000
15,000
20,000
25,000
2008
11,046
4,264
2009
16,16114,688
2010
13,646
16,292
2011
10,880
15,904
2012
12,968
22,197
2013
11,046
14,948
2014
7,316
16,857
2015
7,440
16,826
no. oF units sold by developersData provided by savills.
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#iAMhcMcFeAtures
By eric le dréau & le thi quynh thu
a legal overview for foreign investors in hCMC
Are you a foreign investor and want to know about real estate laws in HCMC? Confused by the new Property Law? Indochina Legal clears up the confusion:
one of the most notable changes introduced
by Vietnam’s new 2014 property law and its
regulations is the revision of the right for overseas
Vietnamese, foreign individuals and organisations
to own residential houses, as follows:
overseas Vietnamese (or Viet kieus) can now own residential houses in
the same way as Vietnamese citizens without
further residency requirements or any limitations
on the type or quantity of houses, or the terms
of ownership. they must hold a valid passport
with an entry verification stamp marked by the
Vietnamese Immigration Department (VID) and
a document evidencing their Vietnamese origin.
foreign individuals have the right
to own residential houses, subject to certain
restrictions as compared to Vietnamese citizens
and Viet Kieus. In order to own houses, a foreigner
is required to have a valid passport with an entry
verification stamp marked by the VID and cannot
fall under diplomatic or consulate preferences and
immunities. requirements of residency, investment
in Vietnam, work permit, social contribution and/
or marriage to a local Vietnamese is not necessary
for residential housing ownership. however, as
to ownership duration, foreigners married to
Vietnamese citizens or to Viet Kieus are entitled
to an indefinite term, whereas foreigners who are
not can only own residential housing for a period
of 50 years. this can be extended for another
50 years, subject to approval by the provincial
People’s committee where the house is located.
unlike other foreigners, those who are married
to Vietnamese citizens are also exempt from
notifying the housing administration authority
at the district level prior to leasing their houses to
others. apart from that, the new legal framework
grants foreigners the same rights of Vietnamese
in the cases of subleases, mortgages, etc. of
residential housing.
foreign organisations are allowed to
own houses provided that (i) ownership term shall
not exceed the period stated in their investment
certificates issued by Vietnamese competent
authorities, including any extensions; (ii) use of
the houses is for residential purposes only, for
their personnel; and (iii) lease-out of the houses
is not permitted.
It is worth noting that foreign organisations and
individuals shall not collectively own more than
30% of the total number of apartments in an
apartment building or not more than 250 separate
houses in an area where population is equivalent
to that of a ward. In addition, house ownership
beyond real estate projects (e.g. a villa built by
individuals) is not allowed. for national defense
and public security purposes, foreign individuals
and organisations cannot own houses in certain
areas. With respect to these limitations, the
local Department of construction will publish
on their official website the projects where
foreigners cannot own houses, detailed numbers
of apartments or separate houses eligible for
foreign ownership, and the number of houses
where foreign ownership has been recorded.
to our understanding, the database is not yet
completely developed for all cities and provinces
in Vietnam. Meanwhile, payment for purchase or
lease of residential houses shall be made via credit
institutions operated in Vietnam. so far there has
been no specific instruction on foreign exchange
control for relevant inbound and outbound
foreign funding of residential housing.
Despite certain remaining limitations, the nhL
has provided a more open approach to ownership
of residential housing for foreigners. the hope is
that these changes will ultimately defreeze the real
estate market and create a new wave of foreign
investment in Vietnam.
www.indochinalegal.com
photo by Manh hai
16
#iAMhcMc hotchpotch
By Zoe osborne, luke nguyen & david perry
house it going
no worries. the cockroaches only come out at night!
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#iAMhcMchotchpotch
events Our selections of events in HCMC this month
vietnam international caFe showsaigon exhibition and Convention Center (seCC)799 nguyen van linh st, tan phong Ward, d7May 12 to 14 | 9 a.M. to 5:30 p.M.
Vietnam International cafe show is the very first coffee
dedicated exhibition ever held in Vietnam. the exhibition will
function as a multi-platform space for coffee, tea, beverage,
bakery, raw material, machine and equipment, dessert, cafe
interior, and franchise and start up businesses. also taking
place at the event space will be the Vietnam national Barista
championship (VnBc), sanctioned by the World coffee event
(Wce). this will be the national competition’s first time in
Vietnam. the Vietnam International cafe show establishes
Vietnam’s place in the international cafe scene, not only as a
world leader in robusta coffee production but also as a location
for excellence in cafe culture.
late night sessionsvinspaCe6 le van Mien, thao dien, d2, hCMCtuesdays starting 26 april 2016 | 6:30 p.M.
Vin space’s studio 7 is launching a new series of
late night art sessions on tuesday evenings. aimed
to bring creative people together to learn in a
social and relaxed atmosphere. Learn a range of
art practices including design, print, sculpture and
animation. Drop by, enjoy a few beers and by all
means bring your friends. this event is open to
people of all backgrounds and skill levels.
Phone: +84 9 0772 9846
email: [email protected]
reuniFication celebration in the skynear thu thieM ChurCh, saigon river, d2april 28 - 30 | various
enjoy a reunification fireworks Dinner flight 60
metres up in the sky. Menus have been specially
designed by internationally celebrated chef andy
o’Brien, star mixologist Greg Jacob and exciting
and innovative Vietnamese, chef hai anh.
Priced from $288 to $1000
Phone: +84 8 7300 7998
Website: ticketbox.vn/event-in-the-sky/en
alchemy’s whiskey and saigon cigar club showcasesaigon Cigar Club, sorae lounge, d1May 11, 2016 (tbC) | registration: 8-10 p.M.
sample three of scotland’s finest single malts: the
Macallan, highland Park and Glenrothes enjoyed
with a quality cigar, either a Partagas habaneros
or cigar roller. these can be enjoyed along with
complimentary canapes whilst taking in the
fantastic panoramic views over the hcMc skyline.
the complete works oF shakespeare (abridged)saigon players’ 3rd floor, vista Walk628C xa lo hanoi, d2May 12-14 | 7 p.M. (2 p.M. extra shoW on May 14)
to commemorate the 400th anniversary of his
death. the saigon Players are proud to present:
3 actors. 37 Plays. 1223 characters. 90 Minutes.
In a feat never before attempted in saigon! come
watch as 3 actors attempt to perform aLL of
shakespeare’s plays in a mere 90 minutes.
email: [email protected]
thao dien ultra runsaigon outCast, 188/1 nguyen van huong, d2april 24 | froM 5:30 a.M. to 3 p.M.
this serious test will push your limits and is open
to members of a running club who are from 18
year old. Individual Male/female and relay (team
of 4 members with at least 1 female). Individual
entrants: every runner must run around the 5km
loop of the thao Dien residence within 8 hours.
those who cover the highest mileage will be
the winners. relay entrants: members will take
turns to run every 5km during the 8 hours. the
team who runs the greatest total distance will be
crowned champions.
email: [email protected]
Fest in breiZhCargo bar, 7 nguyen tat thanh, d4May 21 | 4:30 p.M. - 3:30 a.M.
the Breton Day, “Gouel Breizh” will be celebrated
at cargo Bar this May. It features a performance
by more than 30 musicians and singers covering
the full spectrum of celtic music from traditional
songs to modern sounds. Price: VnD100,000 per
person, at door: VnD150,000
free entrance.
+84 8 3823 6064
+84 8 3823 6050
email: [email protected]
Forbes under 30 summitgeM Center, 8 nguyen dinh Chieu, d1May 12 | 8 a.M.
forbes Vietnam “30 under 30” 2016 is a list of
30 people under the age of 30 who are featured
in different fields in Vietnam. the under 30
summit will be organised as an international
event with the participation of the brightest stars
from both local and international locations. Last
year, unIcef Goodwill ambassador and global
superstar Katy Perry joined the stage with her
encouraging story about raising the voice of
young generation on important issues.
Price: VnD825,000 per person.
Phone: +84 9 0244 0175
escape music Festival summer rhythm 2016lot 13 tan trao, phu My hung, d7May 21 | 3 p.M. - Midnight
escape summer rhythm 2016 will start your
summer with all you need for an adrenaline-
pumping night out. Kill the heat at the Pool Party
and feel the beat from DJs heatbeat and two other
veteran DJs. Price: VnD500,000++
Booking: ticketbox.vn/escape-summer
18
| 799 Nguyen Van Linh St, Tan Phong Ward, D7
the ideal riverfront lifestyle
Set amidst a tranquil haven along the Ca Cam River, Riviera Point is a 15-minute drive to District 1 and is well-connected to other districts via Phu My Bridge.
Jointly developed by singapore and Vietnam’s
leading developers, Keppel Land and tan
truong, riviera Point features an urban oasis
and a modern resort lifestyle. enjoy direct
connectivity to the downtown area and
international schools in Phu My hung via
Phu thuan bridge, and to crescent Mall via
the new link bridge to be completed in 2016.
residents can indulge in a wide range of
recreational facilities such as a swimming
pool, gym, sky gardens, BBQ pits, riverfront
promenade and children’s playground. the
development offers the convenience of having a
mini mart, cafe, nail spa and ILa english centre
at your doorstep. residents can also enjoy the
amenities at Phu My hung township, which
is just a five-minute drive away.
families with children going to school will
also appreciate the development’s proximity
to many international schools, including the
British Vietnamese International school and
the royal Melbourne Institute of technology.
Medical facilities are also within reach at
the franco-Vietnam hospital. the entire
waterfront development, to be developed in
phases, consists of a total of 2,099 units spread
across 12 residential towers. When completed,
riviera Point will be the tallest development
in District 7. riviera Point phase 1a, featuring
549 waterfront apartments, was completed
and handed over to residents in early 2015.
riviera Point was conferred the Green
Mark Gold award by the Building and
construction authority of singapore in 2012.
as a responsible green developer, Keppel Land
has incorporated thoughtful design and eco-
friendly technology into the development.
flexible payment scheme
» Immediate move-in with only 40% down
payment*
» Pay just VnD 28 million per month and
enjoy 0% interest
*Special payment scheme is for limited period
only. Terms and conditions apply.
Visit the riviera Point sales Gallery at 584
huynh tan Phat, District 7 (open daily from
9 a.m. – 6 p.m.)
www.rivierapoint.com.vn
[email protected] | +84 8 3773 8777
riviera point - artist’s impression swimming pool
#iAMhcMc AdvertorIAL
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By aleksandr smechov
somerset ho Chi Minh City gets a Major upgrade
No. 8A Nguyen Binh Khiem Street, D1, Ho Chi Minh City | [email protected] | www.somerset.com | +84 8 3822 8899
Somerset Ho Chi Minh City, one of the city’s most well-known family-friendly serviced residences, has recently received a US$11 million renovation upgrade.
operating for over 20 years, the serviced residence
is currently undergoing a major makeover for a
more contemporary look and feel. furthermore,
its facilities are being renovated for a more
positive guest and resident experience.
the World travel awards gave somerset the
“Vietnam’s Leading serviced apartment Brand”
award for three consecutive years; the serviced
residence has also received tripadvisor’s most
recent 2016 travellers’ choice and certificate of
excellence awards, as well as the 2015 Golden
Dragon award.
nestled in the heart of the central Business
District, somerset ho chi Minh city is minutes
away from Diamond Plaza, Kumho asiana Plaza,
saigon tower, several consulates and other key
business locations. there have been three main
focuses with this massive renovation: a more
contemporary look and feel; a renovated outdoor
linkway; new amenities; and a newly built
residents’ lounge and renovated reception area.
Contemporary look and feel
one of somerset ho chi Minh city’s three blocks
- Block B - has already been reimagined last year,
with all 198 apartments due to finish by the end
of this year. Designers have chosen neutral, clean
tones (off-white, beige and brown) accentuated
by hues of blue and grey to create an airy and
modern feel. LeD lights have replaced room and
walkway halogens to make for more natural and
energy-efficient lighting.
rooms now feature bamboo flooring, lending a
clean, chic look, along with matching upholstered
furniture. Beds have new linens and pillows, and
lamps and curtains have been replaced to be more
in line with the updated look. appliances including
kitchen equipment, fans, air-conditioners, and
the sound system and television have all been
replaced with up-to-date components. In addition
the ensuite bathrooms are completely redesigned
and modernised.
the luxurious refurbished apartments combine
the elements of space, comfort and privacy with
the services and convenience of a premium
quality hotel. the overall feeling one now gets
is a brighter, more open, and a more pleasant
aesthetic experience. Moreover, paintings of idyllic
natural life in Vietnam create a sense of ease. the
fully-equipped kitchen - with white oak laminate
cabinets and polished black granite countertops
- and separate living and dining areas allow
residents to return to a home away from home.
In a day and age where internet connection has
become a necessity, newly installed optic fiber
cables ensure the fastest connection possible
within the entire property.
renovated linkway and new amenities
the linkway connecting the three blocks and
all the facilities in somerset ho chi Minh city
will receive a makeover to create an enhanced
guest and resident experience. More green
spaces, a new international indoor and outdoor
restaurant, an improved children’s play area
and several other areas will be the main focus
of the linkway renovation. a bakery will be built
alongside a renovated convenience store.
new floor tiles and a contemporary, spacious
canopy will create a more pleasurable outdoor
experience for guests and residents alike. the gym
will be located beside the outdoor children’s play
area, therefore allowing residents exercising to
keep an eye on their children.
speaking of families, somerset ho chi Minh
city and its sister properties have a total of 140
children - making it the residential space with
the most families in the entire city. the family-
oriented environment now presents an even more
inviting and exciting atmosphere for children
and parents to live in.
new reception and residents’ lounge
the reception area in Block a will be expanded
and renovated to match the style of the rooms
and corridors throughout the property, featuring
a lotus leaves inspired ceiling installation amidst
a wood finish and bronze mirrors. In addition to
the space, the renovated residents’ Lounge will
allow residents to come down and watch sports
or movies with an LcD projector, access one of
several computers and unwind either indoors or
on the outdoor porch overlooking the outdoor
children’s play area.
this renovation is by far the biggest somerset
ho chi Minh city has had in 20 years, and from
the finished rooms and corridors in Block B of
the property, it looks to be one well worth the
investment.
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#iAMhcMcAdvertorIAL
By aleksandr smechov
Deutsches Haus is “the symbol of the strategic partnership and friendship between Vietnam and Germany.”
deutsches haus: german world-Class design in hCMC
on the 1st of august 2017 Deutsches haus,
southeast asia’s most eco-friendly and well-
constructed building, will open its doors on
the corner of Le Duan and Le Van huu in
District 1, ho chi Minh city, right beside the
Intercontinental asiana saigon hotel.
the 25-storey, 40,000 sq m building represents the
union of the Vietnamese and German governments,
showcasing modern German technology and
acting as a model of sustainable design.
for the past five years, Germany has been
Vietnam’s biggest trade partner in the european
union, totaling a trade volume of us$8.92 billion
in 2015 alone. the Deutsches haus is to be the
central platform for German and central european
companies doing business with Vietnamese and
other asean businesses, as well as the place to
be for cultural exchange and relations.
the project aims to receive the usGBc LeeD
Platinum certification - the highest level of
green certification possible. this will be the first
building in Vietnam to receive LeeD’s Platinum
level, and is one of a few in southeast asia. LeeD
(Leadership in energy and environmental Design)
is a globally recognised certification that ensures
buildings use less energy.
examples of LeeD Platinum certified buildings
include the Phipps conservatory and Botanical
Gardens in Pittsburgh, u.s., which contain the
world’s only Platinum certified greenhouse; the
massive taipei 101 building in taiwan; canada’s
Manitoba hydro Place, quoted by cBc news as
one of “the most energy-efficient office towers in
the world”; and Kohinoor hospital, asia’s first
LeeD Platinum certified hospital.
currently, there are only a total of 40 green
certified buildings in the country, based on two
certifications: LeeD, and Lotus (a certification
similar to LeeD, but more attuned to Vietnam’s
climate and conditions). the first building to
garner a LeeD certification in Vietnam was
a manufacturing facility owned by colgate-
Palmolive. the Diamond Lotus is a LeeD-
certified condominium project that will have
three connected apartment complexes covered
in bamboo, to be built in the coming years.
the design of Deutsches haus has been entrusted
to world-renowned architect Meinhard von
Gerkan, who has over 50 years of experience.
Gerkan has designed tegel airport, Lingang new
city, the national Museum of china, the hanoi
Museum, hamburg airport, both the national
assembly and the national convention center
in hanoi, and many others.
the building’s double façade will eliminate the
heat of the sun while allowing a great deal of
sunlight to pass through, minimizing artificial
light usage while ensuring a comfortable interior.
In addition, this “double skin” will reduce noise
and provide superior thermal insulation.
this façade is unique in Vietnam and is to be a
milestone for future developments. LeD lights will
be used throughout the building for brighter and
more energy-efficient lighting; the building’s air
will be cleaned through a superior hospital grade
filtration system; personal comfort is pushed to
the forefront with particular attention to localised
temperature control, centralised dehumidification,
shading and daylight control and integration of
all non-life systems; rooftop solar panels will
be able to power the building’s lobbies during
normal business hours; and a thorough plan for
the building’s water system includes rainwater
harvesting, grey water flushing systems and the
reuse of treated sewage for irrigation and cooling.
the building will feature premium office space;
a residential living space on the top floors; an
international dining space with the largest rooftop
terrace in the city; an activity pool and a fitness
and yoga center; a multi-functional conference,
exhibition and event-space; public areas with
workspaces; coffee shops; a driver lounge and
mobile washing station for cars and motorbikes
parked at one of the four basement parking
levels; raised floors (functioning to hide wires and
regulate room temperature); and a fully-featured
lobby. the building will also be the new home for
the German consulate and other German and
european institutions.
the Deutsches haus is to be an environmentally
and culturally sound representation of the city’s
international future - and it seems to have been
entrusted to the right hands for the job.
33 Le Duan, D1 | +84 8 3821 9309 | deutscheshausvietnam.com
22
vnd 22,000
Artist’s Impression
•CloseproximitytotheCentralBusinessDistrict,InternationalSchools, upcomingAnPhuMetroStationandMetroHypermarket
•Ampleparkingspacewithonecarparklotforeveryapartment
•Ultimateresortlifestylewithawiderangeofmodernfacilities: two50mswimmingpools,lazypool,twochildren’spools,400mjoggingtrack, golfputtinggreen,skygarden,entertainmentlounge,multi-purposeroom, movieroom,gymnasiumandmore
•Exclusiveaccesstoskygymandskylounge
•Personalisedconciergeservices
•Fully-fittedapartmentswiththoughtfuldesignandluxuriousfittings
Discover a luxurious lifestyle matched by unparalleled convenience. Live in the most desirable address in the prime District 2 of Ho Chi Minh City, where a host of retail and recreational possibilities are at your doorstep. At the Estella Heights’ Signature Collection, there’s always something thoughtfully designed for everyone.
A NEW LIFT TO LIFE
S I G N A T U R E C O L L E C T I O N
Visit us at Estella Heights Sales OfficeVilla 1B16, No.25 Road,An Phu Ward, District 2, HCMC
(84-8) 3740 6600For enquiries, please call us at
www.estellaheights.com.vn
Another quality residential project by: Keppel Land’s accolades:
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* Terms and conditions apply
Artist’s Impression
COMPLIMENTARYINTERIOR PACKAGE
ORSHOPPING VOUCHER(WORTHVND100MIL)*
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