Banks to guarantee Sacomreal property projects

Sacomreal's Jamona City will be guaranteed by OCB bank aiming following Article 56 of the Law on Real Estate Business, which will take effect on July 1.VNS Photo

Saigon Thuong Tin Real Estate Co. (Sacomreal) signed agreements with OCB, ACB and HDB banks on Sunday to guarantee its property projects, following Article 56 of the Law on Real Estate Business, which will take effect on July 1. OCB committed to guarantee all Sacomreal-invested products, including the recent Jamona City project in District 7, while ACB committed to guarantee products of Jamona Riverside in District 7 that will be on sale in the third quarter. HDB will guarantee products of Carillon 3 project in Tan Binh District which will be announced in the third quarter. Pham Nhat Vinh, chairman and general director of Sacomreal, said if developers failed to hand over residential houses as agreed in the lease-sale contracts, the purchaser may request the guarantor to return the advance and other payments made to the investors. "The property market will then develop more transparently and sustainably. The provision ensures that developers are financially viable and greater … [Read more...]

Top local banks see simultaneous changes in top positions

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While a Japanese national has been appointed the deputy head of Vietcombank, Sacombank and Eximbank have relieved the posts of their two deputy general directors so that they can move to work at their subsidiaries. Yutaka Abe, a Japanese national, was appointed the deputy general director-cum-member of the board of directors of the Joint Stock Commercial Bank for Foreign Trade of Vietnam, better known as Vietcombank, starting Sunday. (September 30). … [Read more...]

Banks see simultaneous changes in top positions

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While a Japanese national has been appointed the deputy head of Vietcombank, Sacombank and Eximbank have relieved the posts of their two deputy general directors so that they can move to work at their subsidiaries. Yutaka Abe, a Japanese national, was appointed the deputy general director-cum-member of the board of directors of the Joint Stock Commercial Bank for Foreign Trade of Vietnam, better known as Vietcombank, starting Sunday. (September 30). … [Read more...]

Business news in brief

On June 26, ACB Growth Investment Fund (ASIAGF), a close public fund, will debut 24,008,000 fund certificates on the Ho Chi Minh Stock Exchange. The debut price is set at VND10,000 a share with a trading band of plus minus 20 percent on first trading day. On June 25, the Ho Chi Minh Stock Exchange allowed Hung Vuong Corporation (HVG) to sell 1,260,320 treasury shares, or 2 percent stake. From June 28 to July 25, Nguyen Thi Xuan Thao, IR officer of MIRAE Joint Stock Company (KMR), registered to sell 329,450 shares, reducing her ownership to 26,234 shares, or 0.08 percent stake, for personal need. From June 29 to July 29, Ho Truc Lam, IR officer of Sacombank Securities Joint Stock Company (SBS), registered to sell all 5,220 shares for personal financial need. Bui Thi Bich Lien, sister of Bui Phap, chairman of Duc Long Gia Lai Group Joint Stock Company (DLG), registered to sell all 194,768 shares from June 28 to July 27, or 0.55 percent stake, for personal need. Le Quoc Binh, CEO of Ho … [Read more...]

Sacombank Shareholders General Meeting: Many Unexpected Things to Come

Sacombank's General Meeting of Shareholders on 26th May is forecast to contain lots of unexpected happenings regarding personnel issues, because its ownership and personnel have changed dramatically before the meeting. Sacombank's Annual General Meeting of Shareholders is forecast to contain lots of unexpected news, with information continuously released before the meeting. Saigon-Thuong Tin Commercial Joint Stock Bank (Sacombank - ticker: STB)'s Annual General Meeting of Shareholders this year will be organised on 26th May 2012 in Ho Chi Minh City. The list of attending shareholders was fixed on 20th April. The content of the meeting will focus on summarising operations of 2011 and plans for 2012, including reports of the Management Board and Supervisory Board. The shareholders will also express their approval or denial of reports under their authority. Recently, Sacombank has made several changes in personnel. Mr Pham Nhat Vinh resigned as Deputy General Director from 2May. Along … [Read more...]

Focus on mid-cap shares lifts market

Blue chips continued to prop up the market although bank stocks extended losses on profit taking (Photo: apl.edu.vn) Growth weakened towards the end of June 4 session but liquidity climbed as traders focused money on mid-cap shares. On the HCM City Stock Exchange, the VN-Index inched up 0.19 percent to close at 568.99 points while the VN30 which tracks the top 30 shares by market value and liquidity rose by a more substantial 0.32 percent to end at 587.48 points. Blue chips continued to prop up the market although bank stocks extended losses on profit taking. Lenders like Vietinbank (CTG) and Sacombank (STB) lost ground but other large-cap stocks like VinGroup (VIC), Vinamilk (VNM), Bao Viet Holdings (BVH), and Hoang Anh Gia Lai Co (HAG), apart from FPT Corp (FPT), Hoa Phat Group (HPG) and Gemadept (GMD) increased strongly. "Investor confidence was heightened as cash flows continued to be channelled into the equity market," analysts at FPT Securities Co wrote on their website … [Read more...]

Market sees slow trade but slight price increases

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Property developers are racing to launch big promotions, including cash and lucky draw prizes and favorable payment conditions, to lure homebuyers to invest in the long ailing real estate sector. While trade declined this year, prices remained stable in the residential for sale segment. However, prices are expected to fall. According to market research company CB Richard Ellis Vietnam (CBRE), although some commentators said that the residential market was still overpriced and had further to fall, it had settled in the year's first quarter. Prices in the luxury and high-end sectors remained flat, while the mid-end market and the affordable sector saw an 8.5% and 8.3% year-on-year price increase respectively. An affordable condo project in Binh Tan District in HCMC -Photo: Dinh Dung In the first quarter, high-end real estate was worth US$1,878 per square meter and mid-end property sold for US$998 per square meter, while the affordable sector reached US$720 per square meter, said … [Read more...]

Property trade disrupted by new red tape

Stare management agencies and real estate companies alike are witnessing their business coming to a halt because of the amended law, which went into effect August 1, relating to the issuance of ownership certificates for both house and land. Under the law, both the land and the house on it will be certified in one title instead of two separate titles as before. Lacking guidance, however, the change has embarrassed district level management organizations with many of them having stopped granting ownership titles and using confusion as an excuse. Without exception, real estate companies have lost business because they cannot execute the legal paperwork for their customers when transactions are completed. Trading waits for new title A file photo featuring customers trading at the ACBR property trading floor in downtown HCMC - Photo: Dinh Dung Pham Van Hai, general director of ACB Real Estate Services Co. (ACBR), told the Daily last week that his property trading floor in downtown HCMC … [Read more...]

Law adds teeth to homeowner rights

Residents in Trung Hoa- Nhan Chinh residential zone in southwest Ha Noi are among those waiting for their rights to be protected under the new Law on Real Estate Business. — VNS Photo Truong Vi

HA NOI (VNS) — Homebuyers will soon get protection for their money and rights as a regulation making bank guarantees mandatory for future property purchases will come into effect next week. Following Article 56 of the Law on Real Estate Business, property developers, before selling or leasing unfinished properties, must obtain guarantees from eligible commercial banks as assurances of their financial obligations to buyers. Speaking at an online discussion on "Property guarantees – will there be risks," held in Ha Noi on Wednesday, Vu Van Phan, deputy director of the Construction Ministry's Housing and Real Estate Market Management Department, said several countries have implemented property guarantees. For example, South Korea has been applying this guarantee norm for years at 0.5-1 per cent fee. "The purpose of the article is to protect homebuyers' money. If property developers fail to hand over apartments to buyers despite commitments, banks will be responsible for … [Read more...]

Bank guarantees for property meant to safeguard buyers

HA NOI (VNS) — A regulation ordering bank guarantees to become mandatory for property purchases, which was to be completed in the future, has caused mixed concerns among property developers and buyers. Following Article 56 of the Law on Real Estate Business, to take effect on July 1, property developers, before selling or leasing unfinished or future property, must obtain guarantees from eligible commercial banks as assurances of their financial obligations to buyers. Accordingly, in case property developers fail to hand over apartments to buyers following commitments, banks would be responsible for returning the buyers' money, in line with signed contracts. The regulation was expected to protect the rights of home buyers, as well as contributing towards cleaning up the realty market. According to Nguyen Manh Ha, Director of Housing and Real Estate Market Management Department, this would eliminate risks for home buyers, as their money would be guaranteed by banks, which … [Read more...]

New provision applies to real estate enterprises

2014 Law on Real Estate Business (2014 LOREB") coming in force from 1st July 2015, provides new legal points that real estate enterprises, local and foreign investors should be aware of. Legal capital of minimum VND 20 billion Under 2014 LOREB, the legal capital of real estate enterprise must not be less than VND 20 billion while the current provision on the same is VND 6 billion. Unqualified real estate enterprise is required to increase its chapter capital within 01 year from the effective date of 2014 LOREB (i.e 01st July 2015). Therefore, the real estate enterprise with the chapter capital of less than VND 20 billion should take necessary actions to increase its capital for purpose of legal compliance. Notable provisions regarding real estate business contracts 2014 LOREB lists and provides with the main content, rights and obligations of parties in the main kinds of real estate contracts, including house/building sale and purchase contract, house/building lease contract, … [Read more...]

Many Shortcomings Remain in Amended Real Estate Law

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The draft decree detailing the implementation of some articles of the amended real estate business law is under discussion to collect opinions. In this process, there is much disagreement on some new contents such as the classification of legal capital into multiple levels for real estate businesses; some argued this would cause difficulties for the application, some even said it was illegal.Real estate conditions are inconsistent with law The draft on conditions of doing real estate business involves the type of contract, including the transfer of house or house lease, available or to be available in the future; transfer partly or the whole real estate project. The draft emphasizes that organisations and individuals doing real estate business must have a legal capital of not less than VND50 billion if it was the case of real estate investment for business - subject to authorized state agencies’ decision for investment policy. As for cases of real estate investment for … [Read more...]

Law offers real estate breakthrough

The revised law should enable foreign individuals and firms to purchase and    use property much more easily.

The recent resurgence in the country’s residential real estate segment has partially been attributed to the changes in legislation that are set to take effect from July 2015 according to industry insiders. Jonathan Tizzard, national head of valuation & research from Cushman & Wakefield Vietnam expressed his positivity about the changes. "This will mean foreign invested enterprises will be allowed to own land and develop property directly, along with foreigners being allowed to own apartments and houses," said Tizzard. Tizzard explained that a foreign developer will be able to buy land and develop their property without having to find and negotiate a deal with a local partner, which should speed up the time taken as well as reduce the development risk of the project. In addition, there is suddenly a huge new market for products among foreigners and Vietnamese living abroad. "With yields from property in other countries much lower than in Vietnam, foreigners will be … [Read more...]

Housing law means affordable homes, real estate growth

Minister of Construction Trinh Dinh Dung. — Photo cafeland

The construction sector found success in legal institutions, saved the State money, boosted the real estate market and planned to create more housing for low-income families, said Minister of Construction Trinh Dinh Dung. The Ministry of Construction (MOC) focused on amending three major laws in 2014: the Construction Law, the Housing Law and the Law on Real Estate Business. Mr. Dung said he was confident the three revised laws would offer a comprehensive legal corridor for promoting effective management of construction loss, waste and quality, as well as ineffective use of investments. The sector also saved the State trillions of dong with proper inspections and surveillance. Thirdly, the MOC was successful in breathing new life into to the real estate market while developing more affordable housing for low-income residents. Finally, a programme aimed to create more housing for rural, disadvantaged families; flood-prone areas; and low-income people living in urban areas, … [Read more...]

Housing law means affordable homes, estate growth

The construction sector excelled in 2014, said Minister of Construction Trinh Dinh Dung. It found success in legal institutions, saved the State money, boosted the real estate market and planned to create more housing for low-income families, he said. The Ministry of Construction (MOC) focused on amending three major laws in 2014: the Construction Law, the Housing Law and the Law on Real Estate Business. Dung said he was confident the three revised laws would offer a comprehensive legal corridor for promoting effective management of construction loss, waste and quality, as well as ineffective use of investments. The sector also saved the State trillions of dong with proper inspections and surveillance. Thirdly, the MOC was successful in breathing new life into to the real estate market while developing more affordable housing for low-income residents. Finally, a programme aimed to create more housing for rural, disadvantaged families; flood-prone areas; and low-income … [Read more...]

A new year of trust

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(VOVworld) – Spring has arrived with a message of reform, development, and integration in the hope of new successes in the new year. Thu Hoa reports: Vietnam is full of energy with which to enter a new year full of many important events: the 85th anniversary of the Communist Party of Vietnam, the 70th anniversary of the August Revolution and National Day, the 40th anniversary of the liberation of southern Vietnam and national reunification, the 125th birthday of President Ho Chi Minh, and 30 years of national renewal toward socialism. The faith of every Vietnamese was strengthened when Party General Secretary Nguyen Phu Trong pledged to continue increasing the Party’s leadership and fighting spirit and affirmed that national strength comes from people’s faith. Prime Minister Nguyen Tan Dung said cooperation, integration, and solidarity will be Vietnam’s external relations strategy. 93 million Vietnamese people in Vietnam and 4.5 million overseas Vietnamese … [Read more...]

Market revival is the year’s highlight

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VietNamNet Bridge – The property market closed 2014 with promising signs that it will thrive in 2015. Viet Nam News presents a round-up of last year's major developments.The property market starts to thrive The real estate market's frozen period ended and the market was recovering, according to the Ministry of Construction. Deputy Minister Nguyen Tran Nam pointed out that the number of properties sold greatly increased in both Ha Noi and HCM City, as many projects placed properties for sale at more affordable prices, housing supplies were adjusted to meet market demands, especially for low-income earners, and property inventories declined. The Law on Housing and the Law on Real Estate Business passed The National Assembly passed the Law on Housing and the Law on Real Estate Business (amended) on November 25, 2014. The two laws, together with other policies, were expected to create breakthroughs in the property market. The two laws will come into effect on July 1, … [Read more...]

Real Estate Market: Steady Development from Q2, 2015

Capital flow for the real estate market is opened wide as preferential loans are being applied to more subjects, which is building the investor confidence in the real estate market in 2015. Dr Tran Kim Chung, Deputy Director of the Central Institute for Economic Management (CIEM), hosted a press meeting on property market prospects in 2015. Luong Tuan reports.2015 - many development opportunitiesIn 2014, the real estate market has witnessed more positive changes. Is this a stepping stone for a brighter future in 2015? In fact, the real estate market is relatively good in 2014, expressed in many aspects. Specifically, prices have not decreased, even slightly increased; some projects have received funds for continued development; and midmarket apartment segment has had relatively good liquidity. In 2015, I believe that liquidity will be still good in finished products, especially low-end segments. Low price is still the bright spot when the supply in this segment is increasing. The … [Read more...]

Vietnam to loosen regulations for foreigners to buy houses

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Foreign residents can buy residential and commercial property in Vietnam under the Law on Real Estate Business, the deputy minister of construction, Nguyen Tran Nam has clarified. Deputy Minister of Construction Nguyen Tran Nam Ownership, by foreign individuals or companies, would be on the basis of a renewable 50-year lease, but property purchases would have to go through recognised legal entities, such as real estate firms or developers. Foreign ownership would be restricted to no more than 30 percent of an apartment building, or 250 houses in a residential street. "Foreigners who are allowed to enter Vietnam can own houses in the above-mentioned cases except for national defense and security areas," Nam said. … [Read more...]