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Vietnam Property Market

I'm really excited for my upcoming study trip to Vietnam this weekend! CapitaLand and Thien Duc will be launching their new project, Vista Verda in May Flower Hotel this Sunday.

Vista Verde Vietnam is strategically located in Thanh My Loi Ward, in the heart of District 2’s administrative center. From only S$15x K!

Why Invest in the Vietnam Market?

HO CHI MINH CITY • Real estate in Vietnam is at a different stage in the property cycle from the rest of South-east Asia and there are signs that the market is turning, according to Mapletree Investments' chief executive officer for the region.

Wheels of change are in motion in Vietnam. On 1 July 2015, two new policies were introduced that could transform the country’s investment landscape, especially in the recovering housing sector.

The first policy is a revised visa-free travel policy, valid for 15 days, for five European nationalities – German, French, British, Italian and Spanish – which could help increase international tourist arrivals in the country and subsequently drive demand for hotel and rental properties.

The second, and arguably more significant rule change, is the much-awaited legal reform on the Law on Residential Housing (LRH), which removes many restrictions for foreign buyers in real estate, following the government approval in November 2014.

“This is a game changer for the real estate market and a large policy shift for Vietnam where the right of foreigners to own property in Vietnam is concerned,” said David Lim, managing partner of ZiCOLaw Vietnam. “These positive developments are expected to boost demand and help improve market liquidity, especially for mid-to-high end residential housing as well as vacation and/or second homes.”

"Vietnam is seeing fairly strong economic growth, especially compared with the rest of South-east Asia. Income growth is strong with rising urbanisation and foreign direct investments," MS WENDY KOH, Mapletree Investments' chief executive officer for the region

More info http://vistaverde-vietnam.com

How to lease or rent your property?

As featured on the Straits Times 26/9/15 

Have burning questions to ask? Ask me at http://overseascondo.sg/ask-alicia-koo/

Thailand Businesses are flocking into Cambodia with Cambodia Real Estate Market opening up

Cambodia has experience a good 7% GDP growth over the past few years. Moving forward, especially with the ASEAN Free Trade agreement this year, Cambodia’s GDP Growth will most likely continued to be as high as past years. Under current Prime Minister Hun Sen leadership, Cambodia also has enjoy peace and prosperity for almost 2 decades. With the strong GDP growth and a stable political environment, these has lure many Thailand Businesses back into Cambodia Market.

According to “Bangkok Post”, many Thailand companies like Siam Cement, CP Group, Bangkok Dusit Medical Services and Samart Corp has already established their presence in Cambodia. With the cost of operations in Thailand getting higher, more and more companies will be joining them in Cambodia.

The moving in of the Thailand companies are further encouraged with Cambodia Real estate Market opening up. Since the passing of legislation in April 2010, the foreign ownership property law allows foreigners to own property in Cambodia. Foreigners may acquire apartments above the ground floor to a maximum of 70% of any one apartment building, provided that the building has applied for and obtained ‘strata title’, which generally only applies to new construction. Hence, foreigners are 100% eligible to own a freehold condominium in Cambodia.

Some of the attractive luxury developments currently on sold in Cambodia Phnom Penh includes The Peak and The Bridge by Singapore Mainboard listed developer Oxley. These development will most likely attract those Thailand Businesses’ Owner to place their investment in.

Is it a good time to go bargain hunting?

I'm glad to have an opportunity to work with Straits Time and have a weekly Saturday Column.

With the current cooling measures such as Total Debt Servicing Ratio (TDSR), Mortgage Servicing Ratio (MSR), the property market has been slow for the last two years. 

Investors and property buyers are bidding their time, hoping and waiting for an easing of the property cooling measures. But there are savvy investors are taking the opportunity to look for bargains given the slow market. So the big question is: How do you find bargain buys?

When a property is prefect, prefect location, fantastic amenities and facilities, the price won’t be prefect. And if the properties is price lower than expected, check thoroughly before you snap it up.

To start off, what is the property tenure? Properties with a 99 year leasehold are usually priced lower than those which are freehold. Other factors to consider are location, accessibility, condition (for those buying existing properties) and also the surroundings. If the unit is affected by noise pollution or comes in shabby condition, these can push down the price. 

Turning flaws into opportunities

In today’s market, short term investment has become impossible due to Seller’s Stamp Duty(SSD). If you sell your property on the first year, you would have to pay 16%(SSD), legal fees and agent fees. this means you need to make at least 25% capital gain before it’s worth selling. 

From the investors perspective, the rental yield of the property is a major consideration. The higher the rental yield, the better. 

Going by figures from Urban Redevelopment Authority (URA), properties with 99 year lease have a higher rental yield than freehold properties.

The reason is leasehold properties are usually cheaper than freehold. When tenants look for a place, the property tenure does not matter to them. Those looking to rent are more interested in the rental rate, location and condition of the unit. 

Properties auctions make a good hunting ground for investors looking for a value deal. You can pick up good quality homes at property auctions as the number of residential properties available at auctions has gone up, in part due to owners who cannot afford to keep up with the mortgage payments 

With the market being slow, you may face less competition. But there are requirements buyers have to fulfil. One is that the successful bidding has to pay a 10% of the successful bid price and cannot forfeit. Do your homework and research on properties you are bidding for. 

SRX has a feed of undervalued properties. Get your agent to keep a lookout for these properties and keep you updated. If you have a keen eye for furnishing, you can consider buying a piece of property even if it is in poor condition. Check carefully if its shabby condition is simply a matter of replacing worn out furniture, getting a fresh coat of paint or other issues which can be easily rectified at minimal cost. If problems require extensive renovation and repair work, then drop the property from your shortlist.

If you're buying a property for investments look for projects in areas being developed, especially those in vicinity of upcoming MRT stations. Keep up with the news about these projects under construction and get ready to invest when they are about 2-3 years away from completion. 

Lastly, when it comes to investing your money in a big ticket item like property, make sure to do your homework well and calculate your finances to fully leverage on your cash flow. As US investment guru Peter Lynch says ‘Know what you own and why you own it”

By Alicia Koo 

Burning questions?  Ask me at http://overseascondo.sg/ask-alicia-koo/

My trip to Cambodia (Part 2) - Aeon Mall

Aeon Mall is Phnom Penh first ever mega mall. I would compare it to Singapore's Vivocity. It's only about 15 minutes walk from Nagaworld.

All your familiar brands are here like Mango, Zara, G2000 and even Daiso!

As Aeon Mall opened last year August 2014, it was celebrating its FIRST birthday! There were so many little and big model cakes with a 1 candle to celebrate their first birthday!

At the 3rd level, there is a cinema and arcade. The currency they use there is USD and if you're thinking of catching a cheap movie there, you would be surprised at the cost per ticket. It is about USD$10 depending on the day and if its 4D, yes, 4D! The seats actually move! The toilets are also very high-tech as Aeon mall is a Japanese Mall so you would expect the toilets to be very clean and complicated to use.

 You'll find a lot of familiar restaurants there too like Fish & co, Kenny Rogers etc.

We came across a Japanese Ice-cream stall and we decided to buy 1 each. I chose the melon flavour which cost about USD$5.

There's even Gong Cha there! Prices are actually slightly more expensive than in Singapore.

Restaurant meals in general cost almost the same as in Singapore. Prices all in USD. The restaurant we had lunch at is call The Works. 

 

Massages there are cheap though. We tried massage at a place called 'Lucky Eight'. Cost only USD$12(for 2 hours) however, you have to pay tip. Unless you're having massage at Nagaworld. A 3 hour massage in Nagaworld cost about USD$100. Almost 3-4 times more but of course you pay what you get as you can see from the below picture, it's quite high-class.

My Trip to Cambodia (Part 1)

Just a few weeks back, i visited Phnom Penh for a study trip. Phnom Penh has really changed throughout the years with the new developments such as Aeon Mall launched last year, cafes just like your starbucks sprouting out and I even saw our very own Breadtalk which launched in Phnom Penh few months back. Right in the heart of their city, lies their independence monument which is their "Arch-De-Truimph".

The group of us stayed in Nagaworld which is a Casino Hotel. Even though I didn't gamble, there were a lot of other things to do in the hotel like massage, eating, clubbing and singing KTV. They're famous for their four-hands massage where you're treated like royalty as 2 people massage you at the same time. Love this picture of the money tree at the lobby! 

Nagaworld's decoration is abit thai style. 

Below are some of the pictures of the casino.

This picture was taken at 1am, yet there were still quite a number of people gambling! No wonder Shangri-La is moving in too! 

At night, we checked out their club. Had a blast there. There were dancers and music played were mainly english and chinese remix. I think they cater to the chinese there as quite a lot of chinese businessman are coming into Cambodia to start their business.

For one of our lunch, we tried out their Japanese restaurant in Nagaworld. As you can see, the standard is very good. If you don't know where to eat in Phnom Penh, you can have all your meals in Nagaworld as there are many restaurants of different cuisines like dim sums, western etc. 

Great view from the hotel room. We could actually see Dreamland which is their mini theme park and also night market.

Their night market as below. Unfortunately, most of the shops were closed when we went there. I think it closes about 11pm. 

For more information about investing in Phnom Penh. Find out about the latest residential integrated with Shangri-La, The Peak Cambodia. The Peak Shangri La