Estella Heights -new project in District 2

As of August 9^th, any new development must be guaranteed financially before a project is due to commence.  This updated guidance is seen as a move to reduce perceived risks from overseas investors, who were granted new rights to legally purchase property for the first time on July 1st, 2015. 

New circular

Institutions have acted following a spate of litigation by disgruntled buyers of projects which weren’t delivered on time.  The State Bank’s updated guidance, emerging from Circular No. 07/2015/TT-NHNN, requires certain conditions to be met before a purchase or a project can be ratified.

Guarantees for buyer, developer and lending institutions must now be made clear and transparent before a purchase is recognized.  Should either buyer or developer fail to meet their obligations, the lending parties will be liable to pay full compensation, including re deposits and advance payments.

While it’s expected that additional cost burdens related to securing guarantees from commercial bank may be reflected in marginally higher prices, the aim is to make the property market a more transparent and credible destination for foreign capital.

A bigger role for banks

It’s hoped that asking more of commercial banks will ensure projects are better managed throughout the development phase.  Banks who previously issued lump-sum loans to developers were often left with debts and write-offs, whereas under the new stipulations, commercial banks have an active role in ensuring money is treated correctly through a project’s lifetime.

Lending banks are expected to perform more stringent diligence on a developer’s financial capacity, project feasibility and market conditions before sanctioning contracts.

Masteri Thao Dien apartment will be finished in 2016

Timely delivery and industry credibility are expected to be boosted by these measures, attracting further investment interest from foreigners.  Financially insecure developers are likely to fall by the wayside, which while impacting ambitious start-ups will make the market healthier as a whole.

Overseas Vietnamese (Viet Kieu) and foreign investors will also benefit directly from the Circular updates, with pressure put on the banks to make it easier to access loans in-country rather than requiring guarantees solely from abroad.  Buyers purchasing from established developers with good reputations will also be rewarded, as trusted partners are likely to be offered a lower guarantee fee than less credible competitors.

Get in touch

We’re here to help foreign investors and would-be homeowners make sense of this emerging market.  If you are interested in buying property in Vietnam, contact us with any questions or subcribe our newsletter here.

VietApartment NEWS

SUPPORT FROM THE BANK

That is the significant support that you should think about. I just don’t want to advice you to immediately get married but it is very a big support that you can not find in other project. For example, in Sala Premium Residence, BIDV will support you 70% but they calculate the loaning rate of the rest of 30%. In Vinhomes Central Park, when you pay before the deadline and  you always keep it, you will have 0% of loaning rate of 30%. More over, you will have promotion of 7% value of that apartment and 2% value apartment from Techcombank. You just care about your 30% ontime. That is the signal of a big financial supporter for any investor especilly for investor who are foreigners and have higher ability to buy properties in Vietnam at the present.
Techcombank is now also the financial support of very big project Masteri Thao Dien in District 2 but you can not find very interesting offer like in Vinhomes Central Park Apartment Project.

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VietApartment news

Masteri Thao Dien project investors are Thao Dien Investment Corporation, some huge and powerful investors as Vingroup (Main investor of Vinhomes Central Park Project), under financial support of Techcombank and some constructions corporation in Vietnam.

PARTNERS OF MASTERI THẢO ĐIỀN RESIDENCE

Vingroup was established in Ukraine in 1993. Since 2000, Vingroup got back to Vietnam market with a deep desire to contribute to the national development, concentrating in investments field which are retail, electronic devices, e-commerce, tourism and real estate with many brand names, such as: Vinhomes, Vincom, Vinpearl, Vinmec, Vinschool.

“In co-operation with Thao Dien Investment Corporation, we want and try to create a modern residence fully-furnished to bring a great services to all the habitants in Masteri Thao Dien residence.” Said by head of Vingroup.”

Established on 09/27/1993 with an initial capital of 20 billion Vietnam Dong, get over 20 years of operation, Techcombank has become one of the biggest joint-stock commercial banks in Vietnam with total assets over 180 874 billion Vietnam Dong.

“Understanding the housing demand of Vietnamese people, further is the demand of investment of foreigners from July 2015 into local real estate market, with the vision and goals of Thao Dien, Techcombank is committed to be a company Bank financing to the project and pay all benefits to customers in accordance with specified points in the contract in case the apartment is not completed and handled on agreement time. In addition, to support customers to easily own ideal apartments in Masteri Thao Dien apartments, Techcombank provides additional attractive and flexible financial products.” As speech by representer of Techcombank.

Coteccons is one of the leading construction companies in Vietnam specializing in the construction of civil and industrial, which requires sophisticated techniques, especially in the field of high and luxurious buildings. Coteccons proud to have built a strong brand in Vietnam construction market, recognized prestige and quality of work, to meet the high demands of progress and safety.

“In cooperation to construct Masteri Thao Dien apartment project, Cotecons will have three meaningful accomplishments: fastest construction progress, high-rise projects have the largest floor area (43 floors with over 370,000 sqm), and housing projects with largest value contract up to date.”

NQH Architecture Co., is a leading company in the field of architectural design and urban planning in Vietnam, has completed over 400 projects throughout Southeast Asia including office buildings, luxurious apartment and complex buildings. NQH brings well qualified engineers, programmers, landscape designers, interior designers and consulting electrical and structural company in Vietnam, Asia and the United States together.

PTW Architects was established in Sydney in 1889, has been involved in the design of more than 50 commercial office buildings in Sydney and more than 150 other projects throughout Australia, New Zealand and South East Asia (including Hanoi and Ho Chi Minh City . Ho Chi Minh City). PTW Architects brings outstanding patterns in planning infrastructure and sustainable architectural environmentally friendly design through diverse projects.

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