State bank decision stabilises markets

Shares advanced on the nation's stock exchanges on Sept. 28 as the
central bank's final decision on Circular No 13 helped settle investor
psychology.

The State Bank of Vietnam's decision, issued late Monday, allows banks
to lend 25 percent of their non-term deposits and count State Treasury
and loans from other credit institutions of terms of three months or
longer as part of their reserves for lending.

The
decision is expected to help ease the capital crunch that banks feared
due to Circular No 13's stricter capital adequacy requirements, which
will take effect on Friday as previously announced.

The central bank on Sept. 28 also decided to keep the prime interest rate at 8 percent for an 11th consecutive month.

On the HCM Stock Exchange, the VN-Index closed up 1.1 percent to
455.13 points. Market value rose by 10 percent over Monday's session to
slightly over 1 trillion VND (53.8 million USD) on a volume of almost 39
million shares.

Advancers outnumbered decliners by
150-57, with Sacombank (STB) the most-active share with over 3 million
changing hands. STB rose for a second day and closed up 1.2 percent to
17,000 VND (0.87 USD) per share.

Of the 10 leading
shares by capitalisation, nine posted gains, with insurer Bao Viet
Holdings (BVH) and property developer Vincom (VIC) rising to their
ceiling price.

Ha Thanh Securities Co's head of
analysis and investment, Tran Van Don, said the impacts of Circular No
13 had dissipated and the market was unlikely to react dramatically.

Many investors remained watchful, Don said, noting the modest increase in trading volume and value on Sept. 28.

He predicted that rising inflation would cause banks difficulties in
lowering interest rates, putting further pressure on the markets.

Duong Hong Ha, chief analyst of Tri Viet Securities Co, agreed the
domestic stock market was unlikely to see any explosive development in
light of rising inflation, high interest rates and a large volume of new
shares to list by year's end.

On the Hanoi Stock
Exchange, the HNX-Index advanced on Sept. 28 by a modest 0.18 percent to
close at 130.17 points. Volume hit 34.6 million shares worth 981.6
billion VND (50.3 million USD) – an increase by 39.5 percent in volume
and nearly 60 percent in value – while gainers outnumbered losers by
203-72. /.

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Mini-condos attract investor attention

The prices of mini apartments in Hanoi has surged after a decision to grant ownership titles to individual small apartments.

The decision was meant to help low-income families to buy their first property, but demand increased dramatically after the decision, with home buyers and investors attracted to the prospect of capital gains, analysts said.

Also, mini apartment sales don't have to go through a property transaction centre.

To qualify as mini apartments, there must be at least two floors to the building with two or more apartments measuring at least 30sq.m on each floor.

"Demand for mini apartments increased by 40 percent and the price increased by about 20 percent," www.batdongsan.com.vn director Le Xuan Truong said.

Prices were now between VND750 million (US$39,000) to VND1.2 billion ($60,000), Truong said.

Each apartment could bring the developer a profit of between VND150 million ($7,800) and VND200 million ($10,000)," he said.

The high demand has attracted investment from small developers.

Developer Dinh The Toan said he built a five-floor mini apartment building with 12 apartments on an area of 150sq.m. After the decision was released, the apartments increased in value by VND300 million ($15,000) to around VND900 million ($45,000) each.

Quang Minh Construction and Investment Joint Stock Company spent VND10 billion ($526,000) to buy 200sq.m of in Cau Giay district to build 20 apartments.

We predicted demand would increase and we have not been disappointed, the company's marketing director Pham Manh Duong said.

Former deputy minister of Natural Resources and Environment Dang Hung Vo said the decision may relieve the accommodation shortage and provide an opportunity for low income families, but we may live to regret it.

He said such high-density living down small lanes was not accompanied by the development of extra infrastructure, such as water, electricity, sewerage, roading, extra schools, medical centres and open spaces.

They may turn into slums or ghettos in the future, Truong said.

 

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Mini-condos attract investor attention

The prices of mini apartments in Hanoi has surged after a decision
to grant ownership titles to individual small apartments.

The decision was meant to help low-income families to buy their first
property, but demand increased dramatically after the decision, with
home buyers and investors attracted to the prospect of capital gains,
analysts said.

Also, mini apartment sales don't have to go through a property transaction centre.

To qualify as mini apartments, there must be at least two floors to the
building with two or more apartments measuring at least 30sq.m on each
floor.

"Demand for mini apartments increased by 40
percent and the price increased by about 20 percent,"
www.batdongsan.com.vn director Le Xuan Truong said.

Prices were now between 750 million VND (39,000 USD) to 1.2 billion VND (60,000 USD), Truong said.

Each apartment could bring the developer a profit of between 150
million VND (7,800 USD) and 200 million VND (10,000 USD)," he said.

The high demand has attracted investment from small developers.

Developer Dinh The Toan said he built a five-floor mini apartment
building with 12 apartments on an area of 150sq.m. After the decision
was released, the apartments increased in value by 300 million VND
(15,000 USD) to around 900 million VND (45,000 USD) each.

Quang Minh Construction and Investment Joint Stock Company spent 10
billion VND (526,000 USD) to buy 200sq.m of in Cau Giay district to
build 20 apartments.

We predicted demand would increase and we have not been disappointed, the company's marketing director Pham Manh Duong said.

Former deputy minister of Natural Resources and Environment Dang Hung
Vo said the decision may relieve the accommodation shortage and provide
an opportunity for low income families, but we may live to regret it.

He said such high-density living down small lanes was not accompanied
by the development of extra infrastructure, such as water, electricity,
sewerage, roading, extra schools, medical centres and open spaces.

They may turn into slums or ghettos in the future, Truong said./.

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Mini-condos attract investor attention

Mini-apartments have become attractive to investors after a decision was made to grant ownership titles to this type of real estate. — VNS Photo Viet Thang

HA NOI — The prices of mini apartments in Ha Noi has surged after a decision to grant ownership titles to individual small apartments.

The decision was meant to help low-income families to buy their first property, but demand increased dramatically after the decision, with home buyers and investors attracted to the prospect of capital gains, analysts said.

Also, mini apartment sales don't have to go through a property transaction centre.

To qualify as mini apartments, there must be at least two floors to the building with two or more apartments measuring at least 30sq.m on each floor.

"Demand for mini apartments increased by 40 per cent and the price increased by about 20 per cent," www.batdongsan.com.vn director Le Xuan Truong said.

Prices were now between VND750 million (US$39,000) to VND1.2 billion ($60,000), Truong said.

Each apartment could bring the developer a profit of between VND150 million ($7,800) and VND200 million ($10,000)," he said.

The high demand has attracted investment from small developers.

Developer Dinh The Toan said he built a five-floor mini apartment building with 12 apartments on an area of 150sq.m. After the decision was released, the apartments increased in value by VND300 million ($15,000) to around VND900 million ($45,000) each.

Quang Minh Construction and Investment Joint Stock Company spent VND10 billion ($526,000) to buy 200sq.m of in Cau Giay District to build 20 apartments.

We predicted demand would increase and we have not been disappointed, the company's marketing director Pham Manh Duong said.

Former deputy minister of Natural Resources and Environment Dang Hung Vo said the decision may relieve the accommodation shortage and provide an opportunity for low income families, but we may live to regret it.

He said such high-density living down small lanes was not accompanied by the development of extra infrastructure, such as water, electricity, sewerage, roading, extra schools, medical centres and open spaces.

They may turn into slums or ghettos in the future, Truong said. — VNS

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