In particular, Vinhomes – a subsidiary of the group has many advantages in participating in the implementation of large real estate projects in the country, towards the mission of bringi
Trang 1MINISTRY OF EDUCATION AND TRAINING NATIONAL ECONOMICS UNIVERSITY
GROUP ASSIGNMENT COURSE: INVESMENT PROJECT APPRAISAL Topic: “ Vinhomes Ocean Park 2 – The Empire appraisal”
Group members: Đinh Yến Ngọc
Trần Thu Phương
Vũ Hà Phương Nguyễn Hà Thanh
Lê Phương Thảo Nguyễn Thị Minh Thu
Trang 2TABLE CONTENT
A INTRODUCTION 2
B CONTENT 3
I Project overview 3
1 Introduction 3
2 Project approved and apraisal 3
II Macro factors appraisal of the business 4
1 Political 4
2 Economic 4
3 Social 4
4 Technology 5
5 Legal 5
6 Environment: Location potential of Vinhomes Ocean Park 2 5
III Market appraisal 7
1 Supply and demand analysis 7
2 Target market 8
3 Products 9
4 Marketing 12
5 Rival: Ecopark Green city 13
IV Technical appraisal 13
1 Technology for construction of residential areas 13
2 Technology in living gadgets 15
V Project future 17
C CONCLUSION 18
REFERENCES 19
Trang 3A INTRODUCTION
The decision to invest in a development project is one of the most important decisions determining the long-term development of the business The implementation of a development investment project requires large financial resources, long construction and operation time, so the appraisal needs to be carried out well, considering many aspects including risks, impacts from the macro environment and the whole business to choose an effective investment project
Founded in 2012 after merging two companies, Vinpearl and Vincome, Vingroup is currently one of the most successful investment groups today, investing capital in many different fields, the most prominent of which is the real estate sector, earning the 3 most famous brands: Vinhomes, Vincity and Vincom In particular, Vinhomes – a subsidiary of the group has many advantages in participating in the implementation of large real estate projects in the country, towards the mission of bringing modern life experiences with residential areas planned for industry, high-class utilities, diversified; synchronous services .; connect, build a cultural and dynamic community Based on this goal and the idea of a unique and vivid architectural style with a Mediterranean style, the company invests in Vinhomes Ocean Park 2 – The Empire urban area project, bringing comfortable and high-class living space to the resident community, providing an opportunity to bring great values to real estate investors across the country
Trang 4Total land area of the whole project: more than 460 hectares
Total investment capital: 38,000 billion VND
Construction density of the whole area: 35%
Outstanding facilities: The largest wave-making saltwater lake in Viet Nam 18ha, Green area, landscape lake, amusement park, park, more than 120ha
Project scale: 50 Block luxury apartments and more than 23000 low-rise apartments: shophouse, commercial service, Adjacent, Villa
2 Project approved and apraisal
On March 5, 2018: The project was approved by the People's Committee of
Hung Yen province, Vinhomes The Empire - Vinhomes Ocean Park 2
On October 4, 2019: The project to prepare and adjust the ground plan of Vinhomes The Empire, with a detailed construction scale of 1/500, was approved
by the People's Committee of Hung Yen province
July 2020: The Ministry of Planning and Investment conducts appraisal and reports to the Prime Minister for approval
January 2021: The Prime Minister has approved the investment policy of Vinhomes The Empire ecological urban area project
Trang 5II Macro factors appraisal of the business
1 Political
Viet Nam is highly appreciated for its level of political stability, creating a premise for economic development In addition, there are preferential policies on taxes and interest rates for Viet Namese businesses, which operate effectively with respect to real estate investment Vingroup will be exempt from tax for 4 years and will receive a preferential tax rate of 10% within 15 years
2 Economic
In 2019, economic growth was good, labor productivity and quality of growth continued to improve, macroeconomic stability was solid GDP growth rate is estimated at 6.8%, achieving high targets according to the National Assembly's resolution The scale of GDP increased to about 266.5 billion USD, an average of 2,778 USD/ person (Thoi bao Tai chinh Viet Nam, 2019) The State Bank of Viet Nam has lowered the refinancing interest rate twice from 6% to 4.5%/year in March and May, the rediscount interest rate from 4% to 3%/ year in 2019 In the context of falling oil prices, strong, weakening consumer demand along with efforts to cut 10%
of electricity prices, Viet Nam's inflation is forecast to be below 4% (Tap chi tai chinh, 2020) The global Covid-19 pandemic had a strong influence on the world economy in general and Viet Nam in particular, making public debt companies, delaying production, unable to deal with partners to import Whether input, even bankruptcy, 90 million people in Viet Nam have lost their jobs and suspended their businesses According to Dr Can and the authors of the BIDV Training and Research Institute, the disease was controlled in the second quarter but was negatively affected by the total supply and demand from outside; Viet Nam's GDP growth rate will decrease by 2.58%, reaching 4.07-4.20% in 2020 (Can and BIDV, 2020)
The slow economic growth, as well as the impact of the COVID-19 pandemic, also affected the operation and finance of Vingroup in 2020 because the business activities nationwide have not operated stably
3 Social
The population of Viet Nam as of 2019 is more than 90 million A middle class actually exists in Vietnamese society, accounting for some 13% of the population of Viet Nam, and by 2026, this class will increase to 26% (World Bank, 2019) The proportion of people with high incomes of over 10 million a month, accounting for 1/5 of the population, has a high growth rate of 1.2%/ year Currently,
Trang 6Vietnamese people are also interested in Vietnamese domestic products, and they are also interested in travel needs These things will help Vingroup to have more potential customers to expand the market Currently, Vietnam's education system is growing and providing a potentially abundant human resource, in addition to a team
of human resources from returning international students (World Bank, 2019)
4 Technology
The new development trend of cities is to be located on the beach, applying new technology with smart city However, Vinhomes Ocean Park of Vingroup do the opposite and bring the sea back to the city Vinhomes has broken its own record with Vinhomes Ocean Park 2 The project owns many unprecedented super-utilities
in Viet Nam Specifically, the focus is the world's largest sea park complex with artificial waves - Royal Wave Park with a total area of up to 18 ha, including the Asian leading saltwater lake Laguna with over 9 ha, a complex of 6 wave pools with more than 5 ha applying cutting-edge wave generation technology
Next, Vinhomes Ocean Park 2 also has the "all in one" utility system with the largest Vingroup brand in Viet Nam and high-class landscape design
5 Legal
Historical & legal information of Vinhomes Ocean Park 2 project – The Empire
On July 3, 2018: Hung Yen Provincial People's Committee issued Document
No 1512/QD-UBND approving the results of investor selection for the Dream City Urban Area project (Vinhomes Ocean Park 2 – The Empire) in the area communes: Long Hung, Nghia Tru, Van Giang district
On October 4, 2019: Hung Yen Provincial People's Committee issued Decision No 2231/QD-UBND on approving the project to prepare and adjust the detailed construction planning at the scale of 1/500 Dream City Eco-urban Area
June 16, 2021: Hung Yen Provincial People's Committee issued Decision 1423/QD-UBND approving the project of local adjustment of detailed construction
planning at the scale of 1/500 Dream City ecological urban area
6 Environment: Location potential of Vinhomes Ocean Park 2
The highlight of Vinhomes Ocean Park 2 - The Empire is the inheritance of the synchronously completed connected transport infrastructure of the Eastern city Unlike Vinhomes Ocean Park 1, which has to wait for 2-3 years to get traffic infrastructure, The Empire already has the ability to connect
Trang 7Vinhomes Ocean Park 2 has a strategic location at the gateway of Hanoi - Hai Phong highway, the arterial road connecting the golden economic triangle.
The project owns the key traffic connections of Gia Lam, from anywhere to Vinhomes Ocean Park 2 including:
- Co Linh intersection (400 billion): Completed in January 2021
- Vinh Tuy Bridge Intersection Phase 2 (2500 billion): expanded with 4 lanes, expected to be completed in 2023
- The East: Near to arable land and land in Nghia Tru commune
- The West: Adjacent to Ha Noi - Hai Phong highway
- The North: Close to DH.17
- The South: Close to arable land in Tan Tien and Vinh Khuc communes
Location of Vinhomes Ocean Park 2 project, right next to
Ha Noi - Hai Phong highway
Vinhomes Ocean Park 2 urban area is located right next to the new Ha Noi - Hai Phong highway (National Highway 5B), adjacent to many arterial traffic
routes of Gia Lam and Long Bien districts such as 379 - Co Linh street, Thanh Tri bridge in the direction of Phap Van 3 ring highway
This is one of the very convenient locations when located on the fastest and most powerful development road of Hung Yen province Built at one of the
Trang 8locations that directly connects the Hanoi - Hai Phong highway and especially has
an arterial 3.5 ring road running through the center of the project, creating a
favorable urban connection network between leading economic regions of the country
Besides, Vinhomes Ocean Park 2 is only 3 minutes away from Vinhomes Ocean Park 1, which will be convenient to move due to the modern traffic network east of the capital with outstanding growth potential such as: Thanh Tri bridge, Vinh Tuy bridge 1 currently and Vinh Tuy 2 bridges, Ngoc Hoi bridge, Me So bridge preparing to open to traffic in the future
The project is located right near Vinhomes Ocean Park urban area and
Ecopark urban area, only 37km from Hung Yen city, 15km from Hanoi city center via Vinh Tuy bridge From here, residents can easily move to the city center in less than 30 minutes
III Market appraisal
1 Supply and demand analysis
1.1 In terms of quantity
a Supply quantity
The supply of new apartments in Hanoi is expected to increase by about 40% over the same period, reaching 25,600 units in 2022, then will recover to the same level in 2018 - 2019 with 36,100 units in 2023, mainly from the West and East of Hanoi The absorption rate is expected to improve to 90 - 110% in 2022 - 2023, higher than 75 - 90% in 2018 - 2019, equivalent to about 27,000 - 32,000 units consumed per year
For the landed housing market, new supply continues to depend on the number
of large projects launching in 2022 According to CBRE data, the supply of new landed housing market is expected to decrease by about 40% over the same period,
to 1,500 units in 2022 due to the less contribution from Vinhomes than previous years The market is expected to have more large projects for sale
Hung Yen is considered one of the notable emerging areas in the Northern real estate market, along with Bac Ninh and Quang Ninh The supply of new housing
in Hung Yen may reach 2,500 units in 2022, about 16.8% higher than the supply in Hanoi, thanks to contributions from large urban areas
Trang 9b Demand quantity
According to Knight Frank's Wealth Report 2021, it is predicted that in the next 5 years, Viet Nam will still be the country with the fastest growth rate of the super-rich class in the world at about 31%, equivalent to about 511 people owning assets over 30 million USD and more than 25,800 people owning assets over 1 million USD
In 2021, sales of luxury houses accounted for 10% of the real estate market share, more than 14.5% compared to 2020, while prices increased by 20.3% The potential of luxury real estate is further confirmed when this gradually becomes a measure of the "tolerance" and enjoyment of the elite, beyond jewelry, branded clothes, yachts, supercars, This is completely understandable when holding many real estates has always been a symbol of status and wealth over the decades Above all, this is considered a worthwhile choice and a smart investment decision, not only
to increase assets but also as an investment in personal brand and quality living experiences
→ Along with the development rate of the upper class, the luxury real estate segment is forecasted to have a strong growth However, due to the limited number
of luxury and international standard real estate projects on the market, especially in Hanoi, most high-end projects on the market are sought by investors
1.2 In terms of quality
Customers’ criteria when evaluating luxury real estate include high liquidity, construction and design in accordance with safety standards, convenient and beautiful location, prioritizing value of land rather than construction value, real estate projects have transparent legality However, currently, not all luxury urban areas meet all these requirements of customers
2 Target market
2.1 Target customer
With a sales rate of 80 million VND / m2, more specifically as follows:
- Single villas with selling prices in the range of 26 - 40 billion VND
- Dusk villas with selling prices in the range of 14-50 billion VND
- Quadruple villas with selling prices in the range of 16 - 20 billion VND
- Townhouses selling price in the range of 6 - 30 billion VND
- Shophouse selling price in the range of 8 - 45 billion VND
Trang 10- It is expected that the selling price of apartments ranges from 1.8 billion to
5.2 billion, depending on the time, the number of rooms and the view of each
apartment, the selling price of apartments will also fluctuate
Target customers of Vinhomes Ocean Park 2 is the middle class in Viet Nam, with income ranging from 1,400 USD - 3,400 / month (equivalent to about 30-75 million VND / month) According to real estate experts, Vinhomes Ocean Park 2 is the ideal choice for young, knowledgeable people and people with stable incomes The complete transportation system and infrastructure make the process of moving
to the city center to work easier
2.2 Psychology
According to the Real Estate Consumption Psychology report just published
by the batdongsan.com.vn, in Viet Nam, the higher the income, the more real estates they own 80% of customers who already have at least 1 property said they want to use the available money to buy more real estate to invest or save for their children Green space is the criterion that this group of customers are most interested in With real estate owned, buyers appreciate the conditions of amusement parks, near public utilities, while with additional real estate, they choose green space, less crowded areas, and large space
Besides, over 2 years affected by the Covid-19 pandemic, the "taste" of real estate investors has changed drastically Investment decisions are made based more
on criteria related to space, living environment or health benefits A survey by batdongsan.com.vn showed that about 40% of customers need to "move" towards the periphery of urban areas; 60% of customers prefer to choose projects with high density of trees, airy space In fact, green projects also always have outstanding liquidity because customers are willing to spend 4-8% higher costs to own living space close to nature
3 Products
3.1 About the product
Name: Vinhomes Ocean Park 2 – The Empire
Reasons to choose: As Hanoi's inner city becomes increasingly cramped, real
estate creators have been looking for potential "promised lands" in new central areas Besides, the "city within a city" model is not only the key to solving the problem of urban overcrowding but also helps create modern and civilized communities In particular, the East of the Red River gradually became the "focus" of the market,