Luận văn real estate market and property consultancy in hanoi some strategic solutions for vietnamese property consultancy companies

Figure 3.10: The Consultant with Best Reputation for Financial Services Figure 3.11: The Consultant with Best Reputation for Real Estate Investment Figure 3.12: Most Common Complaint fro

VIETNAM NATIONAL UNIVERSITY, HANOI

SCHOOL OF BUSINESS

4

Nguyen Trung Dung

REAL ESTATE MARKET AND PROPERTY CONSULTANCY IN HANOI, SOME STRATEGIC SOLUTIONS FOR VIETNAMESE

PROPERTY CONSULTANCY COMPANIES

MASTER OF BUSINESS ADMINISTRATION THESIS

Hanoi - 2007

VIETNAM NATIONAL UNIVERSITY, HANOT

SCHOOL OF BUSINESS

Neuyen Trung Dung

REAL ESTATE MARKET AND PROPERTY CONSULTANCY IN ILANOL SOME STRATEGIC SOLUTIONS FOR VIETNAMESE

PROPERTY CONSULTANCY COMPANIES

MAJOR: BUSINESS ADMINISTRATION

CODE: 60 3405

MASTER OF BUSINESS ADMINISTRATION TIESIS

SUPERVISOR: DR TA NGOC CAU

HANOI - 2007

TABLE OF CONTENTS

TABLE OF CONTENTS ues cscssesesstseesistasicarinusinisiicnisianinan stasis

SCOPE AND LIMITATIONS OF THE STUDY seo đ METHODOLOGY se pectuenenatasieeiitieiatianirsnsseen &

1.6 Linc of Real Fstate Related Businoss - "1 L2 THE PROPERTY CONSULTANCY

1.2.1 Why Property Consultancy?

1.2.2 Traditional and Modem View

LIST OF ABBREVIATIONS

GDP: Gross Domestic Product

FDL Foreign Direct investment

WTO: World Trade Organization

Colliers: Colliers International

Savills: Savills Vietnam Ltd

CBRE: CB Richard EHis

viii

2.2 ANGI REAL ESTATE MARKET | 28 2.2.1 Residential Markel

2.2.2 Serviced Apartment Market

3.2.11 Real Fatale Investment

3.3, DEMAND AND KEY CONSIDERATIONS IN SELECTING CONSULTANT 65

3.4.2 Key Maotors In Determining Choice of Consultant - 7

3.4.1 Market Shure & Supplying Compete - - 73

vũ

INTRODUCTION

1 BACKGROUND

Hanoi is an important center of real estate industry in Vietnam and Asia as well

‘Due to great potential, Hanoi real estate market is becoming a favoured destination for domestic and (orcign investinent During the end of the year 2007, real estate market in Hanoi has recovered from a long time of freezing and showed new fever

“It is the third fever” It is easy to see that price of all properties is rising strongly

Tn order to explain the situation and give oul the forceast for the upcoming years, il

is necessary to analyze the market deeply and carefully based on mix-factors Although, it has fluctuated strongly in the pass, ITanoi real estate market is still been scen as a primary market “Boom” demand and positive policies that make Hanoi

real estate market more attractive for investment, especially foreign investment

Hanzi real estate market will continue to boom in many years upcoming that brings great opportunities and threats, Hanoi real estate market is always a center public discussion especially for problems such as: Shortage of supply, escalation of price, speculation, uncleamess of market, and effects of new policies However, practical and theoretical researches on Hanoi real estale markel are few, immaterial and

unsystematic

The properly consultant is an important factor of real ostale markel that leads or plays the role of conductor in real estate market Thanks to the real estate market, property consultancy in Hanoi has become a profitable business Today, the demand for property consultancy in Hanoi is diversified and increasing very fast that put a strong pressure on consultants Key clients those who are users of real estate related consultant services including property developers, property companies, domestic

institutional investors, international investors and larger domestic corporations The

foreign consultancy firms with their good reputation and brand, high

LIST OF TABLES

Table 2.1: Hanni’s population from 2003-2006

Table 2.2: Hanoi’s GDP from 2003-2006

‘Table 2.3: Transaction Rate by Kind of Itroperty

Table 2.4: Price of Sales by Grade

Table 2.5: Rental of Apartments Including Tax (Not serviced apartments) Table 2.6: Supply af Ttanoi Serviced Apartment Market

Table 2.7: Classifying Office Buildings

Table 2.8: Standard Arca & Average Rental Rate for Retail Models In Hano’

‘Table 2.9: The Rate of Retail Format by Area Use

Table 2.11: Hotels in Hanoi 2006

Table 2.12: Average Rental of Industrial Zones

Table 3.1: Reasons for Using a Cansultant

Table 3.2: The Type of Clients That the Consultants Deal With the Most

Table 3.3: The Way CHents Got Real Estate Consultant

Table 3.4: Evaluate the Performance of Current Consultant

LIST OF ABBREVIATIONS

GDP: Gross Domestic Product

FDL Foreign Direct investment

WTO: World Trade Organization

Colliers: Colliers International

Savills: Savills Vietnam Ltd

CBRE: CB Richard EHis

viii

professionalism that become market leaders Forcign consultants can provider a diversified list of services or highly specific services Vietnamese consultancy companies arc also improving their compelence to hold the markel share However, Vietnamese consultancy companies still haven't clear strategies that help them to win in an environment of full opportunities and challenges So far there aren’t still any professional researches on the subject of property consullaney in Vietnam or

Hanoi

2 OBJECTIVES OF THE STUDY

The objectives of this thesis focus on:

For Hanoi real estate market, the general objective of the thesis is to present and

analyse key issues of inarkel at this present time and make some forecast about the

trend of market in the near future in order to get the general objective, the thesis

focuses on the following specific objectives:

e Analyse the effect of macro-environmental factors such as: Political, economic, social, legal and policy

«Analyse the characteristics of demand and supply as well as factors which alTeet demand, supply and price of Hanoi real estate market al this present time ‘The analyses also provide some forecast for some upcoming years,

especially [or the period af 2007-2012

Vor property consultancy in Hanoi, the general objective of the thesis is to present and analyse key issues of property consultancy market and the comparison between

foreign and Vietnamese consullancy companies Ta order to get the generat

objective, the thesis focuses on the following specific objectives:

Analyze the development of property consultancy in Hanoi

@ Present.and analyze key services which are offered in Hanoi

LIST OF ABBREVIATIONS

GDP: Gross Domestic Product

FDL Foreign Direct investment

WTO: World Trade Organization

Colliers: Colliers International

Savills: Savills Vietnam Ltd

CBRE: CB Richard EHis

viii

2.2 ANGI REAL ESTATE MARKET | 28 2.2.1 Residential Markel

2.2.2 Serviced Apartment Market

3.2.11 Real Fatale Investment

3.3, DEMAND AND KEY CONSIDERATIONS IN SELECTING CONSULTANT 65

3.4.2 Key Maotors In Determining Choice of Consultant - 7

3.4.1 Market Shure & Supplying Compete - - 73

vũ

Figure 3.10: The Consultant with Best Reputation for Financial Services

Figure 3.11: The Consultant with Best Reputation for Real Estate Investment Figure 3.12: Most Common Complaint from Clients

Figure 3.13: Importance of Factors Determining Cholce of Consultant

Kigure 3.14; ow Well Cousullants Understand Their Clients

Figure 3.15: Fee Structure Preferred by Clients

Figure 3.16: Market Share by Turnover

Kigure 3.17; Revognition of (ie Consulling Companies

APPENDIX

APPENDIX B: Questions for Clients

APPENDIX B: Questions for Consultants

xi

LIST OF TABLES

Table 2.1: Hanni’s population from 2003-2006

Table 2.2: Hanoi’s GDP from 2003-2006

‘Table 2.3: Transaction Rate by Kind of Itroperty

Table 2.4: Price of Sales by Grade

Table 2.5: Rental of Apartments Including Tax (Not serviced apartments) Table 2.6: Supply af Ttanoi Serviced Apartment Market

Table 2.7: Classifying Office Buildings

Table 2.8: Standard Arca & Average Rental Rate for Retail Models In Hano’

‘Table 2.9: The Rate of Retail Format by Area Use

Table 2.11: Hotels in Hanoi 2006

Table 2.12: Average Rental of Industrial Zones

Table 3.1: Reasons for Using a Cansultant

Table 3.2: The Type of Clients That the Consultants Deal With the Most

Table 3.3: The Way CHents Got Real Estate Consultant

Table 3.4: Evaluate the Performance of Current Consultant

professionalism that become market leaders Forcign consultants can provider a diversified list of services or highly specific services Vietnamese consultancy companies arc also improving their compelence to hold the markel share However, Vietnamese consultancy companies still haven't clear strategies that help them to win in an environment of full opportunities and challenges So far there aren’t still any professional researches on the subject of property consullaney in Vietnam or

Hanoi

2 OBJECTIVES OF THE STUDY

The objectives of this thesis focus on:

For Hanoi real estate market, the general objective of the thesis is to present and

analyse key issues of inarkel at this present time and make some forecast about the

trend of market in the near future in order to get the general objective, the thesis

focuses on the following specific objectives:

e Analyse the effect of macro-environmental factors such as: Political, economic, social, legal and policy

«Analyse the characteristics of demand and supply as well as factors which alTeet demand, supply and price of Hanoi real estate market al this present time ‘The analyses also provide some forecast for some upcoming years,

especially [or the period af 2007-2012

Vor property consultancy in Hanoi, the general objective of the thesis is to present and analyse key issues of property consultancy market and the comparison between

foreign and Vietnamese consullancy companies Ta order to get the generat

objective, the thesis focuses on the following specific objectives:

Analyze the development of property consultancy in Hanoi

@ Present.and analyze key services which are offered in Hanoi

2.2 ANGI REAL ESTATE MARKET | 28 2.2.1 Residential Markel

2.2.2 Serviced Apartment Market

3.2.11 Real Fatale Investment

3.3, DEMAND AND KEY CONSIDERATIONS IN SELECTING CONSULTANT 65

3.4.2 Key Maotors In Determining Choice of Consultant - 7

3.4.1 Market Shure & Supplying Compete - - 73

vũ

LIST OF TABLES

Table 2.1: Hanni’s population from 2003-2006

Table 2.2: Hanoi’s GDP from 2003-2006

‘Table 2.3: Transaction Rate by Kind of Itroperty

Table 2.4: Price of Sales by Grade

Table 2.5: Rental of Apartments Including Tax (Not serviced apartments) Table 2.6: Supply af Ttanoi Serviced Apartment Market

Table 2.7: Classifying Office Buildings

Table 2.8: Standard Arca & Average Rental Rate for Retail Models In Hano’

‘Table 2.9: The Rate of Retail Format by Area Use

Table 2.11: Hotels in Hanoi 2006

Table 2.12: Average Rental of Industrial Zones

Table 3.1: Reasons for Using a Cansultant

Table 3.2: The Type of Clients That the Consultants Deal With the Most

Table 3.3: The Way CHents Got Real Estate Consultant

Table 3.4: Evaluate the Performance of Current Consultant

Figure 3.10: The Consultant with Best Reputation for Financial Services

Figure 3.11: The Consultant with Best Reputation for Real Estate Investment Figure 3.12: Most Common Complaint from Clients

Figure 3.13: Importance of Factors Determining Cholce of Consultant

Kigure 3.14; ow Well Cousullants Understand Their Clients

Figure 3.15: Fee Structure Preferred by Clients

Figure 3.16: Market Share by Turnover

Kigure 3.17; Revognition of (ie Consulling Companies

APPENDIX

APPENDIX B: Questions for Clients

APPENDIX B: Questions for Consultants

xi

professionalism that become market leaders Forcign consultants can provider a diversified list of services or highly specific services Vietnamese consultancy companies arc also improving their compelence to hold the markel share However, Vietnamese consultancy companies still haven't clear strategies that help them to win in an environment of full opportunities and challenges So far there aren’t still any professional researches on the subject of property consullaney in Vietnam or

Hanoi

2 OBJECTIVES OF THE STUDY

The objectives of this thesis focus on:

For Hanoi real estate market, the general objective of the thesis is to present and

analyse key issues of inarkel at this present time and make some forecast about the

trend of market in the near future in order to get the general objective, the thesis

focuses on the following specific objectives:

e Analyse the effect of macro-environmental factors such as: Political, economic, social, legal and policy

«Analyse the characteristics of demand and supply as well as factors which alTeet demand, supply and price of Hanoi real estate market al this present time ‘The analyses also provide some forecast for some upcoming years,

especially [or the period af 2007-2012

Vor property consultancy in Hanoi, the general objective of the thesis is to present and analyse key issues of property consultancy market and the comparison between

foreign and Vietnamese consullancy companies Ta order to get the generat

objective, the thesis focuses on the following specific objectives:

Analyze the development of property consultancy in Hanoi

@ Present.and analyze key services which are offered in Hanoi

Figure 3.10: The Consultant with Best Reputation for Financial Services

Figure 3.11: The Consultant with Best Reputation for Real Estate Investment Figure 3.12: Most Common Complaint from Clients

Figure 3.13: Importance of Factors Determining Cholce of Consultant

Kigure 3.14; ow Well Cousullants Understand Their Clients

Figure 3.15: Fee Structure Preferred by Clients

Figure 3.16: Market Share by Turnover

Kigure 3.17; Revognition of (ie Consulling Companies

APPENDIX

APPENDIX B: Questions for Clients

APPENDIX B: Questions for Consultants

xi

Figure 3.10: The Consultant with Best Reputation for Financial Services

Figure 3.11: The Consultant with Best Reputation for Real Estate Investment Figure 3.12: Most Common Complaint from Clients

Figure 3.13: Importance of Factors Determining Cholce of Consultant

Kigure 3.14; ow Well Cousullants Understand Their Clients

Figure 3.15: Fee Structure Preferred by Clients

Figure 3.16: Market Share by Turnover

Kigure 3.17; Revognition of (ie Consulling Companies

APPENDIX

APPENDIX B: Questions for Clients

APPENDIX B: Questions for Consultants

xi

LIST OF TABLES

Table 2.1: Hanni’s population from 2003-2006

Table 2.2: Hanoi’s GDP from 2003-2006

‘Table 2.3: Transaction Rate by Kind of Itroperty

Table 2.4: Price of Sales by Grade

Table 2.5: Rental of Apartments Including Tax (Not serviced apartments) Table 2.6: Supply af Ttanoi Serviced Apartment Market

Table 2.7: Classifying Office Buildings

Table 2.8: Standard Arca & Average Rental Rate for Retail Models In Hano’

‘Table 2.9: The Rate of Retail Format by Area Use

Table 2.11: Hotels in Hanoi 2006

Table 2.12: Average Rental of Industrial Zones

Table 3.1: Reasons for Using a Cansultant

Table 3.2: The Type of Clients That the Consultants Deal With the Most

Table 3.3: The Way CHents Got Real Estate Consultant

Table 3.4: Evaluate the Performance of Current Consultant

LIST OF TABLES

Table 2.1: Hanni’s population from 2003-2006

Table 2.2: Hanoi’s GDP from 2003-2006

‘Table 2.3: Transaction Rate by Kind of Itroperty

Table 2.4: Price of Sales by Grade

Table 2.5: Rental of Apartments Including Tax (Not serviced apartments) Table 2.6: Supply af Ttanoi Serviced Apartment Market

Table 2.7: Classifying Office Buildings

Table 2.8: Standard Arca & Average Rental Rate for Retail Models In Hano’

‘Table 2.9: The Rate of Retail Format by Area Use

Table 2.11: Hotels in Hanoi 2006

Table 2.12: Average Rental of Industrial Zones

Table 3.1: Reasons for Using a Cansultant

Table 3.2: The Type of Clients That the Consultants Deal With the Most

Table 3.3: The Way CHents Got Real Estate Consultant

Table 3.4: Evaluate the Performance of Current Consultant

professionalism that become market leaders Forcign consultants can provider a diversified list of services or highly specific services Vietnamese consultancy companies arc also improving their compelence to hold the markel share However, Vietnamese consultancy companies still haven't clear strategies that help them to win in an environment of full opportunities and challenges So far there aren’t still any professional researches on the subject of property consullaney in Vietnam or

Hanoi

2 OBJECTIVES OF THE STUDY

The objectives of this thesis focus on:

For Hanoi real estate market, the general objective of the thesis is to present and

analyse key issues of inarkel at this present time and make some forecast about the

trend of market in the near future in order to get the general objective, the thesis

focuses on the following specific objectives:

e Analyse the effect of macro-environmental factors such as: Political, economic, social, legal and policy

«Analyse the characteristics of demand and supply as well as factors which alTeet demand, supply and price of Hanoi real estate market al this present time ‘The analyses also provide some forecast for some upcoming years,

especially [or the period af 2007-2012

Vor property consultancy in Hanoi, the general objective of the thesis is to present and analyse key issues of property consultancy market and the comparison between

foreign and Vietnamese consullancy companies Ta order to get the generat

objective, the thesis focuses on the following specific objectives:

Analyze the development of property consultancy in Hanoi

@ Present.and analyze key services which are offered in Hanoi

LIST OF FIGURES

Kigure 1: Thesis Outline

Figure 1.1: The Adjustment Mechanism of Real Estate Market

Figure 1.2: Traditional and Modern View of the Real Estate Market

Figure 1.3: Porter's Five Forces Madel

Figure 1.4: Another Model of Industry Analysis

Figure 1.3: SWOT Analysis

Wigure 2.1:

Inusing Supply Vs Actual Demand in Manat

Kigure 2.2: Hanoi New Stock For 2008-2010; 7,634 units

Figure 2.3: Trend of Apartment & Villa Supply 2007-2020

Figure 2.4: Demand and Rentals of Hanoi Serviced Apartment Market

Kigure 2.5; Limited Supply during Period 1998-2007

Figure 2.6: Future Supply of Hanoi Serviced Apartment Market

Figure 2.7: Monthly Take up and Occupancy Rate of A&R Office

Figure 2.8: TĨanat's New Supply of Grade A&D Office

Figure 2.9: Average Rental (Net) of Grade A&B Office

Figure 2.10: New Stock of Grade A, B&C Office (2007-2010)

LA PER MON FI)

Kigure 2.12; RETAIL SALES & YEAR ON YEAR GROWTH RATE DURING 1996-2007

Migure 2.11: INCOME GROW’

IER CAL

Figure 2.13: Hanoi’s GDP per capita & Population

Figure 2.14: Leaseable Area and Rental Rates of Shopping Centers in Hanci

Figure 2.15: Stgnificant Future Shopping Center in Tanot

Figure 2.16: Comulative Stock and New Supply of 4, 5 Star Hotel Room

Figure 2.17: Requirement for Hotel Room (2005-2010)

e Consultant with Best Reputation for

Wigure 3.1:

Kigure 3.2: The Consultant with Best Reputation for Open Brokerage/Agency

Figure 3.3: The Consultant with Best Reputation for Tenant Representation

elusive Agency

Figure 3.4: The Consultant with Best Reputation for Property Management

Kigure 3.3; The Consultant with Best Reputalion for Research

Figure 3.6: The Consultant with Best Reputation for Valuation

Figure 3.7 the Consultant with Best Reputation for Investment Sales&e Acquisition

The Consultant with Best Reputation for Vraject Devetapment

¢ Consultant with Best Reputation for Legal issues

INTRODUCTION

1 BACKGROUND

Hanoi is an important center of real estate industry in Vietnam and Asia as well

‘Due to great potential, Hanoi real estate market is becoming a favoured destination for domestic and (orcign investinent During the end of the year 2007, real estate market in Hanoi has recovered from a long time of freezing and showed new fever

“It is the third fever” It is easy to see that price of all properties is rising strongly

Tn order to explain the situation and give oul the forceast for the upcoming years, il

is necessary to analyze the market deeply and carefully based on mix-factors Although, it has fluctuated strongly in the pass, ITanoi real estate market is still been scen as a primary market “Boom” demand and positive policies that make Hanoi

real estate market more attractive for investment, especially foreign investment

Hanzi real estate market will continue to boom in many years upcoming that brings great opportunities and threats, Hanoi real estate market is always a center public discussion especially for problems such as: Shortage of supply, escalation of price, speculation, uncleamess of market, and effects of new policies However, practical and theoretical researches on Hanoi real estale markel are few, immaterial and

unsystematic

The properly consultant is an important factor of real ostale markel that leads or plays the role of conductor in real estate market Thanks to the real estate market, property consultancy in Hanoi has become a profitable business Today, the demand for property consultancy in Hanoi is diversified and increasing very fast that put a strong pressure on consultants Key clients those who are users of real estate related consultant services including property developers, property companies, domestic

institutional investors, international investors and larger domestic corporations The

foreign consultancy firms with their good reputation and brand, high

LIST OF TABLES

Table 2.1: Hanni’s population from 2003-2006

Table 2.2: Hanoi’s GDP from 2003-2006

‘Table 2.3: Transaction Rate by Kind of Itroperty

Table 2.4: Price of Sales by Grade

Table 2.5: Rental of Apartments Including Tax (Not serviced apartments) Table 2.6: Supply af Ttanoi Serviced Apartment Market

Table 2.7: Classifying Office Buildings

Table 2.8: Standard Arca & Average Rental Rate for Retail Models In Hano’

‘Table 2.9: The Rate of Retail Format by Area Use

Table 2.11: Hotels in Hanoi 2006

Table 2.12: Average Rental of Industrial Zones

Table 3.1: Reasons for Using a Cansultant

Table 3.2: The Type of Clients That the Consultants Deal With the Most

Table 3.3: The Way CHents Got Real Estate Consultant

Table 3.4: Evaluate the Performance of Current Consultant

LIST OF FIGURES

Kigure 1: Thesis Outline

Figure 1.1: The Adjustment Mechanism of Real Estate Market

Figure 1.2: Traditional and Modern View of the Real Estate Market

Figure 1.3: Porter's Five Forces Madel

Figure 1.4: Another Model of Industry Analysis

Figure 1.3: SWOT Analysis

Wigure 2.1:

Inusing Supply Vs Actual Demand in Manat

Kigure 2.2: Hanoi New Stock For 2008-2010; 7,634 units

Figure 2.3: Trend of Apartment & Villa Supply 2007-2020

Figure 2.4: Demand and Rentals of Hanoi Serviced Apartment Market

Kigure 2.5; Limited Supply during Period 1998-2007

Figure 2.6: Future Supply of Hanoi Serviced Apartment Market

Figure 2.7: Monthly Take up and Occupancy Rate of A&R Office

Figure 2.8: TĨanat's New Supply of Grade A&D Office

Figure 2.9: Average Rental (Net) of Grade A&B Office

Figure 2.10: New Stock of Grade A, B&C Office (2007-2010)

LA PER MON FI)

Kigure 2.12; RETAIL SALES & YEAR ON YEAR GROWTH RATE DURING 1996-2007

Migure 2.11: INCOME GROW’

IER CAL

Figure 2.13: Hanoi’s GDP per capita & Population

Figure 2.14: Leaseable Area and Rental Rates of Shopping Centers in Hanci

Figure 2.15: Stgnificant Future Shopping Center in Tanot

Figure 2.16: Comulative Stock and New Supply of 4, 5 Star Hotel Room

Figure 2.17: Requirement for Hotel Room (2005-2010)

e Consultant with Best Reputation for

Wigure 3.1:

Kigure 3.2: The Consultant with Best Reputation for Open Brokerage/Agency

Figure 3.3: The Consultant with Best Reputation for Tenant Representation

elusive Agency

Figure 3.4: The Consultant with Best Reputation for Property Management

Kigure 3.3; The Consultant with Best Reputalion for Research

Figure 3.6: The Consultant with Best Reputation for Valuation

Figure 3.7 the Consultant with Best Reputation for Investment Sales&e Acquisition

The Consultant with Best Reputation for Vraject Devetapment

¢ Consultant with Best Reputation for Legal issues

professionalism that become market leaders Forcign consultants can provider a diversified list of services or highly specific services Vietnamese consultancy companies arc also improving their compelence to hold the markel share However, Vietnamese consultancy companies still haven't clear strategies that help them to win in an environment of full opportunities and challenges So far there aren’t still any professional researches on the subject of property consullaney in Vietnam or

Hanoi

2 OBJECTIVES OF THE STUDY

The objectives of this thesis focus on:

For Hanoi real estate market, the general objective of the thesis is to present and

analyse key issues of inarkel at this present time and make some forecast about the

trend of market in the near future in order to get the general objective, the thesis

focuses on the following specific objectives:

e Analyse the effect of macro-environmental factors such as: Political, economic, social, legal and policy

«Analyse the characteristics of demand and supply as well as factors which alTeet demand, supply and price of Hanoi real estate market al this present time ‘The analyses also provide some forecast for some upcoming years,

especially [or the period af 2007-2012

Vor property consultancy in Hanoi, the general objective of the thesis is to present and analyse key issues of property consultancy market and the comparison between

foreign and Vietnamese consullancy companies Ta order to get the generat

objective, the thesis focuses on the following specific objectives:

Analyze the development of property consultancy in Hanoi

@ Present.and analyze key services which are offered in Hanoi

INTRODUCTION

1 BACKGROUND

Hanoi is an important center of real estate industry in Vietnam and Asia as well

‘Due to great potential, Hanoi real estate market is becoming a favoured destination for domestic and (orcign investinent During the end of the year 2007, real estate market in Hanoi has recovered from a long time of freezing and showed new fever

“It is the third fever” It is easy to see that price of all properties is rising strongly

Tn order to explain the situation and give oul the forceast for the upcoming years, il

is necessary to analyze the market deeply and carefully based on mix-factors Although, it has fluctuated strongly in the pass, ITanoi real estate market is still been scen as a primary market “Boom” demand and positive policies that make Hanoi

real estate market more attractive for investment, especially foreign investment

Hanzi real estate market will continue to boom in many years upcoming that brings great opportunities and threats, Hanoi real estate market is always a center public discussion especially for problems such as: Shortage of supply, escalation of price, speculation, uncleamess of market, and effects of new policies However, practical and theoretical researches on Hanoi real estale markel are few, immaterial and

unsystematic

The properly consultant is an important factor of real ostale markel that leads or plays the role of conductor in real estate market Thanks to the real estate market, property consultancy in Hanoi has become a profitable business Today, the demand for property consultancy in Hanoi is diversified and increasing very fast that put a strong pressure on consultants Key clients those who are users of real estate related consultant services including property developers, property companies, domestic

institutional investors, international investors and larger domestic corporations The

foreign consultancy firms with their good reputation and brand, high

LIST OF ABBREVIATIONS

GDP: Gross Domestic Product

FDL Foreign Direct investment

WTO: World Trade Organization

Colliers: Colliers International

Savills: Savills Vietnam Ltd

CBRE: CB Richard EHis

viii

Figure 3.10: The Consultant with Best Reputation for Financial Services

Figure 3.11: The Consultant with Best Reputation for Real Estate Investment Figure 3.12: Most Common Complaint from Clients

Figure 3.13: Importance of Factors Determining Cholce of Consultant

Kigure 3.14; ow Well Cousullants Understand Their Clients

Figure 3.15: Fee Structure Preferred by Clients

Figure 3.16: Market Share by Turnover

Kigure 3.17; Revognition of (ie Consulling Companies

APPENDIX

APPENDIX B: Questions for Clients

APPENDIX B: Questions for Consultants

xi

LIST OF FIGURES

Kigure 1: Thesis Outline

Figure 1.1: The Adjustment Mechanism of Real Estate Market

Figure 1.2: Traditional and Modern View of the Real Estate Market

Figure 1.3: Porter's Five Forces Madel

Figure 1.4: Another Model of Industry Analysis

Figure 1.3: SWOT Analysis

Wigure 2.1:

Inusing Supply Vs Actual Demand in Manat

Kigure 2.2: Hanoi New Stock For 2008-2010; 7,634 units

Figure 2.3: Trend of Apartment & Villa Supply 2007-2020

Figure 2.4: Demand and Rentals of Hanoi Serviced Apartment Market

Kigure 2.5; Limited Supply during Period 1998-2007

Figure 2.6: Future Supply of Hanoi Serviced Apartment Market

Figure 2.7: Monthly Take up and Occupancy Rate of A&R Office

Figure 2.8: TĨanat's New Supply of Grade A&D Office

Figure 2.9: Average Rental (Net) of Grade A&B Office

Figure 2.10: New Stock of Grade A, B&C Office (2007-2010)

LA PER MON FI)

Kigure 2.12; RETAIL SALES & YEAR ON YEAR GROWTH RATE DURING 1996-2007

Migure 2.11: INCOME GROW’

IER CAL

Figure 2.13: Hanoi’s GDP per capita & Population

Figure 2.14: Leaseable Area and Rental Rates of Shopping Centers in Hanci

Figure 2.15: Stgnificant Future Shopping Center in Tanot

Figure 2.16: Comulative Stock and New Supply of 4, 5 Star Hotel Room

Figure 2.17: Requirement for Hotel Room (2005-2010)

e Consultant with Best Reputation for

Wigure 3.1:

Kigure 3.2: The Consultant with Best Reputation for Open Brokerage/Agency

Figure 3.3: The Consultant with Best Reputation for Tenant Representation

elusive Agency

Figure 3.4: The Consultant with Best Reputation for Property Management

Kigure 3.3; The Consultant with Best Reputalion for Research

Figure 3.6: The Consultant with Best Reputation for Valuation

Figure 3.7 the Consultant with Best Reputation for Investment Sales&e Acquisition

The Consultant with Best Reputation for Vraject Devetapment

¢ Consultant with Best Reputation for Legal issues

INTRODUCTION

1 BACKGROUND

Hanoi is an important center of real estate industry in Vietnam and Asia as well

‘Due to great potential, Hanoi real estate market is becoming a favoured destination for domestic and (orcign investinent During the end of the year 2007, real estate market in Hanoi has recovered from a long time of freezing and showed new fever

“It is the third fever” It is easy to see that price of all properties is rising strongly

Tn order to explain the situation and give oul the forceast for the upcoming years, il

is necessary to analyze the market deeply and carefully based on mix-factors Although, it has fluctuated strongly in the pass, ITanoi real estate market is still been scen as a primary market “Boom” demand and positive policies that make Hanoi

real estate market more attractive for investment, especially foreign investment

Hanzi real estate market will continue to boom in many years upcoming that brings great opportunities and threats, Hanoi real estate market is always a center public discussion especially for problems such as: Shortage of supply, escalation of price, speculation, uncleamess of market, and effects of new policies However, practical and theoretical researches on Hanoi real estale markel are few, immaterial and

unsystematic

The properly consultant is an important factor of real ostale markel that leads or plays the role of conductor in real estate market Thanks to the real estate market, property consultancy in Hanoi has become a profitable business Today, the demand for property consultancy in Hanoi is diversified and increasing very fast that put a strong pressure on consultants Key clients those who are users of real estate related consultant services including property developers, property companies, domestic

institutional investors, international investors and larger domestic corporations The

foreign consultancy firms with their good reputation and brand, high

2.2 ANGI REAL ESTATE MARKET | 28 2.2.1 Residential Markel

2.2.2 Serviced Apartment Market

3.2.11 Real Fatale Investment

3.3, DEMAND AND KEY CONSIDERATIONS IN SELECTING CONSULTANT 65

3.4.2 Key Maotors In Determining Choice of Consultant - 7

3.4.1 Market Shure & Supplying Compete - - 73

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Figure 3.10: The Consultant with Best Reputation for Financial Services

Figure 3.11: The Consultant with Best Reputation for Real Estate Investment Figure 3.12: Most Common Complaint from Clients

Figure 3.13: Importance of Factors Determining Cholce of Consultant

Kigure 3.14; ow Well Cousullants Understand Their Clients

Figure 3.15: Fee Structure Preferred by Clients

Figure 3.16: Market Share by Turnover

Kigure 3.17; Revognition of (ie Consulling Companies

APPENDIX

APPENDIX B: Questions for Clients

APPENDIX B: Questions for Consultants

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Figure 3.10: The Consultant with Best Reputation for Financial Services

Figure 3.11: The Consultant with Best Reputation for Real Estate Investment Figure 3.12: Most Common Complaint from Clients

Figure 3.13: Importance of Factors Determining Cholce of Consultant

Kigure 3.14; ow Well Cousullants Understand Their Clients

Figure 3.15: Fee Structure Preferred by Clients

Figure 3.16: Market Share by Turnover

Kigure 3.17; Revognition of (ie Consulling Companies

APPENDIX

APPENDIX B: Questions for Clients

APPENDIX B: Questions for Consultants

xi

LIST OF ABBREVIATIONS

GDP: Gross Domestic Product

FDL Foreign Direct investment

WTO: World Trade Organization

Colliers: Colliers International

Savills: Savills Vietnam Ltd

CBRE: CB Richard EHis

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