[Vnbiz] VIETNAM'S LOCAL FIRMS VIE FOR PIECE OF REAL ESTATE PIE

[Phan, Tai]

VIETNAM'S LOCAL FIRMS VIE FOR PIECE OF REAL ESTATE PIE

Monday October 23, 2006, 3:22 pm
 


HANOI, Oct 23 Asia Pulse - Experienced foreign companies dominate large-scale real estate management in Vietnam, but Vietnamese firms are beginning to tap their potential by taking advantage of the small and medium scale project market.

The real estate development company Phat Dat will next month kick off construction for its The EverRich, a high-rise building project. ADVERTISEMENT
 
 

The company has contracted with three foreign companies to manage different aspects of the project.

"We hired CB Richard Ellis, a US real estate services provider, to carry our market research while another US company, NAI Vietnam, is helping with marketing," Le Thanh Vinh, the company's deputy business director told Vietnam News.

He said Chesterton Petty Vietnam is also offering management consultation.

"We invited foreign real estate management companies to participate in our project in the early stages to help us design more effectively," Vinh said.

Phat Dat will also select a foreign management company to run the complex once it is in use.

The 25-storey complex, worth VND1 trillion (US$62 million), is slated for completion in 30 months. The building will offer five floors of retail and service space in addition to 300 apartments.

Luu Thi Thanh Huong, general director for the Linh Phong Construction, Investment and Development Company (Conic), said her company ran into problems when it tried to self-manage its residential buildings in South Saigon in order to reduce costs.

She then hired Chesterton Petty Vietnam for management services and her clients are now satisfied with Chesterton's service and acceptable fee.

Real estate service players like Colliers and CB Richard Ellis are very busy in Vietnam.

The Binh Minh Import-Export Production and Trade Company (Bitexco) is using Colliers' management service for its residential and office project in Ho Chi Minh City, The Manor. Deputy general director Le Phuong My Linh said Colliers was selected based on its success with the Bitexco Office Building on Nguyen Hue Street.

Meanwhile, CB Richard Ellis is offering its services to the retail section of the recently opened Sofitel Vinpearl (Hon Ngoc Viet) Resort in Hon Tre.

(VNA)