Vietnam Real Estate Market Update January 24, 2008 In Nha Be District, a rural area of Ho Chi Minh City, land prices have gone through the roof as of January of 2008. For a piece of land of 1,000 square meters which was worth some $US 30,000 in early 2006, may now worth 10 times as much. The real estate and infrastructure developments in recent years in South Saigon might have pushed land pricing in the vicinities. The increases in land prices have been noticed in these districts: 2, 7, Nha Be and Binh Chanh. Investor speculations, population growth and an influx of foreign investments have been recognized as key factors contributing to the increase in Vietnam real estate. Other causes that propel property prices include demand-supply issue, government regulations, the opening of Thu Thiem Bridge in early 2008, and the down turn in Vietnam stock market. The VNINDEX (Ho Chi Minh Stock Index) has dropped some 30% since March 2007. Experts predicts that both residential and office rentals are to rise considerably in 2008. Vietnam major cities, Ho Chi Minh City (Saigon), and Ha Noi, are now among the most expensive real estate markets in the world. Vietnam economy is among the most robust economies in the world with estimated GDP growth rate of above 8% in 2007 and this rate is expected to continue in 2008.