News roundup: Vietnam’s real estate businesses seek to restructure debt, and other updates

For PropertyGuru’s real estate news roundup, real estate businesses forced to transfer or divest capital to restructure debt have made Vietnam’s real estate market more vibrant. In other headlines, Malaysia’s property sector has demonstrated commendable mid-year performance. Lastly, the Philippines’ House Leader wants to allow longer-term land leases for foreigners.

Vietnam’s real estate businesses seek a restructuring of overdue, coming due bonds

The pressure of maturing bonds is still weighing heavily on real estate businesses in Ho Chi Minh City, forcing them to find solutions to restructure debt. The fact that these real estate businesses are forced to transfer or divest capital from real estate projects to restructure debt has made the real estate market in the city more vibrant recently.

VietnamPlus reports VRC Real Estate and Investment Joint Stock Company is transferring part or all of the compensated land area of an urban area project in Nha Be district. It is expected that the company will get at least VND747 billion (about USD30 million) after the transfer. Previously, VRC also approved the transfer of part of the ADC residential project in District 7 for a price no lower than VND800 billion (USD32.1 million).

Malaysia’s property sector shows strong performance in the first half of 2024

Malaysia’s property sector has demonstrated commendable mid-year performance, signalling a promising trajectory for the industry fuelling by strategic developments and growing investor interest, according to Knight Frank Malaysia.

Its group managing director Keith Ooi cited the robust economic growth, significant investments and adaptive market trends as key catalysts supporting this growth.

“Malaysia continues to show promising growth prospects, bolstered by strategic investments, infrastructure improvements and evolving market dynamics,” he said in Bernama.

Philippines’ House leader backs longer-term land lease to foreigners

On Thursday, 4th of July, the House of Representatives Ways and Means Committee chairperson expressed support for the proposal to allow the long-term lease of land to foreigners. In a statement, committee chair, Albay Rep. Joey Salceda, said there should be no limits to the right to lease property. “It’s a cancellable contract that can be subject to rules and safeguards anyway,” Salceda said.

He was referring to Speaker Martin Romualdez’s proposal to raise the maximum period of land lease for foreigners to encourage more investments.

According to PNA, under existing laws, foreign investors may lease private lands for 50 years renewable for another 25 years for the establishment of industrial estates, factories, plants, and land development for industrial, or commercial use, tourism, and similar priority productive endeavours. The leased premises shall be used solely for investment upon the parties’ mutual agreement.

The Property Report editors wrote this article. For more information, email: [email protected].