Foreign investors dominate Vietnamese real estate market

Up to 90 per cent of foreign companies have invested in the real estate sector such as marketing,
distribution, appraisal, investment consultancy and project management, while most domestic
realty firms are newly set up. Currently three companies, namely Savills Vietnam, Colliers and
CBRE, hold 90 per cent of the Vietnamese realty market share. They have much experience in
realty business. Savills has 15 years experience in Vietnam and tops the country in managing
Vietnamese service apartments.
Meanwhile, CBRE also has advantages in evaluation and office-for-rent office management with
nine years experience. With 14 years of operation in Vietnam, Colliers specializes in luxury
apartment management. Meanwhile, the number of local realty firms remains limited, with
several outstanding names such as Megagroup, Viet Rees, Eden and Him Lam. Despite a great
number of realty consulting and brokering companies established in recent years, their operation
scale is very limited and disparate.
According to the General Statistics Office of Vietnam, 2008 was considered a successful year of
foreign investment in the realty sector in Vietnam, which accounted for up to 88 per cent of the
country’s total FDI. The biggest projects included Ho Tram worth US$4.2 billion by Asian Coast
Development; golf course and sea tourism projects totalling US$130 million by VinaCapital and
its other projects capitalized at US$350 million in total near the Han River.
Despite the global economic downturn, South Korean, Singaporean, Japanese and Taiwanese
companies have continued invested in big tourism property projects in Vietnam. Meanwhile,
investors from the US, China, Switzerland and the Middle East did not miss opportunities to
invest in this sector. The US’s Oak Tree Group has recently said that it plans to pour US$5
billion into Sunrise Danang tourism resort.
How to attract investment of overseas Vietnamese?
Currently, around four million Vietnamese people are living in foreign countries and territories.
Meanwhile, only 140 among those were allowed to buy houses in Vietnam by the end of last
year. What is the barrier for them to invest in the country’s realty sector? Jim Hoang Nguyen, an
American Vietnamese living in California, said realty prices in Vietnam are very high and its
administrative procedures remain complicated, which discourages him from investing in the
sector. He added that, with US$100,000, he can buy a villa of between 250-300 m2 in the US,
while, the money is only enough to buy several dozen square metres of land in Vietnam. The
money is not even enough to buy a 100-square metre apartment in Vietnam.
A legal document on allowing overseas Vietnamese to buy houses and land in Vietnam took
effect from July 1, 2009, realty price hikes lessen foreign investment in the realty sector, which
was attributed to an on-year fall of 12.8 per cent in overseas remittance at US$6.283 billion. Ho
Chi Minh City, which has the biggest number of people living abroad, received US$3.2 billion of
overseas remittances, lower than the nearly US$5 billion in 2008. Last year, only 10 overseas
Vietnamese bought houses in Vietnam and all in Ho Chi Minh City. According to the Committee
for Overseas Vietnamese’s Ho Chi Minh City office, since 2006, just 140 overseas Vietnamese
invested in realty in Vietnam, including 100 in Ho Chi Minh City. Real estate prices in Hanoi are
much higher than those of Ho Chi Minh City, which explain why Ho Chi Minh City’s
investment rate is higher than Hanoi’s.
However, realty experts said, the document took effect but its guiding circulars have not yet been
passed, which affects foreign investment in the realty sector. Under the law, “Overseas
Vietnamese have rights to own houses attached to land ownership”, which many people
misunderstand to mean they are only allowed to buy houses, not land. Thus, the law should be
clarified to ease overseas Vietnamese concerns.
Nguyen Manh Ha, Head of the Construction Ministry’s Housing and Real Estate Market
Management Department, said the Ministry is compiling regulations on administrative procedure
reforms enabling overseas Vietnamese who live in Vietnam for three months to buy houses. The
Ministry is also proposing the government add two groups which can buy many houses in
Vietnam, comprising of people with special skills that the state needs and people whose spouse
lives in the country.
Legal improvements will hopefully boost overseas Vietnamese investment in the domestic real
estate sector.
•

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Singapore's CapitaLand to invest 47.7 mln sgd in Vietnam

2007-08-11 17:52:00
SINGAPORE (Thomson Financial) - Southeast Asia's biggest property developer
CapitaLand said Friday it has, through unit CapitaLand (Vietnam ) Holdings,
entered into a conditional joint venture agreement with an affiliate of Vietnam's
Azure City Co, to develop a residential site in Ho Chi Minh City .CapitaLand said it
will inject 47.7 million Singapore dollars for a 75 percent stake in the joint venture
company.
Read more: invest

FI keeps flowing into Vietnam

2007-08-09 17:48:00
Two more real estate and tourism projects by VinaCapital and the American KOR
Group, with capital totalling US$525 million, will be launched in the central city of
Da Nang.The city authority on August 2 officially approved the VinaCapital Fund to
invest in the construction of the VinaCapital Square Urban Area in An Bac Hai
Precinct, Son Tra Peninsula, with $325 million in capital, according to the People´s
Committee office in Da Nang.
Read more: keeps , Vietnam
Singapore tops list of ASEAN investors in Vietnam
2007-08-08 05:05:00
The city state, according to the latest statistics from the Department of Foreign
Investment, has over the first seven months of this year pumped over 1.3 billion
USD into 44 projects in Vietnam , coming in at second among 39 countries and
territories investing in Vietnam over the period.An official from the Singapore an
General Consulate in Ho Chi Minh City said that Singapore's experience in housing
was due to his country's limited land acreage. According to the Department of
Foreign Investment, the Vietnam-Singapore Industrial Zone Joint Venture and the
Nasteelvina Company - a joint venture in steel production - are some of
Singapore's bigger projects that are already reaping heavy benefits for the investor
and the host country alike.
Read more: ASEAN

Domestic consortium forms real estate firm

2007-08-05 18:44:00
A consortium of State-owned and private enterprises has launched a new real
estate development company with a chartered capital of VND 1 trillion (US $62.5
million).The Lilama Land Joint Stock Co was co-founded by the Vietnam
Construction and Machinery Installation Corporation (Lilama), Vietnam National
Tobacco Corporation (Vinataba), Hanoi Beer, Alcohol and Beverage Corporation
(Habeco), Tan Long Ltd Co, the Vietnam National Construction Consultants Group,
and the Hanoi Building Commercial Joint Stock Bank (Habubank).The firm will
focus on major real estate projects such as new urban areas, shopping centres,
high-rise offices and apartments, and industrial and economic zones, as well as
offering consulting services.
Read more: Domestic

New real estate fever not likely

2007-08-03 19:59:00
VietNamNet Bridge – Nguyen Manh Ha, Head of the House Management
Department of the Ministry of Construction (MoC) brushed aside fears that real
estate prices would skyrocket if a plan that permits foreigners to buy homes in the
country by 2008 wins government approval. Under the plan foreign nationals will
only be permitted to purchase one home that may be sold, gifted, mortgaged, or
left in inheritance but will not be permitted to lease the property.
Read more: likely

Billions coming in, but who knows for sure?

2007-08-01 23:46:00
While the Ministry of Planning and Investment (MPI) joyfully announced the
monthly inflow of foreign direct investment (FDI) into Vietnam, the State Bank of
Vietnam (SBV) has nearly ‘blockaded’ all information about the Foreign
Institutional Investment (FII) flow. According to statistics of the foreign bank
which is managing the largest number of accounts for financial investment
institutions, there are around 74 foreign investment funds pouring money into
Vietnam, including 22 funds that have been established so far this year. Among
new funds are Sumitomo Misui Vietnam, Fullerton Vietnam Fund, TongYang
Vietnam, Maxford Growth Vietnam Focus, Vietnam Resource, Credit Agricole Fund.
Read more: Billions

A US$65 million luxury hotel complex broke ground in the Hanoi suburbs Saturday
2007-07-30 22:50:00
The 21-storey, 363-room Crown Plaza will share a 13,000 sq.m plot in Tu Liem
district near the National Sport Complex with a 20-storey office block and a 14-
storey apartment tower.The complex is set to open in 2009, according to Tran
Hong Quan Company, the project’s main investor.The developer said the Crown
Plaza was designed to international standards and would meet the Vietnam
National Administration of Tourism’s five-start hotel criteria.It would be managed
by the Intercontinental Hotels Group.The construction of the Crown Plaza is one of
several major high-end hotel projects slated for Hanoi in the year’s second half. In
total, the hotel projects are worth over $1.17 billion.
Read more: broke , ground , million , Saturday

Local firms taking bigger piece of real estate pie

2007-07-26 17:32:00
VietNamNet Bridge - Viet Nam’s high-end residential and commercial property
developments that were once the exclusive domain of multinational developers are
now witnessing the increasing emergence of local firms that are claiming a larger
stake in one of the world’s fastest growing markets.
Read more: Local , piece

Funding house purchasing deals, good business for banks

2007-07-24 17:11:00
Many people have become disappointed when hearing about the interest rate
policies applied by the banks . They said that the interest rates proved to be too
high. Only those who have high incomes and want to buy luxurious apartments
and houses can afford such high interest rates. Dau Ngoc Tinh, a staff of a
garment company, related he needed to prove that he had the income of
VND20mil a month to get the loan of VND200mil ($1,250) with the interest rate of
1.1% per month. Every month, he will have to pay VND6mil ($375) in both
principal and interest. However, his actual income is VND10mil per month, and he
only can borrow money with the interest rate of 1.15%.
Read more: Funding

Online real estate trading is set to launch in Vietnam on July 22

2007-07-22 18:57:00
The online exchange, www.sanbatdongsan.net.vn, will allow buyers and sellers to
access the market directly, said the ministry, adding that people will be able to buy
quality houses without paying intermediary charges.The ministry has stipulated
that enterprises that provide incorrect or false information on the site could be
suspended from the trading floor and even fined or jailed in serious cases.
Read more: Vietnam
Vietnam to increase state-owned property prices
2007-07-20 19:07:00
The government has given initial approval to a construction ministry proposal to
increase state-owned residential property prices nearly fourfold, citing higher real-
estate values and salaries.
Read more: Vietnam

Burgeoning time for high-end property projects

2007-07-18 20:57:00
VietNamNet Bridge – Experts have forecast property projects in major cities and
provinces will continue to be attractive to foreign investors in the next few
years.The burgeoning high-end property market and the Government's policy
allowing foreigners to own houses in the country are promising a brighter outlook.
A survey by the HCMC-based property management firm VietRees indicates more
than US$8bil in foreign direct investment has been pledged in property projects
implemented between 2004 and 2010. South Korea ranks first, followed by
Singapore, Malaysia, Hong Kong and Taiwan.

Danang’s largest domestic investor puts $180 mln into real estate
2007-07-16 18:57:00
Hoang Anh Gia Lai Corp. plans to invest $150 million to build a waterfront hotel-
apartment-office-shopping-complex along the Han River in Hai Chau district.Work
on building the complex is scheduled to start early next year and finish in
2010.The corporation, headquartered in the Central Highlands province of Gia Lai,
will also build an estimated $30 million worth of high-end apartments for sale in
Thanh Khe district.

Central Vietnam deluxe beach resort

2007-07-15 01:47:00
Construction of the four-star Novotel Imperial Hoi An resort began Wednesday in
at a cost of VND280 billion (US$17.3 million).Located near Hoi An town’s Cua Dai
beach, the resort will have 200 rooms, restaurants and bars, tennis courts, a spa,
and swimming pool. Hotel group Accor will manage the 4.3ha property owned by
the IOC Supporting Services and Investment Development Joint Stock Company.
GP Bank, Chi Linh Start Golf JSC, and Ocean Bank are also key shareholders.
Read more: Central , Vietnam

Vietnam plans to sell houses to foreigners

2007-07-12 17:13:00
The eligible groups include foreigners directly doing business in Vietnam in
accordance with the law, foreigners recognized by the president and other relevant
agencies as contributing to national development, foreign culturists and scientists
working in Vietnam, foreigners recognized by the president as honorary citizens,
foreigners married to Vietnamese currently living in Vietnam, and foreign-invested
real estate trading enterprises operating in Vietnam.
Read more: houses , plans

Vietnam property firm raises $37 million in IPO

2007-07-10 17:31:00
Vietnam property developer Vincom has raised $37 million from a maiden auction
of 5 million shares, or 8.33 percent of the company, the Ho Chi Minh Stock
Exchange said Wednesday.
Read more: Vietnam

Hong Kong enterprises are eyeing Vietnam for investment opportunities

2007-07-08 19:30:00
In Hanoi, the delegation met with Vietnam Prime Minister Nguyen Tan Dung, who
said overseas investment was an integral component of Vietnam’s economic
development and his government would provide favorable conditions for Hong
Kong investors, particularly in the financial, banking, insurance, securities,
shipping and manufacturing sectors.

Viet Nam infrastructure fund lists in London

2007-07-07 15:12:00
London — Vietnam Infrastructure Limited, a US$402 million closed-end fund
dedicated to investment in Viet Nam’s rapidly growing infrastructure sector, has
become the first of its kind in Viet Nam to list on the Alternative Investment
Market (AIM) of the London Stock Exchange.

Luxembourg wants in before Vietnam gets crowded

2007-07-05 03:33:00
Luxembourg’s top economic minister said he wants investors from his country to
explore Vietnam before the market becomes too crowded.
Read more: Luxembourg

Long-term mortgages open vietnam property market

2007-07-02 16:58:00
VietNamNet Bridge – Banks are beginning to widen the time frame on home loan
deals from 10-15 years to as long as 30 years as the market matures and
consumer incomes rise.
Read more: property

Real estate experts have predicted a decrease in the prices of leased office space in Ho Chi Minh
City
2007-07-01 16:55:00
Representatives of the Maastricht University-affiliated Vietnam Research
Programme and Holland enterprises that are already present in Vietnam shared
their business experiences in the Southeast Asian country. Vietnam, they said, is a
developing country that needs a great amount of capital and is home to many
business opportunities for foreign enterprises.
Read more: office

US businesses are taking the lead in the new wave of investment into Vietnam
2007-06-28 19:41:00
Mr. Loc said that up to 150 Vietnam ese companies accompanied the President to
the US and this was a message showing Vietnam’s desire to strengthen economic
relations with the US. The visit is hoped will contribute to promote the investment
wave of the US into Vietnam. That’s why the Vietnamese mission spent a lot of
time meeting with American CEOs and groups.
Read more: businesses

Vietnam's real estate construction boom

2007-06-27 01:44:00
Rising affluence in Vietnam has led to an increasing demand for residential and
commercial infrastructure. And this is fuelling a boom in its construction and real
estate industry.

Korea property firm to pitch Vietnam projects to investors

2007-06-24 18:34:00
CB Richard Ellis Korea , an arm of US property consultant CB Richard Ellish Group,
has signed a deal with a Vietnam ese construction firm to find investors for its
projects.

Malaysia property firm to pump $964 mln into Vietnam

2007-08-15 19:25:00
Under the deal signed Tuesday, Gamuda Land plans to pump $711 million of the
sum into developing a 327ha-complex in Hoang Mai and Thanh Tri districts.The
urban complex would be home to high-end hotels, a convention hall, office towers,
shopping malls, car parks, villas and apartments for both sale and rent.Gamuda
would also build Yen So Park, which would include an educational-cultural center, a
plaza and other international-standard recreation facilities.
Read more: Malaysia , property , Vietnam

Nearly US$40 billion to enter Vietnam

2007-08-13 18:55:00
Real estate and tourism projects account for over $16 billion , equivalent to 40.2%
of the total amount of foreign capital that will come to Vietnam . Notably, Chinese
investors have expressed interest in building five big works in the fields of thermo
power and real estate. During President Nguyen Minh Triet’s visit to the US last
May, the two sides signed memorandums of understanding on these five projects.
Read more: enter , Nearly

Foreigners can’t buy houses in Vietnam now

2007-08-19 20:16:00
The pilot scheme allowing foreigners to buy houses in Vietnam will need more time
before it is implemented because the Land and Housing Law doesn’t permit
foreigners to own land and houses in Vietnam. Last July the Ministry of
Construction submitted to the government a scheme on permitting foreigners to
buy houses in Vietnam on a trial basis. If this scheme had been implemented,
around 21,000 foreigners who are living in working in Vietnam would have been
eligible to buy houses.

Record growth in Vietnam visitor arrivals, hotel occupancy and room rates
2007-08-17 17:39:00
The survey shows that hotel developers and operators are now showing renewed
interest in the market in the five-star hotel, resort and spa sectors. Such groups
include Kingdom Hotels with the Raffles, 4 Seasons and Movenpick brands, Banyan
Tree, Colony Resorts and Intercontinental.With the huge volume of money being
channeled into investment funds focused on real estate investment in Vietnam , a
number of sales of interest in major hotel properties that took place in the last two
years included the Hilton, Sofitel Metropole and Guoman in Hanoi, the Duxton and
Omni in HCM City, and the Furama in Da Nang.
Read more: Record

Vietnam : Cat Ba resort project seeks investors

2007-08-23 17:33:00
We suggest two major types of investment: Either 100% foreign capital or the
establishment of a joint-venture company between Viet Nam Construction and
Import and Export Corporation (Vinaconex) and investors.Investors will have the
benefit of several incentives. These include exemption from land-use fees; land-
use tax and a five-year exemption from corporate tax. We are committed to
ensuring that investors will pay the lowest initial investment cost against all other
real-estate and tourism projects in Vietnam . This is because the Government and
local authorities consider the project of great importance to Vietnam's tourism
industry.

The National Assembly may have given the green light to foreigners and overseas Vietnamese to
own housing in Vietnam but satisfaction at the measure remains in short supply.

Buying and owning a house in Vietnam remains a complex matter, even more so for foreigners. Although
foreigners in Vietnam - and especially foreign businesspeople - are often known for having strong
financial positions, they must still wait for legal provisions on land ownership rights for foreigners in
Vietnam to be executed thoroughly and analysed carefully before coming into effect.

This was the root of discussions between land and housing authorities and foreign businessmen prior to
the Vietnam Business Forum (VBF) held early last month. Mr Tran Hao Hung, Deputy Head of the Legal
Department at the Ministry of Planning and Investment (MPI) told the discussions that the Ministry of
Construction has already drafted a Circular guiding the implementation of the National Assembly (NA)’s
Resolution 19, which is proposed to be issued in May or June 2009. The Circular, though, remains in the
drafting stage.

Complicated issues
The complexity of the matter stems from the number of foreigners residing in Vietnam that are eligible to
buy houses or apartments, according to Ms Do Thi Loan, General Secretary of the Ho Chi Minh City Real
Estate Association (HoREA). According to Ministry of Construction figures, there are about 80,000
foreigners currently residing in Vietnam that are so eligible. But, Ms Loan noted, none of the official
studies by authorities reveals how many are single, how many are married, how many want to buy
residential houses, whether 80,000 people could possible corner Vietnam’s real estate market, and
whether the 2007 land fever was caused by foreigners or local people. “All of these questions should be
studied and analysed in a complete and scientific manner,” she said.

Since the NA introduced Resolution 19 on foreigners buying houses in Vietnam no such deals have gone
through. Mr Tran Hong Ky, Deputy Head of MPI’s Economic Zone Management Department admitted that
the NA Resolution extended the scope of subjects permitted to buy houses to foreigners but restricted this
to apartments and made them subject to other restrictions in terms of quantity and terms. “And foreigners
in Vietnam are not as yet allowed to own residential houses on land,” he said.

Mr Hung also revealed that the government is considering expanding the provisions concerning the right
to own residential houses as well as the conditions to buy and own residential houses and structures
associated with land use rights (LUR) in Vietnam to foreign organisations and individuals by way of
minimising any discrimination against foreigners, maximising land resources use, mobilising external
capital sources, consistently developing the real estate market and creating a stimulus for national
economic development.

This theme was noted by Mr David Lim, partner at the Mayer Brown JSM law firm. “Due to the global
economic crisis, supply is now greater than demand in Vietnam’s real estate market,” he said. “The
government should consider broadening the rights of foreigners to buy immovable assets in order to
improve liquidity in the market.”

In reality, according to Mr Lim, foreign organisations and individuals are divided into two groups. One is
foreign organisations/individuals not residing in Vietnam who are subject to existing regulations and not
entitled to buy houses or immovable assets in Vietnam. Policies in other countries are more open, with
some not imposing any restrictions while others adopt certain restrictions.

“The expansion of the subjects would help to attract investment and develop infrastructure,” he said.
“There should not be any restrictions. This should be left to the market to decide and regulate by itself.”
The other group is foreign organisations/individuals residing in Vietnam, which Mr Lim believes are a
group of potential buyers when they are allowed to own immovable assets of Vietnam. But
implementation of the NA Resolution, which came into effect in January, has been delayed. “It is not
effectively enforced and none of its implementing regulations have been issued,” he said.

Having resided in Vietnam for many years, Mr Fred Burke, Managing Lawyer at Baker & McKenzie added
that NA Resolution 19 on the sale of houses to foreigners remains unattractive. The Resolution is seen as
the leasing of houses with advance payments for 50 years, but not absolute ownership. Moreover, the
Resolution contains some backward provisions as it only allows foreigners to buy apartments in
apartment buildings, while there was a previously-developed policy that allowed the sale of houses
together with the LUR to foreigners.

“However, such provisions cannot be realised, as there are no implementing guidelines for them,” he
pointed out. Consequently, the new moves are a small step forward and Mr Burke doesn’t think that such
small liberalisation of the housing market to foreign buyers will help stimulate demand for the many
condos coming onto the market next year. “The measures are not much different from the 1993 Decree
that purported to do the same thing - albeit with no 50-year term limit like this new measure,” he said.

Hope lives on

On the positive side, this means however that there is still room for Vietnam to stimulate demand for the
high-end housing sector if it desires to do so in the year ahead as the increase in supply catches up and
surpasses demand, and as bank loans for developers become due, Mr Burke continued. “For people like
me, who’ve lived and worked in Vietnam for more than 15 years, paying taxes and contributing to the
economy, it does seem that access to housing investment and ownership should be allowed, but people
like me are always going to be a very small market,” he said.

Despite the complexity of the matter, foreigners still hope to be able to buy and own a house in Vietnam.
A representative of real estate consultants Colliers International said that there may be certain restrictions
but foreigners want better access to buying apartments. Meanwhile, Mr Patrick Downey, Vice President of
the Australian Chamber of Commerce in Vietnam (Auscham) recommended that foreigners making
contributions to Vietnam should be assisted in buying residential houses.

Faced with such calls for opening up the country’s real estate market, Mr Hung from MPI insisted that in
international commitments such as those to join the WTO, Vietnam did not make any commitments
concerning the opening of its real estate market.

“This completely depends on the inherent demand of Vietnam, free from external pressure,” he said.
Vietnam is implementing numerous measures to attract foreign direct investment (FDI) in general and FDI
in real estate development in particular, but to what extent, according to Mr Hung, this market is to be
opened up very much depends on development of the socio-economy and legal framework. “This would
be hard to realise if the legal infrastructure is not yet in place or has been in place but is inconsistent,” he
emphasised. Foreign dreams of buying and owning house in Vietnam will remain just that for the time
being.

“What is more important for the national economy, to the property sector in general and the resort
industry in particular is the country’s ability to attract investment from smaller foreign investors who will
buy one or a few condos or villas in a resort for purposes of investment. They would need to be able to
put those properties into timeshare schemes and sublease them to begin to think about obtaining a
reasonable return on their investments, but the additional capital that could be mobilised to fund
construction of these resorts could be significant. Given the high number of jobs created by tourism,
mobilising this source of capital seems a logical next step for Vietnam.”

Mr Fred Burke, Managing Lawyer, Baker & McKenzie

“Investors do not have enough land resources to develop the residential housing for low-income earners
market. It is not that investors do not want to develop cheap housing for low-income earners, but the
problem is they do not have the land resources to do so. The best solution for them is to develop high-
grade residential houses. It is recommended that further consideration be given to opening up this market
to enable investors to buy construction land at a reasonable price.”

Mr Raymond Cheng, Representative, Chiap Hua Group

"Experience from other countries shows that there is no single model for a policy on opening up the real
estate market. It depends on the specific political, economic and social conditions of each country.
Vietnam will consider any further opening up of its real estate market based on studying international
experience and the actual conditions in Vietnam.”

Mr Tran Hao Hung, Deputy Head, Legal Department, MPI

http://news.vneconomy.vn/20091011070956688P0C4/dream-homes.htm

Vietnam’s Labor Market Update

Saturday, 09 October 2010

 This publication is partly cited from FineIntel’s Industry Update. Our
monthly industry update is a publication designed to provide meaningful insight into today’s industries
in Vietnam. We encourage our readers to submit suggestions for topics that they would like see
covered in future issues. While FineIntel can not cover each and every topic, we will do our best to
provide the fullest coverage possible.

For further information in relation to the publication, please contact FineIntel.

Market overview
Vietnam has experienced a period of rapid economic and social change which has both influenced and been shaped
by dynamic employment and labor market trends. The effect of the global financial crisis on Vietnam’s labor
market, measured in terms of conventional indicators of labor market imbalance like unemployment, has been
negligible compared with neighboring countries such as Thailand, Malaysia or the Philippines. Vietnam’s labor force
grew annually by an average of 1.24 million during the 2005-2009 period. This represents a growth rate of around
2.9 percent per year, or approximately twice the rate of growth of the total population. In 2009, the labor force
totaled 47.7 million people within a population of 87 million, with 63 percent at working age. The workforce
consisted of 24.6 million men and 23.1 million women, mostly young people between the age of 15 and 24.

However, despite some advances, the labor force remains mostly unskilled, as nearly two-thirds (65.3 percent) do
not have any technical education. Of particular concern is the gender gap in technical education. Women have
limited access to vocational education because of gender biases in society, particularly in rural and mountainous
areas.
The average annual growth in employment between 2005 and 2009 was approximately 1.03 million, or 2.5
percent. However, this increase was slightly lower than the labor force growth rate over the same period, reflecting
the difficult challenge of employment creation in Vietnam. The number of employed workers expanded from 42.8
million to 47.7 million during this period, with the share of women workers in total employment increasing from
47.9 percent in 2005 to 48.1 per cent in 2009. The growing gender gap, which reached 3.8 percentage points,
reflects in part the inequality of employment opportunities that women have to face in the labor market.
Vietnam has a relatively low and stable unemployment rate (between 2-3 percent), as shown in Figure 1. The
unemployment rate jumped from 2.1 percent in 2005 to 2.4 percent in 2008 because of the global financial crisis.
While this low and stable unemployment rate is an encouraging sign, it would be too hasty to conclude that the
rate of employment creation is keeping up with the rate of labor force growth. Low unemployment is rather typical
in low and medium income countries where many workers are self-employed and are too poor to afford
unemployment insurance. For such countries, the real issue is underemployment. Unemployment is also more
prevalent in urban areas than in rural areas. This is not surprising: rural workers tend to be self-employed, so
underemployment rather than unemployment is more common.

Labor supply and demand

Vietnam has an abundant and growing labor force, with over 1 million new entrants to the labor market each year,
putting pressure on job creation. Skill levels remain low, though improving.
Figure 3 shows a gradual increase in average years of schooling of the Vietnamese labor force and also shows a
big gap between males and females, and urban and rural areas. It’s clear that this increase is not enough in a
globalized market with highly-skilled labor forces in other countries.

Despite some advances, the labor force in Vietnam remains mostly unskilled, as in 2008 40 percent did not attend
any school or only primary school. Thirty-four percent completed lower secondary school and 21.5 percent
completed upper secondary school. Data indicates that only 4.5 percent went to junior college or higher. So the
labor force remains mostly unskilled, as 65.3 per cent did not receive any technical education in 2007.
Of particular concern is the gender gap in technical education. Moreover, data indicates that women face barriers
in terms of access to vocational training. They have limited access to vocational education because of gender
biases in society, particularly in rural and mountainous areas where limited resources or traditional ideas about
women not needing to study continue to be prevalent.
 Figure 5 shows that there have been no changes in employment structure trends, with employment in the
agriculture sector still shifting to industry and services. In 2000, almost two-thirds (65 percent) of all workers were
employed in agriculture. However, by 2007 this had declined to 55 percent, indicating a rapid transition. In 2009
only half (48 percent) of all employees were working in agriculture, with industry making up 31 percent. Because
of the global financial crisis, employment growth stayed relatively stable from 2007 to 2009, but the real challenge
for Vietnam’s labor market is not creating more jobs and changing the employment structure, but creating
productive and equitable employment.

Labor productivity and competitiveness

Labor productivity, defined as GDP per worker, has been increasing in Vietnam at a rate of about 5 percent per
year and stood at VND34.7 million (US$1,830) per worker in 2009. Industry remained the leader, at nearly VND57
million per worker, more than 50 percent higher than services and more than six times the level in agriculture.
Although the growth in Vietnam’s labor productivity is relatively high compared with other ASEAN economies,
productivity is still low because it started from a very low base. As at 2008, labor productivity was only about half
of China’s level, and about one ninth of Singapore’s. So Vietnam still has a very large gap to make up.

Vietnam ranked 75 out of 133 countries in 2009-2010 in the World Economic Forum’s Global Competitiveness
Index, a fall from 70 in 2008-2009. As with regional comparisons of labor productivity, Singapore’s ranking (3)
was the highest in the ASEAN region, followed by Malaysia (24), Thailand (36) and Indonesia (54). The low level of
productivity is therefore a concern for Vietnam’s future competitiveness in the context of enhanced market
integration and the process of moving up the value chain in regional and global production systems.

Wages
There was no official data in 2009 regarding wages but some unofficial data across all types of enterprises in
Vietnam indicates a positive and steady increase. Two main points stand out. First, the average hourly wage has
been rising over the years, consistent with the fact that labor productivity has been rising. Second, wage growth
was higher for higher levels of education, indicating a rise in the skill premium. Growth in wages at foreign-
invested companies as well as state-owned enterprises climbed fastest, at 8.6 percent annually, while wages in
household-based enterprises increased a modest 2.3 percent. Linked to average annual inflation of 4.1 per cent
during 2000-2008, workers actually saw real wages decline.
In terms of gender equality, the average wages of female workers were lower than male workers in the same
occupations. In general, the average monthly wage for women was equal to only 87.5 percent of male wages in
2008. The largest gap in wages and salary was in careers such as machinery installation and operation (where
female wages were 66 percent of male wages). However, from 2002 to 2008, wage growth for female workers was
slightly higher (16 percent) than for male workers (15 percent), which helped to narrow the gender-based wage
gap.
In the past Vietnam has relied on low labor costs in building export-oriented and labor-intensive industries such as
textiles, garments and footwear. But this cannot remain a comparative advantage in the years to come as the
country moves up the value chain in regional and global production networks and produces more technology and
capital-intensive products.

Older news:
 · Vietnam Pharmaceutical Market Update (07/09)
· Vietnam Telecommunications Update (13/08)
· Vietnam’s Beverage Market Update (16/07)
· Vietnam’s Automobile Market Update (14/06)
· Vietnam’s Textile And Garment Market Update (01/05)
[ Back ]

http://www.vfr.vn/index.php?option=com_content&task=view&id=1158&Itemid=4

Ex-convicts struggle in flooded NC job market

Posted 11/8/2010 12:08 AM ET E-mail | Save | Print

By James Halpin, The Fayetteville Observer

FAYETTEVILLE, N.C. — Finding work as a laborer should be easy for a man like Terrance Cruell, who has his age on his side, a
high school diploma and a driver's license.
But the 28-year-old has something many other applicants don't: a felony cocaine conspiracy conviction and a record that includes 4
1/2 years in federal prison.
For about a year now, Cruell says, he's put in applications, worked connections through friends and family, and talked to a job
coach. Yet most employers don't even bother calling him back, he said.
"I've been trying to do right, but it's kind of hard when you want to do right, and you can't, you know?" Cruell said. "They won't even
give you a chance."
Since the recession began, perhaps no other group has struggled more to find work than the thousands of North Carolinians who
have criminal records. With a labor pool flooded with well-qualified applicants, most employers can afford to be particular when
hiring for the few openings they've had.
Former inmates who can't get a job are three times more likely to return to prison than those who find steady employment, said
Keith Acree, spokesman for the North Carolina Department of Correction.
"The population is really a hard-to-place population to begin with," said LaFonda General, the regional former-offender coordinator
with the North Carolina Employment Security Commission. "In these economic times, it just makes it a little more difficult."
In August, the state had a prison population of more than 40,000 and more than 108,000 people on probation. North Carolina
prisons released 28,589 inmates between Oct. 1, 2009, and Sept. 30. Many of those people returned to their communities to find a
crowded work force. Unemployment in Cumberland County has hovered above 9 percent for most of the past year.
The DOC offers training and other programs to help ex-cons explain their pasts and prepare for job interviews, Acree said. But the
poor economy has made it difficult even for the state's Work-Release Program, which allows inmates to work at businesses outside
prison.
"We're only working about half the number of inmates that we normally would in a good economy," Acree said. "A lot of our regular
work-release employers just don't have the business and don't have the positions to hire these workers that they used to need."
Vickie Parrot is a job developer for the Offender Employment and Training Initiative in Cumberland County. She said she's booked
until mid-November with appointments with ex-cons who want work. The initiative, which started in January with seed money from
the federal economic stimulus package, placed 11 people like her across the state to help former inmates rejoin society.
In Cumberland County, the program drew about 31 people looking for work in February, Parrot said. By June, Parrot had 75
appointments.
Some of those people could be good workers but aren't given a chance because of their records, she said.
"No one puts a gun to their heads to make them commit these crimes in the first place, and it is their fault and their responsibility,"
Parrot said. "But at the same time, a lot of people make stupid mistakes. When they come out at a young age with a felony charge,
it haunts them for the remainder of their lives and they usually don't become gainfully employed. They usually just fall back into the
easy money."
Not all want to work. Many of them do, and they have skills, she said. To get them past the checked felon box on job applications,
Parrot helps them write a letter explaining their crimes in addition to directing them to get general equivalency diplomas and driver's
licenses.
According to the Correction Department, offender-friendly industries include manufacturing, construction, food services, hospitality,
landscaping and maintenance. Some small businesses are willing to give offenders a chance, but major corporations often won't
because of strict policies, Parrot said.
"If you don't have employment, you can't eat. You can't provide for your family. I can only imagine how they feel devastated and
hopeless," Parrot said. "These employers, because they're so strict on their guidelines, are in a sense keeping these individuals
from doing better. They ultimately end up going back, committing another crime, which means there is another victim, which means
there is another $27,000 a year (in prison costs) paid by the taxpayers' dollars because we couldn't get him a job."
Employers can take advantage of incentives to hire ex-criminals, said General, of the Employment Security Commission. The
government offers a work opportunity tax credit of up to $2,400 for each ex-convict hired within a year of conviction or release from
prison, she said.
The federal bonding program also offers coverage against employee theft or dishonesty for up to $5,000 at no cost to the employer
as an incentive to hire applicants who are considered a risk.
"Even with those incentives, we kind of have a hard time," said Priamos Williams, a job coach with Preferred Alternatives Inc., a
private group that helps disabled people and ex-convicts. The company ceased operations this week.
Williams said he goes out with job seekers, many of them felons, to approach employers and advocate for his clients, reminding
prospective employers of the incentives.
"Some people are more open than others," Williams said. "For the most part, people aren't really willing to listen to you once they
notice that there's a felon that you're advocating for, but it depends on the business."
Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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cId=delawareonline&sParam=34989153.story

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‘Field Guide to Quick Real Estate Statistics

(Updated October 2010)

Looking for quick statistics for your sales meeting or a customer brochure? Need a quick fact to make
your point? Information Central has compiled some of the most requested statistics for quick and easy
access. Find the information that you need, as well as its source, at a glance. (K. Janisch, Information
Specialist)

Real Estate and the Economy

A quick list of up-to-date Housing and Economic Indicators is available from NAR Research.

Despite the current economic slowdown, the housing sector still contributed nearly $2.1 trillion to the
national economy in 2007, accounting for 15 percent of overall economic activity. The construction of new
homes, value-added contributions of REALTORS®, and mortgage banking activity all directly add to
economic output, job creation, and income generation. In addition, commercial real estate, which
expanded solidly in 2007, contributed an additional $483 billion to the nation’s economy.

Source: Real Estate and the Economy, Jan. 2008.

REALTOR® Statistics

Hours worked by all REALTORS® (nationwide): 40 per week

Gross personal income by hours worked: $48,000 (median for 40-59 hrs.)

Percent of business generated by REALTOR® personal web site (all REALTORS®):

• Zero: 37%

• Over 25%: 10%

Real estate experience of all REALTORS® (median): 10 years

REALTORS® by gender: Male 43%; Female 57%

Formal education of REALTORS®:

• Some college: 32%

• Associate degree: 11%

• Bachelor's degree: 29%

• High school graduate: 9%

• Graduate degree and above: 11%

• Some graduate school: 8%

Sides per agent: For all REALTORS® in 2009, the typical brokerage specialist completed 7 transaction
sides or commercial deals

Median tenure at present firm (all REALTORS®): 5 years

REALTOR® affiliation with firms:

• Independent contractor: 81%

• Employee: 6%

• Other: 13%

Source: 2010 National Association of REALTORS® Member Profile

NAR Membership Statistics

Members to date: 1,088,919 as of Sept. 31, 2010

Number of local associations: 1,420

Source: Monthly Membership Report and NAR Membership Statistics, 1908-present

Home Buyer Statistics

Active home search (median):

• Number of weeks searched: 12

• Number of homes seen: 12

First-Time vs. Repeat Buyers:

• First-time buyers: 47%

• Repeat buyers: 53%

• Median age of first-time buyers: 30

• Median age of repeat buyers: 48

Buyers who definitely would use same agent again: 81%

Actions taken as result of Internet home search:

• Drove by/viewed a home: 77%

• Walked through a home viewed online: 61%

• Found agent used to search/buy home: 28%

Information sources used in home search:

• Internet: 90%

• Real estate agent: 87%

• Yard sign: 59%

• Open house: 46%

• Newspaper ad: 40%

• Home book or magazine: 26%

Source: 2009 National Association of REALTORS® Profile of Home Buyers and Sellers

Did You Know?

The first-time homebuyer share climbed in both 2007 and 2008, and then surged in 2009. First-time
purchasers rose from 36 percent of all homebuyers in 2006 to about 45 percent in 2009. The increase in
share added roughly 306,000 sales in 2008-9. Without this gain, existing home sales for the year would
have fallen by 63,000.

An important catalyst for the jump in first-time homebuyers in 2009, however, was the first-time
homebuyer tax credit program. Various estimates place the impact of the tax credit on either pulling
demand forward or releasing pent-up demand at 200,000-400,000 additional buyers- similar to last year’s
increase in first-time sales.

Source: State of the Nation's Housing 2010 (Harvard University - Joint Center for Housing Studies)

For Sale By Owner (FSBO) Statistics

FSBOs accounted for 13% of home sales in 2008. The typical FSBO home sold for $153,000 compared
to $211,000 for agent-assisted home sales.

FSBO Methods Used to Market Home:

• Listing on Internet/FSBO website: 51%

• Yard sign . . . 44%

• Friends/neighbors . . . 33%

• Newspaper ad . . . 22%

• Open house . . . 15%

Most Difficult Tasks for FSBO Sellers:

• Selling within the planned length of time: 9%

• Getting the right price: 15%

• Preparing/fixing up home for sale: 18%

• Understanding and performing paperwork: 15%

 • Having enough time to devote to all aspects of the sale: 5%

Source: 2009 National Association of REALTORS® Profile of Home Buyers and Sellers

Statistics on REALTORS® and Technology

• The typical REALTOR® spent up to $1,200 on technology for real estate purposes in
2008.

• The top three tools that respondents plan on purchasing or replacing in the next year are:
smartphone with email/Internet connection (42%); notebook/laptop (34%), and digital camera (26%).

• The most frequently used operating system is Windows XP (63%).

• The most popular smartphones are Blackberry (32%), Palm Treo (14%), and iPhone
(10%).

• 84% of REALTORS® use social media to some extent.

• The top places where REALTORS® place their listings are REALTOR.com, their broker's
website, their local MLS site, and their own website.

Source: 2009 REALTOR® Technology Survey

Recommended sources for data on real estate:

• Existing home sales (NAR)

• New home sales (Census Bureau)

• Home ownership rates (Census Bureau)

• Foreclosures & delinquent loans (Mortgage Bankers Association)

• Convention mortgage interest rates (Federal Reserve)

• Commercial sector data (NAR)

Hidden gems:

• REALTOR® Magazine Media Kit (NAR) - Follow links under Learn more for
demographic data on REALTORS®.

• American Housing Survey (Census Bureau/HUD) - Very detailed survey of residential

properties and households, conducted every other year.
 • U.S. Housing Market Conditions (HUD) - See Historical Data for times series data
from a variety of sources.

• State of the Nation's Housing (Harvard University - Joint Center for Housing Studies) -
Appendix tables include useful historic data on homeownership.

• City Reviews (National Real Estate Investor) - Metro area reviews include recent data
on commercial property sectors.

• Survey of Consumer Finances (Federal Reserve) - Data on home ownership, real

estate investment, mortgages, and other financial activities of U.S. households.

>> Have an idea for a new Field Guide? Click here to send us your suggestions!

The inclusion of links on this Field Guide does not imply endorsement by the National Association of
REALTORS®. NAR makes no representations about whether the content of any external sites which may
be linked to this Field Guide complies with state or federal laws or regulations or with applicable NAR
policies. These links are provided for your convenience only and you rely on them at your own risk.
http://www.realtor.org/library/library/fg006

Occupational Outlook Handbook, 2010-11 Edition

FONT SIZE: PRINT:

• OOH HOME
• INDEX
(PDF)
• OVERVIEW OF THE
2008-18 PROJECTIONS
• MANAGEMENT
MANAGEMENT
Property, Real Estate, and Community
BUSINESS
AND
Association Managers
FINANCIAL
OPERATIONS • Nature of the Work
• PROFESSIONAL
COMPUTER • Training, Other Qualifications, and Advancement
AND
MATHEMATICA
• Employment
L
ARCHITECTS, • Job Outlook
SURVEYORS,
AND
• Projections
CARTOGRAPH
ERS • Earnings
ENGINEERS
• Wages
 DRAFTERS • Related Occupations
AND
ENGINEERING • Sources of Additional Information
TECHNICIANS
LIFE
SCIENTISTS
PHYSICAL
SCIENTISTS Significant Points
SOCIAL
SCIENTISTS
AND RELATED
SCIENCE
TECHNICIANS • Opportunities should be best for those with college degrees in
COMMUNITY
business administration, real estate, or related fields and for
AND SOCIAL
SERVICES those with professional designations.
LEGAL
EDUCATION, • Particularly good opportunities are expected for those with
TRAINING,
LIBRARY, AND experience managing housing for older people or with
MUSEUM
ART AND experience running a healthcare facility.
DESIGN
ENTERTAINER • About 46 percent of property, real estate, and community
S AND association managers are self-employed.
PERFORMERS,
SPORTS AND
RELATED
MEDIA AND Nature of the Work About this section
COMMUNICATI
ON-RELATED
To homeowners, a well-managed property looks nice, operates
HEALTH
DIAGNOSING smoothly, and preserves the resale value of the property. To businesses
AND
TREATING and investors, properly managed real estate may result in greater
HEALTH
TECHNOLOGIS income and profits. Property, real estate, and community association
TS AND
TECHNICIANS managers maintain and raise the value of real estate investments by
OTHER
PROFESSIONA handling the logistics of running a property. Property and real estate
L AND
RELATED managers oversee the operation of income-producing commercial or
OCCUPATIONS
• SERVICE
residential properties and ensure that real estate investments achieve
HEALTHCARE their expected revenues. Community association managers manage the
SUPPORT
PROTECTIVE communal property and services of condominiums, cooperatives, and
SERVICE
FOOD planned communities through their homeowner or community
PREPARATION associations.
AND SERVING
RELATED
BUILDING AND
GROUNDS When owners of residential homes, apartments, office buildings, or retail
CLEANING
AND or industrial properties lack the time or expertise needed for the day-to-
MAINTENANCE
PERSONAL day management of their real estate investments or homeowner
CARE AND associations, they often hire a property or real estate manager or a
SERVICE
OTHER
community association manager. Managers are employed either directly
SERVICE
OCCUPATIONS by the owner or indirectly through a contract with a property
• SALES
SALES management firm.
OCCUPATIONS
 OTHER SALES Generally, property and real estate managers handle the financial
AND RELATED
OCCUPATIONS operations of the property, making certain that rent is collected and that
• ADMINISTRATIVE
mortgages, taxes, insurance premiums, payroll, and maintenance bills
FINANCIAL
CLERKS are paid on time. Some oversee the preparation of financial statements
INFORMATION
AND RECORD and periodically report to the owners on the status of the property,
CLERKS
MATERIAL occupancy rates, expiration dates of leases, and other matters. When
RECORDING,
SCHEDULING,
vacancies occur, property managers may advertise the property or hire
DISPATCHING
AND
a leasing agent to find a tenant. They also may suggest to the owners
DISTRIBUTING
MISCELLANEO what rent to charge. In community associations, homeowners pay no
US OFFICE rent and pay their own real estate taxes and mortgages, but community
AND
ADMINISTRATI association managers collect association fees that help pay for a variety
VE SUPPORT
OCCUPATIONS
of services such as playground, clubhouse, and swimming pool
OTHER OFFICE
AND maintenance.
ADMINISTRATI
VE SUPPORT
• FARMING Often, property managers negotiate contracts for janitorial, security,
FARMING,
FISHING, AND landscaping, trash removal, and other services. They monitor the
FORESTRY
OCCUPATIONS performance of contractors and investigate and resolve complaints from
OTHER
FARMING,
residents and tenants when services are not properly provided.
FISHING, AND
FORESTRY Managers also purchase supplies and equipment for the property and
OCCUPATIONS
make arrangements with professionals for repairs that cannot be
• CONSTRUCTION
• INSTALLATION handled by regular property maintenance staff.
ELECTRICAL
AND
ELECTRONIC In addition to fulfilling these duties, property managers must understand
EQUIPMENT
MECHANICS, and comply with pertinent legislation, such as the Americans with
INSTALLERS
AND Disabilities Act, the Federal Fair Housing Amendment Act, and local fair
REPAIRERS
VEHICLE AND housing laws. They must make certain that their renting and advertising
MOBILE
EQUIPMENT practices are not discriminatory and that the property itself acts in
MECHANICS,
INSTALLERS, accordance with all of the local, State, and Federal regulatory and
AND
REPAIRERS building codes.
MISCELLANEO
US
INSTALLATION Onsite property managers are responsible for the day-to-day operations
,
MAINTENANCE of a single property, such as an apartment complex, an office building, a
, AND REPAIR
OCCUPATIONS shopping center, or a community association. To ensure that the
OTHER
INSTALLATION property is safe and properly maintained, onsite managers routinely
,
MAINTENANCE inspect the grounds, facilities, and equipment to determine whether
, AND REPAIR
• PRODUCTION repairs or maintenance is needed. In handling requests for repairs or
ASSEMBLERS
trying to resolve complaints, they meet not only with current residents,
AND
FABRICATORS but also with prospective residents or tenants to show vacant
 FOOD apartments or office space. Onsite managers also are responsible for
PROCESSING
METAL enforcing the terms of rental or lease contracts, such as rent collection,
WORKERS
AND PLASTIC
parking and pet restrictions, and termination-of-lease procedures. Other
WORKERS
PRINTING important duties of onsite managers include keeping accurate, up-to-
TEXTILE, date records of income and expenditures from property operations and
APPAREL, AND
FURNISHINGS submitting regular expense reports to the senior-level property manager
WOODWORKE
RS or the owner(s).
PLANT AND
SYSTEM
OPERATORS Some property and real estate managers, often called real estate asset
MISCELLANEO
US managers, plan and direct the purchase, sale, and development of real
PRODUCTION
OCCUPATIONS estate properties on behalf of businesses and investors. These
OTHER
managers focus on long-term strategic financial planning, rather than on
PRODUCTION
OCCUPATIONS
day-to-day operations of the property. In deciding to acquire property,
• TRANSPORTATION
AIR real estate asset managers consider several factors, such as property
TRANSPORTAT
ION values, taxes, zoning, population growth, transportation, and traffic
MOTOR
volume and patterns. Once a site is selected, they negotiate contracts
VEHICLE
OPERATORS for the purchase or lease of the property, securing the most favorable
RAIL
TRANSPORTAT terms. Real estate asset managers review their company's real estate
ION
WATER holdings periodically and identify properties that are no longer
TRANSPORTAT
ION financially profitable. They then negotiate the sale of, or terminate the
MATERIAL
MOVING lease on, such properties.
OCCUPATIONS
• ARMED FORCES
Community association managers, by contrast, do work that more
• SPECIAL FEATURES
SOURCES OF closely compares to that of onsite property managers. They collect
CAREER
INFORMATION monthly assessments, prepare financial statements and budgets,
FINDING AND
APPLYING FOR negotiate with contractors, and help to resolve complaints. Usually hired
JOBS AND
EVALUATING by a volunteer board of directors of the association, they manage the
OFFERS
OCCUPATIONA daily affairs, and supervise the maintenance, of property and facilities
L
INFORMATION
that the homeowners own and use jointly through the association.
INCLUDED IN
THE
Community association managers also assist the board and owners in
HANDBOOK
DATA FOR complying with association and government rules and regulations.
OCCUPATIONS
NOT COVERED
IN DETAIL Some associations cover thousands of homes and employ their own
ASSUMPTIONS
AND
onsite staff and managers. In addition to administering an association’s
METHODS
USED IN
financial records and budget, managers may be responsible for the
PREPARING
EMPLOYMENT operation of community pools, golf courses, and community centers and
PROJECTIONS
OCCUPATIONA for the maintenance of landscaping and parking areas. Community
L association managers regularly meet with the elected boards of
INFORMATION
 NETWORK directors to discuss and resolve legal issues or disputes that may have
COVERAGE
ACKNOWLEDG an effect on the owners, as well as to review any proposed changes or
EMENTS
IMPORTANT improvements by homeowners to their properties, to make sure that
NOTE
ADDITIONAL they comply with community guidelines. They may also meet to address
INFORMATION association finances or discuss long-term planning.
ABOUT THE
2008-18
PROJECTIONS
Top of Form Work environment. Nearly all property, real estate, and community
http://w w w .bls.g association managers work out of an office. However, many managers
SEARCH OOH spend a significant portion of their time away from their desks. Onsite

Go managers, in particular, may spend a large part of their workday away

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from their offices, visiting the building engineer, showing apartments,
checking on the janitorial and maintenance staff, or investigating
problems reported by residents. Real estate asset managers may spend
time away from home while traveling to company real estate holdings or
searching for properties to purchase.
Property, real estate, and community association managers often must
attend evening meetings with residents, property owners, community
association boards of directors, or civic groups. Not surprisingly, many
managers put in long workdays, especially before financial and tax
reports are due and before board and annual meetings. Some
apartment managers are required to live in the apartment complexes
where they work, so that they are available to handle emergencies,
even when they are off duty. They usually receive compensatory time
off for working nights or weekends. Many apartment managers receive
time off during the week so that they may be available on weekends to
show apartments to prospective residents.
 When vacancies occur, property, real estate, and community
association managers may advertise the property or hire a leasing
agent to find a tenant.

Training, Other Qualifications, and

Advancement About this section
For the most part, onsite property managers who primarily oversee the
rental and maintenance of properties learn on the job or have
experience in the real estate or maintenance field. Managers of
commercial properties and those dealing with a property’s finances and
contract management increasingly are needing a bachelor's or master's
degree in business administration, accounting, finance, or real estate
management, especially if they do not have much practical experience.
 Education and training. Most employers prefer to hire college
graduates for property management positions, particularly for offsite
positions dealing with a property’s finances and contract management
and for most commercial properties. A bachelor's or master's degree in
business administration, accounting, finance, real estate, or public
administration is preferred for these positions. Those with degrees in the
liberal arts also may qualify, especially if they have relevant
coursework. In addition, most new managers participate in on-the-job
training. Many people entering jobs such as assistant property manager
have onsite management experience.

Licensure. Real estate managers who buy or sell property are required
to be licensed by the State in which they practice. In a few States,
property association managers must be licensed. Managers of public
housing subsidized by the Federal Government are required to be
certified.

Other qualifications. Previous employment as a real estate sales

agent may be an asset to onsite managers, because it provides
experience that is useful in showing apartments or office space. In the
past, those with backgrounds in building maintenance have advanced to
onsite management positions on the depth of their knowledge of
mechanical systems in buildings, but this path is becoming less common
as employers place greater emphasis on administrative, financial, and
communication abilities for managerial jobs.

People most commonly enter real estate asset manager jobs by

transferring from positions as property managers or real estate brokers.
Real estate asset managers must be good negotiators, adept at
persuading and working with people, and good at analyzing data in
order to assess the fair-market value of property or its development
potential. Resourcefulness and creativity in arranging financing are
essential for managers who specialize in land development.

Good speaking, writing, computer, and financial skills, as well as an

ability to deal tactfully with people, are essential in all areas of property
management.
 Certification and advancement. Many people begin property
management careers as assistants, working closely with a property
manager and learning how to prepare budgets, analyze insurance
coverage and risk options, market property to prospective tenants, and
collect overdue rent payments. In time, many assistants advance to
property manager positions.

Some people start as onsite managers of apartment buildings, office

complexes, or community associations. As they gain experience, often
working under the supervision of a more experienced property manager,
they may advance to positions of greater responsibility. Those who
excel as onsite managers often transfer to assistant offsite property
manager positions, in which they can gain experience handling a broad
range of property management responsibilities.

The responsibilities and compensation of property, real estate, and

community association managers increase as these workers manage
more and larger properties. Property managers are responsible for
several properties at a time. As their careers advance, they gradually
are entrusted with larger properties that are more complex to manage.
Many specialize in the management of one type of property, such as
apartments, office buildings, condominiums, cooperatives, homeowners'
associations, or retail properties. Managers who do well at marketing
properties to tenants might specialize in managing new properties,
while those who are specifically knowledgeable about buildings and
their mechanical systems might specialize in the management of older
properties requiring renovation or more frequent repairs. Some
experienced managers open their own property management firms.

Many employers encourage managers to attend short-term formal

training programs conducted by various professional and trade
associations that are active in the real estate field. Employers send
managers to these programs to develop their management skills and
expand their knowledge of specialized fields, such as the operation and
maintenance of mechanical systems in buildings, the improvement of
property values, insurance and risk management, personnel
management, business and real estate law, community association risks
and liabilities, tenant relations, communications, accounting and
 financial concepts, and reserve funding. Managers also participate in
these programs to prepare themselves for positions of greater
responsibility in property management. The completion of such
programs, plus related job experience and a satisfactory score on a
written examination, can lead to certification, or the formal award of a
professional designation, by the sponsoring association. (Some
organizations offering certifications are listed as sources of additional
information at the end of this statement.) A number of associations also
require their members to adhere to a specific code of ethics.

Employment About this section

Property, real estate, and community association managers held about
304,100 jobs in 2008. About 46 percent of these managers are self-
employed. Another 21 percent worked for lessors of real estate and in
offices of real estate agents and brokers. Others worked for government
agencies that manage public buildings.

Job Outlook About this section

About as fast as average employment growth is expected. Opportunities
should be best for jobseekers with a college degree in business
administration, real estate, or a related field and for those who attain a
professional designation. Particularly good opportunities are expected
for those with experience managing housing for older people or with
experience running healthcare facilities.

Employment change. Employment of property, real estate, and

community association managers is projected to increase by 8 percent
during the 2008–18 decade, about as fast as average for all
occupations. Job growth will be attributable to a growing population that
will increasingly live in developments managed by third-party property
management companies. These developments include apartment
buildings, condominiums, homeowner associations, and the fast-growing
amount of senior housing. Developments of new homes are increasingly
being organized with community or homeowner associations that
provide community services and oversee jointly owned common areas
requiring professional management. There is also increasing awareness
that property management firms help make properties more profitable
 and improve the resale value of homes and commercial property.

To cater to the increasing population, a small rise in the number of

commercial and retail buildings that will need to be managed also will
generate jobs for property managers.

Job prospects. In addition to openings from job growth, a number of

openings are expected as managers transfer to other occupations or
leave the labor force. Opportunities should be best for jobseekers with a
college degree in business administration, real estate, or a related field
and for those who attain a professional designation. Because of the
projected increase in the elderly population, particularly good
opportunities are expected for those with experience managing housing
for older people and with experience managing healthcare facilities.

Projections Data About this section

Projections data from the National Employment Matrix

Per
cen
Number t

Property,
real
estate,
and
11- [PD [XL
communit 304,100 329,700 25,600 8
9141 F] S]
y
associatio
n
managers

NOTE: Data in this table are rounded. See the discussion of the
employment projections table in the Handbook introductory chapter on
Occupational Information Included in the Handbook.

Earnings About this section

Median annual wages of salaried property, real estate, and community
association managers were $46,130 in May 2008. The middle 50
percent earned between $31,730 and $68,770 a year. The lowest 10
percent earned less than $21,860, and the highest 10 percent earned
more than $102,250 a year. Median annual wages of salaried property,
 real estate, and community association managers in the largest
industries that employed them in May 2008 were as follows:

Management of companies and enterprises $74,010

Local government 59,480

Offices of real estate agents and brokers 44,160

Activities related to real estate 43,430

Lessors of real estate 40,180

Many resident apartment managers and onsite association managers

receive the use of an apartment as part of their compensation package.
In addition, managers often are reimbursed for the use of their personal
vehicles.

For the latest wage information:

The above wage data are from the Occupational Employment Statistics
(OES) survey program, unless otherwise noted. For the latest National,
State, and local earnings data, visit the following pages:

 property, real estate, and community association managers

Related Occupations About this section

Property, real estate, and community association managers plan,

organize, staff, and manage the real estate operations of businesses.
Workers who perform similar functions in other fields include the
following:

Administrative services managers

Education administrators

Food service managers

Lodging managers

Medical and health services managers

 Real estate brokers and sales agents

Urban and regional planners

Sources of Additional Information About this section

Disclaimer:

Links to non-BLS Internet sites are provided for your convenience and
do not constitute an endorsement.

For information about education and careers in property management,

as well as information about professional designation and certification
programs in both residential and commercial property management,
contact:

• Institute of Real Estate Management, 430 N. Michigan Ave.,

Chicago, IL 60611. Internet: http://www.irem.org
For information on careers and certification programs in commercial
property management, asset management, facility management, and
building systems maintenance, contact:

• BOMI International, One Park Place, Suite 475, Annapolis, MD

21401. Internet: http://www.bomi.org
For information on careers and professional designation and certification
programs in residential property management and community
association management, contact:

• Community Associations Institute, 225 Reinekers Ln., Suite 300,

Alexandria, VA 22314. Internet: http://www.caionline.org
• National Board of Certification for Community Association
Managers, 225 Reinekers Ln., Suite 310, Alexandria, VA 22314.
Internet: http://www.nbccam.org

O*NET-SOC Code CoverageAbout this section

Get more information from O*NET—the Occupational
Information Network:
 O*NET provides comprehensive information on key characteristics of
workers and occupations. For information on a specific occupation,
select the appropriate link below. For more information on O*NET, visit
their homepage.

• Property, Real Estate, and Community Association Managers

(11-9141.00)

Suggested citation: Bureau of Labor Statistics, U.S. Department of Labor,

Occupational Outlook Handbook, 2010-11 Edition, Property, Real Estate, and
Community Association Managers, on the Internet at
http://www.bls.gov/oco/ocos022.htm (visited November 10, 2010).

Last Modified Date: September 15, 2010

URL: http://guides.newman.baruch.cuny.edu/realestate