Week 38/2024 – Central Vietnam Real Estate News Summary

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   1. Foreign Investment Pours Into Real Estate.

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1. In the first eight months of this year, foreign investment in Vietnam’s real estate sector reached $1.27 billion, doubling the amount from the same period last year. The real estate segments benefiting the most from this influx are industrial real estate, retail, office, and housing.

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   According to the General Statistics Office, as of August 31, foreign direct investment (FDI) in Vietnam totaled $20.52 billion, up 8% from the previous year. Real estate business activities accounted for $2.4 billion of this, marking a 5.1-fold increase. Including newly registered and adjusted capital, the FDI in real estate reached $2.55 billion, 3.7 times higher than the same period last year.

    

   Savills reports that Vietnam has 33,000 hectares of industrial parks, with an occupancy rate of 80%. Demand is particularly strong in the south, driving growth in ready-built warehouses and factories. Additionally, the office and residential segments are also experiencing high demand, supported by economic stability and expanding businesses.

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Source: cafef.vn

2. What Cases Require The Exchange Of The Land Use Certificate For The New Template?

The 2024 Land Law brings significant changes to the Land Use Certificate and ownership of assets attached to land.

A new, more compact A4-sized certificate template will be effective from January 1, 2025, featuring essential information about land users and assets, along with a QR code for easy verification.
Certificates issued before this date will remain valid, so no exchange is necessary unless involved in transactions.
New certificates will only be issued for transfers or updates, preventing unnecessary costs.
The first-time certificate issuance process will be faster, with a maximum of 20 days for registration and 3 days for issuance.
Administrative procedures will be simplified by reducing required documents and using the land database for confirmations.

These changes aim to improve transparency, streamline processes, and protect citizens’ rights in land ownersh

Source: cafef.vn

3. The Real Estate Market Is Recovering Positively.

Not only is demand improving, real estate prices are also on the rise. According to Batdongsan, in the third quarter, the land and private house market in some northern provinces, especially Hung Yen and Hanoi, saw a wave of local price increases.

The average price of private houses for sale is from 173 million VND per square meter, up 56%; land is from 46 million VND per square meter, up 42% compared to the first quarter of 2021 (when there was a local land fever in the North). In Hanoi alone, land prices in Dong Anh, Hoai Duc, and Thanh Oai districts increased by 53-90%, with virtual prices. This recovery is attributed by Batdongsan experts to positive sentiment when the three amended laws (Housing, Land, Real Estate Business) related to the market were applied early, receiving the welcome of buyers, sellers, trading floors and investors. The new law is expected to increase transparency, help improve the supply situation and open up new preferential and support policies to promote market growth.

Source: vnexpress.net

4. Vinhomes Investment Director Highlights Surging Real Estate Demand In Vietnam, Outpacing Developer Supply.

Dr. Phạm Anh Khôi, the new Investment Director of Vinhomes, highlighted that the demand for real estate in Vietnam is currently two to three times higher than what developers can supply. Despite Vinhomes being a leading company in the sector, it still faces challenges in meeting this demand. Khôi noted that real estate significantly contributes to Vietnam’s GDP and social welfare, and while the past 12 months have been difficult for developers, the effects of policy changes will likely be seen in the next 6-12 months.

Vinhomes is focused on delivering large projects like Vinhomes Ocean Park 3 and Vinhomes Vũ Yên, with a high absorption rate of 95%. Upcoming projects include Vinhomes Cổ Loa and Vinhomes Wonder Park Đan Phượng.

Additionally, Batdongsan.com.vn data shows a 26% increase in real estate searches in the first 7 months of 2024, reflecting the high demand for properties, particularly in Hanoi and Ho Chi Minh City.

Source: cafef.vn

5. Experts Predict That The Market Will Improve From The Second Quarter Of 2025, Land And Villas Will Be Of Interest.

The article discusses predictions for the Vietnamese real estate market, particularly noting a potential upswing starting in Q2 2025. According to Nguyễn Quốc Anh, Deputy General Director of Batdongsan.com.vn, the first three quarters of 2024 will see signs of market stabilization, with a decline in negative trends and an increase in interest, especially in apartments, particularly in Hanoi.

By the end of 2024, the market is expected to explore and increase liquidity in products aimed at actual users. Q1 2025 is seen as a consolidation period due to more favorable financial conditions, benefiting higher-cost properties like private houses and townhouses.

Experts predict renewed investor confidence by Q2 2025, leading to increased interest in land lots and villas. By early 2026, th\e real estate sector is expected to stabilize, showcasing a variety of property types.

Currently, while interest in apartments has cooled, they remain the most liquid and pivotal in driving overall real estate interest in Hanoi and Ho Chi Minh City.

Source: cafef.vn

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