SEPTEMBER 2024 CENTRAL VIETNAM REAL ESTATE NEWS SUMMARY

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2. SEPTEMBER 2024 CENTRAL VIETNAM REAL ESTATE NEWS SUMMARY

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   1. Vietnam Real Estate Market And Changes When 3 Laws Are Passed.
   

1. A major change is the removal of the state’s minimum and maximum land pricing framework, with new local land prices set to be published annually by provincial authorities starting from January 1, 2026. The new laws are expected to stabilize the market, reduce risks for buyers, and facilitate fair competition among real estate companies and brokers, though effective implementation depends on the actions of state agencies and market participants.

    

   Source: batdongsan.com.vn

2. The “Endless” Struggle Between Tenants And Landlords In The Most Prime Locations In Ho Chi Minh City.

The news article highlights the challenges faced by commercial tenants in Ho Chi Minh City (HCMC) due to rising rental prices. While the number of businesses returning rented properties has decreased compared to last year, many prime locations in the city, particularly in the central districts, remain vacant for extended periods. A notable example is the Starbucks Reserve at 11-13 Hàn Thuyên, District 1, which closed on August 26, 2024, after failing to reach an agreement on rent renewal with the landlord.

After the closure, the rent was raised from VND 700 million to VND 757 million per month, an increase that would have cost Starbucks an additional VND 600 million annually, prompting its exit after seven years. Other high-profile closures include brands in the fashion and food and beverage (F&B) sectors, such as Highlands Coffee and MIA, due to unsustainable rent increases. Even as these spaces remain vacant, rental prices in central areas like Đồng Khởi and Hai Bà Trưng streets continue to rise, with some rents increasing by 25-40% in the first half of 2024 compared to the previous year. Landlords often hold firm on prices, believing their prime properties will eventually attract tenants willing to pay higher rates.

The article attributes this attitude to a belief that central properties hold unique value, making it difficult for tenants to negotiate lower rents, despite challenges in the market. As a result, many tenants have had to move out or seek more affordable locations, and commercial tenants are now being more cautious in their expansion plans.

Source: cafef.vn

3. Da Nang Seeks Solutions For Hundreds Of Billion Dong Marina Project.

On September 10, 2024, the Da Nang People’s Committee assigned the Department of Construction to collaborate with relevant units to finalize the documentation regarding the restaurant and marina project located south of the Han River port. This project was previously considered for recovery by the city but has yet to be implemented.

Situated in a prime location, the project currently faces obstacles that need clarification. The Da Nang People’s Committee has requested that the Department of Construction provide comprehensive information and documentation about the planning in this area.

The project, developed by I.V.C Company, owned by Phan Văn Anh Vũ (known as Vũ “Nhôm”), was completed in 2017. However, due to Vũ’s arrest, the facility has not been put into operation and remains abandoned.

The city had previously planned to recover this project and compensate for its conversion to public use, such as creating open spaces and serving tourism purposes. However, to date, this initiative has not been executed, resulting in a neglected and wasteful situation at this valuable location.

According to estimates, the compensation for the construction investments made in the project amounts to around 100 billion dong, excluding land compensation.

Source: cafef.vn

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

1. 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

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

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   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

6. Da Nang Plans To Auction More Than 100 Plots Of Land Online.

Đà Nẵng plans to auction 123 land lots online, with the highest starting price at 14.5 billion VND. The auction will be conducted digitally, differing from the direct auction method common in northern provinces. The land lots are located in various districts, including Hải Châu, Thanh Khê, and Sơn Trà, with the most expensive lot in Sơn Trà priced at 14.5 billion VND for 236.5 m². Most of the remaining lots range from 3 to 7 billion VND, with one lot starting at 1.85 billion VND.

Online land auctions, permitted under the Law on Asset Auctions, are designed to prevent price manipulation and reduce additional costs, offering convenience as participants submit bids digitally instead of in person. This method is seen as an improvement over traditional auctions, which often lead to long bidding sessions and market disruptions caused by groups inflating prices.

Source: vnexpress.net

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