Week 42/2024 – Central Vietnam Real Estate News Summary

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   1. The Lowest Home Loan Interest Rate Ever.

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1. Current home loan interest rates in Vietnam are at historic lows, yet the demand remains low due to rising home prices. Agribank offers attractive fixed-rate packages, starting at 6% for the first 6 months and up to 7% for the first 24 months, depending on the loan term. Despite these offers, home loan demand has not met expectations, primarily due to affordability challenges in the real estate market. BIDV offers minimum rates starting at 5% in Hanoi and Ho Chi Minh City, with other areas seeing rates between 6% and 7%. Other banks, including VietinBank and Vietcombank, have post-promotional rates between 5.5% and 9%.

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   While business credit in real estate has increased, consumer home loans have grown by just over 1%, signaling a slow recovery. Experts argue that current incentive packages are ineffective without further adjustments in rates and loan terms, as high home prices continue to hinder homeownership for many Vietnamese buyers.

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Source: cafef.vn

2. According To Experts, Flirting Of Small Investors Push The Price Of Housing High Illogically.

The article explores how speculative real estate trading by small investors, referred to as “lướt sóng” (wave surfing), has led to inflated housing prices in Vietnam. Experts like Phạm Thị Miền say investors buy and sell properties quickly, driving up prices beyond their true value. This speculation exacerbates the challenges of an already limited housing supply, contributing to market instability. The reduced accessibility for real homebuyers and distorted real estate market, with prices pushed to unreasonable levels, result from these issues. Experts are discussing efforts to regulate the market and ensure a more sustainable development model.The article emphasizes the need for balanced policies to curb speculation, stabilize housing prices, and address the fundamental issues in supply and demand to create a healthier real estate market in Vietnam.

Source: cafebiz.vn

3. The Real Estate Market Grew Positively And Construction Activities Flourished.

In Da Nang, construction and real estate activities increased in the first 9 months of 2024. 8,670 apartments and houses were traded, showing growth compared to the same period in 2023. From early 2024, the Department of Construction licensed 13 commercial housing projects with 17,000 billion VND in investment. Many real estate projects are under heavy construction, with inspections and approvals for future housing projects.

The Department of Construction states that many large projects have started construction and are being built simultaneously. In the near future, more projects will start or near completion, especially large housing real estate projects. This will increase the added value of the specialized construction sector and contribute to the continued growth of Da Nang’s construction and real estate markets.

Source: baodanang.vn

4. New Supply In The Apartment Segment In Da Nang Is Expected To Increase.

In Q4 2024, Da Nang’s apartment segment is expected to see an increase in supply, with projections of 2,000-3,000 units. The city’s land market will also improve, particularly in Da Nang and Quang Nam, with 100-150 new products. The townhouse/villa segment will remain scarce, continuing the trends from Q3, with new launches primarily in ongoing projects. Demand is anticipated to rise slightly, but major breakthroughs are unlikely. Primary market prices are expected to be stable, with incentives for quick payments still prevalent. The secondary market might improve, especially for properties with completed legal documents. The resort real estate market will continue to struggle, with no new supply and ongoing liquidity challenges. Developers are likely to maintain supportive policies like interest rate subsidies and deferred payments to navigate current difficulties. Overall, a cautious recovery is expected as legal and economic factors improve.

Source: baodautu.vn

5. Welcoming Tourists Year-Round, Da Nang Almost No Longer Has A Low Tourism Season”

Da Nang has experienced a notable tourism surge, attracting 8.7 million visitors in the first nine months of the year, with diverse international arrivals from markets such as Europe, Australia, and the Americas. Major events have boosted the city’s post-COVID recovery, and tourism is now year-round, eliminating the traditional low season. This shift is expected to sustain steady growth in Da Nang’s tourism sector.

Impact on Real Estate:
The rise in year-round tourism will likely enhance Da Nang’s real estate market. Increased international visitors and higher spending tourists are expected to fuel demand for premium properties, vacation rentals, and commercial spaces. The reduced reliance on seasonal tourism creates a stable market, boosting hospitality-related real estate investment, such as hotels, resorts, and serviced apartments. Higher occupancy rates may also attract more real estate investors, particularly in hospitality and commercial sectors.

Source: vietnamnet.vn

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