Week 43/2024 – Central Vietnam Real Estate News Summary

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   1. The Real Estate Market Has Just Passed Through A Volatile Cycle, And Prices Have Officially Reversed, Making Housing Costs Hard To Reduce.

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1. Market Situation: The Vietnamese real estate market has undergone a period of significant fluctuations and is now officially “turning around.” Housing prices are rising sharply and show signs of being difficult to decrease in the near future.

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   Expert Assessment: Mr. Nguyễn Quốc Anh, Deputy General Director of Batdongsan.com.vn, reported that the percentage of real estate brokers indicating stable or increasing transactions rose to 51% in Q3 2024, highlighting a marked recovery in the market.

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   Supporting Factors: Recent legal changes, including the revised Land Law and the Real Estate Business Law, have created greater transparency in transactions and management, with 55-59% of market participants responding positively.

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   Prices and Supply: Real estate prices are currently high, averaging over 60 million VND/m², while supply is scarce. Only about 13,000 apartments are expected to be eligible for sale in Q2 2024.

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   Future Outlook: Mr. Quốc Anh is optimistic that supply will improve in the future, alongside economic development and infrastructure enhancements, increasing opportunities for home ownership. The Hanoi apartment market is also expected to see an additional 30,000 units in 2024.

   The news is important as it marks a price reversal in Vietnam’s real estate market, signaling rising housing costs amid limited supply, affecting investors and buyers.

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Source: cafef.vn

2. Da Nang Real Estate Market Booms With New Supply At The End Of 2024.

After a challenging period due to the COVID-19 pandemic and the real estate crisis, Da Nang’s property market faced a downturn from 2020 to 2023. However, since 2024, the market has shown positive signs of recovery, particularly with a surge in new apartment supply. The city’s economy is regaining momentum, with GRDP growing by 5% in the first half of 2024 and an 8.35% increase in Q2. Apartment demand has soared, with a 44% rise in search interest and a notable increase in transactions. Major projects like Sam Tower, The Filmore, and The Sang Residence are contributing to the supply, with strong sales and rising prices. Despite high price tags, especially for luxury apartments, transactions remain robust, and continued growth is anticipated in the coming months.

Source: batdongsan.com.vn

3. The Reason Affecting The Real Estate Market Is Due To Problems From Projects.

At a meeting on October 24, Deputy Prime Minister Trần Hồng Hà highlighted challenges in real estate caused by delays in project approvals and legal obstacles related to land use. He urged local authorities to promptly review and address these issues, while assigning the Ministry of Construction to streamline administrative procedures. Despite some positive developments, the real estate market still faces supply shortages, especially for affordable housing. Rising land and construction costs have driven up prices. The government aims to improve housing programs, including social housing, but financing and bureaucratic hurdles remain major challenges for investors and beneficiary.

Source: cafef.vn

4. New Land Price List Has Not Yet Had An Immediate Impact On The Real Estate Market.

Regarding the new land price list, on October 23, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA) said that the new land price list has adjusted the land price to increase slightly compared to the previous draft. According to Mr. Chau, the new land price list of Ho Chi Minh City has been adjusted completely, from districts, towns, to Thu Duc City according to each land location and adjacent land locations of each locality. Although the new land price list has been adjusted to be more reasonable, it will still directly affect individuals and households who are applying for land use rights certificates, house ownership rights, and other assets attached to land (red books), they will pay higher land use fees than before.

Source: cafef.vn

5. Da Nang and surrounding area real estate: Low demand.

In the third quarter of 2024, Da Nang and its surrounding areas saw an improvement in primary real estate supply, but overall demand remained low, according to DKRA Consulting. The land plot segment introduced 16 projects, increasing the supply by 45% compared to the previous year, though demand only reached 8% of total supply. However, market liquidity improved with an 80% increase in sales over 2023, leading to a slight rise in prices.

The apartment segment recorded a 32% increase in supply, with a notable demand for high-end units, while the townhouse and villa segment saw limited sales, with only 9% of units sold. Despite a rise in supply, demand remains weak across all segments.
Experts predict that the market will recover, driven by economic growth and improved regulations, though short-term demand surges are unlikely.

Source: vneconomy.vn

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