Week 46/2024 – Central Vietnam Real Estate News Summary

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   1. Vietnam’s Real Estate Market Set For Growth In 2025 Amid Legal Reforms And New Opportunities.

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1. Vietnam’s real estate market is expected to enter a new growth phase in 2025, as recent legal reforms and policies pave the way for development. According to industry expert Phan Dinh Phuc, the market has likely moved past its downturn. With the implementation of updated Land, Housing, and Business laws, the sector is set to stabilize and experience increased demand. Factors such as updated land prices, major infrastructure projects, and the recent approval of large housing loans create favorable conditions for investors.

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   While there is strong foreign investment interest, especially as Vietnam is seen as a safe investment destination, the market faces supply challenges. Phuc notes that liquidity issues could arise, especially for those over-leveraging with debt. Trinh Minh Hai, real estate analyst, highlights that new regulations will ensure more transparency, reducing speculative practices. Investors should exercise caution, avoid short-term speculation, and ensure a strong cash flow, as the new legal framework enforces stricter payment schedules.

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Source: cafef.vn

2. Major Infrastructure Projects Propel Lien Chieu As New Growth Engine For Da Nang Real Estate.

Lien Chieu District in northwest Da Nang is rapidly evolving into a significant growth hub, driven by major infrastructure developments. Central to this transformation is the Liên Chiểu Port, a 450-hectare deep-sea port under construction, expected to complete its first phase by 2025. The port has attracted foreign investment interest, including commitments like $10 billion from India’s Adani Group, as well as interest from corporations such as Maersk and Sumitomo.

The district will also host Vietnam’s first Free Trade Zone, approved near the port, further boosting growth potential. Enhancements in transportation, including the Tây Bắc Main Road and a newly opened western ring road, are strengthening connectivity to Da Nang and the Central Highlands. The Làng Vân Integrated Resort, Nam Ô, and other developments in Liên Chiểu’s industrial parks will actively attract residents and investors, positioning the area as a new focal point for Da Nang’s economy and property market.

Source: cafef.vn

3. Nearly 50% Of New Apartments In Da Nang Were Sold In The Third Quarter.

Demand for apartment products in Da Nang tended to increase in the quarter with consumption reaching nearly 50%, according to DKRA.

In the third quarter, this area recorded 15 projects opening for sale with nearly 2,300 units, an increase of 32% over the same period.

Market demand also increased with nearly 1,060 units sold, reaching about 47%, 2.8 times higher than the same period. New projects in Son Tra district, Da Nang, recorded the majority of transactions. In the secondary market, DKRA estimates that demand has also improved with the majority of transactions focusing on projects that have handed over houses, have clear legal regulations, and are convenient to move to the center.

DKRA forecasts that the Da Nang market in the fourth quarter may welcome an additional 2,000-3,000 apartments, of which the Grade A segment dominates. Selling prices remain high, but investors will increase demand stimulation with preferential payment policies, discounts, and gifts. Therefore, we expect demand to continue recovering, but a sudden change is unlikely in the short term.

Source: vnexpress.net

4. Vietnam Real Estate Market Overview 2024 And Danang Highlights.

At the “Vietnam Real Estate Market Overview 2024 and Danang Highlights” event on November 13, Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, shared insights on the Vietnamese real estate market entering a new cycle with clear signs of a reversal, projected to unfold in four phases.

In 2024, investors are expected to prioritize secure factors, focusing on legal clarity and financial stability, with market demand led by apartments. By late 2024 to early 2025, growing financial confidence will likely shift primary investments toward private homes and townhouses. Entering the growth phase from mid to late 2025, the market will likely attract strong interest in high-yield assets like land plots and villas. By 2026, the market is anticipated to stabilize, with enhanced price points and liquidity across various property types.

To drive market recovery and growth, Mr. Quoc Anh emphasized three priorities: addressing capital flow issues, stabilizing long-term lending rates, and improving policy and legal frameworks. These steps aim to enhance investor confidence, facilitate easier access to financing, and improve market transparency.

Source: tapchicongthuong.vn

5. A Beautiful Picture Of Vietnam Economy Which Has Created The Same GPD In Compared To A Developed Country In The Europe.

Vietnam’s economic performance in the first 10 months of 2024 shows promising growth across sectors. Agricultural stability, a 7% year-over-year increase in industrial production, and an 8.5% rise in retail sales illustrate a positive trend. In October, the Purchasing Managers’ Index (PMI) reached 51.2 points, which signals continued manufacturing expansion. Meanwhile, the government successfully kept inflation under control at 3.78%, supporting overall macroeconomic stability.

Trade activities are robust, with exports growing by 14.9%, contributing to a trade surplus of $23.31 billion. Foreign direct investment (FDI) inflows rose 1.9% to $27.26 billion, the highest since 2019. Tourism recovery also strengthened, with 14.1 million international arrivals so far this year.

Government revenue collection has reached 97.2% of the 2024 target, even with tax reductions. Standard Chartered and HSBC have revised Vietnam’s projected GDP growth upwards, forecasting increases to 6.8% and 7%, respectively. This upward revision reflects the country’s strong economic resilience and potential as one of the fastest-growing economies in ASEAN.

Source: cafebiz.vn

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