Week 51/2024 – Central Vietnam Real Estate News Summary
In this weekly or sometimes bi-weekly news flash – CVR: Central Vietnam Realty will provide a choice of articles from mainly Vietnamese media sources related to the real estate market in Vietnam.
We will be focusing on issues related to Da Nang and Hoi An, while also looking at national news and their possible impact on Central Vietnam’s property market.
You will find a summary, a link to the source as well as CVR’s take on the article.
We believe that local knowledge is the key to making the best possible decision and that’s what we offer to all our clients.
“CVR: Western Management – Local Knowledge”
1. Full Overview Of The Latest Home Loan Interest Rates For December 2024.
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In December, home loan interest rates at some banks have slightly decreased, while deposit interest rates are rising at certain banks. Private and foreign banks, however, continue to maintain last month’s rates.
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•Agribank: In December 2024, deposit rates increased by 0.5% (2.2%-4.8%). Home loan rates reduced to 6% fixed for 12 months, 6.5% for 24 months.
•BIDV: Home loan rates: 5%-5.5% in Hanoi/TPHCM, 6%-7% elsewhere. Floating rate = 12-month deposit + 4%. Prepayment fees apply.
•VietinBank: Stable rates: 6%-8.2% fixed for 12-36 months, ~9% floating. Prepayment free from year 4.
•Vietcombank: No changes. Rates from 5.5%-8.5% fixed, ~9% floating. Program runs until March 2025.
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These rate adjustments make home loans more affordable for residents of Da Nang looking to buy or refinance properties.
Source: batdongsan.com.vn
2. Hanoians Search For Condominiums And Condotels In Da Nang The Most Nationwide.
Data from Batdongsan.com.vn reveals that investors from Hanoi dominate and show significant growth in interest in condominiums and condotels in Da Nang.
At the “Vietnam Real Estate Market Overview 2024 and Da Nang Spotlight” event, Batdongsan.com.vn hosted Deputy General Director Nguyen Quoc Anh, who reported that interest in condotels surged mid-2024, with prices recovering and ranging from 40 million VND/m² to over 100 million VND/m² in the first three quarters. Leveraging its tourism and economic advantages, Da Nang recorded the highest nationwide interest and price growth in condotels, with a 22% increase compared to 2023.
Nguyen Quoc Anh highlighted the future potential of condotels, tied to the tourism strength of individual markets. Well-planned, infrastructure-rich destinations with supportive policies are expected to attract investment in these income-generating properties.
Da Nang’s rental market also shows promise, with a 28.3% rental price growth in 2024 and an annual rental yield of 4.2%. This demand supports sustainable profitability and liquidity for condotels, especially with limited supply.
Hanoi investors’ interest in Da Nang’s condominiums and condotels grew by 30% in Q3 2024 compared to Q2, with Ho Chi Minh City investors showing a 20% increase. Local brokers report a 45% rise in demand, a 14% price increase, and a new price benchmark for luxury apartments. High-end projects along My Khe Beach further indicate recovery and sustainability for the condotel segment.
For luxury condominiums, Da Nang showed stronger price growth than Hanoi and Ho Chi Minh City, where the markets remained flat or declined. The proportion of high-end supply in Da Nang rose from 38% in Q1 to 62% in Q3. Branded Residences, luxury projects developed in collaboration with prestigious brands, are gaining traction, with notable entries like Nobu Danang enhancing global appeal and enriching tourism experiences.
Source: cafef.vn
3. Han River Development Fuels Real Estate Growth In Danang.
Danang is undergoing significant urban transformation, enhancing infrastructure, information technology, and tourism. The Han River, central to the city’s evolution, has become a focal point for investment, drawing parallels with prominent riverfront cities like Singapore and Shanghai.
Key developments include the 400-billion-VND “River of Lights” project, which enhances nighttime aesthetics with lighting systems along the riverbanks and bridges. This initiative boosts tourism and economic growth. Notable real estate projects like Panoma 1 & Panoma 2 offer flexible 1-bedroom + 1 apartments with luxurious amenities and stunning river views, appealing to both residents and investors.
The newly approved 1/2000 zoning plan for the Han River and East Bank envisions the area as a hub for administration, tourism, finance, education, and healthcare, solidifying its role as a prime location with promising real estate potential.
Source: tuoitre.vn
4. Vietnam Has Become An Attractive Destination For Industrial Real Estate Investment.
Vietnam has become an attractive destination for industrial real estate investment, driven by e-commerce growth and key industries. Avison Young Vietnam’s report highlights industrial real estate as a market bright spot in 2024, with rising rental rates, strong demand, and high occupancy. Foreign direct investment (FDI), fueled by supply chain diversification and the China+1 strategy, is a key driver. Industrial land rents increased by 2-5% quarterly in prime markets, with ample new supply underway. High-tech industrial real estate, logistics hubs, and ready-built warehouses are particularly appealing to foreign investors. Vietnam’s favorable conditions position it as a global manufacturing hub.
Source: tuoitre.vn
5. Over 200 Real Estate Projects Continue To Be Resolved In Terms Of Legal Issues, With Active Promotion Of Housing Laws.
Ngô Lâm stated the Ministry fulfilled 2024 tasks, ensuring consistency with government programs and specialized laws. Many new, breakthrough policies have been introduced, focusing on decentralization, delegation of authority, enhancing administrative procedure reforms, and promptly addressing existing issues in practice. These efforts aim to create a favorable environment for citizens and businesses to invest and operate. The Ministry organized training and disseminated the 2023 Housing Law, Real Estate Business Law, and guiding documents. The Ministry has also urged ministries, sectors, and localities to implement these laws, with 51 localities having issued implementation guidelines.
The Ministry proposed the Politburo issue Directive 34 to strengthen leadership in social housing development. The Ministry will finalize and submit Decision 927/QĐ-TTg on August 30, 2024, for the digital transformation plan.
The Ministry advised the Government on resolving challenges and promoting investment in one million social housing units. The Ministry is actively implementing this project and setting social housing targets for each locality to complete by 2024.
Source: kinhtedothi.vn
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