DECEMBER 2021 CENTRAL VIETNAM REAL ESTATE NEWS SUMMARY
Each week we post a news flash with notable articles related to the real estate market in Vietnam. We asked our team to pick the top stories from the past month and we’ve tallied the results. Check out the headlines that made big news in our office below. Have any of the articles we’ve shared impacted you? Is there any important news we’ve missed? We’d love to hear from you!
We hope you and your loved ones are staying safe and healthy. The CVR team is here to answer your questions at any time. Whether buying, selling, renting, or opening a business, contact us to talk about your real estate needs today.
Your Friends at Central Vietnam Realty.
Content
1. Residential real estate investment will be an upward wave in the period of 2022 – 2023
2. Five big questions for the Real Estate Market in 2022
4. Covid cannot stop the price increase of real estate
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7. Worried about inflation after the epidemic, will people pour money to buy land?
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8. Developments in the real estate market during the “money inflation” era
1. Residential real estate investment will be an upward wave in the period of 2022 – 2023
In the context of the world economic market as well as the Vietnamese market, with most of the evidence from countries in the US and Europe, real estate increased significantly, especially in the US. In the past year 2021, the value of US real estate increased by approximately 30-40% in most segments of residential real estate. And in Vietnam, despite the difficult epidemic situation, residential real estate still tends to increase in many areas, especially the big cities and provinces of Vietnam.
A key issue in real estate investment activities in Vietnam today is the land fund factor and legal issues. Investors are tending to expand investment assets as land funds in satellite cities around Hanoi, Da Nang, Ho Chi Minh City, and Nha Trang.
For Vietnam’s real estate market, after the financial, economic, and epidemic crises, it seems that the investment pressure will be unleashed greatly. Currently, the epidemic makes it very difficult for the production, business, and service sectors, so the cash flow will flow into the securities sector. Securities and real estate are considered mutually exclusive. However, not everyone can invest in stocks, and so real estate is an opportunity. Real estate is a colorful story.
In the year 2022 – 2023, given the difficulties in disease control, as well as the difficult economic growth rate, the money source in the economy is still there. Therefore, investment in securities and residential real estate will be the direction of the upward wave in 2022 – 2023.
It is important because, with an average GDP growth rate of approximately 6-7% over the past several years, Vietnam is being evaluated as an ideal destination for investment compared to other countries in the region, especially in the field of investment real estate market.
Interested in learning about investing in Central Vietnam? With a decade of experience, we’re your number one resource for residential and commercial real estate opportunities in and around Da Nang. Contact the CVR team today
2. Five big questions for the Real Estate Market in 2022
The year 2022 poses many problems that the real estate industry needs to find solutions to, revolving around issues of climate change, work-from-home trends, capital flows, proptech, and the pandemic.
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Climate Changes
Climate Changes
It’s time for real estate leaders to stop talking and start taking concrete steps to combat climate change. The goal will not be simply to ensure compliance with government regulations but to create sustainable advantage and value for both the project and the environment in the long run.
- Future working model
Before the pandemic, it took an average worker half an hour to get from home to work. But COVID-19 has shortened this time from the bedroom to the desk at home.
As a result, the office market could shift to a hybrid model, allowing businesses and workers to both works remotely and be in the office at certain times.
- Capital flow destination
After a certain pause due to the pandemic from mid-2020, real estate transactions are gradually returning. Capital flows both domestic and international continue to pour into the real estate sector as a safe investment haven during the pandemic.
The big question is, can that discipline of the flow be controlled, especially as more and more investors pour their capital into the real estate market?
- Proptech and digital transformation
COVID-19 has turned daily life from contact to “no-touch”, thereby strongly promoting real estate technology (proptech) initiatives.
Businesses that make good use of proptech and the enormous potential of protepch will gain a tremendous competitive advantage, not only in attracting tenants but also in creating a smarter portfolio.
- Pandemic and real estate picture in the next decade
The pandemic will shape the real estate industry over the next decade in ways we can’t even imagine. That will require industry-wide flexibility.
The investors and managers will need to be flexible and agile to thrive in the post-COVID-19 era.
Importance: These predict the development and changes of the real estate market, professional agents should know the future forecast in order to adapt the best to changes and make the best in career development.
Our expert knowledge of both the property market and business environment ensures our clients are provided the best advice throughout the process. In today’s constantly changing market, buyers face an array of complex challenges and new opportunities. We can help!
Source:https://cafeland.vn/tin-tuc/5-cau-hoi-lon-cua-nganh-bat-dong-san-trong-nam-2022-105262.html
3. Three reasons to buy a house before Tet, if you know how to take advantage, buyers “win both ways”
The end of the year is the golden time to buy a house with the hope of making a profitable investment for the next year.
Can get a better price than expected: At this time, there are often many attractive sales policy incentives from sellers such as direct discounts on the sale price or free gifts. In addition, the need to urgently liquidate assets at the end of the year is also an opportunity to help investors “hunt” houses at attractive prices.
Less competition, more choices: Usually, people will have less psychology to buy a house at the end of the year because of the mentality of accumulating financial resources to welcome the new year and the preparation work is quite busy. If going against the majority, in addition to being able to buy a cheap house, buyers also reduce competition and easily choose to buy a house they like.
Enjoy many year-end incentives from the bank: In order to promote credit growth at the end of the year, banks often offer preferential interest rates to support homebuyers.
Related: Shantira Hoi An Beach Resort & Spa: Year-end Sales Promotion & Construction Progress 2021
However, everything has two sides, so buying a house before Tet also has some disadvantages. For example, the products that are subsidized are mostly out of stock due to some reasons such as not being priced or being in dispute, or unclear legality. Therefore, buyers need to look carefully before making a decision to avoid future disputes.#
At CVR we offer our clients the best in commercial real estate sales and leasing in the Central Vietnam marketplace. We have assisted a wide range of businesses, from IT companies to Industrial warehouses. Thinking about moving your current business or opening a new business in Da Nang or the surrounding area? We can help!
4. Covid cannot stop the price increase of real estate
Despite the impact of the epidemic, many segments of the real estate market are still bullish.
In the apartment segment, the selling price of primary apartments will continue to increase in the future. Prices are expected to continue to increase due to rising land costs, escalating construction costs, many new products in the higher segment, stable demand, and temporarily limited supply.
In which, the selling price of primary apartments in Hanoi increased by 16%, the selling price of primary apartments in Ho Chi Minh City increased by 17%.
Specifically, in Hanoi, the selling price of villas has increased by 13%, townhouses by 4%, and commercial townhouses by 3%. Meanwhile, in Ho Chi Minh City, villas increased by 3%, townhouses by 17%, and commercial townhouses by 6%.
As for the resort real estate market, despite being heavily affected by the Covid-19 epidemic in the past 2 years, this segment still has positive developments.
In the past, the real estate market has created many “antibodies”, by flexibly adapting to the “new normal” trend through digital transformation, changing business tactics with online sales channels to meet the needs of homebuyers.
Although resort real estate has faced difficulties and challenges in the past time, the speed of vaccination has been accelerated in Vietnam as well as the plan to reopen international flights in the near future which helps to recover and lever this segment.
A long-time investor in Phu Quoc said that the move to open tourism not only creates a great source of revenue for the local budget but also businesses operating in the fields of travel. Restaurant, hotel business, and the resort also benefit, thereby contributing to the recovery of business operations affected by the pandemic.
CVR is here to help you understand the trends of the market so you can make the best investment decisions. Our experience, highly regarded reputation and strong legal knowledge keep us at the forefront of the real estate industry. Interested in learning more about opportunities in Central Vietnam? Contact the CVR team today!
Source:https://cafeland.vn/tin-tuc/covid-khong-can-noi-da-tang-gia-cua-bat-dong-san-105388.html
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5. Many real estate developments are on hold while they wait for the Thu Thiem area to hit a new price high.
Many investors with projects deployed in the Thu Thiem area are moving to “temporarily close” the real estate cart to consider price fluctuations of the market when the land price in this area tends to establish new ground.
The price of land in Thu Thiem exceeds the old center area
The level of 2.4 billion VND/m2 of Thu Thiem land has just successfully auctioned is pushing the land price in this area up to the ceiling price of land in the HCMC market and affecting almost every housing segment being deployed around. The results of the auction of 4 plots of land on Thu Thiem peninsula in the auction on December 10, set a record for the largest land price in Vietnam. With this price, each apartment in the project has to bear the land use fee of over 40 billion. If the cost of construction, loan interest, and profit of the investor is taken into account, the selling price is about 3 million USD/apartment. This is a record high price in the HCMC market as well as the whole country.
The real estate market is waiting for a new price peak
With the input land price established through recent auctions, the leader of a real estate business in District 3 forecast that the investor would have to sell the apartment for about $20,000/m2 to reach the break-even point. This price is more than double the highest primary price being traded in the Thu Thiem area.
In the high-end apartment segment, the local scarcity in prime locations such as Thu Thiem will persist, so the product is only lacking, not redundant. This is not only reflected in the fact that real estate in District 2, especially Thu Thiem, is still trading well. The sales success rate is always above 90%, but “room” for foreigners to buy houses is always lacking. In addition to the scarcity factor, it must also be affirmed that District 2 is a place with a very good location. In Ho Chi Minh City, it is difficult to find an area with many advantages of location like this place. Thu Thiem will be the “headquarters” of Thu Duc city, the connection point between the center and the Eastern economic zone. Thanks to synchronous planning, Thu Thiem real estate market will develop very quickly in the next few years.
Interested in investing in Vietnam? We cooperate with local and international brands to offer our clients the best opportunities available. Contact our sales team for more information today!
6. The real estate market is reenacting the thrilling situation of ten years ago, but there is no “bubble” in sight
The real estate market is entering the final month of 2021 with a strong breakthrough speed. In many areas, the volume of buying and selling transactions took place quite actively. Real estate prices in some segments recorded a sharp increase.
The amount of cheap money on the market is largely due to a large amount of money being injected through the banking channel and the support package, leading to an increasing trend in inflation. This makes people fear that the currency will depreciate and consider real estate as a haven. Gold investment channel is at the ceiling of low-profit margin, securities are very unstable while savings deposit interest rates are low. That’s why people want to find investment opportunities in real estate. According to Mr. Thanh, the most important factor that makes the market exciting is the people’s optimism about the epidemic situation due to high vaccine coverage. They also accept the mentality of living with the epidemic.
At this time, there will not be a bubble and freeze like the period 2010-2011 due to many reasons: Firstly, the market is now much more transparent, from information to products. Investors have also become much wiser; Second, real estate products at this stage are more visible, shown through clear legislation and synchronous infrastructure.
Why it is important: This is good news for investors who want to choose real estate for the investment channel. They will be more positive in the market.
7. Worried about inflation after the epidemic, will people pour money to buy land?
Inflation is a situation that both international experts and Vietnam can see in 2022 due to the post-Covid-19 impact. There are many options that the Government and experts are considering to react from a macro perspective, but in the microcosm, for example, some industries, products, and services, some investment-related fields, markets, etc. financial, there will be fluctuations that need to be forecasted more deeply. From a positive perspective, inflation is an opportunity to boost economic growth, which will also be one of the Government’s priorities in 2022.
In the past 2 months, when Vietnam gradually lifted the social distance and started a new normal, people could clearly feel the abuse factor development, from the cost of living, food, agricultural products, oil prices, gold prices started to increase
The Government always sets the target of controlling inflation as far as possible to promote economic growth. The control target of the consumer price index or CPI below 4% is considered to be just enough to affect economic development.
Some policies of the State have been applied in the past, such as controlling cash flow in the stock market or properly controlling loan cash flow. The State has regulations on real estate loans mobilized from short-term capital sources. In short, inflation is an obvious problem, but it is expected to be under the control of the Government. Given by the government at an appropriate level, it will have a positive impact on economic development in general as well as in each industry sector, including real estate.
It is important because we know and keeps the situation to properly advise customers whether to buy real estate at this time or not.
Source:https://batdongsan.com.vn/tin-thi-truong/lo-ngai-lam-phat-nguoi-dan-se-do-tien-mua-dat-ar108022
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8. Developments in the real estate market during the “money inflation” era
Safe haven channel: According to experts, the real estate market will likely benefit when economic stimulus packages are deployed and the risk of high inflation is forecasted. According to experts, the reason why housing prices are constantly increasing, new supply is scarce, and concerns about high inflation are causing many investors to put their money into a safe haven channel that is real estate. 
Besides, the fact that the market has been compressed after many months due to the impact of the pandemic and the “shopping” mentality at the end of the year will stimulate cash flow into real estate.
Orientation of cash flow to stimulate demand: Although expected to be a strong driving force for the real estate market, according to experts, the stimulus packages being discussed will be carefully calculated to ensure effective economic recovery. As for the real estate market, the fact that the market has continuously witnessed housing price increase cycles, even during the period of heavy influence, house prices have not tended to decrease, even increased rapidly.
Why it is important: The market is showing signs of a bright start and longtime real estate investors have probably summed up the laws of the market, up and down.
Not everybody wins the game of land investment. It would be better to do investment with well-informed projects which have adequate paperwork and choose those which had the pink book issued. A stronger and more transparent market means more opportunities! Considering investing in a new construction development project in Central Vietnam? Contact the CVR team for more information on current and upcoming opportunities.
Source:https://vietstock.vn/2021/12/dien-bien-thi-truong-bat-dong-san-thoi-tien-re-4220-915783.htm
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