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.
APRIL 2022 CENTRAL VIETNAM REAL ESTATE NEWS SUMMARY
1. The economy of Vietnam in Q1/2022: Continue to recover despite challenges.
The BIDV Training and Research Institute believes that Vietnam’s economy will continue to recover but still face 4 difficulties and challenges that can grow 5.5 – 6%.
Socio-economic activities, Vietnam’s economy recovered more and more clearly with 8 bright spots:
Firstly, the epidemic continued to be controlled and changed positively, and the Government drastically restored socio-economic activities.
Second, GDP growth in the first quarter of 2022 is positive, estimated at 5.03%.
Thirdly, imports and export grew positively, the trade balance was in surplus.
Fourth, foreign direct investment grew positively.
Fifth, state budget revenue maintains a positive momentum but is unsustainable and development investment spending is still slow.
Sixth, basic interest rates and exchange rates are stable.
Seventh, business activities flourished.
Eighth, tourism activity recovered positively.
Importance: Those positive signals in the economy are the good news to the real estate market in general with more enquires about the property.
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. The attraction of Danang coastal real estate
Da Nang coastal real estate products attract investors after the economy is showing signs of recovery and tourism is open.
According to experts, high-class coastal apartments are still an attractive investment and resort model for investors because the living needs of people are increasingly improved. The coastal apartments with spacious views, wind, and waves still create a great attraction.
Vietnam’s resort real estate market report said that in the first quarter of the year, many types of coastal properties restarted with more abundant supply and increased selling prices compared to 2021. In the first quarter, the selling prices of resort villas, townhouses, and beach shophouses increased by 10-17% and condotel prices increased by 5-8% compared to last year.
Check out some of the most sought-after resort real estates in Danang at CVR!
At CVR, you can find villas and condotels in the best resort real estate in Danang and Hoi An. Contact the CVR team today!
3. Which real estate segments will increase in price the most in 2022?
In 2022, the segments including land plots, agricultural land, houses, and low-cost apartments are considered to have a high probability of increasing prices in the range of 11 – 20%.
The results of the Vietnam Report’s survey of real estate experts and businesses about the average price volatility in 2022 show that land plots are the segment with the highest potential for price appreciation. The segment of land plots, agricultural land, low-cost housing and apartments is likely to increase in price in the range of 11%-20%. The segments of suburban real estate, industrial real estate, housing and mid-range apartments, and offices for rent can increase by an average of 5%-10% compared to the previous year.
In the face of land fever in 2021, experts in a survey of Vietnam Report said that in 2022, land fever may still happen, but with a lower probability.
The reason is that at present, the information about planning and infrastructure is still heavily speculative and the blowing of real estate prices by unfair methods has not yet been sanctioned. However, land fever is not only caused by the above reasons, it can be the result of macro policies, and official master plans from the government.
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!
4. Da Nang announced 11 projects eligible to sell houses formed in the future
9 commercial housing including:
- • The Filmore apartment project in the Hai Chau district with 206 apartments.
- • Housing project on the east of Tran Dang Ninh street, Hai Chau district, invested by Dat Xanh Mien Trung JSC with 96 adjacent houses.
- • The project of a complex of hotels and high-class apartments on the Central Coast (Central Coast), Son Tra district with 340 apartments.
- • The Sang Residence apartment project, Ngu Hanh Son district with 298 apartments;
- • FPT Plaza 1 apartment building project, Ngu Hanh Son district with 586 apartments.
- • FPT Plaza 2 apartment building project, Ngu Hanh Son district with 700 apartments;
- • Empire resort and luxury housing project, Ngu Hanh Son district with 217 townhouses, villas (HH4, HH6, HH7) and 700 apartments.
- • Phuong Trang high-rise commercial urban complex project – Zone E, Lien Chieu district is invested with 73 adjacent houses.
- • Asiana apartment project, Lien Chieu district is 487 apartments.
And 2 Social housing projects include: Social housing apartment project in Hoa Khanh industrial zone, Lien Chieu with 452 social housing apartments (280 apartments) and 188 apartments for commercial housing
Social housing apartment project at land lot B4-1 in Bau Tram Lakeside Green Urban Area, Lien Chieu, with 1,032 social housing apartments and 274 commercial housing apartments.
As Da Nang continues to develop into a major economic center and international destination, CVR can help you find suitable real estate that fits your specific needs whether it’s for a business or new home. Interested in learning about opportunities in Central Vietnam? Contact the CVR team today!
5. The real estate market may be quiet due to inflation and bank tightening, but prices will not fall
Even in many warnings, the real estate market is forecasted by experts to continue to be bright and growing. However, market research organizations and experts are concerned that with high development, and real estate lending, the market may temporarily drop into depression but prices will not decrease.
High inflation or even when banks take action to tighten credit, real estate is still an investment channel to attract cash flow. This is also an investment channel that experts estimate optimistically about a scenario at the present time and in the future.
Giving the reason for the growth, Vietnam Report said that the return of the real estate industry is mainly due to companies restructuring operations and recovering from the negative impact of the pandemic. Along with that is the support of economic stimulus packages that the Government, ministries, sectors, and localities are actively implementing.
According to Vietnamreport, the concern raised by experts is that if inflation exceeds the target level and lending interest rates rise, it may have the opposite effect, the real estate market may fall into a quiet state. The price level will not drop as sharply as in the 2011-2013 period due to the smoother and more stable regulation of the Government, real estate businesses as well as home buyers will face many difficulties and risks when the proportion of loans for Real estate investment is quite large.
Importance: Investment in real estate is still a prosperity channel despite any bad factors happening.
Considering an investment in 2022? Whatever the requirement, we provide our clients the highest standard of service tailored to their specific needs and always stay ahead of the curve. Reach out to us today!
6. Investors are accelerating the acquisition of hotel buildings to prevent inflation
Investment channels to prevent inflation
2021 marks the return of investment capital into the Asia Pacific hotel market, with a total value of 12.1 billion USD, up 46% over the same period last year.
The high volume of investment transactions shows the market’s optimism about the prospect.
According to CBRE experts, the hotel is one of the most sought-after segments, especially for investors looking for opportunities to add value.
In addition, the plan to reopen and loosen travel restrictions creates favorable conditions for the tourism and hotel industries to quickly boom again after the epidemic.
With the current hotel buildings, many investors and operators have taken advantage of the quiet time during the Covid-19 epidemic season to upgrade and improve facilities, and prepare for welcoming guests back.
On the way to recovery
Many countries in Southeast Asia have begun to relax restrictions and welcome international visitors back. Therefore, the tourism situation in Southeast Asia is expected to soon be active in the near future and lead to the recovery of the whole region.
As always, CVR is at your service and happy to provide help anyways we can!
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