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!
Our 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.
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Content
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1. Vietnam Apartment Market Shows Steady Sales Despite Lower Finalization Rates.
2. Implementation Of The 2024 Land Law: Cases For Revocation Of Land Use Certificates.
3. The Real Estate Market Will Undergo a Transformation in 2024.
4. Signs Show That The Residential Real Estate Market Will Be Vibrant In The Second Quarter.
5. Possessing Many Values Da Nang Urban Real Estate Will Soon Surpass Other Markets.
6. Hanoi Real Estate Market Heats Up, Attracting Ho Chi Minh City Investors.
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APRIL 2024 CENTRAL VIETNAM REAL ESTATE NEWS SUMMARY
1. Vietnam Apartment Market Shows Steady Sales Despite Lower Finalization Rates.
In April 2024, the real estate market in Vietnam witnessed the launch and sale of numerous projects, with several investors officially receiving deposits from customers. During the first quarter of 2024, the housing segment welcomed over 20,500 products for sale, including more than 4,300 entirely new ones. The housing transaction segment saw significant growth, with 6,200 transactions, an 8% increase compared to the previous quarter and double the number from the same period last year.
In the apartment segment, over 3,000 new units were introduced to the market, with an absorption rate reaching 57%, meaning out of every 100 new apartments, 57 were sold. Mortgage interest rates dropped to their lowest level in 20 years, stimulating both project development by businesses and home purchases by individuals. Many banks also committed to maximum interest rate limits to reduce risks for homebuyers.
Experts forecast that the mortgage interest rate landscape will continue to decrease in the future. Homebuyers and investors have begun to return to the real estate market after a cautious period, showing increased prudence in their investments, careful financial planning, and thorough legal scrutiny. This period is considered an opportunity to take advantage of low-interest rates and attractive sales policies, although buyers should ensure they do not overextend themselves financially beyond their means.
Source: cafef.vn
2. Implementation Of The 2024 Land Law: Cases For Revocation Of Land Use Certificates.
The article announces the implementation of the 2024 Land Law and the cases in which the government will revoke land use certificates (red books) under this law. According to Article 152(2) of the 2024 Land Law, there are cases in which the government can revoke issued land use certificates.
The cases include:
The government revokes all land areas recorded in the land use certificate, ownership certificate of residential houses and land use rights, ownership certificate of residential houses, ownership certificate of construction works, land use certificate, ownership rights of residential houses and other assets attached to the land, land use certificate, ownership rights of assets attached to the land that have been issued. The government issues new land use certificates and ownership certificates of residential houses and land use rights, ownership certificates of residential houses, ownership certificates of construction works, land use certificates, ownership rights of residential houses and other assets attached to the land, land use certificates, ownership rights of assets attached to the land for individuals using the land and owners of assets attached to the land who register changes in land use and assets attached to the land that require the issuance of new certificates.
The issued certificates are not within the jurisdiction, not for the intended land users, not for the correct land area, not meeting the criteria for issuance, not for the intended land use purpose or land use term, or not by the land laws at the time of issuance. The issued certificates are annulled by the competent court. In cases of auctioning and transferring land use rights or assets attached to the land as required by the court or enforcement agencies, individuals who are obligated to comply with court orders fail to submit the issued certificates.
Recently, the Prime Minister issued Document 202 proposing that the 2024 Land Law take effect from July 1, 2024, to expedite its implementation.
Source: cafef.vn
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3. The Real Estate Market Will Undergo a Transformation in 2024.
The “Vietnam Real Estate Market Forum 2024 – Overcoming Challenges” revealed positive trends in the final quarter of 2023. New product introductions surged 6% to 21,774 compared to the previous quarter, while transactions remained steady at 5,710. The absorption rate rose significantly, reaching 26%, double the rate in 2022’s corresponding period. Industrial real estate emerged as the leader, attracting significant foreign investment thanks to its modern and smart development direction. M&A activity also thrived, with the real estate sector making up 23% of the total value in 2023, with foreign investors driving the most successful transactions.
Experts predict a new development cycle for the Vietnamese real estate market in 2024. While the global economic situation will play a role, the government’s policies like the revised Land Law are expected to accelerate recovery. Social housing and affordable commercial housing are seen as key drivers, potentially leading the market from mid-2024 onwards.
Economists like Dr. Nguyen Minh Phong believe the market will overcome its challenges. He points to the rising transaction volume: 2,700 in Q1 2023, 3,700 in Q2, and 6,000 in Q3. Additionally, credit to the economy and falling interest rates are seen as positive signs. Finally, ongoing policy resolutions and legal improvements implemented in 2023 are expected to further enhance market stability.
Source: baochinhphu.vn
4. Signs Show That The Residential Real Estate Market Will Be Vibrant In The Second Quarter.
The real estate market in Vietnam, particularly in Hanoi and Ho Chi Minh City, is anticipated to surge in the second quarter, as per a report by CBRE released on April 10th. Despite a record low number of apartments for sale in a quarter, the market continues to face limited supply.
In Hanoi, over 2,300 new apartments and 30 low-rise houses were introduced in the first quarter, marking an 11% increase from the same period last year. However, this figure has yet to recover to levels seen in 2021-2022. Similarly, Ho Chi Minh City saw a minimal number of new apartment listings, with the lowest in 15 years, attributed to an 80% absorption rate in the first quarter due to stable pricing.
Notably, pre-sales for upcoming projects in both cities show promising signs for Q2, indicating a more dynamic market. Savills Vietnam estimates approximately 8,400 future apartment units from 25 upcoming launches and three new projects in the remaining nine months of 2024, fueled by reduced home loan rates and improved buyer confidence.
Source: cafeland.vn
5. Possessing Many Values Da Nang Urban Real Estate Will Soon Surpass Other Markets.
With comprehensive investment and synchronized planning, Da Nang has created significant urban value, surpassing larger cities like Ho Chi Minh City and Hanoi. This includes landscape and infrastructure advantages, as noted by Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association.
The current surge in high-end urban real estate demand in Hanoi stems from a scarcity of supply due to delayed project approvals, particularly in the apartment segment. Da Nang, a centrally governed city, is forecasted for positive urban real estate prospects in 2024 due to strategic development, balanced infrastructure, and economic growth.
However, there’s a need for more diversified urban real estate projects to meet various income groups’ demands, from social housing to luxury residences. Leveraging its natural landscape and modern infrastructure, Da Nang stands out competitively, especially with recent high-end riverside property developments. Yet, the city lacks modern property models like integrated complexes, presenting an opportunity for further development.
Source: vietstock.vn
6. Hanoi Real Estate Market Heats Up, Attracting Ho Chi Minh City Investors.
Hanoi’s real estate market is experiencing a faster recovery compared to Ho Chi Minh City. Investors are drawn to Hanoi’s lower price points and quicker turnaround potential. This trend is fueled by the recent stagnation in Ho Chi Minh City’s market, which has just begun a limited revival.
Reputable developers and familiar products from Ho Chi Minh City are particularly attractive to these southern investors. The pressure to maintain cash flow and inflation concerns are also pushing investors toward the Hanoi market. Experts believe Hanoi’s rise is the start of a new cycle, fueled by potential investments from overseas Vietnamese under the revised Land Law. This liquidity boost could translate to good returns for early investors.
Source: cafebiz.vn
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