AUGUST 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.
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1. Da Nang spent nearly 94 billion VND to build 4 marine parks
On August 3, the People’s Committee of Da Nang City said it had approved the planning of 4 marine parks along Nguyen Tat Thanh Street.
Two marine parks located at the end of Ha Khe street (investment level 18.3 billion dong) and at the end of Nguyen Sinh Sac street (16.3 billion dong) have completed investment procedures and are currently selecting contractors;
The remaining 2 positions at the end of Nguyen An Ninh Street (expected about 28.3 billion VND) and the end of Nguyen Tat Thanh Street (expected more than 31 billion VND) are submitting project documents.
The People’s Committee of Da Nang City has also approved the adjustment of 1/500 planning of Nam O eco-tourism area in the direction of adjusting the facade of Nguyen Tat Thanh street into a green park and a public car park. In this project, Da Nang city plans 5 public entrances to the sea; separating Nam O rapids (a famous local scenic spot) and sandbank from the community service project. The government of Lien Chieu district was assigned to lead and work with the investor of Nam O eco-tourism area to invest in the entrances to the sea and Nam O rapids to serve the people
In addition, the People’s Committee of Da Nang City has just submitted a proposal to the City Council for approval of the investment policy of the Cultural Center combined with Children’s Cultural House in the west of the city, phase 1 in Hoa Hiep Nam Ward (Lien Chieu District). with a total land area of more than 9,000 m2, a total investment of more than 86 billion VND
These projects will make real estate in that area become more valuable and the price will be increased. Some projects like the Golden hill, Ecorcharm, Nguyen Tat Thanh beaches…may be increased in price.
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!
Source:https://thanhnien.vn/van-hoa/da-nang-chi-gan-94-ti-dong-xay-dung-4-cong-vien-bien-1424500.html
2. Resort real estate finds an “exit door” with a vaccine passport
According to experts, only a quick vaccine campaign and the application of a vaccine passport can rescue the resort real estate market.
This summer, European countries were among the earliest to reopen their borders to tourists after more than a year of being affected by the pandemic.
In Vietnam, Phu Quoc is being proposed as the first trial place for the international tourist welcome program. Under this trial program, tourists can come to Phu Quoc via charter flights and will stay at separate resorts with restrictions on destinations to visit and transportation.
Currently, the local government wants to launch this trial program with the Russian tourist first, then with international visitors from other countries such as South Korea and Taiwan. To implement this program, the local government proposes to prioritize vaccination for 100,000 residents of Phu Quoc.
After a long time of having to deal with a lot of difficulties, this is a new hope to help recover the resort real estate market in the near future.
Considering an investment in 2021? 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!
Source:https://vnexpress.net/bat-dong-san-nghi-duong-tim-cua-thoat-hiem-voi-ho-chieu-vaccine-4335312.html
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3. Da Nang no longer permits condotels
Da Nang Department of Construction has no longer licensed condotel type. Currently, the implementation of solutions to manage and control condotels in Da Nang City is carried out in accordance with the provisions of the Law on Real Estate Business No. 66/2014/QH13
Currently, Da Nang has a series of condotel projects such as Naman Garden, Ariyana condotel Furama, Alphanam Luxury, Wyndham Soleil, Hoa Binh Green Danang, …
Previously, in the face of the situation in many localities that massively granted “residential land without forming residential units” for a series of projects, causing potential risks of disputes and lawsuits, the Government Inspectorate proposed to the Prime Minister. direct ministries, sectors, and localities to temporarily not grant permits (condotels).
According to the Government Inspector, it is recommended to temporarily suspend the licensing of condotel projects until the legal system is completed according to the directions of the Prime Minister.
Accordingly, the supply of new condotel projects will not be available in the near future. Therefore, we should expect that on the market, there will only be products from projects that have been and are being implemented. Resources are scarce, so customers should consider investing in existing products to avoid price increases in the future.
With the current market situation, finding a great realtor is key to finding the right investment opportunity. All of these points are strong signs of the growth of the real estate market in Vietnam and give a good outlook for capital appreciation for investments in the long run. Interested in investing in Vietnam? Contact the CVR team for more details on available properties today!
Source:https://cafef.vn/da-nang-khong-con-cap-phep-cho-loai-hinh-condotel-20210805142455836.chn
4. What policies will have a strong impact on the real estate market in the coming time?
The real estate market report of the second quarter of 2021 of the Ministry of Construction stated the policies that will affect the real estate market in the coming time:
The Government issued Decree No. 54/2021/ND-CP stipulating preliminary environmental impact assessment: this Decree details the preliminary environmental impact assessment.
The Government issued Decree No. 54/2021/ND-CP stipulating preliminary environmental impact assessment: this Decree details the preliminary environmental impact assessment.
- The Government issued Decree No. 69/2021/ND-CP regulating the renovation and reconstruction of apartment buildings: the assessment and assessment of the quality of the apartment building, the formulation and approval of the plan for renovation and reconstruction of the apartment building; requirements on planning for areas for renovation and reconstruction of apartment buildings; the selection of project investor; compensation, support, resettlement and temporary accommodation arrangement for resettled persons.
- The State Bank of Vietnam issued Decision No. 697/QD-NHNN on interest rates on loans to buy, rent-purchase social housing, build new or renovate and repair residential houses. It is 4.8%/year.
- The Ministry of Construction issued Circular No. 01/2021/TT-BXD stipulating QCVN 01:2021/BXD national technical regulation on construction planning.
- The Ministry of Construction has issued Circular No. 06/2021/TT-BXD stipulating the decentralization of construction works and guiding their application in the management of construction investment activities.
Why it is important: These changes, when put into reality, will bring positive impacts to the real estate market, orienting the market to develop in a healthier, more sustainable, and substantive direction.
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!
5. Sunshine Homes “acquired” a project of VND 5,000 billion in Da Nang deal revealed
Sunshine (real estate brand of Sunshine Group) is completely “acquiring” the rare remaining coastal golden land on Truong Sa Street, the most beautiful billion-dollar coastal road in Da Nang.
The total area of this land is up to 21ha, with one side facing the sea, one side facing Truong Sa street. The entire project is located next to the world-class resort paradise Naman Retreat Danang and opposite the Cocobay resort megacity.
This enterprise is expected to build a 6-star complex resort complex with a scale of 5,000 billion VND here called Sunshine Heritage Da Nang I.
It is expected to bring unique and novel features that no other project in Da Nang has had with a series of villas facing the sea and 3 hotel buildings behind, reminiscent of the “tops of the river”. artificial mountain”, solid, towering, surrounded.
The expensive highlight of the Sunshine Heritage project is located in a series of villas designed with terraced elevation, stretching 600m of blue coastline, with a view of the entire ocean view. 100% of apartments and villas have an expensive sea view. Each apartment is designed in a unique architectural style that is both luxurious and modern, honoring the class of the owner. Apply 4.0 Smart Living technology, 100% of villas use automatic sliding door systems to bring the most perfect living and relaxing experience.
The source also said that after the Sunshine Heritage Danang I project, Sunshine Homes is negotiating and will continue to deploy a series of projects in Da Nang on a large scale. This enterprise also identifies Da Nang as its big market in its development plan in the next 3 years.
The implementation of large projects along the coast will make the real estate market in Danang increase sharply in the coming time. Now is a good opportunity for investors to pour money into Da Nang real estate to anticipate future wages.
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 a new home. Interested in learning about opportunities in Central Vietnam? Contact the CVR team today!
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6. The predicted scenario of the real estate market in the coming time
The real estate market in Q2, 2021 is still rather stable. The phenomenon of local land price increases in localities has been promptly controlled.
However, looking at the scenario of the real estate market in the last months of the year, optimism is no longer recorded in the forecast of many experts.
According to Dr. Nguyen Tri Hieu, economist, the real estate market will still be gloomy because the epidemic has not shown any signs of being controlled. If the epidemic continues, real estate businesses will reduce their resources, and many investors using financial leverage will find it difficult to resist. As a result, they cannot pay the interest on the bank loan and it may be bad debt.
Due date to collecting a debt of the bank can create insecurity about debt repayment to investors. And if investors do not dare to hold real estate but have to sell it to pay for the debt, then the market will have many properties for sale. This makes people who are planning to buy will wait for more discounts. This will not only make real estate owners suffer but it will also affect banks.
Dr. Nguyen Tri Hieu also mentioned that the land fever cannot appear quickly this year. Maybe, in 2022 when the epidemic is under control, the cash flow will return to the real estate market along with economic recovery, there may be new waves.
Based on this forecast of market movement, homebuyers can understand the market better and choose a good timing to buy.
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!
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7. Quiet market – an excellent chance for those with money to purchase low-cost real estate.
People who need money must sell at a loss: Usually, the land fever lasts up to about 3 months, many F0 investors have not yet withdrawn from the market, or because of greed, they want a higher price. Especially, many people have mobilized capital from many places to buy land, so far they have been hit by debt, so they have the mentality of selling and cutting losses. Besides, this time is the 7th lunar month. Many people abstain from buying at this time so it is an opportunity for long-term investors to force the price of landowners. For those who have invested in land for a long time, there is no problem, they buy and wait for profit, not to live in.
People with money “hunt” real estate sold at a loss: At this point, the market fell into a quiet state, when many investors had money waiting to buy land to “cut loss”. However, the investor needs to know if the land to buy must be true to cut losses or just a trick of the seller, investors should choose a few potential areas, good infrastructure, and should not care about the whole market, it will be difficult to grasp. catch. Along with that, investors need to monitor the price at the chosen place from the time of land fever to the time of “money down” to buy a reasonable price.
This is the time for investors can get a good deal on real estate in Da Nang.
Check out our Da Nang property listings!
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8. Three categories of specialty real estate are expected to have significant growth in the coming years
- 1. Cold Storage
Increasing demand from meat and dairy products, along with the resurgence of retail and e-commerce sectors, will help increase demand for cold storage rapidly.
Besides, warehouse automation is also being applied more and more widely so cold storage has become an integral part of supply chain management.
In addition, cold storage has become a vital part as VN exports a lot of agricultural and seafood products.
- 2. Co-working space
Co-working space has a great advantage because of its flexibility for tenants in terms of time, and rental payment method.
The average growth rate of this segment in Vietnam is also very high, at about 55% per year
The tenant can both save costs and take advantage of many services such as meeting rooms, wifi, printers, drinks.
- 3. Data Center
The global revenue of the server space rental segment (Data Center) is expected to reach more than $58 billion by 2025.
Vietnam currently has about 27 data centers, mainly in big cities such as Hanoi, Ho Chi Minh City, Da Nang, or Binh Duong.
Key factors driving the growth of this segment include the strong momentum of technology, the rapid increase in the number of smartphone users, cloud computing, and the internet of things (IoT).
Looking at these factors, we can see that the data center real estate segment is less affected by the factors that usually affect the real estate market in general. Investors will get a fairly stable long-term cash flow. However, this segment also requires a large initial investment capital.
Besides traditional real estate segments, these are some new potential investment opportunities to consider. Investors can take advantage of DN’s early market to be the top one.
Investors need to be wise, study carefully the location and price of the land lots they decide to buy at this time so that when the epidemic is controlled they can sell quickly and get a good price.
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!
As always, CVR is at your service and happy to provide help in any way we can!
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