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Week 21/2024 – 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”

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   1. Real Estate Business Law Takes Effect Sooner: Home Buyers Will Get Great Benefit.

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4. The Real Estate Business Law 2023, along with the Housing Law 2023, aims to protect home buyers' interests and provide them with more housing options. Passed by the National Assembly in November 2023, these laws will take effect from January 1, 2025, though the government has proposed advancing this to July 1, 2024.

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   The Housing Law 2023 introduces significant reforms to improve housing management and development efficiency. Meanwhile, the Real Estate Business Law 2023 emphasizes decentralization, administrative reform, and market control, enhancing unified management from central to local levels.

    

   These laws institutionalize the Party's policies and guidelines, promoting strict real estate market management and fostering a healthy, sustainable market. According to Ms. Do Thu Hang from Savills Hanoi, the Real Estate Business Law 2023 safeguards buyers by ensuring developers fulfill financial and documentation obligations before selling properties. Buyers also have the option to forgo a credit institution guarantee, adding flexibility and reducing costs, though they should weigh the risks and benefits.

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Source: cafebiz.vn

 

2. Real Estate Prices Unlikely To "Cool Down" Anytime Soon.

 

The new Land Law provisions on revoking improperly issued land use rights certificates (LURCs) aim to standardize information, although they cause public concern. From July 1, the law adds two new scenarios for LURC revocation: court annulment and non-compliance with court auction outcomes.

 

While many worry about revoked LURCs due to administrative errors, lawyers argue this is an opportunity to correct records. Mistakes in issuing LURCs may lead to criminal charges for officials, ensuring accountability. Overall, these changes aim to protect rightful landowners and rectify past errors, though implementation may pose challenges, especially in urban areas.

 

Source: thanhnien.vn

 

3. Forecasting The Market To Recover, Restate Businesses Are Hunting For Land Funds.

 

Real estate leaders are optimistic about the market's recovery after a prolonged slowdown and aim to seek land in the near future.

At the 2024 annual general meeting, Tan Bo Quan, Chairman of BCG Land, noted the severe challenges the market has faced since 2022 but highlighted a slight recovery in Q4 2023 due to new government policies and improved access to credit. Khải Hoàn Land and Đất Xanh Group also observed positive signs, with increased transactions and customer interest.

 

Vinhomes expects a gradual recovery, with limited supply in major cities. Some leaders, like those from Nam Long, remain cautious, citing supply-demand imbalances and financial risks.

Despite challenges, there are opportunities in affordable housing and industrial real estate, driven by foreign investment and infrastructural development.
Companies are prioritizing legally clear land to prepare for new projects, focusing on strategic locations and long-term growth.

 

Source: vietstock.vn

 

4. Western Hanoi Real Estate Market Thrives Due To The Supply Of Valuable Properties.

 

The introduction of high-quality real estate projects has increased the appeal of western Hanoi, where desirable land is scarce. A notable project is LUMIÈRE Evergreen by Masterise Homes, centrally located in the Smart City mega-urban area. The recently unveiled Atmos tower has captured attention, contributing to a significant increase in market activity, with 5,308 units sold—a 74% rise from the previous quarter and a 99% increase from the previous year, according to Savills Vietnam.

 

LUMIÈRE Evergreen offers comprehensive amenities, including shopping centers, hospitals, and schools. The elegantly designed apartments feature Low-E curved glass windows with views of interconnected parks and a central lake. The project boasts 60 internal and external amenities, such as air-filtering gardens, a moon-viewing lake, an international-standard gym, and a four-season swimming pool with a panoramic view.

 

The project emphasizes health and well-being with walking gardens, meditation areas, and a zen stream. Apartments range from studios to four-bedroom units, with high-end handover standards and fully furnished interiors featuring top international brands. The Atmos's design optimizes functionality and luxury, making it a prime choice for buyers and investors.

 

Savills Hanoi reports a positive shift in buyer sentiment and demand for urban apartments, with reputable projects from trusted developers seeing quicker sales and significant market interest due to guaranteed quality and legal assurances.

 

Source: cafef.vn

 

5. Young Buyers Fuel Demand In Real Estate Market Amid Favorable Sales Policies.

 

In late 2022 and early 2023, rising loan interest rates deterred many young families from purchasing homes. However, since late 2023, developers have introduced favorable sales policies, easing financial burdens and reigniting demand. Young buyers, aged 22 to 39, now dominate the market, replacing the older middle class.

 

Developers are offering extended payment schedules and lower interest rates, with some projects having monthly payments lower than rent. For instance, Flora Panorama in Ho Chi Minh City offers units with payments starting at 2.1 million VND per month, while Akari City offers favorable terms, allowing buyers to pay 40% in installments and defer loan repayments.

 

With supportive developer policies, even projects in Binh Duong are seeing increased transactions. Experts suggest leveraging favorable loan terms to buy homes early, as economic development and low lending rates make property ownership more accessible. Despite high real estate prices, fears of further increases push buyers to act quickly, leveraging extended payment plans and low interest rates.

 

Source: cafef.vn

 

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