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!
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Your Friends at Central Vietnam Realty.
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Content
1. Hoiana Residences officially handed over the first hotel apartments
2. Is it Advisable for Buyers to Hold off Purchasing Real Estate as Resale Prices Continue to Decline?
3. What is the bright spot for the Real Estate Market in 2023?
4. Da Nang is about to auction 25 large plots of land
5. Buyers are not finding a 30% discount on real estate appealing
6. Why can’t real estate businesses reduce selling prices?
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FEBRUARY 2023 CENTRAL VIETNAM REAL ESTATE NEWS SUMMARY
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1. Hoiana Residences officially handed over the first hotel apartments
Following the investor’s commitment, the first hotel apartments of the Hoiana Residences project were officially handed over to customers on February 24, 2023.
At the handover ceremony, the representative of Hoiana Residences deeply thanked the residents for their trust in choosing this place as a residence.
Attractive offers for investors.
Up to now, Hoiana Residences is one of the rare projects that gives customers the opportunity to invest in a 5-star resort apartment in the heart of Hoi An ancient town for only 3.2 billion VND. The attraction of the resort to tourists is stronger, especially those from Korea because of its prime location, providing the opportunity to explore and experience the local culture combined with relaxation, and top-notch golf entertainment.
Although it has just been put into operation, the resort apartment complex reached an occupancy rate of up to 50% in January only. This is a testament to Hoiana Residences’ strong attraction to tourists. Besides, the investor is also launching many attractive incentives such as gifting high-class furniture, privileges to join the Hoiana Premium Loyalty Club and discounts of up to 10% for all services in the complex. Hoiana Resort & Golf.
Converging many outstanding advantages, the Hoiana Residences project soon resonated in the real estate world. The few remaining apartments and the 5-star quality of the project are the clearest evidence for the hunt for high-class investors as well as the potential to become a resort – tourism – entertainment destination. worthy of the area of Hoiana Residences.
2. Is it Advisable for Buyers to Hold off Purchasing Real Estate as Resale Prices Continue to Decline?
The selling price has fallen deeply but buyers are still waiting for further reductions. The “wait” mentality is still dominating the resale market. Although there is a need to buy, many customers still expect the price to decrease further and “catch the bottom” in the coming period.
Looking at the trend of the market in the coming time, experts say that this is the time when investors have many options, easy to negotiate on price, and the advantage is in favor of real estate investors with cash. have a long-term vision. The real estate market in the first half of 2023 is still facing many difficulties, but at the end of the year, it will gradually recover. The positive signals from the financial market, the Government’s regulatory policy as well as the SBV’s agreement to launch two new credit packages for real estate is a positive move, opening up capital flows for the market after a period of a hard time.
The above factors will help accelerate the recovery of investor confidence in 2023 and the market will see more bright spots towards the end. The psychology of waiting for the “bottom”, and expecting real estate to decrease further will be easy to miss the opportunity when the market
Therefore, if you find a suitable product, at a reasonable price, buyers should realize it to seize the opportunity to own a house at this time.
3. What is the bright spot for the Real Estate Market in 2023?
The real estate market has had a year of sudden changes. Market observers believe that it will have to wait until the end of the second quarter of 2023 to see a clearer trend.
In general, in the past year, the issue of project legal delay was still one of the main factors affecting the decrease in supply in the whole market. Besides, the fact that the credit of real estate is still tightly controlled also makes many businesses find it difficult to implement new projects. As for other forms of capital mobilization, many businesses are also dealing with arising issues such as bonds, discount stocks, and profit commitments with investment funds…
In addition, when the general financial market is having many problems, investors’ confidence declines and affects buying demand and liquidity in the market. This also indirectly affects the ability of many investors to implement new projects.
It is forecasted that liquidity will decrease in the first 6 months of 2023, and the uptrend will slow down in the secondary market. Some projects will be subject to a downward adjustment.
In the short term, the primary market will not have much volatility, the price level will increase but the increasing amplitude may slow down. To increase sales, some developers will even consider a more competitive price compared to neighboring projects.
In the last six months of 2023, after the purification phase, the market will move to a new stage of more stable development. Supply is expected to increase again if banks’ credit policies are expanded. The price level will tend to increase but the rate will decrease and tend to be stable in the long run. Market demand will gradually recover following the general recovery of the financial market.
In the long term, real estate prices will follow the trend of recovery and growth again. However, investors must quantify the ability to maintain financial safety until the market recovers. The current priority is financial safety in the medium to long term. Therefore, if you can’t “go hard” for a long time, you should have the plan to remove it soon. Besides, investors should also assess the risk level of assets such as liquidity to ensure financial safety.
The management of the economy is one of the factors that make the market difficult. But the management is now more experienced than before, although it is still awkward, and inconsistent, but much more experienced than before. So investors should be confident about the future of the real estate market.
Source: https://cafeland.vn/phan-tich/cua-sang-nao-cho-thi-truong-bat-dong-san-2023-116789.html
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4. Da Nang is about to auction 25 large plots of land
The city will auction 25 large land lots and 190 land lots in 2023 to attract investment businesses and economic recovery.
This year, the city approved the plan and in the second quarter decided to auction 6 large land plots and 60 residential land lots to be divided into lots. 
Besides, 11 large land plots and 65 residential land lots will be auctioned in the third quarter; 8 large land plots and 65 other residential land lots will be auctioned in the fourth quarter.
In 2022, Da Nang’s socio-economic recovery is quite positive after three years of the heavy influence of Covid-19, with GRDP growth reaching more than 14%, ranking third in the country; total budget revenue reached more than 120% of the plan, tourism – a key economic sector reached a total of nearly 3.7 million visitors. The number of businesses returning to operation has increased by 28.5% and now the city has nearly 37,000 businesses with a capital of more than 240,000 billion VND.
In 2023, Da Nang will put into use the Digital Map of projects calling for investment; completely solve problems, and deploy investment in a number of key and motivational projects such as Lang Van tourism and entertainment complex, Viettel Da Nang software, and hi-tech center.
Source: https://vnexpress.net/da-nang-sap-dau-gia-25-khu-dat-lon-4571975.html
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5. Buyers are not finding a 30% discount on real estate appealing
Even when the seller drops up to 30% from the original asking price, the buyer remains indifferent.
The market is currently showing a tug-of-war between buyers and sellers. For buyers, the “bottom-fishing” mentality is taking place. Buyers expect a deep drop to enter the money. The mentality of people who have cash, and have the right to choose and look for beautiful products makes buyers cautious about their decision to put down money. Even buyers are waiting for a massive “sell-off” in the market.
Meanwhile, on the seller’s side, they are accepting interest cuts, and even cutting losses to recover cash flow and handle urgent debt. In the current situation, sellers are in a passive position when the market is quiet.
However, according to observers, the opportunity for investors to “hunt” for beautiful goods has come, with the current high lending interest rate, real estate investment if using financial leverage will be difficult to be effective, even at the risk of “profit” enough to cover “interest”. This position also emphasized opportunities for investors with idle capital have appeared. They can hunt for deeply discounted real estate in beautiful locations that are hard to reach. Mr. Thang commented: The market is going on hunts of investors with strong capital for real estate with prime locations and convenient for rent.
6. Why can’t real estate businesses reduce selling prices?
Social housing is one of the segments that is forecast to lead the real estate market in 2023. Since 2022, many real estate businesses have announced they will enter this segment. But, up to now, difficulties and methods in the problem of building social housing still become a great fear for businesses.
In order to implement social housing, three agencies are needed: the State, enterprises, and people. Recently, the Government directed to focus on dismantling the real estate market, issuing a resolution on the development of 1 million social housing units in the next few years. To complete this number in the remaining time, it takes a lot of effort but not much time left.
Enterprises must do social housing to have houses for people to buy. However, in recent times, the support policy has only focused on supporting buyers of social housing, but not on businesses and people who make social housing.
The story of commercial housing and social housing will create two different profits. Specifically, if doing social housing only 10% profit but the time to do it takes 5 years. So every year the profit is only 2%, it is better to let the bank have more profit. So if we don’t have as much enthusiasm as we do, other businesses won’t do it. More importantly, when we did, we were constantly inspected and checked. When other businesses see that, they are also afraid, so they would rather not do social housing or do it and then give up. Finally, there is no social housing product for the market.
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