JANUARY 2022 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.
Your Friends at Central Vietnam Realty.
1. Will the land make waves in 2022?
According to big data from Batdongsan.com.vn, if we take the three big markets representing the North, Central, and South regions, respectively, Hanoi, Da Nang, and Ho Chi Minh City, the amount of interest in land plots at the end of 2021 is almost as high as of May 2021 – the time before the 4th Covid-19 outbreak broke out. This shows that the land plot segment has had a very decent recovery and growth as soon as the epidemic is gradually pushed back.
Looking at each location, compared to 2020, the interest in the real estate market in Hanoi increased 19%, Da Nang increased 9%, Ho Chi Minh City alone decreased slightly by about 8% due to a long period of blockade and distance. In the northern region, in addition to focusing on the Hanoi market, many other provinces and cities also recorded a good level of interest in land development such as Bac Ninh, Thai Nguyen, Hung Yen, and Vinh.
Similar to the market research report for the first quarter of 2021, Batdongsan.com.vn takes the core areas representing the North, Central, and South regions as the center to compare and evaluate the growth of the land segment background in 2021.
Specifically, with the northern provinces, if Hanoi is the center, within a radius of 50km, 100km, the fluctuation of land prices has increased very sharply, there are areas that recorded an increase of more than 100% in Hoa Binh.
With the central provinces, if Da Nang is taken as the center, within a radius of 30km, 80km, the level of land price fluctuation is also very noticeable, such as in Hue increasing by more than 70%, Quang Nam by more than 30%.
With the southern provinces, if Ho Chi Minh City is taken as the center, within a radius of 20km, the price will increase by 20% or more, there are even areas with 80-90% growth like Dau Tieng (89%).
Thus, in 2021, the interest in land plots grew very well. Notably, the number of people searching for planning information at the end of the year accounted for nearly 80% of that in the beginning of the year. Each region recorded good growth interest and growth with the common point being that the price level increased and created a new price base higher than 2020. This information is an indicator that land plots may be a segment that creates a new market wave in 2022.
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. Reasons why you should invest in land: Unlike a house, land doesn’t break down, doesn’t need to be renovated, it just sits there and quietly increases in value
Buying land or investing in land is not a new concept, but not everyone understands it well. There are many people who have never even thought of buying land. Not having money is one reason, the bigger reason is that they don’t know how to own a piece of land, and even less understand that investing in land is a smart strategic strategy to diversify portfolios of individual investment.
Investing in buying land offers a multitude of options and opportunities. Unlike many other investments, buying land is a tangible investment, you can pass it on to the next generation or decide to sell it when the market is right.
Following are the reason for buying land:
Land is a finite resource
Land is a tangible resource
Land is an investment…peaceful
Land is a “hands-free” investment
Land does not generate marginal costs
Land is a suitable investment for long-term keeping
Land investors can call their own capital
Soil has flexibility
Land is a less competitive market
- Importance: Buying land and waiting for it to increase value is a good lesson through generations.
- For example, the land in the Hoa Xuan area in Da Nang, Vietnam, was first sold in 2012-2013 with a price of 350 million vnd/lot of 100sqm, now from 3.5-4.5 billion VND depending on location.
- Check out:
- →Land lots in the residential area of Ngu Hanh Son District Da Nang for sale
- →72sqm Land for Sale in Phuoc Truong, Son Tra, Da Nang
- 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!
3. Proposing the planning of a national railway connecting Kon Tum to Da Nang
That is the content of the draft Da Nang City Plan for the period 2021 – 2030, which has just been consulted by the city of Da Nang for relevant local opinions.
On January 19, 2022, Mr. Le Tri Thanh – Chairman of Quang Nam Provincial People’s Committee signed Official Letter No. 433/UBND-TH to the People’s Committee of Da Nang City on commenting on the draft Da Nang City Planning for the period of 2021 – 2030.
Accordingly, the People’s Committee of Quang Nam province said that the draft investment proposal to strengthen the transport system connecting Da Nang city with Hoi An city (Quang Nam) by the iron-wheel tram system, however, the route has not yet been confirmed.
Therefore, the People’s Committee of Quang Nam province requested the People’s Committee of Da Nang city to coordinate with the consulting companies to determine and clarify the alignment so that the two localities have a basis for coordination and proactively deploying joints in construction planning projects. To build, have a tentative plan of land fund for technical infrastructure, management of route corridors, intersection points with traffic axes and parking stations, etc.
In addition, the draft also proposes a national railway connecting Kon Tum to Da Nang but has not yet proposed a route. Regarding this content, the People’s Committee of Quang Nam province also proposed to clearly define the route plan, the connection point when passing through the territory of Quang Nam province.
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!
4. Real estate integrates into the wave of market digitization
Although it is still in its infancy, the proptech (property technology) market in Vietnam is considered to be rich in potential and attractive to investors, with a young population structure and frequent use of technology and the size of the real estate market is expected to reach 21 billion USD, so proptech in Vietnam has many ideal conditions for development and exploitation.
Digitizing real estate in Vietnam is also a trend of many large corporations and businesses through the investment or acquisition of proptech startups. According to statistics, in Vietnam, proptech is currently developing with 56 companies and many startups continuing to launch in the near future. Among them, up to 80% of proptech platforms are foreign companies or capitalized from foreign investors.
Experts believe that digitization brings benefits in controlling land and project information… to ensure the transparency of information about real estate products.
This is one of the solutions that should be considered after a series of land fevers occurred in the past. Land prices were pushed up just because of the lack of accurate information. One of the solutions that need to be taken into account in the establishment of a National Data on Land Prices – where all information about land is stored on a digital platform.
Why it’s important:
Thanks to the application of technology, searching, comparing, trading… becomes more convenient, flexible, fast, and economical.
5. Real estate with river view prices increased by 30%
Townhouses, riverside villas have asking prices 20-30% higher than normal real estate but are still hunted because of limited quantities.
A survey by VnExpress shows that the real estate price increase by 20-30% because of a river view is quite common in projects located on peninsulas, islands, and many sides bordering the river in Ho Chi Minh City and other provinces.
Recorded in a project in the old Thu Duc district, with a 3.4 km long riverside park, the asking price for riverside villas including land and house is up to 330-350 million VND per m2 for the best view.
Meanwhile, ready-made villas in the area of this project fluctuate at 260-280 million VND per m2
In the old district 2, a project located adjacent to the Saigon River also recorded a house price of about 300 million VND per square meter or more, while the normal internal view apartments ranged from 240-250 million VND. one square meter. Thus, the selling price of real estate with river frontage is more than 50-60 million VND per square meter
Why it is important: With beautiful view advantages such as river frontage, lake view, large street frontage are often sought after by investors and accepted to buy at high prices, so customers should consider investing in these properties.
- Check out some of the best apartments with river views for rent and for sale in Da Nang!
- Azura Luxury Apartment Tower Da Nang
- 2 BEDROOM APARTMENT FOR SALE – AZURA DANANG
- Indochina Riverside Towers Da Nang
- 2 BEDROOM DUPLEX INDOCHINA APARTMENT FOR RENT IN DA NAN
6. Apartment prices have increased but market supply has not kept pace with demand
Experts in the real estate industry have the same expectation that public investment, especially infrastructure, will become an important driving force for the real estate market to recover and accelerate rapidly by 2022.
Experts say that with the supply-demand imbalance, real estate prices are forecasted to start a new growth cycle in 2022. House prices are likely to rise even higher in 2022; including the apartment segment.
After the distance is eased, the demand for real estate search increases again. The apartment type will have a stable and good recovery in 2022. Along with that, the return of interest in rental apartments will help the price level increase.
In the next 2 years, the phase difference in supply and demand will continue. Besides, the cost of land, labor, and construction material prices continued to increase. All these factors are responsible for the increase in housing prices in 2022 and beyond.
Why it is important: The trend of real estate prices may continue to rise at a high level. So the investor can consider about real estate market channel.
As always, CVR is at your service and happy to provide help anyways we can!
Contact Us today to find the real estate investment in Da Nang which is right for You