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
1. Viet Kieu can purchase property more easily in Vietnam
2. Leading Segments Shaping the Real Estate Market in Vietnam in 2024
4. What does the 4 billion USD South Hoi An mega-resort project phases 1 and 2 have?
5. What’s new in the recently passed amended Land Law in Vietnam?
6. Vietnam Tax Alert: Updated Tax Provisions Effective 1 January 2024
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JANUARY 2024 CENTRAL VIETNAM REAL ESTATE NEWS SUMMARY
1. Viet Kieu can purchase property more easily in Vietnam
The Land Law 2024 helps overseas Vietnamese (people residing abroad, without Vietnamese nationality) buy houses in the country more conveniently, avoiding the need to ask relatives to register for the household.
The revised Land Law has many new points, focusing on 5 groups of issues. Among them, there are a group of regulations to better protect the legal rights and interests of land users such as expanding land use rights to Vietnamese citizens, including settling and living abroad.
In Article 4, regulations on land users are added to include groups of Vietnamese origin residing abroad but without Vietnamese nationality (also known as overseas Vietnamese). This group will enjoy full rights to land and housing like domestic citizens and Vietnamese residing abroad (those who still have Vietnamese nationality).
In the new law, Article 28 also specifically stipulates that people of Vietnamese origin residing abroad are allowed to enter Vietnam to buy and rent houses associated with residential land use rights, and receive residential land use rights in projects. housing development; inheriting the right to use residential land and other types of land in the same plot of land where the house is located (current law does not have these regulations).
Important: The clear regulations in the 2024 Land Law will be the premise for the Government to guide judicial agencies to create conditions for people to prove their Vietnamese origin more simply. This will help to attract overseas Vietnamese to invest more in Vietnam.
Source: vnexpress.net
2. Leading Segments Shaping the Real Estate Market in Vietnam in 2024
Luxury apartment segment projects with clear legal status, along with a comprehensive and synchronized system of amenities, are expected to shine in 2024, attracting considerable attention from both homebuyers and investors.
Observing the rapid increase in the middle-class population in Vietnam, which belongs to the highest group in Asia, economist Dinh Trong Thinh also stated: “With high incomes and a high level of education, the middle class has significant demand for home purchasing and real estate investment. Naturally, this has created a strong driving force for the market, especially in the mid and high-end housing segments. As the middle class grows rapidly, the luxury real estate market has more development opportunities.”
“Moreover, for the middle class, buying a home is not merely for residence. They also have a desire to experience new living spaces with various modern amenities or follow the trend of acquiring second or third homes. Therefore, high-end apartment projects in major urban areas, particularly in regions with development potential, are often the preferred choice for this demographic,” added the expert.
Source:baodautu.vn
3. Da Nang Inaugurates Three New Roads Totaling $108 Million, Boosting Connectivity and Real Estate Potential
Da Nang, Vietnam, officially opened three new roads on January 30th, marking a significant investment in the city’s infrastructure. These roads, including DT 601, DH 2, and the Western Ring Road 2, represent a combined investment of nearly 2,500 billion VND (approximately $108 million).
This infrastructure development is anticipated to have a positive impact on Da Nang’s real estate market in several ways:
- Improved connectivity: The new roads will enhance connectivity within the city and its surrounding areas, facilitating easier access to residential, commercial, and industrial zones. This improved accessibility can attract residents and businesses, driving demand for properties in previously less accessible areas.
- Reduced traffic congestion: By alleviating traffic on existing roads, the new routes are expected to ease congestion and shorten travel times. This can improve the overall quality of life for residents and create a more attractive environment for businesses and investors.
- Enhanced land value: With better accessibility and reduced traffic congestion, the areas surrounding the new roads are likely to experience an increase in land values. This creates opportunities for developers and investors to capitalize on the growing demand for real estate in these areas.
- Boosted economic activity: Improved infrastructure generally stimulates economic growth by attracting businesses and facilitating the movement of goods and people. This can lead to increased job creation and overall economic prosperity, further fueling the demand for residential and commercial properties.
The inauguration of these three roads signifies Da Nang’s commitment to infrastructure development and its vision for a more connected and prosperous city. The positive impact on the real estate market is expected to be multifaceted, creating opportunities for residents, businesses, and investors alike.
Source:cafeland.vn
4. What does the 4 billion USD South Hoi An mega-resort project phases 1 and 2 have?
The Nam Hoi An Resort Project Phase 1+2, spanning approximately 336 hectares, is set to be completed by late 2025.
The project, led by Nam Hoi An Development Company and advised by Truong Thanh Service and Development Joint Stock Company, encompasses three administrative regions in Quang Nam province. Phase 1 covers 127.26 hectares with a casino, two hotels, a golf course, residential blocks, and support facilities.
Phase 2, covering 208.73 hectares, focuses on low-rise resort areas and high-end beachfront villas.
The project aims to provide a diverse range of tourism services, including resorts, hotels, commercial areas, entertainment, dining, and conference centers. With a total investment exceeding 81 trillion VND (around 4 billion USD), the project is scheduled for completion by the end of 2025, offering a 70-year operational period from the initial investment certificate issuance date in 2010.
Source:vietstock.vn
5. What’s new in the recently passed amended Land Law in Vietnam?
The Land Law Amendment for 2024 has recently been passed by the National Assembly in Vietnam. This law introduces several new provisions related to land reclamation and land valuation based on market principles.
One of the key changes in the Land Law Amendment is the annual publication of land price tables to reflect the actual market prices. Under the previous Land Law of 2013, land prices were determined every five years, with limited adjustments, leading to a lack of accurate reflection of the real market value. With the Land Law Amendment, provincial People’s Committees are responsible for submitting adjustments, amendments, and supplements to the land price tables annually, ensuring alignment with market fluctuations.
The Land Law Amendment also introduces provisions for implementing commercial residential projects through agreements on land usage rights or utilizing existing land usage rights. This provides flexibility for the implementation of commercial housing projects and encourages efficient land use.
Furthermore, the Land Law Amendment specifies the issuance of Certificates of Land Use Rights and Ownership of Assets attached to land for households and individuals who do not possess legal documents proving their land usage rights, as long as they do not violate land laws and are not in cases where land allocation was made without proper authority.
It is important because the Land Law Amendment brings about significant changes in land reclamation and land valuation based on market principles, providing flexible mechanisms for commercial residential projects, and ensuring land usage rights for households and individuals without proper legal documentation.
Source: cafef.vn
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6. Vietnam Tax Alert: Updated Tax Provisions Effective 1 January 2024
Decree No. 94/2023/ND-CP dated December 28, 2023, of the Government regulating value-added tax reduction policy according to Resolution No. 110/2023/QH15 dated November 29, 2023, of the National Assembly takes effect implemented from January 1, 2024, to June 30, 2024. Accordingly, business establishments that calculate value-added tax using the deduction method can apply the value-added tax rate of 8% for prescribed goods and services.
The application of an 8% tax will exclude the following groups of goods and services: telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metal production and the manufacture of fabricated metal products, mining (excluding coal mining), coke production, refined petroleum, chemical and chemical products production, goods and services subject to special consumption tax.
These new policies hold significant importance for investors due to the implementation of various new policies effective from January 1, 2024, impacting economic and social aspects that citizens should be well-informed about.
Source:mof.gov.vn
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Contact Us today to find the real estate investment in Da Nang which is right for You.
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