JULY 2024 CENTRAL VIETNAM REAL ESTATE NEWS SUMMARY

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2. JULY 2024 CENTRAL VIETNAM REAL ESTATE NEWS SUMMARY

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   1. Resurgence In Demand For Resort Real Estate.
   

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In Q2 2024, the resort real estate market has shown positive signs of recovery, with an average 30-40% increase in demand for searching for resort villas and over 20% increase in demand for condotels compared to the same period in 2023, after a period of cooling down.

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      Famous tourism regions like Phu Quoc, Nha Trang, and Da Nang are recording significant growth. Many new large-scale projects are being developed by investors.

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      The interest of investors and individual buyers in resort real estate is increasing again, as evidenced by the rise in transaction volumes and selling prices. Developers are also actively launching new projects to meet market demand.

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      Industry experts forecast that the recovery and growth trend in the resort real estate market will continue in the coming time, thanks to the recovery of the tourism industry and the high demand for vacations from consumers after the pandemic’s impact.

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      Alongside the positive signals, the article also points out some challenges such as fierce competition among developers, legal and infrastructure issues for some projects. However, overall, the resort real estate market is showing encouraging signs of recovery and growth.

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      The article shows that the resort real estate market is showing signs of recovery and growth again after the difficulties caused by the COVID-19 pandemic. Experts expect this trend to continue in the coming time.

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   7. Source: batdongsan.com.vn

2. New Real Estate Payment Regulations Effective August 2024.

According to the content of the article, from August 1, 2024, when the 2023 Law on Real Estate Business comes into effect, there are several new regulations related to the payment of house purchase money:

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   The payment in real estate transactions and real estate projects shall be agreed upon by the parties in the contract and comply with the provisions of the law.

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   Project developers, real estate businesses, and real estate service businesses must receive payment from customers through accounts opened at domestic credit institutions or foreign bank branches legally operating in Vietnam. Payments must not be made in cash.

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   The selling price in the contract must be recorded accurately according to the actual price, and cannot be recorded differently from the actual price.

   If the buyer, transferee, lessee, or leasing buyer is late in making payments, or if the seller, transferor, lessor, or leasing lessor is late in handing over the real estate, they will have to bear the fines and compensation for damages as agreed in the contract.

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   So from August 1, 2024, house purchase payment must be made through bank transfer, the contract price must be recorded at the actual price, and the parties must comply with the new regulations on fines and compensation for delays in payment or delays in handover.

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Source: cafef.vn

3. Sun Property “Introduced” The Sonata Subdivision At Sun Symphony Residence.

On July 7, The Sonata subdivision of the high-end real estate complex on the Han River Sun Symphony Residence was officially “launched”, marking a pioneering step of the leading real estate developer associated with resort tourism in Vietnam. Sun Property (member of Sun Group) in developing the semi-compound model in the coastal city of Da Nang.

The impressive highlight of The Sonata is the unique contemporary Hoi An architecture. Continuing the inspiration from indigenous culture and inheriting the “desire” to reach out from the image of the rising Dragon and the Ngu Hanh Son landscape of the entire complex, at The Sonata, architects from Sun Group and Design Lab will join hands to “recreate” the bustling scene on the wharf under the glorious boat of Hoi An trading port in the past.

Da Nang is welcoming a great opportunity to become “Asia’s new Singapore” when specific mechanisms and policies to develop the city have just been approved by the National Assembly. With the semi-compound model, we expect The Sonata will be a vibrant entertainment and shopping center day and night, a must-visit destination for Da Nang people and millions of tourists each year – similar to Clarke Quay. In Singapore, it has been done. And then, with the potential, advantages, and limited quantity, The Sonata townhouses and villas will become outstanding investments and lifelong assets for future residents.

Source: 24h.com.vn

4. VARS: Real Estate Transactions Tripled In The First Half Of The Year.

1. In the first half of the year, the real estate market saw around 20,600 transactions, triple the number compared to the same period last year, predominantly in the apartment segment, according to the Vietnam Association of Realtors (VARS).

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3. The second quarter recorded approximately 14,400 successful transactions, mostly apartments, with increases in sales of low-cost, high-end, and luxury segments by 2%, 13%, and 7% respectively from the previous quarter. High-end apartments (priced over 50 million VND per m²) accounted for over 40% of transactions.

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5. Low-rise properties and land plots also saw a 60% increase in sales from the first quarter. Both Hanoi and Ho Chi Minh City experienced significant boosts in apartment sales, with new supply mainly in Northern Vietnam. Despite positive market changes, property prices remain high and continue to rise.

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Source: vnexpress.net

5. Why Can’t Da Nang Relocate The Railway Station Out Of The City Center Yet?

The People’s Committee of Da Nang (UBND TP. Đà Nẵng) has reported to the People’s Council (HĐND TP) about the status of major projects, including the relocation of the railway station out of the city center.

The relocation of Da Nang Railway Station, a significant project for infrastructure development, socio-economic growth, and national defense, is facing challenges due to limited investment resources and the government’s focus on highway network development. The relocation will be reconsidered after 2030.

The People’s Committee has tasked the Department of Transport (Sở GTVT) and relevant agencies with researching and proposing a relocation plan. The Standing Committee of the City Party Committee has approved a plan to move cargo and auxiliary facilities to Kim Liên Station, while passenger services will be relocated to the Trung Nghĩa area.

The next steps include coordinating with relevant agencies to finalize the plan, land clearance, resettlement, and updating detailed zoning plans. The final report will be completed and submitted to the authorities by July 2024, with detailed zoning plans expected to be finalized by October 2024 and a feasibility study report by October 2025.

The People’s Committee of Da Nang has suggested splitting the railway station relocation project into two parts: relocating cargo facilities and auxiliary structures to Kim Liên Station, and relocating passenger services to the Trung Nghĩa area. The construction of a new railway station as per the master plan will be led by the Ministry of Transport.

Source: cafef.vn

6. How will the regulations for depositing a house on paper change from August 1?

The new regulations require a maximum deposit to buy a house to be built in the future. It also requires a maximum of 5% of the selling price, and a first payment of no more than 30% of the contract, including the deposit.

Real estate projects on paper are eligible for business when they have one of the following documents: allocation decision, certificate of land use rights, home ownership, and residential land use rights.

The 2023 Vietnam Real Estate Business Law also regulates payment when buying, selling, or leasing future housing in Article 25. If the buyer pays according to schedule, the first payment must not exceed 30% of the contract, including the deposit (old regulations did not include a deposit).

Subsequent payments follow the construction progress, but must not exceed 70% of the contract value before handing over the house or construction project. The seller is an organization with foreign investment capital, not more than 50% of the contract value.

Thus, the new regulations have reduced the total advance payment to the lessee to a maximum of 50% of the contract value, instead of the current 70%. This helps reduce the financial pressure of tenants buying houses built in the future.

Source: vnexpress.net

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