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.

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Content

1. Da Nang: “Thirst” for high-end apartments, prices are forecasted to increase
2. Interest rates fall, leverage for the real estate market to recover
3. Anticipating the Real Estate Market to heat up again shortly
4. Sun Cosmo Residence: Apartment – Villa – Townhouse project in Da Nang
5. New regulations regarding home warranties in Vietnam
6. The Ori Garden Da Nang launches a preferential policy for customers
7. The real estate market is very different, will the land price increase again at the end of the year?
8. Hotel demand increases, resort real estate getting great opportunities

1. MARCH 2023 CENTRAL VIETNAM REAL ESTATE NEWS SUMMARY

• 1. Da Nang: “Thirst” for high-end apartments, prices are forecasted to increase

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The article from CafeF.vn discusses the current state of the high-end condominium market in Da Nang, Vietnam. The city has seen a surge in demand for these types of properties, with prices predicted to continue rising in the future.

According to the article, Da Nang currently has 41 high-end condominium projects with a total of 16,000 units. In the last quarter of 2022, sales in the high-end segment accounted for 39% of the city’s total sales, compared to just 22% in the same period in 2021. This suggests a significant increase in demand for high-end condos in the city.

The article also notes that prices for high-end condos in Da Nang have been increasing steadily. In 2022, the average selling price of a high-end condo in the city was VND 80 million per square meter (approximately USD 3,500 per square meter), a 14% increase from the previous year. Furthermore, prices for some projects have already surpassed the VND 100 million per square meter mark (approximately USD 4,400 per square meter).

Industry experts cited in the article believe that the high demand for these properties is due to several factors, including the city’s economic growth and development, the increasing number of tourists visiting Da Nang, and the limited supply of high-end condos in the market.

The article concludes that the high-end condominium market in Da Nang is expected to continue growing, with prices predicted to rise even further in the future. This presents an opportunity for developers and investors to capitalize on the city’s growing real estate market.

While our team at CVR in Danang agrees on the long-term trend for high-end and luxury property prices, it is essential to note that there are currently excellent opportunities for both foreign and Vietnamese buyers as some sellers are willing to accept discounts given the currently low demand. 

Few examples of luxury properties for sale in Danang where double-digit discounts may be possible:

74 square meter 2 bedroom unit in Luxury Apartments building with asking price ~US$185,000 

60 square meters 1 one bedroom on the backside of the  Luxury Apartments with an unobstructed westward view to Da Nang city Center and Han river. 

Asking price is ~US$150,000 

455m2 3 bedroom villa in the Naman Residences with an asking price of ~US800,000 

Source:cafef.vn

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• 2. Interest rates fall, leverage for the real estate market to recover

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In Resolution No. 33/N1-CP on several solutions to remove and promote the safe, healthy, and sustainable development of the real estate market, the Government assigned the State Bank (SBV) some important tasks. to support the real estate market.

Notably, the Government requested the State Bank to consider directing credit institutions to review and classify real estate projects to take appropriate handling measures (such as rescheduling of principal, interest, restructuring of debt groups. …) in accordance with the provisions of law, ensuring the safe operation of the banking system. At the same time, efforts to reduce operating costs to have room to reduce lending interest rates for the economy, including home buyers and real estate projects, contribute to removing difficulties in credit capital for businesses.

If interest rates are lowered, the real estate market will continue to thrive. Because, at present, the demand in the market is still very good, especially in the segment serving real needs.

How active the market is will depend on how much interest rates fall. That is, the more interest rates fall, the stronger the real estate market will bounce back. The fact that banks mentioned lowering interest rates is good news for the market.

Real estate credit increased by 24%, which is almost double the overall level of credit growth for the economy in 2022, nearly 70% of capital for real estate is from credit banks. 

Why this is important: The signal of interest rate reduction is expected to help the real estate market reactivate liquidity soon. From there, creating an impulse for the market to gradually recover and develop stably again.

Source:cafef.v

3. Anticipating the Real Estate Market to heat up again shortly

In the beginning of 2023, with positive actions from the Government, many forecast that the market will be “warm” again from the second half of this year.

In the first quarter of 2023, the market had many positive signals thanks to the timely support and removal from the Government to help the market recover. Accordingly, many comments believe that the real estate market may “warm” again from the end of this year.

The State Bank’s decision to open the credit room is a positive signal for the recovery of the real estate market in the country in general. Currently, many real estate projects are in progress due to the lack of capital. Homebuyers face difficulties because they do not have access to credit to buy a house. The free flow of capital will help project investors continue to implement the project and homebuyers have the opportunity to realize their dream of settling down.

The bond market is gradually recovering. This continues to be an important capital channel for the economy and the real estate market.

It is forecast that the real estate market will start to stabilize from mid-2023 when the interest rate situation is more certain. Despite many uncertainties, the market still has a large amount of capital waiting for investment opportunities. In the real estate segment, housing and serviced apartments, especially those that serve the real needs of foreign workers, experts and employees who migrate to Vietnam, also attract the attention of many investors.

With a series of legal bottlenecks for real estate projects, credit policies are urgently removed and applied in the near future, experts say, starting from the third quarter of 2023 onwards, the real estate market will “warm up” and prosper. 

Source:cafef.vn

4. Sun Cosmo Residence: Apartment – Villa – Townhouse project in Da Nang

Sun Cosmo Residence is located at Tran Thi Ly Street, Bac My Phu Ward, Ngu Hanh Son District, Da Nang City. 

The scale of Sun Cosmo Residence Danang project: 

Total area: 8.5 ha, designed and built with the model of a high-rise apartment tower and low-rise housing area.

The high-rise area has a total area of 5.5 hectares, designed with 2 apartment towers, 650 studio apartments, 1-3 bedroom apartments, duplex apartments, and 38 podium shophouses.

Tower 1: 27 floors, 24 floors of luxury apartments, 3 floors of podiums (2 floors of shophouse & 1 floor of utility), and 3 basements for parking.

Tower 2: 33 floors, 30 floors of luxury apartments, 3 floors of podiums (2 floors of shophouse & 1 floor of utility), and 3 basements for parking.

Low-rise area of 3 hectares, 150 apartments including townhouses and shop villa.

Townhouse: 107 units, land area from 100 – 140 m2, building height from 6-7 floors with a total large floor area from 490 – 715 m2.

Shopvilla: 43 apartments with land area from 200 – 500 m2, total floor area from 250 – 550 m2.

Sun Cosmo Residence project owns a system of internal utilities including an Indoor fitness system, gym, spa, swimming pool, sky garden, retail, a landscape park

Investor: Sun Group, Aedas design unit.

At the end of March 2023, the project was in the process of building the infrastructure system. It is expected that the Sun Cosmo Residence project will be launched to the market in May.

Source:cafeland.vn

4. 5. New regulations regarding home warranties in Vietnam

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The new regulations regarding home warranties in Vietnam will come into effect from April 14, 2023. 

These regulations aim to improve the quality and safety of residential buildings by requiring developers to provide a warranty for up to 10 years after the handover of the property. The warranty will cover defects in the construction, quality, and safety of the building. In addition, developers will be required to establish a warranty fund to ensure that they can fulfill their obligations. The article notes that these new regulations will benefit both homebuyers and the real estate industry by improving the quality of residential buildings and increasing consumer confidence in the market.

Source:vietstock.vn

5. 6. Real Estate Investment Trends: Are Buyers Still Waiting for a Market Bottom?

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The article reports that the current investment trend of buyers these days is to buy when the price goes up, and wait when the price goes down. The paradox is that even though there is still a need to buy land to save for later, now that the land price has cooled down and is not subject to “competition”, private houses do not buy anymore.

The trend of investing in the crowd, being carried away by the fear of missing out on opportunities causes many investors to suffer from “buying at the top and selling at the bottom” or skipping the opportunity to buy a good price because of hesitation when the market loses heat, or not yet bottomed.

According to experts, the asking price of real estate in the primary market tends to slow down, and developers restructure their sales policies and actively support buyers through many methods to reduce total production costs. 

Why it’s important: customers wishing to buy to store assets and long-term investments can take advantage of this time to enjoy good incentives.

Source:batdongsan.com.vn

6. The Ori Garden Da Nang launches a preferential policy for customers

Saigon – Da Nang Investment Joint Stock Company launched a social housing apartment project at lots B4-1 and B4-2 in the green urban area Bau Tram Lakeside, Lien Chieu district, Da Nang city. The project’s commercial name is The Ori Garden. The project brings homeownership opportunities for thousands of families in Da Nang thanks to reasonable prices, preferential support policies, and quality living space.

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  Attractive price and support policy
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Two-bed apartment, 58m2 has an average price of more than 955 million, customers prepay more than 286 million, equivalent to 30% of the product value that can be owned. Buyers enjoy a loan package with the current preferential interest rate of 4.8% from the Bank of Social Policies, the loan balance will gradually decrease within 25 years

• High-quality living space
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Here, families can live in a green space, a free living space to experience. community connection area with a cluster of 6 internal gardens and squares with an area of nearly 10,000m2. The physical and mental health care facilities at the project are also focused on such as a BBQ garden, knowledge garden, nourishing garden, sports area – outdoor gym, tropical swimming pool, sun loungers …

The project owns a multi-layer security system including area security, lobby reception, 24/7 surveillance camera, and elevator magnetic card.

In particular, the project has a smart parking basement with an area of about 17,200 m2.

Currently, the real-life apartment project The Ori Garden Da Nang is highly appreciated and trusted by customers thanks to its diverse, self-contained utility system, and high-quality transportation management service, suitable for security needs. housing, entertainment, and health care for the whole family. All create a high-quality living environment different from many apartment projects in the same segment of the area. 

Source:vnexpress.net

7. The real estate market is very different, will the land price increase again at the end of the year?

Land plots in many areas have decreased in selling price, even up to billions of dong.

In the context of a quiet real estate market, prices and liquidity also declined, especially in the land plot segment. However, the land is still considered to have good investment potential.

However, it will not be until the second quarter of 2023 that the real estate market can recover transactions. This is the period when investors are exploring, not putting money down when the information on interest rates and credit has not improved.

The real estate market is in an unpredictable state, despite having bright spots. 2023 is a year of many challenges, it may take from 2024 onwards for the real estate market in general and land plots in particular to recover.

Normally, in a year, there will be a land fever at the beginning and end of the year. Similarly, in 2023, the land fever will return but occur at a later time, maybe in the second – third quarter or at the end of the year, there will be more land searches. Because then, the difficulties were removed, the market recovered, interest rates decreased, and capital mobilization channels were opened.

Why it is important: The recovery of the land market creates more bright spots for the real estate market, the transaction becomes more active and the number of customers wishing to buy in or invest will be more abundant.

Source:cafef.vn

8. Hotel demand increases, resort real estate getting great opportunities

Colliers – a global real estate management group – has just released an update on tourism trends in the first quarter of 2023 with the assessment that resort tourism in Vietnam is very positive and that makes the real estate market get full of potential.

In Vietnam, resort real estate shows great potential as the country is taking advantage of the growth momentum of post-pandemic tourism and resort demand from domestic and international arrivals.

For example, KKR raised $4.3 billion amid the Covid epidemic. Bain has also acquired hotels individually or collectively, with or without the brand. Warburg Pincus continues to invest in Vietnam through its Lodgis platform…

The tourism industry will continue to recover in 2023, and hotel demand across the region will continue to increase. The drop in demand from the West at the start of the year, if any, will be offset when Chinese tourists return in the second half of the year. In markets that are open and in a supply-demand balance, revenue per available room is expected to grow by about 6% y/y thanks to improved occupancy

Source:thanhnien.vn

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