1. MARCH 2024 CENTRAL VIETNAM REAL ESTATE NEWS SUMMARY

1. 1. Relaxed Ownership Laws Attract Foreign Investment to the Vietnamese Property Market

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The real estate market has had many changes in a more positive direction, as the confidence of customers and investors is gradually returning. Changes to the Land Law 2024 are expected to help the market attract capital flows from remittances, promote liquidity, and make the recovery process come sooner.

CBRE’s report states that since the homeownership policy for foreigners was relaxed in 2015, customers from China, Hong Kong, Taiwan, and Korea have become large investor groups in the real estate market. Vietnam. This group accounts for about 75% of the Vietnamese housing market thanks to their close geographical distance. Vietnam’s housing market is also assessed to have stronger price growth potential than these investors’ home countries – places that have experienced similar price increases in the past.

Source: baomoi.com

2. Rising Apartment Prices and Market Dynamics

In Hanoi, apartment prices have surged by 200 to 500 million dong recently, marking it as the most active segment in the real estate market. The central and suburban areas particularly witness frequent price fluctuations, impacting transaction dynamics. Despite Vingroup’s prominence, small-scale investors dominate the market, facing challenges like legal issues and rising input costs, leading to difficulties in selling properties. Conversely, Ho Chi Minh City’s market is described as robust, mainly focusing on properties valued at 3 billion dong or less.

However, supply remains scarce, especially in the mid to luxury segments, with suburban markets experiencing growth. Legal bottlenecks persist in both cities, but recent legislative amendments offer hope for future market growth. Despite high prices relative to incomes, demand remains strong, particularly among the wealthy demographic. Experts advise potential buyers to act promptly given the current interest rates and improving supply dynamics.

Source: cafef.vn

3. New Tourist Hotspot in Da Nang: Bach Dang Pedestrian Street Opens with Public Auction

Bach Dang Pedestrian Street in Da Nang will be open from 3 p.m. to midnight, offering a new tourist attraction.

Hai Chau District plans to auction business spots publicly, starting at 127 million dongs. Spanning from Dragon Bridge to Tran Thi Ly Bridge, the 1.2km street will host mobile vending carts and kiosks.

Mobile vending spots start at 129 million dong for 54 months, including parking and seating, with an additional monthly sidewalk fee of 6.7 million dong. Kiosks begin at 127 million dong, with a 6 million dong monthly sidewalk fee.

The street promises scenic river views and weekend attractions like the Dragon Bridge’s fire and water shows.

Source: tuoitre.vn

4. Vietnamese Land Market Gears Up for New Growth Cycle

The Vietnamese land market is poised for a new cycle, commencing an adjustment phase in the second quarter. Batdongsan.com.vn data reveals a surge in interest in land purchases nationwide, notably post-Lunar New Year 2024, signaling a robust desire for land ownership. Large-scale land acquisitions by investors and escalating search demand have driven market growth, maintaining current price stability but anticipating an upswing as demand strengthens.

This early recovery is fueled by impending legal changes and limited investment avenues in other sectors. Land investments offer diverse opportunities, especially in burgeoning economic and populous regions, emphasizing medium to long-term strategies over speculative ventures. Prudent financial management and focusing on properties with favorable attributes like legal clarity and strategic location are advised. While overall land prices may not escalate as fervently as before, strategic investments remain promising in the evolving market landscape.

Source: cafef.vn

5. French expatriates highly appreciate the changes in Land and Housing Law

Vietnamese diaspora believes that changes in Land Law and Housing Law will attract more overseas Vietnamese to buy houses and invest, creating opportunities for diaspora entrepreneurs to contribute to the country’s development.

According to reporters in France, a dissemination event related to overseas Vietnamese in Land Law, Housing Law, and Real Estate Business Law connected Hanoi with global hubs on March 26. Representatives from Vietnamese communities in France expressed joy at the laws’ implementation, reflecting the government’s care for the diaspora. They anticipate increased opportunities for the diaspora to return and invest.

Experts see potential in the new laws, expecting them to boost economic growth. They emphasize incorporating environmental and social impact assessments in foreign investment projects, maximizing local benefits, and adopting flexible land management policies. The conference aimed to inform overseas Vietnamese about the new laws passed by the 15th National Assembly and facilitate over 500 delegates’ participation, combining physical and online presence for global accessibility.

Source: vietstock.vn

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