Week 24 & 25/2020 – Central Vietnam Real Estate News Summary
In this bi-weekly news flash – CVR: Central Vietnam Realty will provide a choice of articles from mainly Vietnamese media sources related to real estate market in Vietnam.
We will be focusing on issues related to Da Nang and Hoi An, while also looking at national news and their possible impact for Central Vietnam’s property market.
You will find a summary, link to the source as well as CVR’s take on the article.
We believe that local knowledge is the key to making the best possible decision and that’s what we offer to all our clients.
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- In an article titled “Co Co -“bright spot” of the real estate market of Quang Nam”, the author highlights the favorable conditions for the development of tourism and hospitality products, on both sides of the Co Co River as many urban areas and resorts in both Danang and Quang Nam have recent been incorporated. The investors expect to receive a lot of land plot projects which are considered as the “trump card” real estate of riverside areas. For reasons including that the Co Co River has the ability to connect to most famous destinations of the tourism area of Quang Nam- Da Nang such as Hai Van pass, Ba Na mountain, Son Tra peninsula, Ngu Hanh Son, Cu Lao Cham, Hoi An, Thu Bo river.
Co Co has synchronized transport infrastructure: The bridges across the Co Co River will be a “Silk road” connecting the two cities Danang and Hoi An, creating opportunities to promote tourism development potential.
CVR believes many new land projects like Rosa Riverside Complex with favorable pricing and location in the spotlight in the second half of 2020 along with existing developments such as X2 Villas Hoi An.
- Title of the next article is quite self-explanatory: “Hunting real estate for under 1.5 billion in Covid-19 time”
The author mentions about affordable apartments which are under VND 1.5 billion per unit and land plots below VND 1 billion gaining attention of many buyers.
In the context of increasingly scarce supply coupled with the impact of the pandemic, many people who are planning to buy houses look forward to a sharp decline in prices. Mr. Thanh, who is in need of a house in Hanoi, said: “I plan to buy an apartment of less than 1.6 billion dong before the Lunar New Year but because of the pandemic. Severely affected, the couple’s total income is very precarious. Because we were afraid of not being able to pay back the bank’s debt, we had to postpone the plan to look forward to the market but so far, the price has not decreased, I am only worried about the price shifting up. ”
According to a survey of Batdongsan.com.vn, there are currently not many apartment projects of about VND 1.5 billion for customers to choose. Projects with this price are usually located in suburban areas or small areas of only 40-45m2.
Besides cheap apartments or social houses, with about 1.5 billion, homebuyers can also choose old houses or apartments. This type of apartment is cheaper than a new apartment, with a red book, located in a full-service residential area.
Psychology of Vietnamese people still prefer houses so another option is to buy residential land located in the suburbs, with the ability to design and build their own homes.
The advice from the article, with which CVR’s team generally agrees, is that the price at this time is quite reasonable because some investors need money so they sell their property at a very reasonable price, even lower than the market price. Moreover, some banks have started to reduce interest rates for home loans.
- Ha Vy in an article named “Stimulating tourism “warming” the resort real estate market” wrote that the resort real estate segment is “heating up” thanks to domestic tourism stimulus programs, positive signals from resorts and hotels reopened after the severe impacts from the Covid-19 pandemic.
The resorts and hotels have once again opened up after the pandemic in Vietnam, with about 78% of the resort opens to welcome guest, and 22% remaining close until the international flight reconnect.
The resort segment is heating up thanks to the stimulus package, such as discount of price, including more services with bookings.
CVR is encouraged by the national governments deisgn to stimulate the local economy by promoting domestic tourism. We expect this stimulus to also trickle down the to the hospitality condo / villa projects, increasing demand and interest from domestic investors.
- Another interesting article by Thu Ha, titled: “Tens of thousands of tourists come to Da Nang after the tourism stimulus program”
As the author points out, after announcing the tourism stimulus program in Da Nang with the theme “Da Nang Gratitude – Danang Thank You 2020” on May 23, 2020, there have been many positive signs up to now.
Currently, the city has nearly 550/994 tourist accommodation (55%) has been operating again. Room capacity in June 2020 of 4-5 star hotels is expected to be about 30%.
We corroborate that the tourism industry in Da Nang is recovering quite well from COVID time. This is due to the government’s initiatives to promote domestic travel and domestic investment.
- Next article we find attention worthy, which is “Recovering economic in Da Nang city after Covid-19”
The author discusses that after a difficult period of time due to Covid-19, Da Nang government people are working on policies, plans and programs to support and push up the economy in general.
At this moment, many businesses are operating as normal again and preparing for the blossom after the Covid time.
The Da Nang government took serious actions on the tourism stimulus program, infrastructure investments, and supportive policies for projects such as: capital, loan interest, and technology, etc. Therefore it helps a lot to attract more tourists, more investors to Da Nang. Many internal and foreign companies take advantage of it.
Besides, organizations are expanding market and finding new auxiliary industries.
After the chaos, many companies decided to look for new markets instead of depending on China, realize the important role of the internal market, and also find the channels to extend business to other countries in South East Asia or South Africa.
Companies also seek for new auxiliary products which meet the demand of the market, and develop new selling channels online, instead of traditional business types so far.
In conclusion, with all support from the government, and efforts to change all business and organizations, we are expecting the growth of the economy in this half year.
CVR property experts point out that this news will provide our clients, investors and lesser a good outlook regarding Da Nang city and increased positive expectations on the growth of the economy in the near future.
- The last piece of news worth mentioning for the week: “The policy of opening routes to the sea is effective”
Up to now, the city has put into use 4/5 access routes to the sea, creating favorable conditions for people to access the sea space, participate in fun activities, and swim in the sea.
Along the Vo Nguyen Giap – Truong Sa route, people and tourists also come across the impressive designed and built seaways such as the south of the special international tourism, entertainment project Silver Shores and the northern project of The Song beach resort.
At CVR, we believe the policy helps to make it more convenient for residents and tourists to access the beach as well as create more beautiful and safer beaches, which will attract and delight people when visiting.
As always, CVR is at your service and happy to provide help anyways we can!