Week 36/2020 – Central Vietnam Real Estate News Summary
In this weekly or sometimes 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.
“CVR: Western Management – Local Knowledge”
In an article titled: “90% of millionaires in Vietnam are “pouring money” into real estate”, the author, Hung Vo, mentions that there are over 12,000 millionaires with $1 million or more in Vietnam and 90% of these millionaires are directly or indirectly involved in the real estate business. In particular, among the 100 richest people in Vietnam, who have over 30 million dollars, 99.1% are directly related to the real estate business.
With the number of millionaires and the current difficulties resulting from Covid-19, real estate experts say that Vietnam does not necessarily have to wait for foreign business but instead welcomes domestic business with great potential.
Regarding real estate investment trends, Mr. Nguyen Van Dinh, Deputy General Secretary of the Vietnam Real Estate Association, said that if investors have a lot of money, they should invest in real estate at this time. He believes that real estate is the safest, most profitable investment channel. Dinh suggested that in the past, there has been no crisis where real estate prices have decreased. On the contrary, it has steadily increased an average of 5-7%.
Interested in investing in Vietnam? Contact CVR for more information on available opportunities.
Another article we found optimistic is titled: “An interesting point of view from real estate investors: real estate fever will come after gold fever”
Dr. Nguyen Duc Huong, ex-president of LivenVietPostBank and real estate investor, said that the real estate market will not slow down but will have a “fever” instead.
As a senior investor, he believes that the market will only remain slow this year and will blossom in 2021.
Following the stock market, gold and real estate will grow strongly. Mr. Huong advised investors should not take high risks and focus more on medium or long-term goals instead of short-term surfing. Investors should invest with careful consideration and not put all their eggs in one basket.
Mr Nguyen Van Dinh, General Secretary of the Vietnam Real Estate Association, said that the chaos in the real estate market came from an external factor which is the pandemic. It revealed some weaknesses in policies and laws and many mistakes were found in projects, affecting their progress. He predicts that the real estate market will grow again soon, as we saw after the first wave of Covid-19.
Financial expert Mr. Can Van Luc said, the real estate market needs more support to recover faster, because this industry will have a strong effect on many other areas, such as tourism, travelling accommodations, banks, etc. In the current situation, some sectors are doing well such as Industrial real estate, residential properties, and logistics real estate.
CVR believes that the opinions of these experts suggest that the real estate market has a lot of potential to grow quickly next year. There are still some segments with stable demands such as Industrial real estate, residential properties, and logistics real estate. For some investors now is the time to buy! Contact our team of agents to find the right type of property for you.
Anh Duong of Nhipsongkinhte writes in a piece titled: “Where are the best places to invest money during the pandemic”
Although continuously affected by the Covid-19 pandemic, many experts suggest that with volatile market movements, investing in real estate is still a considerable option because the investment is profitable and more secure.
Although Covid-19 is currently affecting many economic sectors, it presents an opportunity for those with great vision and capital.
CVR believes that the decline is temporary and real estate market in Vietnam will recover and continue to develop after the pandemic is controlled. For some investors, now is the perfect time to take advantage of opportunities during a slow market. Considering investing in Vietnam? Contact our expert sales team today.
The next article we find attention worthy, by Tran Khang suggests: “Ministry of Construction to clarify the Sale And Purchase Agreement for Condotels.”
The Ministry of Construction is studying and clarifying the contents of the sale and purchase agreement for condotels and specifying the rights and obligations of the parties in these transactions.
According to the Ministry of Construction, there are about 30,000 tourist accommodation establishments and about 6 million square meters of offices for lease nationwide.
Specifically, about 16,500 officetel apartments (office combined with hotels) and 39,100 condotels (tourist apartments) have been invested and built.
But so far, the legal issues with condotels are still unclear. There are differences in point of views between the land management agency and the construction management agency in issuing pink books for condotels.
Regarding the concerns of condotel buyers, the Department of Competition and Consumer Protection and the Ministry of Commerce and Trade issued a notice advising investors and customers about the observance of the law to protect consumers’ concerns. The department confirmed that customers who buy condotel apartments are not consumers and are not subject to the Law on the protection of consumers’ interests. Disputes arising from these transactions are resolved in accordance with civil law. As a result, customers who buy condotels will not be protected by the consumer protection agency.
The laws applied to the condotel segment are unclear and need to be upgraded in order to protect customers who buy this kind of real estate property for investment. In doing this, the market will see sustainable development and customers will no longer face disadvantages. CVR keeps its finger on the pulse of the condotel market and the policies applicable to those buyers. Ready to learn more about investment opportunities in and around Da Nang? Contact the CVR team for information on current and upcoming condotel projects.
The title of the next article is quite self-explanatory: “Rental properties continue to face difficulties during Covid-19”
With domestic and international travel on hold, landlords face difficulties finding tenants and need to be flexible and willing to negotiate on price and other terms. Prior to the pandemic, the rental market was booming and landlords had a lot of potential tenants interested in their units. Demand was high and they could choose the tenant willing to pay the highest price. Due to the pandemic, there is an oversupply and landlords need to offer attractive prices and flexible terms in order to lock down a tenant.
We believe it’s important for landlords to adapt to the changing market and understand it is temporary. The CVR team is working remotely and here for all of your real estate needs whether you are a landlord in search of a tenant or a renter in search of your next home. Contact us today!
The last piece of news worth mentioning for the week is titled: “Da Nang begins testing households for Covid-19 extensively”
On the morning of September 3, the districts of Son Tra, Thanh Khe, and Lien Chieu started to organize large-scale Covid-19 testing by household. One representative from each household with be tested. The total capacity of Covid-19 tests in the whole city is 3,000-4,000 samples per day.
This new measure by the government shows that Da Nang is working hard to control the spread of Covid-19. CVR is doing our part to keep Da Nang healthy by staying home, practicing social distancing, and wearing our masks. We miss our friends and clients but look forward to seeing you all soon. In the meantime, we are online to answer all of your questions!
As always, CVR is at your service and happy to provide help anyways we can!