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Week 01/2022 – 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 the 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 on Central Vietnam’s property market.
You will find a summary, a 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”
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1. How does infrastructure improvement affect real estate?
Convenient infrastructure and transportation systems have helped real estate values double, even triple in value compared to the time of the previous years. The road has not been connected, the bridges have not been crossed over the river.
The big concern of investors when pouring capital in central areas is circulation. The reason is that, for most customers, the priority criteria when buying houses are properties with convenient locations, easy to move, and the ability to connect to the surrounding area. Real estate located in the central area benefiting from major traffic works will bring a more comfortable and quality life.In fact, the increase in land prices with the development of infrastructure is understandable because a new road will help trade activities in that area become more convenient, boosting the local development economy.
For example: At the opening event of the model house of the Shantira project held on December 25 at the investor’s project, from this event visitors were able to visit the entire project area. And when customers come to the event of the project, they will see how the project is present, so it will be easier to make a decision. Buy faster when selling projects are in progress on drawings up.
It is important because infrastructure is one of the important factors determining the increase in real estate prices.
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2. The Thu Thiem land auction consequence, crazy price leads to the increase in stock and share price.
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After the terrible land auction (2.4 billion VND/m2) in Thu Thiem New Urban Area, the price of land in Ho Chi Minh City and the stocks of a series of real estate companies suddenly skyrocketed, leading to many consequences for the market and investors.
In recent days, land prices everywhere in Ho Chi Minh City have continuously increased due to the land auction of Thu Thiem New Urban Area (Thu Duc City, Ho Chi Minh City). Previously, the land along Truong Van Bang road (next to Thu Thiem) was at 300 million VND/m2, but a week ago it jumped to 500-550 million VND/m2, an increase of 40% in just the past 3 months.Along with skyrocketing housing prices, the stock prices of listed real estate companies also increased rapidly after the Thu Thiem land auction. Investors believe that with the land auction results in Thu Thiem up to 2.4 billion VND/m2, it will form a new price ground for the real estate market.
Effect:
Some businesses take advantage of winning very high auctions to apply for re-valuation of assets, especially collateral, to drain banks or to clean up their balance sheets. Auction results can also have a negative impact on all segments of the real estate market, greatly hindering the achievement of the goal of reducing house prices, first of all, of developing social housing and housing trade at reasonable prices in Ho Chi Minh City.
Importance: Though the price of the successful auction is not controlled by the government, they should somehow reduce the bad impacts on the real estate market by taking some measurements. This requires the leader of the cities to think carefully.
3. Real estate with river view prices increased by 30%
Townhouses, riverside villas have asking prices 20-30% higher than normal real estate but are still hunted because of limited quantities.
Azura Apartment Building with stunning river views A survey by VnExpress shows that the real estate price increase by 20-30% because of a river view is quite common in projects located on peninsulas, islands, and many sides bordering the river in Ho Chi Minh City and other provinces.
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Recorded in a project in the old Thu Duc district, with a 3.4 km long riverside park, the asking price for riverside villas including land and house is up to 330-350 million VND per m2 for the best view.
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Meanwhile, ready-made villas in the area of this project fluctuate at 260-280 million VND per m2
In the old district 2, a project located adjacent to the Saigon River also recorded a house price of about 300 million VND per square meter or more, while the normal internal view apartments ranged from 240-250 million VND. one square meter. Thus, the selling price of real estate with river frontage is more than 50-60 million VND per square meter
Why it is important: With beautiful view advantages such as river frontage, lake view, large street frontage are often sought after by investors and accepted to buy at high prices, so customers should consider investing in these properties.
- Check out some of the best apartments with river views for rent and for sale in Da Nang!
- Azura Luxury Apartment Tower Da Nang
- 2 BEDROOM APARTMENT FOR SALE – AZURA DANANG
- Indochina Riverside Towers Da Nang
- 2 BEDROOM DUPLEX INDOCHINA APARTMENT FOR RENT IN DA NAN
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Source:https://vnexpress.net/bat-dong-san-doi-gia-30-vi-view-song-4412678.html
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4. Apartment prices have increased but market supply has not kept pace with demand
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Experts in the real estate industry have the same expectation that public investment, especially infrastructure, will become an important driving force for the real estate market to recover and accelerate rapidly by 2022.
Experts say that with the supply-demand imbalance, real estate prices are forecasted to start a new growth cycle in 2022. House prices are likely to rise even higher in 2022; including the apartment segment.After the distance is eased, the demand for real estate search increases again. The apartment type will have a stable and good recovery in 2022. Along with that, the return of interest in rental apartments will help the price level increase.
In the next 2 years, the phase difference in supply and demand will continue. Besides, the cost of land, labor, and construction material prices continued to increase. All these factors are responsible for the increase in housing prices in 2022 and beyond.
Why it is important: The trend of real estate prices may continue to rise at a high level. So the investor can consider about real estate market channel.
Source:https://vietstock.vn/2022/01/gia-chung-cu-tang-cao-nguon-cung-chua-bat-kip-nhu-cau-4220-922569.htm
5. Good operation management plays the leading role in increasing the value of the apartment
The role of the operational management company becomes important in the context of the emergence of more and more large-scale urban projects and areas. In fact, when professional management and operation are increasingly valued by homebuyers, it will lead to project developers also focusing more on investing in maintaining a quality operating system for their property.
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The selling price of a real estate product is planned by the investor from the period before the project is formed and put into operation. However, the factor that maintains the price level depends on the quality of project management and operation. Operations management often greatly affects the liquidity of an apartment project, especially the decision-making of homebuyers to live in later. -
Experts say that for large urban projects, 4 important factors are synchronous connectivity infrastructure; urban area planning, destination creation programs; technology and urban operation management, and 5 pillars: living-learning – working – playing – shopping.
Why it’s important:
Professional operation and management have an important impact on creating trust with buyers and adding more value for properties in the future.
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As always, CVR is at your service and happy to provide help anyways we can!
Contact Us today to find the real estate investment in Da Nang which is right for You
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The big concern of investors when pouring capital in central areas is circulation. The reason is that, for most customers, the priority criteria when buying houses are properties with convenient locations, easy to move, and the ability to connect to the surrounding area. Real estate located in the central area benefiting from major traffic works will bring a more comfortable and quality life.
In recent days, land prices everywhere in Ho Chi Minh City have continuously increased due to the land auction of Thu Thiem New Urban Area (Thu Duc City, Ho Chi Minh City). Previously, the land along Truong Van Bang road (next to Thu Thiem) was at 300 million VND/m2, but a week ago it jumped to 500-550 million VND/m2, an increase of 40% in just the past 3 months.
Experts say that with the supply-demand imbalance, real estate prices are forecasted to start a new growth cycle in 2022. House prices are likely to rise even higher in 2022; including the apartment segment.
The selling price of a real estate product is planned by the investor from the period before the project is formed and put into operation. However, the factor that maintains the price level depends on the quality of project management and operation. Operations management often greatly affects the liquidity of an apartment project, especially the decision-making of homebuyers to live in later.
