Week 09/2022 – 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”
1. As tourism resumes, the real estate market is eager to rebound.
Domestic tourism plays a key role.
After 2 years of “freezing”, the tourism industry has recently shown many positive signs of recovery.
The recovery momentum of the tourism industry becomes most obvious when entering the early days of 2022.
The resort real estate market is also benefiting from the heat of domestic tourism.
International tourism officially reopened.
According to the Government’s plan, international flights will return to normal from March 15, accompanied by the “Vaccine Passport” program. With 79 countries and territories recognized by Vietnam for vaccine passports as of February 16, the decision to open the country for tourism will attract a large number of foreign tourists back to Vietnam, contributing to stirring up the excitement. tourism activities of the country.
The open-door policy for travel between Vietnam and other countries will also make the real estate market more exciting, not only in the hotel and resort segment but also in the serviced apartment segment.
The strong flow of foreign direct investment capital into Vietnam in the past year partly confirms the large number of international experts who are and will be working here. Once international flights are resumed, they will come to Vietnam for long-term business, contributing to bringing the serviced apartment segment back to its previous growth momentum.
Interested in learning about investing in Central Vietnam? With a decade of experience, we’re your number one resource for residential and commercial real estate opportunities in and around Da Nang. Contact the CVR team today
2. Nearly 1.52 billion USD of FDI poured into real estate in the first 2 months of 2022
According to the Department of Foreign Investment (Ministry of Planning and Investment), real estate business ranked second in the list of industries attracting FDI in the first two months of the year with nearly $1.52 billion, accounting for 30.4% of total registered investment capital.
Regarding investment partners, Singapore leads with a total investment of more than 1.7 billion USD, South Korea ranks 2nd with more than 1.4 billion USD, China ranks 3rd with nearly 538 million USD.
In terms of the number of new FDI projects, foreign investors still focus on investing a lot in big cities with convenient infrastructure such as Ho Chi Minh City and Hanoi. In which, Ho Chi Minh City leads both in number of new projects, number of adjusted projects and capital contribution to buy shares.
Why It’s important:
This shows that after 2 years of stagnation due to the impact of covid, Vietnam real estate market is back and gradually gaining momentum for development.
Considering an investment in 2022? Whatever the requirement, we provide our clients the highest standard of service tailored to their specific needs and always stay ahead of the curve. Reach out to us today!
3. Resort real estate accelerates strongly in 2022
Consecutively many resort real estate projects announced investment policies or were officially introduced and opened for sale on the market right after the Lunar New Year show the investors’ confidence in the segment growth. That belief is further strengthened by the impressive data of the tourism industry during the Lunar New Year period, despite the epidemic still raging.
The market continuously welcomes new sources of resort goods
Resort real estate: through the crisis?
Although the Covid-19 epidemic is still complicated with the number of infections continuously increasing in localities, the move to launch goods and introduce new projects on the market at the beginning of the year shows that investors will soon flourish.
The proof is the bumper number of tourists during the Lunar New Year in the past time. Statistics from the National Administration of Tourism in the nine days of the 2022 Lunar New Year show that localities across the country welcome about 6.2 million visitors, of which nearly 500 international visitors have come to Vietnam under the “Vaccine Passport” program. This number is close to the number of domestic tourists in January 2020 when the Covid-19 epidemic has not yet developed complicatedly, which is 7.3 million. During the Lunar New Year, many resorts and homestays are always full of bookings.
Interested in learning about investing in Central Vietnam? We have the best range of resort real estates across the central region of Vietnam, including Da Nang and Hoi An.
Through our network of real estate professionals at CVR, you may discover about these incredible resort estates and beach front properties for sale in Danang and the Hoi An Coast that are available for foreign buyers! Check out for more details at our list of projects for sale in Danang-Hoian
4. What new criteria do buyers pay attention to when “buying” real estate?
Besides the factors of green living space, infrastructure transportation system, and people’s utilities, home buyers are paying more attention to new health criteria in choosing a home amid the pandemic.
According to the survey, homebuyers have higher requirements for living space after the epidemic.
Another criterion that is very interesting to Vietnamese home buyers is amenities such as children’s play areas and study areas.
In addition, a new trend appearing in the selection of real estate of Vietnamese people after Covid-19 is the desire to buy real estate located near hospitals, pharmacies, medical and health care facilities
Why it is important: The rise of the middle class, the explosion of the car wave, and the continuous escalation of real estate prices make buyers have to spend higher costs for a real estate product, resulting in stricter housing requirements, must meet the standard of a space to live and live, not stop at living.
With invaluable local and regional market knowledge, an extensive professional network, and an up-to-date database of properties for sale, our team of experts will guide you through every step of the homebuying process. Whether you are interested in an apartment, condo, or single-family home, the CVR team will help you find a property that works for you. Contact our sales team today!
5. Why must real estate transactions go through the bank?
The proposal for real estate transactions to go through the bank. This helps to ensure the safety of both the buyer and the seller as proof of the transaction can be saved. As for state management agencies, transactions made through banks will be easy to control, retrieve and collect taxes in accordance with regulations.
Although it brings many benefits, it is not easy to require that real estate transactions go through a bank because many people still prefer to pay in cash as well as tend to circumvent the law to avoid taxes.
Although the solution of using the banking system to control real estate transactions has been effectively applied by many countries, it may not be easy to implement in Vietnam and needs a suitable roadmap. The reason is that the demand for cash in the population is still very large and people in some regions do not have enough conditions to access and use online payment methods through the banking system.
Why it is important: The proposal by the General Department of Taxation advising the Ministry of Finance to require real estate transactions to go through the bank can be put into law. The investors should note for their transactions.
CVR is here to help you understand the trends of the market so you can make the best investment decisions. Our experience, highly regarded reputation and strong legal knowledge keep us at the forefront of the real estate industry. Interested in learning more about opportunities in Central Vietnam? Contact the CVR team today!
6. Signs that the government should take some actions to limit more cases of abandoning the deposit after auction
In 2021, land auction activities in many provinces and cities across the country will be held in the foreground of the land being ‘raised’ to many times the market price. But, after bidding with a very high bid, the winning investor chose to put down the deposit and put bad effects on the real estate market.
More than 90 days after winning the auction results, 4 land lots in the X4 area (Mai Dich ward, Cau Giay district, Hanoi), the authorities had to carry out procedures to make a decision to cancel the decision to recognize the winning result of the auction. Notably, the above land lots are not the highest auctioned lots out of the total 25 plots of land in X4 that were auctioned at the end of October 2021.
Previously, Tan Hoang Minh’s deposit of more than 600 billion VND after winning the auction at 2.4 billion VND/m2 in Thu Thiem led to a wave of other investors who won the auction abandoning the bond here as well.
According to the Ministry of Construction, there have been many cases of winning auctions of land use rights with prices many times higher than the starting price. This price is used as a reference, determining the land price that has created a new (even much higher) price level for the vicinity of the auction site.
Notably, the phenomenon of “screaming” at a very high price for some land plots, then leaving the stake, creating a “virtual” price level to manipulate the market, buy and sell many other winning land lots at auction, and make real profits. It is quite common in many places, even organized.
Importance: The government should take some actions to limit these actions in the future as this will have a bad impact on the real estate market.
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