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Week 1/2024 – Central Vietnam Real Estate News Summary

Week 1/2024 – 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. Low-Interest Rates Drive Vietnamese Cash into Real Estate: Potential for Da Nang Boom?


Vietnamese real estate is experiencing a surge in interest as record-low bank deposit rates push investors toward property. This trend holds significant implications for Da Nang’s vibrant property market, offering both opportunities and challenges.


Plummeting deposit rates: With some banks offering returns below 2% for 12-month deposits, traditional savings are losing their luster. This, coupled with lower borrowing costs due to reduced loan rates, is making real estate a more attractive option for idle cash, particularly compared to the volatility of gold or the stock market.


Potential benefits for Da Nang:


Increased investment: The influx of cash could stimulate Da Nang’s real estate market, leading to increased construction activity, job creation, and economic growth.

Focus on affordability: Developers may prioritize projects catering to middle-income buyers seeking mortgage-backed purchases, potentially boosting the development of smaller units or suburban areas, and making homeownership more accessible for a wider range of residents.


Infrastructure improvements: Increased demand for housing could attract further investment in Da Nang’s infrastructure, enhancing connectivity, amenities, and the overall quality of life in the city.


Challenges to navigate:


Market sustainability: Rapid growth fueled by speculation could create unsustainable bubbles, and careful monitoring is crucial to ensure healthy market development.

Affordability concerns: Rising prices could exacerbate existing affordability issues, particularly for lower-income residents, potentially leading to social and economic disparities.


Da Nang’s real estate market stands at a crossroads. While the influx of investment triggered by low-interest rates presents exciting opportunities, responsible planning and development are crucial to ensure sustainable growth and prevent unforeseen hurdles. The city must navigate this wave of interest carefully, prioritizing both economic opportunities and the well-being of its residents to ensure a prosperous future for its real estate sector.




2. Assessing the Opportunities and Challenges in the Evolving Landscape of the 2024 Real Estate Market


The real estate market, while showing positive signs, still faces internal challenges, making investment decisions difficult. Cash flow into real estate is expected to improve in 2024, but the recovery will be gradual. Economic uncertainties globally position Vietnam as a relatively stable and safe haven for investors. 


However, the influx of funds into real estate remains a concern, with experts suggesting cautious planning and readiness for new opportunities, emphasizing the need to move away from speculative real estate ventures. Financial difficulties persist for businesses, impacting sales and profits, and requiring a slow and steady recovery.


3. Government Initiatives and Resilience: A Reflection on the 2023 Real Estate Market Development


This article looks back at the development of the real estate market in 2023 and the government’s efforts to overcome the difficulties in this market. The government has implemented a series of policies aimed at creating positive effects on the real estate market, including addressing legal issues and funding.


Since late 2022, the government has been directing tasks and solutions to overcome difficulties in the real estate market. In February 2023, a conference on removing obstacles and promoting the real estate market was organized to assess the current situation and propose solutions for this sector. Resolutions and decrees regarding the redemption of corporate bonds and legal issues for tourism resort real estate have also been issued during this period.


In August 2023, an online conference evaluated the results of implementing solutions to overcome difficulties in the real estate market and proposed further measures. The government continued to direct the reduction of interest rates for loans to support business recovery, production, and business development. The National Assembly also passed two laws related to the real estate market.


Thanks to the efforts of the government and relevant agencies, the real estate market has shown positive signals such as increased liquidity and abundant supply. The third-quarter report from the Ministry of Construction indicates a recovery in market liquidity. While there are still many challenges, there are encouraging signs for the real estate market in the second half of 2023.


4. Revitalizing Vietnam’s Real Estate: Government Initiatives and Positive Trends Set the Stage for a Promising 2024


The Q3/2023 market report from VARS highlights active government intervention to revive Vietnam’s real estate market, with nearly 20 initiatives contributing to increased confidence. Notably, Resolution No. 33/NQ-CP is identified as significant. 


Project investors are enthusiastic due to demand-stimulating policies, leading to sales campaigns with discounts and extended support. Dr. Nguyen Van Dinh sees 2024 as challenging but an opportunity for market revival, with various provinces planning developments. Large-scale projects and the resort real estate segment show positive signs, supported by low bank interest rates. 


Economic expert Dinh Trong Thinh predicts a turning point in Q3/2024 and prosperity in Q2/2025, especially with amended housing and real estate laws. The early part of 2024 is seen as a special opportunity, but cautious investment strategies are advised to avoid future regrets.


5. Surge in Transactions and Positive Momentum Leading Up to the Lunar New Year


From the end of 2023 until now, the real estate market has shown many positive signs as transactions increased and cash flow began to return.


A real estate floor director in Hanoi shared that recently, the number of transactions of apartment and land products at his company has increased significantly. Every week there are dozens of successfully traded products, especially the project in Me Linh when the construction of Ring Road 4 started.


Apartment products with many flexible sales policies and 0% interest support for 12 months also have good deals.


Similarly, according to sharing from the sales unit of a mid-range apartment project in the city area. Di An (Binh Duong), November, sells 2-3 products on average every day. This number is still low compared to the previous exciting period, but there has been progress compared to the first months of the year.


From the beginning of the year until now, the transaction volume of the shopping cart has reached 70%. The total number of apartments sold is nearly 1,000 units.


“This is a positive signal in the context of home buyers still tightening their wallets due to economic difficulties,” this person acknowledged.


According to the summary report of the Ministry of Construction, in the first half of 2023, the real estate market continues to have a quiet transaction state. But the drastic measures of the Government, the Prime Minister, the Ministry of Construction, and localities to overcome difficulties have brought results. Obstacles have been gradually resolved, and the market situation has changed in a positive direction.


In the last 6 months of the year, the number of transaction searches in the land and apartment segments… had a good recovery, and the supply from new projects and transactions appeared more and more.


In short, this is the good news for the real estate market in the coming time.


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