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Week 11/2024 – Central Vietnam Real Estate News Summary

Week 11/2024 – 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. 1. Evolution of Vacation Real Estate: Embracing Personalization, Luxury, and Adaptation in 2024


The report on the trends in the vacation real estate market in 2024:


Personalized experience: Customers seek travel experiences that align with their personal preferences and needs. Factors such as exploring local cuisine, wellness-integrated resorts, sustainable tourism, and nature conservation are highly valued.


Luxury travel trend (A La Carte Affluencers): Customers are willing to purchase day passes to access the amenities of a 5-star hotel instead of staying overnight. This indicates that segments beyond the luxury segment also have growth potential if their specific needs are effectively addressed.


Key considerations: Businesses and investors need to strive to provide new experiences and products that cater to customers’ practical needs. Selecting new and promising destinations for investment and development is also considered crucial for sustainable growth in vacation real estate projects.


Adaptation to change: In the recovery phase of the vacation resort market, businesses need to quickly adapt to changes in consumer behavior. Vietnam needs to develop diverse products and meet the needs of various customer segments to enhance competitiveness in the international market and retain potential domestic customers.


To achieve recovery and growth in the vacation real estate market, it is necessary to change and adapt to meet customers’ practical needs. Personalized experiences, sustainability, and investment in new promising destinations are considered important factors in this process.




2. The 2024 Update on Red Book Mortgage Loan Procedures


  1. What is a Red Book Mortgage Loan?

Red book and pink book are familiar names for people, used to refer to Certificates of land use rights, ownership of houses, and assets attached to land. The red book mortgage loan is a form of bank loan used for many purposes such as investment, business, shopping, and construction… in which the borrower uses the red book or pink book as collateral for the loan. get a loan


  1. Loan Limit and Interest Rate When Borrowing a Red Book Mortgage

In addition to the general regulations of the State Bank, each bank will have a different limit. The bank will appraise the value of the real estate that the borrower registers as a mortgage. The red book mortgage loan limit can be up to 70 – 100% of the value of the collateral.


  1. What documents are needed for a Red Book Mortgage Loan?

Application for a red book mortgage loan according to the specific bank’s form.

Valid ID card/citizen identification card/passport.

Permanent residence/temporary residence book/KT3.

Documents proving marital status.

Current financial documents: Labor contract, payroll statement, income proof documents…

Other documents as required by banks


3. Da Nang real estate market 2023 and prospects for 2024


Da Nang real estate liquidity and price fluctuations will also be low but will be more promising than in 2023. The main products will be concentrated in the FPT Urban Area. Price growth is low.


SPE.R’s report also points out that, in 2024, land has limited new supply, secondary products are still the mainstay. Meanwhile, apartments and condominiums have a relatively abundant new supply, primary selling prices tend to increase, and secondary market selling prices are stable.


4. New regulations on mini apartments that buyers need to clearly understand


The amended Housing Law in Vietnam, effective from January 1, 2025, introduces regulations granting ownership certificates for mini-apartments within multi-story buildings, enabling their sale or rental. Individuals developing such projects must comply with construction investment regulations. 


Mini-apartments must meet fire safety standards outlined in the law, including separate fire exits, stairwell designs, and fire-resistant walls. This aims to address lax management and irregularities in the booming mini-apartment sector, prevalent in major cities like Hanoi and Ho Chi Minh City. 


While exact national figures are unavailable, Hanoi reportedly has around 2,000 mini-apartments, with Ho Chi Minh City hosting approximately 42,000, accommodating a significant portion of urban residents.


5. The growth momentum of industrial real estate enterprises


The data from the Ministry of Planning and Investment reveals that as of February 20, 2024, foreign investors have injected over $4.29 billion into 16 out of the 21 key economic sectors in Vietnam, marking a significant 38.6% increase compared to the same period in 2023.


Particularly noteworthy is the real estate sector, ranking second with nearly $1.41 billion in total investment, comprising more than 32.7% of the overall foreign investment – more than three times higher than the previous year. Analysts foresee a continued surge in FDI throughout 2024, focusing on manufacturing and technology sectors, alongside a growing demand for land leases in industrial zones.


The industrial real estate sector stands as a beacon of growth, evident in the substantial increase in rental revenue projected by major players such as Kinh Bac Urban Development Corporation (KBC), Vietnam Industrial Investment and Development Corporation (BCM), and Saigon VRG Investment Corporation (SIP). These companies are strategically expanding land portfolios and launching new projects to meet investor demands, contributing significantly to the positive trajectory of Vietnam’s real estate industry amidst global economic recovery and evolving trade agreements.





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