Week 12/2022 – 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. Da Nang activate multiple options of the travel program
Immediately after the Government’s policy of opening the door to international visitors, from March 15 to now, the city’s tourism industry has continuously had activities and events ready to welcome domestic and international delegations to Danang city.
Connecting international routes
On March 27, there will be 2 flights from Singapore and Bangkok (Thailand) landing at Da Nang Airport, and many such as: ‘ Singapore – Da Nang route will fly from April 10; Kuala Lumpur (Malaysia) – Da Nang operated by Air Asia from 1-4 with a frequency of 4 flights/week. Incheon (Korea) – Da Nang route operated flying from April 1, route Haneda (Tokyo – Japan) – Da Nang from May 19, route Narita (Japan) – Da Nang from July 1. Especially until September 2022, the route Delhi (India) – Da Nang is officially operated by Vietjet by Vietjet. Open and connects Da Nang with New Delhi (India) to open a new international market for Danang tourism. Marking the official resumption of international routes to the city after a two-year hiatus because Covid-19
Why it is important: The promotion of reopening many international routes to Da Nang in the coming time and ready products to welcome customers contributes to creating favorable conditions for tourists, businesses, and investors to come to Da Nang to visit, travel, and learn about the business environment. and invest in connecting Da Nang with the world, contributing to the recovery of tourism and the city’s socio-economy after more than 2 years of being impacted by Covid 19.
As Da Nang continues to develop into a major economic center and international destination, CVR can help you find suitable real estate that fits your specific needs whether it’s for a business or a new home. Interested in learning about opportunities in Central Vietnam? Contact the CVR team today!
2. The reason real estate prices in many places increased sharply
Experts analyze the reasons for the sharp increase in real estate prices in many areas:
– The first reason is that planning and project information has been announced, many localities have also actively invested in transport infrastructure investment, attracting foreign businesses to invest in industrial parks and resort projects. ..
– On the other hand, in the context of high inflation risks, investors also have a great need to find an asset anchoring channel, with real estate often being the attractive investment channel.
– In addition, the supply in large cities in recent times is “always in short supply”.
Why it’s important:
The land plot is always a high-demand segment due to its high liquidity and fast profitability.
You can take a look at good lands for sale in both Da Nang and Hoi An here:
3. What segment of real estate to invest in when inflation is high?
Despite the difficulties caused by the Covid-19 pandemic, industrial real estate was still a rare bright spot of the market in the past year. However, in the face of emerging geopolitical issues and macroeconomic issues such as inflation and rising fuel prices, many opinions are concerned about the stability of this market in 2022.
For the real estate industry, the price of raw materials is also directly affected. Inflation also affects credit policy, while currently, Vietnam is tightening credit in many areas, including real estate, especially corporate bonds.
Experts explain that in order to recover the economy, Vietnam is focusing on solving infrastructure problems. The better the infrastructure, the lower the cost, helping businesses in industrial zones recover better and operate more efficiently. Thus, the industrial real estate market benefits, more stability, and growth.
In addition, industrial park real estate is in the midst of a global production shift, attracting FDI. Recently, many businesses have moved factories from China to Vietnam.
Importance: Industrial Real Estates property still has a lot of potential for development and a stable channel to invest in currently.
Looking for Industrial Real Estate for rent or sale in Danang? CVR can help you find suitable real estate projects that fit your specific needs. Check out our latest industrial projects and listings! Or Contact CVR today!
4. In contrast to land price, this real estate segment still lay waiting for its time.
In contrast, when land plots continuously increase sharply, a potential real estate segment is still “staying dormant” waiting for the right time.
According to experts, resort real estate in projects has not increased too much compared to garden land and coastal land in the past 2 years. That is the reason for this segment to attract investors back.
In early 2022, the Covid-19 epidemic was basically under control, many localities officially transitioned to the new normal phase. Commercial and tourism activities began to flourish, international flight routes were restored. This has helped the resort real estate market prosper after 2 years of “freezing” because of the Covid-19 epidemic.
Real estate experts predict that in the coming time, the resort real estate market will explode again. Currently, many big investors are still quietly implementing the project, just waiting for the right time to announce it.
Real estate in big cities like Hanoi, Ho Chi Minh City. Ho Chi Minh City will also continue to grow strongly in price because of the scarcity of supply. Along with that, Da Nang will also be a bright star after two years of the epidemic when a series of large investors such as Sun Group begin to return to Da Nang and Quang Nam.
Importance: The time for the resort-style property to explode is not long to wait, especially Da Nang, which has enough conditions to meet the new wave of development.
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!
5. What will industrial real estate be like when international flights are resumed?
The industrial real estate market has recorded positive growth signals, becoming a prominent field attracting FDI. The resumption of flight routes is forecasted to contribute to creating more push for this segment in the coming time.
Accordingly, Real estate prices are still relatively affordable if put on the balance sheet with other countries such as Malaysia, Thailand, China, or India.
According to a Savills expert, the fact that reputable businesses choose Vietnam as a strategic destination is of great significance in promoting the growth of foreign direct investment (FDI) and at the same time increasing the prestige of Vietnam in the international arena.
For example, Lego currently has only 5 manufacturing plants worldwide. Therefore, this enterprise’s choice of Vietnam as the destination to build a new factory is a great success in attracting FDI capital.
Besides large corporations, Vietnam also attracts FDI from companies operating in the field of production and logistics.
In addition, the number of industrial projects investing in Vietnam is increasing, with the goal of prioritizing the development of data centers.
In terms of geography, decisive factors can be mentioned such as products, labor, and infrastructure. For example, the location is close to the port, the airport or near the big urban area such as Hanoi and Ho Chi Minh City.
Specifically, industrial land in our country has a relatively reasonable price, there are many reputable real estate developers with appropriate legal policies. These are the factors that help attract businesses to invest in Vietnam.
In addition, other factors such as population, working population, labor costs, convenient transportation network, and accessibility to international ports and airports, in order to serve export-import finished products and products.
Currently, businesses are trying to expand and diversify markets so as not to be dependent on China. In particular, Vietnam emerged with political stability, open investment opportunities, meeting the needs of businesses related to legal factors, and support from local authorities.
Although administrative procedures still have certain limitations, there have been many improvements. In general, there are many factors that “pull” investors to the Vietnamese market, instead of other places like China, India, or Thailand.
With the return of international flights on March 15, we hope to make it easier for foreign-invested enterprises to access industrial park projects in Vietnam. This will create a big step forward for the growth momentum of this segment in 2022.
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!
6. The cold storage market is expected to reach 295 million USD by 2025
In the context of the booming cold storage industry to serve the needs of vaccine distribution as well as the growth in seafood processing and consumer demand, the size of this market is expected to reach the milestone of USD 295 million in 2025, which is the growth of about 12% annually.
The two main branches of the Vietnamese market are commercial cold storage and self-operated cold storage.
The cold storage market is more developed in the southern region, largely due to the development of the fisheries and agriculture sectors. In particular, Long An province has many cold storage facilities because it is closely connected to the agricultural product basket of the Mekong Delta and is located next to Ho Chi Minh City.
Many investors are looking for opportunities to enter this market, through new investment projects or mergers and acquisitions (M&A).
However, Vietnam’s cold supply chain still faces many challenges to development. In the medium and long term, infrastructure development is key to increasing cold chain supply, including specialized logistics hubs, intermodal connectivity.
Besides, Vietnam’s cross-border trade process, including time and cost, still needs to be improved. Cross-border transaction costs, including compliance costs and import and export costs, are still less competitive than most countries in the region.
Why it’s important:
As cold storage has great potential in the future, converting conventional warehouses into cold storage is something that investors and property owners should consider.
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
7. 3 factors that will have a big influence on the real estate market of Vietnam
The three factors that are economic stimulus packages, the activeness of foreign investors, and the transformation of domestic investors will make a clear difference.
Economic stimulus packages: Vietnam is also pursuing an economic recovery strategy similar to many other economies, all of which need a large economic stimulus package. In, the implementation period of 2022 – 2023 includes 4 component programs, including The master program to open the economy associated with the prevention and control of the COVID-19 epidemic; Social Security and Employment Program; Program to restore enterprises, cooperatives, and business households; Program to develop infrastructure, unlock social resources for development investment.
Capital flows from foreign investors: Foreign investors highly appreciate the foundations in Vietnam such as labor, the fast and strong development of infrastructure in big cities and inter-provinces along with the Government’s supportive legal policies. These have created attractive investment opportunities that caused foreign capital to flow in.
The strong transformation of Vietnamese enterprises: The pandemic is an opportunity for real estate businesses to rethink their operations. Many Vietnamese enterprises are showing perseverance and persistence as well as changes in development models and accelerating the digitization process in operations to increase efficiency and flexibility.
Why it is important: The investor believes real estate will have many changes, which will make obvious differences.
As always, CVR is at your service and happy to provide help anyways we can!
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