Week 12/2023 – 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: “Thirst” for high-end apartments, prices are forecasted to increase
The article from CafeF.vn discusses the current state of the high-end condominium market in Da Nang, Vietnam. The city has seen a surge in demand for these types of properties, with prices predicted to continue rising in the future.
According to the article, Da Nang currently has 41 high-end condominium projects with a total of 16,000 units. In the last quarter of 2022, sales in the high-end segment accounted for 39% of the city’s total sales, compared to just 22% in the same period in 2021. This suggests a significant increase in demand for high-end condos in the city.
The article also notes that prices for high-end condos in Da Nang have been increasing steadily. In 2022, the average selling price of a high-end condo in the city was VND 80 million per square meter (approximately USD 3,500 per square meter), a 14% increase from the previous year. Furthermore, prices for some projects have already surpassed the VND 100 million per square meter mark (approximately USD 4,400 per square meter).
Industry experts cited in the article believe that the high demand for these properties is due to several factors, including the city’s economic growth and development, the increasing number of tourists visiting Da Nang, and the limited supply of high-end condos in the market.
The article concludes that the high-end condominium market in Da Nang is expected to continue growing, with prices predicted to rise even further in the future. This presents an opportunity for developers and investors to capitalize on the city’s growing real estate market.
While our team at CVR in Danang agrees on the long-term trend for high-end and luxury property prices, it is essential to note that there are currently excellent opportunities for both foreign and Vietnamese buyers as some sellers are willing to accept discounts given currently low demand.
Few examples of luxury properties for sale in Danang where double-digit discounts may be possible:
• 60 square meters 1 one bedroom on the backside of the Luxury Apartments with an unobstructed westward view to Da Nang city Center and Han river – Asking price is ~US$150,000
• 455m2 3 bedroom villa in the Naman Residences with an asking price of ~US800,000
2. The American “Eagles” Land in Vietnam: Exploring Incredible Investment Cooperation Opportunities”
Experts said that the US is re-setting the global supply chain in the direction of “self-reliance and safety”. Accordingly, they target countries that are “friendly” partners and reduce their dependence on the supply chain of a certain country, so they should move and look for new investment points. Vietnam is an attractive option.
From March 21-23, representatives of more than 50 US companies and corporations, including defense, pharmaceutical, and technology firms… will come to Vietnam to discuss investment and business opportunities under the program. the annual program organized by the US-ASEAN Business Council (USABC).
This visit has many big names that want, intend or have invested, want to expand in Vietnam such as SpaceX, Netflix, Boeing, Lockheed Martin, Bell, Pfizer, Apple, Coca-Cola, and PepsiCo…
This is a good opportunity for Vietnam to develop in all fields in the near future
3. Real Estate Investment Trends: Are Buyers Still Waiting for a Market Bottom?
The article reports that the current investment trend of buyers these days is to buy when the price goes up, and wait when the price goes down. The paradox is that even though there is still a need to buy land to save for later, now that the land price has cooled down and is not subject to “competition”, private houses do not buy anymore.
The trend of investing in the crowd, being carried away by the fear of missing out on opportunities causes many investors to suffer from “buying at the top and selling at the bottom” or skipping the opportunity to buy a good price because of hesitation when the market loses heat, or not yet bottomed.
According to experts, the asking price of real estate in the primary market tends to slow down, and developers restructure their sales policies and actively support buyers through many methods with the goal of reducing total production costs.
Why it’s important: customers wishing to buy to store assets and long-term investments can take advantage of this time to enjoy good incentives.
4. Vietnamese Government’s Continuous Support Policies Boost Real Estate Market Amid COVID-19 Challenges
The recent policies introduced by the Vietnamese government to support the real estate market, which has been struggling due to the COVID-19 pandemic. The policies include reducing interest rates, extending loan repayment deadlines, and increasing the loan-to-value ratio for homebuyers. These measures have resulted in increased demand for housing, with many projects selling out quickly.
The article also notes that the policies have had a positive impact on the construction industry, which has seen an increase in the number of new projects. However, there are concerns that this could lead to an oversupply of housing in the future.
Why it is important: Overall, the article suggests that the recent policies have helped to ease some of the difficulties faced by the real estate market in Vietnam, but caution is needed to ensure the market remains stable in the long term.
5. Interest rates fall, leverage for the real estate market to recover.
In Resolution No. 33/N1-CP on a number of solutions to remove and promote the safe, healthy, and sustainable development of the real estate market, the Government assigned the State Bank (SBV) a number of important tasks. to support the real estate market.
Notably, the Government requested the State Bank to consider directing credit institutions to review and classify real estate projects in order to take appropriate handling measures (such as rescheduling of principal, interest, restructuring of debt groups. …) in accordance with the provisions of law, ensuring the safe operation of the banking system. At the same time, efforts to reduce operating costs to have room to reduce lending interest rates for the economy, including home buyers and real estate projects, contribute to removing difficulties in credit capital for businesses.
If interest rates are lowered, the real estate market will continue to thrive. Because, at present, the demand in the market is still very good, especially in the segment serving real needs.
How active the market is will depend on how much interest rates fall. That is, the more interest rates fall, the stronger the real estate market will bounce back. The fact that banks mentioned lowering interest rates is good news for the market.
Real estate credit increased by 24%, which is almost double the overall level of credit growth for the economy in 2022, nearly 70% of capital for real estate is from credit banks.
Why this is important: The signal of interest rate reduction is expected to help the real estate market reactivate liquidity soon. From there, creating an impulse for the market to gradually recover and develop stably again.
6. The Ori Garden Da Nang launches a preferential policy for customers
Saigon – Da Nang Investment Joint Stock Company launched a social housing apartment project at lots B4-1 and B4-2 in the green urban area Bau Tram Lakeside, Lien Chieu district, Da Nang city. The project’s commercial name is The Ori Garden. The project brings homeownership opportunities for thousands of families in Da Nang thanks to reasonable prices, preferential support policies, and quality living space.
- Attractive price and support policy:
Two-bed apartment, 58m2 has an average price of more than 955 million, customers prepay more than 286 million, equivalent to 30% of the product value that can be owned. Buyers enjoy a loan package with the current preferential interest rate of 4.8% from the Bank of Social Policies, the loan balance will gradually decrease within 25 years
- High-quality living space:
Here, families can live in a green space, a free living space to experience. community connection area with a cluster of 6 internal gardens and squares with an area of nearly 10,000m2. The physical and mental health care facilities at the project are also focused on such as a BBQ garden, knowledge garden, nourishing garden, sports area – outdoor gym, tropical swimming pool, sun loungers …
The project owns a multi-layer security system including area security, lobby reception, 24/7 surveillance camera, and elevator magnetic card.
In particular, the project has a smart parking basement with an area of about 17,200 m2.
Currently, the real-life apartment project The Ori Garden Da Nang is highly appreciated and trusted by customers thanks to its diverse, self-contained utility system, and high-quality transportation management service, suitable for security needs. housing, entertainment, and health care for the whole family. All create a high-quality living environment different from many apartment projects in the same segment of the area.
7. What do Vingroup, Sun Group, and BRG suggest restoring tourism after one year of opening?
The article discusses the proposals made by major real estate developers in Vietnam, including Vingroup, Sun Group, and BRG, to help revive the tourism industry after a year of closure due to the COVID-19 pandemic.
The proposals include offering discounts on hotel and resort bookings, extending visa validation for foreigners, investing in new tourism projects, and promoting domestic tourism. VinGroup, for example, plans to launch a new luxury resort in Phu Quoc and offer discounts on its existing properties, while Sun Group is investing in a new cable car system in Ha Long Bay. The article notes that these efforts are crucial for the recovery of the tourism industry, which has been severely impacted by the pandemic.
Why it’s important: This article is important as it shows efforts being made by major real estate developers in Vietnam to revive the tourism industry
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