Week 15/2022 – 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.
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1. Which real estate segments will increase in price the most in 2022?
In 2022, the segments including land plots, agricultural land, houses, and low-cost apartments are considered to have a high probability of increasing prices in the range of 11 – 20%.
The results of the Vietnam Report’s survey of real estate experts and businesses about the average price volatility in 2022 show that land plots are the segment with the highest potential for price appreciation. The segment of land plots, agricultural land, low-cost housing and apartments is likely to increase in price in the range of 11%-20%. The segments of suburban real estate, industrial real estate, housing and mid-range apartments, and offices for rent can increase by an average of 5%-10% compared to the previous year.
In the face of land fever in 2021, experts in a survey of Vietnam Report said that in 2022, land fever may still happen, but with a lower probability.
The reason is that at present, the information about planning and infrastructure is still heavily speculative and the blowing of real estate prices by unfair methods has not yet been sanctioned. However, land fever is not only caused by the above reasons, it can be the result of macro policies, and official master plans from the government.
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2. Da Nang announced 11 projects eligible to sell houses formed in the future
9 commercial housing including:
- • The Filmore apartment project in the Hai Chau district with 206 apartments.
- • Housing project on the east of Tran Dang Ninh street, Hai Chau district, invested by Dat Xanh Mien Trung JSC with 96 adjacent houses.
- • The project of a complex of hotels and high-class apartments on the Central Coast (Central Coast), Son Tra district with 340 apartments.
- • The Sang Residence apartment project, Ngu Hanh Son district with 298 apartments;
- • FPT Plaza 1 apartment building project, Ngu Hanh Son district with 586 apartments.
- • FPT Plaza 2 apartment building project, Ngu Hanh Son district with 700 apartments;
- • Empire resort and luxury housing project, Ngu Hanh Son district with 217 townhouses, villas (HH4, HH6, HH7) and 700 apartments.
- • Phuong Trang high-rise commercial urban complex project – Zone E, Lien Chieu district is invested with 73 adjacent houses.
- • Asiana apartment project, Lien Chieu district is 487 apartments.
And 2 Social housing projects include: Social housing apartment project in Hoa Khanh industrial zone, Lien Chieu with 452 social housing apartments (280 apartments) and 188 apartments for commercial housing
Social housing apartment project at land lot B4-1 in Bau Tram Lakeside Green Urban Area, Lien Chieu, with 1,032 social housing apartments and 274 commercial housing apartments.
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 new home. Interested in learning about opportunities in Central Vietnam? Contact the CVR team today!
3. Investors are accelerating the acquisition of hotel buildings to prevent inflation
Investors are directing cash flow into the hotel sector, looking to buy back accommodation facilities to catch the uptrend of the tourism market as well as prevent inflation.
Many countries in Southeast Asia have begun to relax restrictions and welcome international visitors back. Therefore, the tourism situation in Southeast Asia is expected to soon be active in the near future and lead to the recovery of the whole region.
In addition, the plan to reopen and loosen travel restrictions creates favorable conditions for the tourism and hotel industries to quickly boom again after the epidemic.
Accordingly, investors, including real estate investment trusts (REITs), private companies, and many personal investment funds (PEs) are now stepping up the acquisition of hotel buildings to improve the quality of the property. provide services to catch up with the rising trend of tourism.
At the same time, these units also increased the conversion of some hotel buildings into offices and co-living space models.
Experts predict that investment demand in the resort segment will increase sharply in the second half of 2022. Investment activity is more active due to optimistic information about the rapid recovery of tourism and the resilience of the rebound of the hotel business. That contributes to creating great competitive pressure in choosing potential investment properties.
Interested in buying a beach hotel in Da Nang, Vietnam? Check out: Hotels for Sale in Danang, Vietnam, or contact CVR today! We cooperate with local and international brands to offer our clients the best opportunities available. Contact our sales team for more information today!
4. Industrial real estate “led” foreign capital flows
Foreign investment in real estate made a miracle in the first quarter of 2022 when capital flowed through new registration channels, adjusted to increase capital, capital contribution – share purchase skyrocketed to nearly 2.7 billion USD.
Industrial real estate becomes the leading “player”
The main leverage of foreign capital inflows in the first quarter came from the industrial real estate segment. The fact that Singaporean investors increased capital by nearly 941 million USD for VSIP Bac Ninh urban infrastructure construction investment project and services has helped the total registered capital of foreign investment in real estate “jump”. Singapore continued to maintain its leading position in foreign investment flows into Vietnam in the first quarter, with a total registered capital of 2.29 billion USD, accounting for 25.7% of total investment capital in Vietnam.
Besides, the plan to reopen and loosen travel restrictions creates favorable conditions for the tourism and hotel industries to quickly boom again after the epidemic. The hotel is one of the most sought-after segments, especially for investors looking for value-adding opportunities.
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!
5. 6 common mistakes in real estate transactions
- Excessive “love” of real estate: when looking at a property for sale or rent and, despite being warned by the broker in advance of defects, the investor insists that the property is in perfect condition. owner or owner’s broker.
- Talk about an agreement before signing a sales or lease agreement: Many potential tenants or buyers are excited to “talk” around about an agreement before a lease or purchase agreement is signed. This careless talk may attract the attention of other potential tenants or buyers
- Not enough capital: Small private businesses may be afraid to share their financial information with a broker
- Do not establish the necessary relationship with the bank before investing: It will be much easier if buyers do their research on loans in advance and contact the bank before starting to search for the desired property. Bankers can help budget for potential deals and set realistic goals, and make the investor loan approval process quicker and easier.
- Do not hire a lawyer with experience in the field of real estate: For investors, it is extremely necessary to cooperate with an experienced and reliable broker. At the same time, hiring a lawyer with experience in real estate transactions is equally important. However, there are many buyers and sellers who do not think about hiring a lawyer because they want to save on consulting fees.
- Does not take into account the delay time: Buyers and tenants need to include timelines in excess planning in case of inevitable delays. Such as time delays in the permitting process, labor and material shortages, lengthy batching processes, and financial approvals.
Why it is important: These are the mistakes experienced investors may have, are or will be making. The article can help many investors avoid these common mistakes that cost them time and money.
As always, CVR is at your service and happy to provide help anyways we can!
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