News. Back to the list

Week 15/2023 – Central Vietnam Real Estate News Summary

  1. Week 15/2023 – 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. 1. Real estate in Vietnam is the most sought-after in the region

  2.  

Less than a month, the State Bank (SBV) officially reduced the operating interest rates for the second time. This move clearly shows the Government’s goal of reducing lending interest rates to promote economic recovery.

 

Bank interest rates dropped simultaneously: 

As of mid-April 2023, all commercial banks (commercial banks) have simultaneously lowered the ceiling interest rate for deposits with term less than 6 months by 0.5% right after the decision of the State Bank

In a recent analysis report, KB Vietnam Securities Company forecasts that by the end of 2023, the deposit interest rate will tend to decrease and may remain around the threshold of 7 %/year, corresponding to the interest rate level. average loan at 10%/year (for the average 12-month term of state-owned banks). 

This is a good sign for interest rates in the coming time, removing financial difficulties for homebuyers who need the bank’s support.

 

The input price of real estate will increase in the time of 2023-2024:

Construction materials are still gaining momentum, in the first quarter of 2023, the domestic price of construction materials continuously increased. causing many construction contractors to fall into a state of loss, directly affecting the construction progress of ongoing projects and not daring to accept new projects. In addition, the draft Land Law (amended) requires investors to be responsible for compensation at market prices, if passed, it will certainly push up the input prices of projects.

So this is the right time to own real estate value. Please contact CVR for a more suitable property  

 

Source:zingnews.vn

 

2. Should buyers buy real estate now?

 

Less than a month, the State Bank (SBV) officially reduced the operating interest rates for the second time. This move clearly shows the Government’s goal of reducing lending interest rates to promote economic recovery.

 

Bank interest rates dropped simultaneously: 

As of mid-April 2023, all commercial banks (commercial banks) have simultaneously lowered the ceiling interest rate for deposits with terms less than 6 months by 0.5% right after the decision of the State Bank

In a recent analysis report, KB Vietnam Securities Company forecasts that by the end of 2023, the deposit interest rate will tend to decrease and may remain around the threshold of 7 %/year, corresponding to the interest rate level. average loan at 10%/year (for the average 12-month term of state-owned banks). 

This is a good sign for interest rates in the coming time, removing financial difficulties for homebuyers who need the bank’s support

 

The input price of real estate will increase in the time of 2023-2024:

Construction materials are still gaining momentum, in the first quarter of 2023, the domestic price of construction materials continuously increased. causing many construction contractors to fall into a state of loss, directly affecting the construction progress of ongoing projects and not daring to accept new projects. In addition, the draft Land Law (amended) requires investors to be responsible for compensation at market prices, if passed, it will certainly push up the input prices of projects.

 

So this is the right time to own real estate value. Please contact CVR for a more suitable property  

 

Source:cafeland.vn

 

3. Why Did the Selling Price of Mid-High-End Apartments Increase Despite Slow Transaction Rates?

 

According to the news, Ms. Bui Thi Huong – Head of the Strategic Projects Department, at Vietnam Real Estate Research Institute (VIRES) said that the selling price of medium and high-end apartments will not decrease and tend to increase slightly in 2023.

 

The article discusses the current situation of high-end apartment prices in Vietnam, particularly in Ho Chi Minh City. Despite the economic impact of the pandemic, prices have not decreased but rather remained steady or slightly increased in some cases. 

Real estate experts attribute this to several factors, including the limited supply of high-end apartments, increased demand from affluent buyers, and the perception that real estate is a stable investment during uncertain times. However, the market has been slower in recent months due to various reasons, such as tightening credit policies and concerns about potential COVID-19 outbreaks. The article suggests that while the market may face some challenges in the short term, the long-term outlook for high-end apartments in Vietnam remains positive.

Importance: The future of high-end property is positive in Vietnam and the price keeps increasing in the long run.

 

Source:cafebiz.vn

 

4. Proposal to collect house and land deposit on paper no more than 5%

 

The Ho Chi Minh City Real Estate Association (HoREA) has proposed that future real estate projects limit deposits to no more than 5% of the asset value after the investment policy has been approved and recognized.

 

Currently, real estate deposits have been dominated by investors who draft deposit agreements and decide on deposit amounts with buyers having no opportunity to negotiate. The common deposit rate in Ho Chi Minh City and the southern provinces is 25-30% of the contract value, with some cases of investors collecting up to 95% of the contract value. HoREA recommends that the Ministry of Construction and the State Bank closely supervise investors to ensure they use customer’s mobilized capital for the right purpose and deliver houses on schedule as committed under the contract.

Source:vnexpress.net

 

5. Prime Minister Urges Reduction of Cumbersome Procedures in Land Transactions

 

During a Government meeting on April 10, 2023, Prime Minister Pham Minh Chinh emphasized the need to revise the Land Law and Housing Law, aiming to reduce bureaucratic obstacles in land transactions. The Prime Minister urged government agencies to study and absorb people’s opinions and avoid cumbersome and unnecessary administrative procedures.

 

Additionally, he promoted digital transformation in the land sector, creating favorable conditions for people and businesses. Regarding the Housing Law, the Prime Minister commented on specific issues such as property ownership, land use rights, and policies for social housing and worker accommodation. He emphasized the importance of anti-corruption measures and transparency in the implementation of housing policies.

Source:cafef.vn

 

  1. 6. International visitors staying in Da Nang rise sharply

  2.  

The article reports a sharp rise in international visitors staying in Da Nang, Vietnam. According to the Da Nang Department of Tourism, the city welcomed 81,000 international tourists in the first quarter of 2023, an increase of 154% compared to the same period last year.

The majority of visitors came from China, South Korea, and Japan. The city’s tourism industry has been recovering gradually since the COVID-19 pandemic, with many hotels and resorts reopening and offering attractive promotions to attract visitors. The article also mentions the city’s efforts to ensure the safety of tourists and its plans to develop new tourism products and services to attract more visitors.

 

Why it is important: Investors could consider opportunities to invest in the hospitality industry, such as hotels, resorts, and vacation rentals. Additionally, they may consider investing in businesses that provide services to tourists, such as tour operators, transportation companies, and restaurants.

 

Source:danangtoday.com.vn

 

7. More banks reduce deposit interest rates, the 12-month term is forecasted at 7%

 

Some banks continue to reduce deposit interest rates in recent days. The deposit interest rate for the 12-month term is forecasted to decrease to 7 %/year by the end of 2023.

 

This is the second interest rate cut since the beginning of April of these banks. Previously, all commercial banks have adjusted the deposit interest rate schedule after the State Bank reduced the operating interest rate and the ceiling interest rate for deposits under 6 months from April 3.

Compared to the peak level recorded in mid-January, the deposit interest rates listed at banks have decreased by about 0.5 – 1.5% in all terms.

Why it’s important: Investors could consider opportunities to invest in properties such as: villas, apartments, houses, and land at right time.

 

Source:cafef.vn

 

    1. 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

RECENT POSTS