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Week 17/2024 – Central Vietnam Real Estate News Summary

Week 17/2024 – 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. Investors Are Continuously Seeking Commercial Real Estate Opportunities.

  3. Investors Are Continuously Seeking Commercial Real Estate Opportunities

According to JLL Vietnam, commercial real estate investment in the Asia-Pacific region increased by 13% in the first quarter of 2024, reaching a total value of $30.5 billion USD. This was the only region globally to experience growth in this sector during that quarter. Japan led the way with $11.5 billion USD of investment, a 29% increase compared to the same period the previous year.

South Korea and Singapore also saw significant growth. While the office real estate sector decreased by 1%, the industrial, warehouse, and retail sectors all experienced positive growth. Stuart Crow of JLL noted that this growth reflects the continued interest of investors in investment opportunities and the robust economic foundation in the region.


In cross-border sectors such as transportation and industry, retail, and lifestyle, growth has been observed compared to the same period last year, although price sentiment remains unstable. Australia, China, and Hong Kong have seen a decline in investment. Interest rates and sentiment continue to impact investment activities in the region, but a recovery has been seen in parts of 2024. It is predicted that additional investment activities will continue as pricing adjusts and investors realign their portfolios and investment strategies to align with the current exchange rate environment.




2. Many Investors Are Struggling To Find A “Haven” For Their Money.


Many Investors Are Struggling To Find A "Haven" For Their Money

Amidst decreasing bank interest rates, unpredictable gold prices, and volatile stock markets, investors are seeking profitable avenues for their idle funds. Traditional savings methods like bank deposits offer minimal returns, compounded by inflation risks. Real estate emerges as a safe and lucrative investment option. High demand due to urbanization ensures liquidity, especially in centrally located properties.


DHA Corporation’s projects, D-AQUA and D-HOMME, in districts 8 and 6 respectively, promise legal compliance and timely delivery, attracting investor attention. Experts anticipate rising property values, bolstered by infrastructure developments like bridges and metro lines. These projects offer modern amenities, enhancing their market appeal and ensuring sustainable value growth.




3. Hanoi Real Estate Market Heats Up, Attracting Ho Chi Minh City Investors.


Hanoi Real Estate Market Heats Up, Attracting Ho Chi Minh City Investors

Hanoi’s real estate market is experiencing a faster recovery compared to Ho Chi Minh City. Investors are drawn to Hanoi’s lower price points and quicker turnaround potential. This trend is fueled by the recent stagnation in Ho Chi Minh City’s market, which has just begun a limited revival.


Reputable developers and familiar products from Ho Chi Minh City are particularly attractive to these southern investors. The pressure to maintain cash flow and inflation concerns are also pushing investors toward the Hanoi market. Experts believe Hanoi’s rise is the start of a new cycle, fueled by potential investments from overseas Vietnamese under the revised Land Law. This liquidity boost could translate to good returns for early investors.




4. Vietnam Apartment Market Shows Steady Sales Despite Lower Finalization Rates.


The Apartment Market In The First Quarter Of 2024: For Every 100 Units Sold, Customers 'Finalize' 57 Units

In April 2024, the real estate market in Vietnam witnessed the launch and sale of numerous projects, with several investors officially receiving deposits from customers. During the first quarter of 2024, the housing segment welcomed over 20,500 products for sale, including more than 4,300 entirely new ones. The housing transaction segment saw significant growth, with 6,200 transactions, an 8% increase compared to the previous quarter and double the number from the same period last year.


In the apartment segment, over 3,000 new units were introduced to the market, with an absorption rate reaching 57%, meaning out of every 100 new apartments, 57 were sold. Mortgage interest rates dropped to their lowest level in 20 years, stimulating both project development by businesses and home purchases by individuals. Many banks also committed to maximum interest rate limits to reduce risks for homebuyers.


Experts forecast that the mortgage interest rate landscape will continue to decrease in the future. Homebuyers and investors have begun to return to the real estate market after a cautious period, showing increased prudence in their investments, careful financial planning, and thorough legal scrutiny. This period is considered an opportunity to take advantage of low-interest rates and attractive sales policies, although buyers should ensure they do not overextend themselves financially beyond their means.




5.  Thua Thien Hue Is About To Auction 135 Land Lots, Starting From 2 Million VND/m2.


Thua Thien Hue Is About To Auction 135 Land Lots, Starting From 2 Million VND/m2

A total of 135 land plots in Phong Dien district, Thua Thien Hue province, will be auctioned off for land use rights in April and May, with the highest starting price set at 8.3 million VND/m2. The Thua Thien Hue Provincial Asset Auction Service Center, in collaboration with the Phong Dien Land Development Center, will organize the auction of 51 land plots on May 10. These plots are located in the residential area of Xa Ma Da in Phong An commune and Phong Hien commune. The auction includes land for rural residential use with long-term usage rights, ranging in size from 188.2 to 390.3 m2, with land prices ranging from 5.5 to 6.4 million VND/m2.


Furthermore, on May 17, the center will continue to auction the rights to use 35 land plots in the planned center of Dien Huong commune (phase 1, phase 1) in Phong Dien district. These plots, ranging in size from 147.1 to 227.5 m2, are also for rural residential use with long-term usage rights. The land prices for these plots range from 2.5 to 3 million VND/m2. Additionally, on the same day, the center will auction off 19 land plots in the urban residential area of Xa Bieu (phase 2) in Tan Lap neighborhood, Phong Dien town. These plots, ranging in size from 234 to 425.4 m2, come with long-term usage rights and are priced between 5.5 and 8.3 million VND/m2. The deadlines for submitting auction participation documents are May 7, 14, and 23, respectively, with auctions taking place at the respective commune People’s Committee meeting halls.




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