Week 19/2021 – 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, 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. Bank mortgage interest rate in May 2021.
In May 2021:
– VIB bank adjusted to increase the preferential interest rate for home loans from 8.2% / year to 8.3% / year. Meanwhile, BIDV bank reduced interest rates from 7.5% / year to 7.3% / year.
– The preferential lending rate at Vietcombank is only 6.79% / year in the first 6 months or 7.29% / year in the first 12 months.
– Eximbank has the highest preferential home loan interest rate in the market at 9%.
– Then comes Sacombank with a preferential interest rate of 8.5%
– The group of banks with the lowest mortgage interest rates at the moment include OCB, Standard Chartered, Hong Leong Bank, PVcomBank, Techcombank … The lowest level belongs to OCB with an interest rate of 5.99% / year. . Followed by Standard Chartered Bank with an interest rate of 6.19% / year, Hong Leong Bank with 6.25% / year, and PVcomBank with 6.5% / year.
– Some other banks continue to keep the average interest rates as last month. For example, Woori Bank and Agribank have a preferential interest rate of 7% / year, Lienvietpostbank is 7.5% or Vietinbank offers a home loan with a preferential interest rate of 7.7% / year.
It seems that the reduced interest rates on home loans from banks since the appearance of Covid-19 is to support early buyers to own a house in a difficult economic situation. Now, when the epidemic has resurfaced in early May and is somewhat more complicated than previous times, it is likely that home loan interest rates will not rise again but may continue to decrease further.
At CVR, we see this as an important step towards implementing the goals set out by the Government to provide more affordable interest rates to help businesses.
Interested in learning more about opportunities in Central Vietnam? Contact the CVR team today.
2. Where is the money flowing into real estate?
According to some reports from analysis of many specialized organizations and individuals, owners of many struggling production and businesses due to Covid are now spending their resources to invest in real estate instead of production and business.
Moreover, the savings deposit interest rate has dropped sharply over the past time, causing idle cash flow to move into the real estate investment channel.
CVR believes this is a good signal for development in the real estate sector in particular and in socio-economic development in Vietnam in general. There are great opportunities available and CVR is here to help find the one that’s right for you. Contact our team of experts today!
3. The real estate market has to be “suspended” because of Covid-19
The real estate market, which has just recorded a positive change in the first quarter of 2021, has now been interrupted by the new Covid-19 outbreak. Numerous pre-prepared sales plans of many businesses are forced to change to adapt to the new situation.
Being influenced is hard to avoid:
“It is impossible to do anything other than cancel the previous sale events”, the representative of a real estate business having a resort project deployed in Phan Thiet is almost the common voice of many businesses.
After nearly 2 months of having peace, at the end of April, Vietnam witnessed a resurgence of the Covid-19 epidemic, this time considered to be more complicated and dangerous than before when the new strain had a higher spreading rate. In the given situation, business activities, especially the real estate industry have been strongly affected. Despite having 3 times experienced responding to an onslaught of epidemics, real estate businesses have also adapted and moved up to epidemic prevention scenarios to minimize risks and damage, but affecting the market is unavoidable.
With the current market situation, finding a great realtor is key to finding the right investment opportunity. All of these points are strong signs of the growth of the real estate market in Vietnam and give a good outlook for capital appreciation for investments in the long run. Interested in investing in Vietnam? Contact the CVR team for more details on available properties today!
4. Vaccination against COVID-19 on schedule, low post-injection reaction
Up to now, after more than 2 months of COVID-19 vaccination, most cases of AstraZeneca vaccination are safe because Vietnam applies a safe vaccination process.
Vietnam has administered the 1st and 2nd phase of COVID-19 vaccination in provinces/cities for nearly 900,000 people who are medical staff, polices and militaries, etc.
Among those injected, 16% of common reactions after injection have been recorded such as quick pain, low fever, etc. These symptoms disappeared after 24 hours. This rate is low compared to other countries in the world.
After the 1st injection, the effectiveness of preventing COIVD-19 reached 50-70% and this effect remains at the same level, not decrease within 3 months after the 1st dose.
At the second dose, with many different injection intervals recorded, it was found that the most optimal injection time was 3 months after the first dose, and at this injection interval, the protective effect was over 80%.
This is a piece of good news to show that Vietnam is making progress on COVID-19 prevention.
CVR offers our clients the most up-to-date information on new and exciting development projects and more. Are you considering investing in Vietnam? Contact our team of trusted professionals today!
5. 3300 remaining condos and no resort villa is given handover in Q1/201
According to the Ministry of Construction, by the end of the first quarter of 2021, the number of condos put on the market that is still available, not yet transacted, is estimated at about 3,300 units. Meanwhile, no tourist villa has been approved for acceptance and put into use.
“This shows that the absorption capacity of the real estate market in the first quarter of 2021 is better than the same period in 2020 and the fourth quarter of 2020,” the Ministry of Construction said.
As noted by market research units, while the absorption rate of residential real estate is gradually improving, the transaction volume and absorption capacity for tourist and resort real estate is limited ( The average transaction rate in the quarter was only about 30%.
In projects with full legal status, ensuring transparent information progress of some large reputable investors, the transaction rate is higher.
In general, successful transactions mainly focused on the affordable segment, the number of high-end residential real estate transactions decreased compared to the previous quarter. Choosing the segment to developers is a need for a smart developer in the current time.
Not everybody wins the game of land investment. A stronger and more transparent market means more opportunities! Considering investing in a new construction development project in Central Vietnam? Contact the CVR team for more information on current and upcoming opportunities.
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!