-
Week 19/2022 – 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.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. Which segment is the focus of the real estate market?
While in the apartment segment, the whole country had a total transaction of only 45.5% compared to the previous quarter and 80% compared to the same period in 2021. The land plot segment dominated when there was a sudden increase in transaction volume. 242% compared to the fourth quarter of 2021.
The land plot segment had a sudden increase in transaction volume.
In general, land prices in the last quarter had a high increase, an average increase of about 5-10% compared to the previous quarter.
In some places, the price level increased by 15-20% compared to the end of 2021, similar to the end of the first quarter and the beginning of the second quarter of 2021, but the spread and the price increase margin were lower.
The project’s land type and land plots are of increasing interest in many provinces.
From 2021, a lot of capital flows will be drawn from other economic sectors to switch to finding effective investment channels such as real estate. Therefore, the market has more and more F0 investors, also known as side-by-side investors.
CVR is here to help you understand the trends of the market so you can make the best investment decisions. Our experience, highly regarded reputation and strong legal knowledge keep us at the forefront of the real estate industry. Interested in learning more about opportunities in Central Vietnam? Contact the CVR team today!
Source:https://cafef.vn/tam-diem-thi-truong-bat-dong-san-dang-don-ve-phan-khuc-nao-20220508011530132.chn
-
2. Land price bubbles appear, what should buyers do?
In the first 3 months of this year and during the past 2 years, land price fever has occurred in many localities. However, it is worth noting that from 2021, land prices in many places continue to increase sharply but market liquidity is quite low, rising house prices but low liquidity is a signal that a local bubble has appeared.
The reason for the decrease in liquidity is: the flow of investment capital, which has shifted to more production and business, the State Bank closely monitors and tightens credit to speculative real estate and large projects (Directive No. 01); the Government and local administrations publicize and transparently information about master plans, plans on land use and land prices; real estate prices have been pushed up too high in many localities.
Experiencing many land fevers, many investors have become more cautious in making investment decisions
For investors, this is a sensitive period of the market, so investors should review their portfolio, minimize credit and liquidate assets in areas with high growth rates. fast on prices, focusing on products that serve real needs
For real buyers, if they have good finances and have an urgent need for accommodation, buyers should still choose the right product to save money because in the long term house prices are difficult to reduce due to high demand, especially in big cities.
With invaluable local and regional market knowledge, an extensive professional network, and an up-to-date database of properties for sale, our team of experts will guide you through every step of the homebuying process. Whether you are interested in an apartment, condo, or single-family home, the CVR team will help you find a property that works for you. Contact our sales team today!
Source:https://m.batdongsan.com.vn/tin-thi-truong/bong-bong-gia-dat-xuat-hien-cuc-bo-nen-lam-gi-ar108908
3. Tightening the Loan policies for resort property investment
Banks are required to provide credit to meet the real demand for housing and tighten loans for investment in high-class real estate, tourism, and speculation.
The inspection and supervision agency of the State Bank of Vietnam, the Ho Chi Minh City branch, has just requested credit institutions in the area to implement the Prime Minister’s comments on developing a stable and healthy city real estate market.
Accordingly, credit institutions are requested to strictly manage the credit granting situation to the real estate sector and to transfer money collected from real estate abroad.
In addition, banks need to “limit lending to high-end real estate investment, tourism, and speculation”. Credit policies of banks need to be flexible to meet people’s real housing needs.
Recently, a bank in the market, Sacombank, also requested branches and transaction offices not to grant credit to the real estate sector, except for loans to employees and relatives to buy, build or repair real estate. residential property, applicable until the end of June.
Some other bank leaders also said that they will follow the State Bank’s policy of “tightening credit for real estate speculation”, but will expand and accelerate to meet people’s demand for loans to buy houses.
This policy has limited the flow of cash run to high-class property, but meanwhile create the opportunity for people with real demand in houses/apartment OR invest in the production of good which leads to sustainable development.
Interested in investing in Vietnam? We cooperate with local and international brands to offer our clients the best opportunities available. Contact our sales team for more information today!
Source:https://vnexpress.net/siet-cho-vay-bat-dong-san-cao-cap-du-lich-nghi-duong-4456557.html
-
4. Cash flow tends to pour into the housing market
Capital is flowing from securities to real estate: Despite the decrease in liquidity, real estate is still a key investment channel to attract cash flows in securities with many elusive variables and high gold prices. When the stock market has negative fluctuations, financial investors are more likely to return to the real estate market to find a safer destination. Short-term capital flows often land on the stock, gold, or foreign currency markets because these channels are highly flexible and with low capital, it is also difficult to access real estate assets.
Shifting demand for real products: With unpredictable developments of investment channels such as gold or securities, and the move towards tightening loans for investment in high-end real estate and resorts, the affordable apartment segment will receive more attention from investors.
Why it is important: The investor can see what situation and make a decision choosing channel investment.
CVR is here to help you understand the trends of the market so you can make the best investment decisions. Our experience, highly regarded reputation and strong legal knowledge keep us at the forefront of the real estate industry. Interested in learning more about opportunities in Central Vietnam? Contact the CVR team today!
Source:https://batdongsan.com.vn/tin-thi-truong/dong-tien-van-dang-do-ve-thi-truong-nha-dat-ar108906
-
5. Taxes are not the factor that can prevent house prices from escalating?
The situation of land fever makes the consideration of collecting real estate tax again put into focus, but experts say that tax is not the key factor determining the rise and fall of real estate prices.
Vietnam currently does not have too many taxes specifically for real estate transactions. In addition to VAT, in the purchase and sale of real estate, there are also transfer taxes of 2%, registration tax of 0.5%, and tax for non-agricultural properties of 0.03%.
Taxation of real estate in the short term will bring positive effects on market regulation, reduce speculation, and bury money, and wasteland resources. However, tax is difficult to become a prerequisite to regulating the price increase of real estate. Until now, the increase in house prices has not been affected by taxes, so using tax solutions to combat speculation is not the root of the problem because house prices will still increase in the long run even with taxes. “High tax will increase the selling price and rental price of houses, making it more difficult for people to access housing needs.
Meanwhile, for speculators with a lot of money, the high tax rate does not affect them much. The most important solution today is still to solve the problem of supply-demand in the market.
Taxes may simply need to increase revenue to create equity. However, it must be noted that the property tax has a side effect, if it is not predictable, it will cause suddenly the income of a part of the people to shrink, so the overall loss of the economy is greater than the tax benefits. Therefore, taxes must be built in a scientific way, and there should be assessments of the impact on social spending.
-
-
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
