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Week 2/2024 – Central Vietnam Real Estate News Summary

Week 2/2024 – 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. Real Estate Market 2024: A Golden Time to Invest?


Real estate remains a popular investment channel and is projected to continue attracting attention in 2024. Despite facing difficulties, the real estate market has shown signs of recovery. Nationwide, in 2023, there were 4,725 newly established real estate businesses and 2,081 real estate businesses returning to operation, a 109.1% increase compared to 2022.


Real estate also ranked second in attracting foreign investment, attracting nearly $4.67 billion, accounting for over 12.7% of the total registered investment in the real estate business sector, a 4.8% increase compared to the same period. This indicates that real estate is still an attractive field for investors.


Experts and relevant organizations all believe that 2024 is a good time to invest in real estate. Major projects are being launched in the market, and macroeconomic policies and legal corridors are supporting market development. The bank interest rates are also low, creating opportunities for investors to access cheap capital.


However, investors need to be aware that if the market enters a period of strong growth and high prices, that is no longer a good time to buy. Therefore, 2024 is considered a good time to “bottom fish” the market and choose to purchase real estate at the best prices.


2. The Vietnamese Real Estate Market: Poised for a New Growth Cycle but Challenges Remain


Shifting Tides: While major breakthroughs are not guaranteed, 2024 is expected to be the final year of significant hurdles for the market. Experts anticipate a gradual transition towards stability, laying the groundwork for a new and potentially more sustainable growth cycle.


New Drivers: This shift will be driven by several factors, including:


Policy Support: The recent passage of key legislation like the Housing Law and Real Estate Business Law signifies a focus on improving market regulations and transparency. Additionally, the government is expected to implement further measures to address liquidity issues and stimulate lending.

Market Diversification: The focus is likely to move from luxury segments towards affordable housing and social housing, catering to the needs of a broader range of buyers. This shift aligns with government priorities aimed at addressing the nation’s housing shortage.

Tourism Revival: The gradual recovery of the tourism sector, particularly in coastal areas, is expected to bolster demand for resort real estate and hospitality-related properties.

Challenges Persist: Despite the optimistic outlook, challenges remain:


Economic Uncertainty: The global economic slowdown and potential recession raise concerns about investor confidence and market volatility.

Real Estate Backlog: Existing unsold inventory in some segments, particularly high-end properties, could put downward pressure on prices and hinder recovery.

Effective Policy Implementation: The timely and effective implementation of new policies and regulations will be crucial for their intended impact on the market.

Conclusion: While the Vietnamese real estate market navigates its transition towards a new growth cycle, uncertainties and challenges remain. However, policy support, diversification of offerings, and a gradual economic recovery all contribute to a cautiously optimistic outlook for the future.


Meaning for Da Nang City:


As a major tourist destination and real estate hub, Da Nang stands to benefit significantly from a revitalized national market. Improved market conditions and increased focus on affordable housing could further fuel Da Nang’s development, attracting both domestic and foreign investors. However, the city must also carefully manage its own real estate development pace and address potential imbalances to ensure sustainable and inclusive growth.




3. New law passed, what should upcoming homebuyers pay attention to?


The newly passed Real Estate and Business Law in Vietnam aims to enhance buyer protection. The law introduces clearer definitions, restructuring, and additional provisions, simplifying application. Key changes include transparent disclosure of future properties by developers, explicit conditions for property business, and revised payment terms, limiting the initial deposit to 5% and reducing payment upon lease purchase. 


These amendments provide legal frameworks ensuring both developers and buyers fulfill their rights and obligations, fostering a more transparent real estate market. Buyers are advised to thoroughly research and understand property details, legal documents, and contracts before investing. The law is expected to be effective in 2025, offering a robust legal framework to safeguard investors’ interests.


4. Experts reveal that the new real estate cycle will fall in the second quarter of 2024


According to data from the Vietnam Association of Real Estate Brokers (VARS), in recent times, the real estate absorption rate has gradually increased over the quarters in 2023 with the figures being: 2,700; 3,700; 5,778; 5,710 products. Total transactions for the whole year 2023 reached 18,600 products, equivalent to 18,900 products in 2022. VARS assesses that this is a positive trading level

This expert predicts that by 2024, not only will foreign investors pour into Vietnam to “hunt” for quality real estate projects with good legality, but also domestic individual investors will return. back to the market. Because 2024 is truly the right investment time for those who know how to select opportunities.


Deputy General Director of commented that after the first quarter of 2026, the real estate industry may gradually enter a period of stability. The market continues to have good growth momentum in terms of liquidity and prices, and there are many types of real estate appearing.




5. Seizing Opportunities in the Post-Bottom Real Estate Market: Is Now the Right Time to Invest or Buy a House?


The real estate market, according to TS. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, has successfully overcome challenges and is expected to recover from Q3 2023 onwards. Factors like reduced home loan interest rates and government emphasis on social housing in 2024 are anticipated to positively impact the market. 


The residential sector is projected to lead, with over 30,000 condominium units expected by mid-2024. Experts suggest that the current market offers favorable opportunities for buyers and investors, with adjusted profit margins by developers. 


Caution is advised, especially in certain segments with reduced liquidity. The market is considered to have passed its lowest point, providing an opportune period for informed decisions aligned with government initiatives.


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