Week 28/2021 – 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, 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. Overpass of traffic infrastructure project at the western end of Tran Thi Ly Bridge reaches completion, ready to be in use
From July 14, vehicles will be allowed to travel on the overpass on September 2 Street as part of the under-construction traffic infrastructure project at the western end of the Tran Thi Ly Bridge
As planned, the billion traffic project will consist of 3 levels. The lowest level will be a 4-lane road tunnel taking Duy Tan under the busy junctions with Le Dinh Tham and the western end of the Tran Thi Ly Bridge.
The upper level on the ground will be a roundabout, whilst the highest level will be a 14m-wide 4-lane steel overpass over 2 September Street. There will also be two 6m-wide frontage roads on both sides of the overpass.
Once it is put into use, the traffic project at the western end of the Tran Thi Ly Bridge will significantly reduce the current traffic congestion at intersections nearby during peak hours, in a tandem with reducing the volume of traffic on roads leading to the Da Nang International Airport.
The whole project will be open to traffic no later than December 31, 2021, as per the recent request of the municipal administration.
The overpass is put into use at this time to help divide traffic, serve the construction of the tunnel and the roundabout of this intersection.
As Da Nang continues to develop into a major economic center and international destination, CVR can help you find suitable real estate that fits your specific needs whether it’s for a business or new home. Interested in learning about opportunities in Central Vietnam? Contact the CVR team today!
2. Deduct Passive Losses From Real Estate Investments
According to experts, land–use planning, legality, real estate type and cash flow are factors that investors need to consider before making a decision whether to sell at a loss. Whether to cut the loss or not, the seller should have a careful analysis based on a combination of many factors as:
For investors with a small budget, who had to borrow money, the optimal solution is to accept to have deep losses due to the pressure of having to pay the interest rates.
However, for investors using their own capital, if you are holding a good potential real estate, you should wait patiently until the market recovers or the infrastructure and planning factors are implemented.
The price reduction will not be significant if the investor is holding property in perfect legality, has achieved solid progress, and is a respectable unit. On the other hand, if you buy projects with shaky legal ground, significant risk, and uncertainty, the price will undoubtedly fall.
Classification of real estate holdings:
Townhouses and land plots with complete legal status will not slow down much because they are good money-keeping tools. This type of real estate, if used as collateral for a bank loan, will not face many obstacles. In the apartment segment, the price growth rate will be slower
Regional potential analysis:
The first and most essential aspect determining real estate volatility is planning. Good planning, clear implementation deadlines, and the ability to raise prices are all sure bets.
Therefore, if investors buy projects with good and stable infrastructure, near residential areas, habitable, reputable investors… the reduction will not be much, even when the market is stable. price will increase. This type of real estate can continue to hold.
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!
3. Provincial trends in housing during the Covid-19
In the Northern region, provinces such as Bac Giang and Bac Ninh recorded a gloomy and frozen situation of the market because these are the epidemic centers. The few transactions achieved are from land auction projects. The bright spot in the context of the epidemic in the Northern region is Hai Phong and Quang Ninh.
In the North Central region, in the first 6 months of 2021, Nghe An welcomed an abundant amount of new properties with 9 projects eligible to sell to the market, providing 780 products. However, the absorption rate was not high due to the impact of the epidemic and the selling price did not fluctuate.
In Thanh Hoa, a number of quality and potential projects of big investors investing in Thanh Hoa have attracted the attention of many investors nationwide such as: Sun Group, Vin Group, Eurowindow, FLC, etc. … Market transactions are not as high as at the beginning of the year, the land auction in Thanh Hoa was active in the first quarter of 2021, but in the second quarter, it stopped because of the Covid epidemic.
In the South Central region, Da Nang – the largest city in the region, has no new projects offered. Trading mainly comes from the secondary market. As for land plot products, the land price has now stabilized after many ups and downs with market fluctuations, the selling price at real estate projects ranges from 12-15 million VND/m².
Due to the impact of the epidemic in the southern region, the Dong Nai market trades slowly. Projects are being implemented at the same time, resulting in intense competition; some infrastructure projects are taking longer than expected; the majority of items are sold to investors; and genuine demand remains low.
Our expert knowledge of both the property market and business environment ensures our clients are provided the best advice throughout the process. In today’s constantly changing market, buyers face an array of complex challenges and new opportunities. We can help!
4. Hundreds of “traps” in selling and purchase agreements: Be aware of losing money!
When buying a house and negotiating a contract, to avoid risks and legal disputes in the future, buyers need to pay attention to the following points:
– Most important thing is project legal documents. It is necessary to check whether the project land has been allocated by the government yet, about the construction permit and the permission to mobilize capital by the local construction department.
– Paying special attention to the terms of the price, the handover term, the quality of the work, the contract appendix, detailing the types of furniture, models, quality, payment methods, and time of payment, construction progress.
– Which authorities will issue a certificate of construction quality assurance, fire safety, appraisal of house area, usable area, construction area. Especially, the way to resolve disputes if any.
– It is also necessary to question whether the contract we’re signing is a purchase and sale contract, or a capital contribution contract, reservation contract, purchase order, escrow contract, etc. If the buyer should ask a lawyer for help if no experience.
Not everybody wins the game of land investment. It would be better to do investment with well-inform projects which have adequate paperwork and choose those which had the pink book issued. 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.
5. Real Estate companies are holding their breath waiting for Covid-19 vaccine.
The evolution of the real estate market in the last 6 months of the year will not depend on the decisive market factor but entirely on the ability to control the epidemic.
There are 2 possible scenarios in the last 6 months of the year.
The positive scenario is that the market partially recovers in the middle of the third quarter and prospers again in the fourth quarter, assuming at least 50% of people are vaccinated and 100% of companies can vaccinate their employees. The market in the last 6 months of the year is likely to grow at least 25-30% compared to the first 6 months if this ideal rate is achieved because businesses will maximize their acceleration to compensate for the first 6 months.
The worse scenario is that it will continue to take another quarter to stamp out the epidemic, the vaccine is not enough to be deployed to the population and only reaches less than 30%, so companies may not be able to get less than 50% of the number of employees to be vaccinated. The market in the last 6 months is not likely to grow because businesses will gradually be exhausted.
Importance: In any case, the power inside each company will decide the survival ability no matter how the situation of force majeure.
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As always, CVR is at your service and happy to provide help anyways we can!
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