Week 28/2024 – Central Vietnam Real Estate News Summary

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   1. New Real Estate Payment Regulations Effective August 2024.
   

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1. According to the content of the article, from August 1, 2024, when the 2023 Law on Real Estate Business comes into effect, there are several new regulations related to the payment of house purchase money:

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   The payment in real estate transactions and real estate projects shall be agreed upon by the parties in the contract and comply with the provisions of the law.

   Project developers, real estate businesses, and real estate service businesses must receive payment from customers through accounts opened at domestic credit institutions or foreign bank branches legally operating in Vietnam. Payments must not be made in cash.

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   The selling price in the contract must be recorded accurately according to the actual price, and cannot be recorded differently from the actual price.

   If the buyer, transferee, lessee, or leasing buyer is late in making payments, or if the seller, transferor, lessor, or leasing lessor is late in handing over the real estate, they will have to bear the fines and compensation for damages as agreed in the contract.

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   So from August 1, 2024, house purchase payment must be made through bank transfer, the contract price must be recorded at the actual price, and the parties must comply with the new regulations on fines and compensation for delays in payment or delays in handover.

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Source: cafef.vn

2. Sun Property “Introduced” The Sonata Subdivision At Sun Symphony Residence.

On July 7, The Sonata subdivision of the high-end real estate complex on the Han River Sun Symphony Residence was officially “launched”, marking a pioneering step of the leading real estate developer associated with resort tourism in Vietnam. Sun Property (member of Sun Group) in developing the semi-compound model in the coastal city of Da Nang.

The impressive highlight of The Sonata is the unique contemporary Hoi An architecture. Continuing the inspiration from indigenous culture and inheriting the “desire” to reach out from the image of the rising Dragon and the Ngu Hanh Son landscape of the entire complex, at The Sonata, architects from Sun Group and Design Lab will join hands to “recreate” the bustling scene on the wharf under the glorious boat of Hoi An trading port in the past.

Da Nang is welcoming a great opportunity to become “Asia’s new Singapore” when specific mechanisms and policies to develop the city have just been approved by the National Assembly. With the semi-compound model, we expect The Sonata will be a vibrant entertainment and shopping center day and night, a must-visit destination for Da Nang people and millions of tourists each year – similar to Clarke Quay. In Singapore, it has been done. And then, with the potential, advantages, and limited quantity, The Sonata townhouses and villas will become outstanding investments and lifelong assets for future residents.

Source: 24h.com.vn

3. 6 Month Apartment Transaction Equals The Whole Year Of 2023.

In the first half of this year, more than 12,200 new apartments were traded, equal to the sales of last year, according to CBRE.

In the second quarter market report, CBRE, a unit specializing in providing real estate consulting and investment management services, said that the Hanoi apartment market recorded a strong increase in purchasing power with nearly 10,200 new apartments sold. Sales this quarter are 5 times higher than the first quarter and the same period last year. Accumulated in the first 6 months of the year, there were more than 12,200 apartment units transacted, “exceeding the record for the whole year of 2023”.

For example, in Hanoi, some projects opened for sale in the second quarter with a large number of units, up to 1,000-2,000 units, but 80-90% of the unit fund has been sold. In the West area, after successfully opening phase one, the investor quickly opened phase two. Regarding product type, studio and one-bedroom apartments have the best liquidity in the market because of their small area, affordable value, and easy to rent.

Source: vnexpress.net

4. Real Estate Experts Assess That The Market Has Passed Its Most Challenging Phase.

The “bottom” occurred in Q1 2023, with difficulties gradually decreasing over time. By Q1 and Q2 2024, property search activity showed significant fluctuations, especially in Hanoi and Ho Chi Minh City, where all property types saw increased searches.

Condominiums led the recovery. In Hanoi, searches for land increased by 118% in H1 2024 compared to H1 2023, and searches for condominiums rose by 46%. Similar trends were seen in private houses, townhouses, and villas. In Ho Chi Minh City, searches for land increased by 45%, and other property types also saw substantial growth.

Prices in Hanoi surged more than in Ho Chi Minh City. In Hanoi, condominium prices rose by 31% in H1 2024, with significant demand driving up prices in primary listings. Meanwhile, private house prices in Hanoi increased by 32% due to high condominium prices and limited supply, prompting buyers to consider private houses within the 2-4 billion VND range. Prices for land, villas, and townhouses also rose significantly.

Market data for the first half of 2024 indicates that while all investment channels showed positive signs compared to 2023, real estate remained the most profitable. Experts believe that new policies effective in 2024 have bolstered market confidence. Despite the recovery, the market has yet to explode, requiring real demand and genuine investment to sustain long-term growth.

Source: vneconomy.vn

5. The Segment Of 2 Billion VND Apartment Almost Extinct In Ha Noi And HCM City And The Dilemma Of The Bank.

Despite domestic and foreign banks lowering real estate credit interest rates to 5-6% per the State Bank’s direction, high property prices hinder rapid market growth. Apartments in Ho Chi Minh City suburbs cost between 2-3 billion VND, while urban residents can only afford homes priced around 1.6 billion VND, a price now extinct within a 10km radius of city centers.

In early 2024, Hanoi’s housing index rose by 8 points to 142.5, with average prices at 44 million VND/m². In contrast, Ho Chi Minh City’s index fell by 2 points to 123, with primary selling prices down 3% to 67 million VND/m². Despite a 7.4% income increase, housing affordability remains a significant challenge for Vietnamese families, requiring substantial income and external financial support to purchase homes.

Banks offer lower interest rates to attract customers but face difficulties approving loans due to high property prices.

Source: cafebiz.vn

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