Week 31/2024 – 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. From August 1: Real Estate Brokers Must Have A Practicing Certificate
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The 2023 Real Estate Business Law mandates that organizations and individuals involved in real estate business must establish enterprises or cooperatives according to the law. Article 61 requires individuals practicing real estate brokerage to have a practicing certificate and to work within a real estate trading floor service enterprise or a brokerage service enterprise, thus eliminating freelance real estate brokerage.
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Mini apartments, defined as housing with two or more floors and designed for sale, lease, or a combination thereof, will now be issued pink books (certificates of land use rights and ownership of houses). This applies to buildings with at least 20 apartments intended for rent.
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The law also removes the time limit on apartment ownership, focusing instead on the term of use of the apartment building. When a building’s lifespan ends and it must be demolished due to safety concerns, the value of the house itself ceases, but the residential land use rights remain stable, and owners will receive compensation. This change aims to provide long-term stability and security for property owners.
Source: tuoitre.vn
2. The Set Of 3 Real Estate Laws Officially Takes Effect From Today.
Da Nang’s real estate market is set to thrive due to the establishment of a free trade zone linked to Liên Chiểu port, as approved by the National Assembly. This move, along with pilot policies on investment management, urban planning, and attracting investors in high-tech industries like semiconductor development and AI, positions Đà Nẵng as a rising economic hub. The city’s natural scenery, living environment, and transportation infrastructure, combined with the new trade zone, are expected to draw more tourists and professionals, boosting real estate demand, particularly around Liên Chiểu port. Experts predict a positive shift in new apartment supply in the second quarter of 2024.
Source: cafef.vn
3. Ha Noi People Rush To Buy Da Nang Apartment, Project To Sell At 120 Million Per Square Metre.
Searches for apartments in Da Nang by Hanoians surged by 90% in Q2 2024 compared to Q1. Experts attribute this to the new apartment projects along the Han River. Data from Batdongsan.com.vn shows a 44% increase in Da Nang real estate searches in Q2 2024, surpassing Q2 2023’s peak, with average asking prices reaching VND61 million/m². High-end projects have driven prices up.
Surveys with brokers indicate improved transaction volumes in Da Nang, with most properties valued between VND 2-4 billion. 73% of brokers reported stable or increased transactions in the first half of 2024 compared to 2023. The number of Da Nang apartment listings increased by 56% in Q2 2024, with interest and asking prices rising by 39% and 14%, respectively. Filmore Da Nang leads with selling prices at VND120 million/m², followed by Sun Group projects at VND 55-70 million/m².
The trend shows a decline in short-term trading, with 64% of brokers noting a decrease, while over 50% reported rising demand for living and renting investments, aligning with profit expectations.
Source: cafebiz.vn
4. In Which Cases Are Land Use Fees Exempted Starting Today, August 1?
The government has issued Decree 103/2024/NĐ-CP, detailing regulations on land use fees and land rental fees, effective from August 1. The decree specifies conditions for exemption and reduction of land use fees. Exemptions include:
Housing policies for war invalids, those incapable of working, and families of martyrs without a primary breadwinner.
Poor individuals or households, and ethnic minorities in economically and socially disadvantaged areas, border regions, or islands.
People relocating due to state land reclamation that threatens human life.
Families and individuals forced to relocate due to state land reclamation without eligible compensation and without other housing in their local administrative area.
Infrastructure projects for cemeteries and cremation facilities for social policy beneficiaries.
Ethnic minorities and poor households converting non-residential land to residential land in disadvantaged areas.
Land allocated for families and individuals contributing to the revolution.
Social housing projects, housing for armed forces, and reconstruction of old apartment buildings.
Additional exemptions may be proposed by relevant ministries, sectors, and provincial People’s Committees, subject to approval by the Ministry of Finance and the Government.
Source: cafef.vn
5. How Will The Regulations For Depositing A House On Paper Change From August 1?
The new regulations will significantly impact the real estate market:
Land Price Determination (Decree No. 71/2024/NĐ-CP): Standardization: Standardizes land price determination methods, enhancing transparency and reducing disputes. Market Impact: Aligns land prices with market conditions, potentially stabilizing the market.
Compensation, Support, and Resettlement (Decree No. 88/2024/NĐ-CP): Fair Compensation: Ensures fair value for land acquired by the state, reducing conflicts and promoting smoother land acquisition.
Market Movement: Clear guidelines may accelerate development activities.
Housing and Real Estate Market Information System (Decree No. 94/2024/NĐ-CP): Data Management: Promotes data-driven decision-making and attracts investors. Efficiency: Improves transaction speed and market liquidity.
Housing Construction (Decree No. 95/2024/NĐ-CP): Regulation on Multi-story Buildings: Ensures compliance with standards, enhancing housing quality and safety. Small-scale Projects: Improves overall housing quality by regulating smaller developments.
Detailed Real Estate Business Regulations (Decree No. 96/2024/NĐ-CP): Operational Standards for Real Estate Exchanges: Professionalizes exchanges, reducing fraud. Anti-Money Laundering: Enhances market integrity.
Apartment Renovation and Reconstruction (Decree No. 98/2024/NĐ-CP): Emergency Relocation: Ensures resident safety and promotes urban renewal.
Basic Land Investigation and Registration (Decree No. 101/2024/NĐ-CP): Timely Procedures: Improves market efficiency with faster registration and certification.
Land Support for Minorities (Decree No. 102/2024/NĐ-CP): Support for Ethnic Minorities: Promotes social equity and stability.
Land Use and Lease Payments (Decree No. 103/2024/NĐ-CP): Payment Reductions: Encourages development in disadvantaged areas.
These regulations aim to enhance transparency, fairness, and efficiency, promoting stable market growth.
Source: xaydungchinhsach.chinhphu.vn
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