Week 32/2021 – 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.
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1. Da Nang no longer permits condotels
Da Nang Department of Construction has no longer licensed condotel type. Currently, the implementation of solutions to manage and control condotels in Da Nang City is carried out in accordance with the provisions of the Law on Real Estate Business No. 66/2014/QH13
Currently, Da Nang has a series of condotel projects such as Naman Garden, Ariyana condotel Furama, Alphanam Luxury, Wyndham Soleil, Hoa Binh Green Danang, …
Previously, in the face of the situation in many localities that massively granted “residential land without forming residential units” for a series of projects, causing potential risks of disputes and lawsuits, the Government Inspectorate proposed to the Prime Minister. direct ministries, sectors, and localities to temporarily not grant permits (condotels).
According to the Government Inspector, it is recommended to temporarily suspend the licensing of condotel projects until the legal system is completed according to the directions of the Prime Minister.
Accordingly, the supply of new condotel projects will not be available in the near future. Therefore, we should expect that on the market, there will only be products from projects that have been and are being implemented. Resources are scarce, so customers should consider investing in existing products to avoid price increases in the future.
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!
2. Construction Ministry suggests solutions to push the real estate market
In the report for the second quarter of 2021, the Ministry of Construction has proposed a series of solutions to continue to remove difficulties and promote the growth of the real estate market.
For relevant ministries and branches: The Ministry of Construction directs related ministries and branches to continue to urgently improve institutions and policies and effectively implement newly issued policies and legal documents. in real estate investment, construction and business.
The Ministry of Planning and Investment continues to review obstacles and perfect the law on investment, especially foreign investment in the field of real estate business.
The Ministry of Natural Resources and Environment studies and perfects the law on land, management, and use of agricultural and forest land…
The Ministry of Finance needs to keep a close eye on developments in the corporate bond issuance market in the real estate sector.
The State Bank of Vietnam closely monitors and controls credit for the real estate sector to avoid double risks and prevent the use of capital sources for production and consumption loans in real estate investment and business.
With the macro solutions, the Ministry of Construction wants to help the real estate market develop sustainably and overcome the difficulties.
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!
3. What policies will have a strong impact on the real estate market in the coming time?
The real estate market report of the second quarter of 2021 of the Ministry of Construction stated the policies that will affect the real estate market in the coming time:
- The Government issued Decree No. 54/2021/ND-CP stipulating preliminary environmental impact assessment: this Decree details the preliminary environmental impact assessment.
- The Government issued Decree No. 69/2021/ND-CP regulating the renovation and reconstruction of apartment buildings: the assessment and assessment of the quality of the apartment building, the formulation and approval of the plan for renovation and reconstruction of the apartment building; requirements on planning for areas for renovation and reconstruction of apartment buildings; the selection of project investor; compensation, support, resettlement and temporary accommodation arrangement for resettled persons.
- The State Bank of Vietnam issued Decision No. 697/QD-NHNN on interest rates on loans to buy, rent-purchase social housing, build new or renovate and repair residential houses. It is 4.8%/year.
- The Ministry of Construction issued Circular No. 01/2021/TT-BXD stipulating QCVN 01:2021/BXD national technical regulation on construction planning.
- The Ministry of Construction has issued Circular No. 06/2021/TT-BXD stipulating the decentralization of construction works and guiding their application in the management of construction investment activities.
Why it is important: These changes, when put into reality, will bring positive impacts to the real estate market, orienting the market to develop in a healthier, more sustainable, and substantive direction.
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!
4. The real estate market during and after the Covid epidemic – What to expect?
The market “slows down” during the epidemic in July 2021 shows that, in July, the peak of the Covid-19 epidemic was complicated in Ho Chi Minh City and many southern provinces.
The Government had to apply Directive 16, conducting large-scale distancing orders in 19 provinces and cities. Trading activities on the real estate market had to be temporarily suspended, directly affecting consumption and the source of real estate products offered for sale in the past month.
In markets where the number of infections has increased sharply such as Ho Chi Minh City, Binh Duong, Dong Nai… the demand for housing has decreased by an average of 33-35% compared to the number of purchases in June, the number of posts also decreased from 40-50%.
the influence of Directive 16 with the prolonged social distancing throughout July, most economic activities and investments had to be forced. pause. Real estate is also among the investment channels that must be “closed” temporarily. Both investors and homebuyers cannot participate in favorable trading activities, the sale of goods is difficult, leading to a lack of variety of transaction products. harshly. This inevitably leads to a strong decrease in the number of homebuyers in July.
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5. Why doesn’t real estate drop in price despite the Covid pandemic?
The expert considers that the real estate market is having a controlled stagnation. This means the real estate businesses and investors are already prepared for a reduction in transaction volume. Therefore, the market does not have a massive price drop.
The price is not reduced massively, but only some products and projects as investors have to reduce the expected selling price for faster liquidity.
In general, resale prices do not tend to decrease, especially in prime areas.
The expert also believes that if the pandemic is controlled in October, the real estate market will take on a new state.
At first, the market will remain unchanged for the first 3 months. This is the period when investors reposition their products to match the current market and investment sentiment.
After that, the market will have a slight fever within 3 months, the price will increase about 15%. Next, the market will go down for about 6 months, to a certain extent, it will integrate with the general movement of the economy.
As a matter of fact, many investors are still watching the market movement to find investment opportunities. One person’s difficulty will be another’s opportunity.
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!
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