Week 32/2024 – 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. After August 1st, How Many Houses Can Foreigners Own At Maximum In Vietnam?
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Decree 95/2024 introduces new regulations on foreign ownership of residential properties in Vietnam. Foreign individuals and organizations can own up to 30% of apartments in a single building and a maximum of 250 houses in areas with regulated population sizes. If multiple housing projects exist in the area, the 250-house limit applies across all projects combined. The decree aims to manage foreign ownership in Vietnam’s real estate market by capping the maximum number of properties foreign entities can own, ensuring balanced development and local housing availability.
Source: cafef.vn
2. Real Estate Company Rush To Buy Land Fund For Development.
Real estate businesses are rushing to acquire large land reserves before the new land price list takes effect in 2026, aiming to benefit from current lower prices. The 2024 Land Law, effective August 1, will introduce a permanent land price list based on market valuation, leading to significant increases in land prices—up to 15-50 times in some areas. This will raise compensation costs for site clearance and overall project investment costs.
To avoid these future increases, companies like Dat Xanh Group, Danh Khoi, Son Kim, and others are actively acquiring land, with Dat Xanh targeting 100-200 hectares nationwide and Danh Khoi planning to invest 375 billion VND in land in Binh Phuoc and Binh Thuan. These companies aim to secure large, legally clear land reserves before the new price list takes effect, ensuring they can develop projects at lower costs.
According to Mr. Phan Le Thanh Long of AFA Group, businesses with extensive land reserves and fulfilled financial obligations will have significant advantages when the new price list is implemented, making current land acquisitions a strategic priority for investors.
Source: vnexpress.net
3. The Da Nang Real Estate Market Began To Recover.
By the end of Q2 2024, the Da Nang real estate market showed signs of recovery, with increased product launches and sales across all segments. The new Real Estate Business Law 2023, which recognizes mixed-use tourist properties, has positively impacted the market, especially the Condotel sector. This law provides a legal foundation for further detailed regulations, promising to revitalize the Condotel business and boost tourism-related investments in Da Nang.
This resurgence is expected to help Da Nang regain its competitive edge, even against major markets like Hanoi and Ho Chi Minh City. A representative from VCRE, partnering with Nobu Hospitality, highlighted Da Nang’s growing appeal to businesses and investors due to its strategic location and dynamic yet peaceful lifestyle. Additionally, the city’s amenities and opportunities are attracting many foreign experts to live there, further enhancing its real estate market.
Source: baodautu.vn
4. New Decree Limits Real Estate Transactions To Curb Market Speculation Starting August 1st.
From August 1st, individual real estate businesses cannot conduct more than 10 transactions per year or exceed 300 billion VND per contract. This is stipulated in Decree No. 96/2024/ND-CP, detailing aspects of the Law on Real Estate Business. Small-scale real estate businesses are exempt from establishing investment projects but must declare and pay taxes. Organizations selling or renting properties not for business purposes are also subject to transaction limits and tax declarations. Unlike previous regulations, these new regulations aim to curb market speculation and “surfing,” providing clear criteria for small-scale real estate activities.
Source: vietstock.vn
5. Land Without Official Documents Before July 1, 2014, Will Be Granted A Land Use Rights Certificate.
The 2024 Land Law of Vietnam introduces significant updates for granting land use rights certificates (“sổ đỏ”) for land without official documents, effective January 1, 2025. Key provisions include the categorization of undocumented land into three groups based on usage periods: before December 18, 1980; between December 18, 1980, and October 15, 1993; and between October 15, 1993, and July 1, 2014. All groups must meet conditions of being dispute-free, free from legal violations, and compliant with land-use planning to qualify for land use rights certificates.
The law extends the recognition period for undocumented land use by 10 years compared to previous regulations. It also offers special provisions for households or individuals in economically disadvantaged areas who have used agricultural land for residential or non-agricultural purposes before July 1, 2014. These users can receive land use rights certificates without paying fees if their land is registered, dispute-free, and compliant with planning.
Additionally, the law provides for the recognition of stable agricultural land use, granting certificates for land within legal allocation limits, while excess land may need to be leased from the state. Overall, the 2024 Land Law revises 180 articles from the 2013 Land Law and adds 78 new ones, aiming to address various land use scenarios and ensure clearer legal frameworks for land ownership.
Source: cafef.vn
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