Week 37/2024 – Central Vietnam Real Estate News Summary

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   1. Da Nang City Is To Determine The Life Of Eco-charm Project.

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1. The People’s Committee of Da Nang City issued an investment registration certificate for the Golden Hills project before completing the necessary procedures for submission to the Prime Minister, leading to ongoing issues. Trung Nam Joint Stock Company (Trungnam Land), the project investor, proposed adjustments, including updating investor information, expanding the project scope, and increasing investment capital from VND 4,447 billion to VND 7,648 billion. They also sought to extend the project timeline from 2010-2016 to 2023-2029.

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   However, the Da Nang People’s Committee cannot implement these proposals without the Prime Minister’s approval. The Ministry of Planning and Investment has commented on the project’s issues, and the city is exploring solutions. Despite previous violations in land allocation and investment licensing, pink books were issued, and properties were sold. As of June 2024, Da Nang is awaiting the Prime Minister’s decision following multiple official dispatches.

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Source: cafef.vn

2. Vietnam Real Estate Market And Changes When 3 Laws Are Passed.

Land Law 2024 introduces 16 chapters, adding new sections on land fund development and separating those on land recovery, compensation, support, and resettlement. It marks a significant reform in land management, promoting transparency and modernizing processes. A major change is the removal of the state’s minimum and maximum land pricing framework, with new local land prices set to be published annually by provincial authorities starting from January 1, 2026. The new laws are expected to stabilize the market, reduce risks for buyers, and facilitate fair competition among real estate companies and brokers, though effective implementation depends on the actions of state agencies and market participants.

Source: batdongsan.com.vn

3. Highlights At Nobu Restaurant And Hotel.

The Nobu brand spans across sectors such as hotels, restaurants, and real estate, emphasizing memorable culinary and service experiences and unique designs.

Nobu has a construction and development process of more than 30 years, and now owns a system of 77 restaurants, 41 hotels and 12 real estate projects globally, in many central cities such as New York (USA), London. (UK), Toronto (Canada), Milan (Italy), Ho Chi Minh City and Da Nang (Vietnam)…

Culinary experience: Cuisine helps Nobu attract wealthy customers. Diners don’t just enjoy a simple meal. They will also be served by famous chefs, quality cuisine, and cultural and social understanding – considered an experience worth the wait.

Unique design at the hotel: In an interview, Mr. Trevor Horwell, CEO of Nobu Hospitality, shared that he did not develop Nobu hotels in the luxury hotel industry. Instead, the brand targets hotels that are special in their approach and attachment to local elements, creating unique values.

Currently, the Nobu Danang project is located on the iconic intersection of Vo Van Kiet – Vo Nguyen Giap, directly adjacent to My Khe beach (Da Nang), which is among the top 6 most attractive beaches on the planet. Nobu Danang Tower promises to bring residents and visitors an excellent culinary experience. Nobu restaurant in Da Nang has standards equivalent to the quality of other branches around the world, with a team of talented chefs from Nobu.

Source: vnexpress.net

4. The “Endless” Struggle Between Tenants And Landlords In The Most Prime Locations In Ho Chi Minh City.

The news article highlights the challenges faced by commercial tenants in Ho Chi Minh City (HCMC) due to rising rental prices. While the number of businesses returning rented properties has decreased compared to last year, many prime locations in the city, particularly in the central districts, remain vacant for extended periods. A notable example is the Starbucks Reserve at 11-13 Hàn Thuyên, District 1, which closed on August 26, 2024, after failing to reach an agreement on rent renewal with the landlord.

After the closure, the rent was raised from VND 700 million to VND 757 million per month, an increase that would have cost Starbucks an additional VND 600 million annually, prompting its exit after seven years. Other high-profile closures include brands in the fashion and food and beverage (F&B) sectors, such as Highlands Coffee and MIA, due to unsustainable rent increases. Even as these spaces remain vacant, rental prices in central areas like Đồng Khởi and Hai Bà Trưng streets continue to rise, with some rents increasing by 25-40% in the first half of 2024 compared to the previous year. Landlords often hold firm on prices, believing their prime properties will eventually attract tenants willing to pay higher rates.

The article attributes this attitude to a belief that central properties hold unique value, making it difficult for tenants to negotiate lower rents, despite challenges in the market. As a result, many tenants have had to move out or seek more affordable locations, and commercial tenants are now being more cautious in their expansion plans.

Source: cafef.vn

5. Da Nang Seeks Solutions For Hundreds Of Billion Dong Marina Project.

On September 10, 2024, the Da Nang People’s Committee assigned the Department of Construction to collaborate with relevant units to finalize the documentation regarding the restaurant and marina project located south of the Han River port. This project was previously considered for recovery by the city but has yet to be implemented.

Situated in a prime location, the project currently faces obstacles that need clarification. The Da Nang People’s Committee has requested that the Department of Construction provide comprehensive information and documentation about the planning in this area.

The project, developed by I.V.C Company, owned by Phan Văn Anh Vũ (known as Vũ “Nhôm”), was completed in 2017. However, due to Vũ’s arrest, the facility has not been put into operation and remains abandoned.

The city had previously planned to recover this project and compensate for its conversion to public use, such as creating open spaces and serving tourism purposes. However, to date, this initiative has not been executed, resulting in a neglected and wasteful situation at this valuable location.

According to estimates, the compensation for the construction investments made in the project amounts to around 100 billion dong, excluding land compensation.

Source: cafef.vn

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