Week 40/2021 – 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.
“CVR: Western Management – Local Knowledge”
1. Experts warn real estate companies financially backed up by banks
As reported, because of excessive financial leverage, Evergrande Real Estate Group (China) is facing a debt crisis of more than 300 billion USD (83% of total assets) and is on the verge of bankruptcy. According to experts, the collapse of this large real estate group will hardly have a great impact on the global financial market or Vietnam. However, this is also a warning bell for the Vietnamese market, when many real estate businesses have been racing to issue bonds to raise capital in the past 3 years.
Currently, issuing bonds in Vietnam is relatively easy due to the newly developed market. Enterprises can ask the bank to guarantee the issuance, committing 100% to successfully issue the desired amount of capital.
The issue of bonds is preferred by many businesses over bank loans because it is not subject to cash flow control. If you borrow from a bank, the bank will closely monitor and supervise the credit flow, usually disbursing to construction contractors and material manufacturers, not pouring all the money to the investor. In the form of bonds, investors can easily use cash flow at will, even mobilize capital for this project, but use that money to buy another project.
Importance: The real estate group should show transparency to avoid a “debt bomb” as in the case of Evergrand’s bankruptcy, the government should control all the cash flow of projects and issuing mass bonds to raise capital without caring about the bad impact on the economy and investors.
Considering an investment in 2021? Whatever the requirement, we provide our clients the highest standard of service tailored to their specific needs and always stay ahead of the curve. Reach out to us today!
2. Five benefits of buying a house through a broker instead of buying it yourself.
- • Save buyer’s time.
Most real estate agents are trained and have a lot of experience in the market. This is useful for customers who want to know information about the real estate market, helping buyers feel more secure when transacting, minimizing risks, and helping customers make accurate and effective buying or investment decisions.
• Buy a house at true value.
Realtors will help you analyze and evaluate the property you want to buy at the best price.
• Legal procedures are resolved.
• Help you choose the right house.
Experienced real estate agents will help buyers quickly find the right home according to their requirements. After identifying customer needs, the broker will provide a list of properties that are suitable for the budget of each customer segment.
• Minimizing arising risks.
Risks often arise after the contract is agreed upon, and the presence of brokers here will greatly benefit from connections and experience in the market.
Buying a house is one of the most important things in life because the value of the house is often enormous. Buying a home also takes a lot of time and effort. In this day and age, many people choose to hire a real estate agent to find a suitable home as well as a faster home buying process.
3. Real estate market after the lockdowns
Most experts believe that after the economy is reopened, the real estate market will initially recover at a slow pace as the epidemic is still not completely relieved compared to the previous period. However, to gain these initial recoveries, it also depends on the speed of the re-opening process: The open economy will also help reduce the inventory of the real estate.
Benefit from low-interest rates: From now to the end of the year, the real estate industry will depend mainly on two factors: First, most real estate requires a huge amount of credit. In the current context, when the economy is open, inflation is not high, along with the State Bank maintaining the current monetary policy to support the economic recovery, the real estate market will certainly benefit from this low interest rate.
Second, in the long term, real estate demand in Vietnam is still very high: These are the factors that make real estate prices always increase, if there is a decrease, it is only temporary. When the social distancing situation is eased, economic growth returns, people from the countryside will return to urban areas to look for business opportunities, the real estate market will continue to thrive.
Why it is important: It helps investors: This information helps investors identify market trends and seize investment opportunities.
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!
4. Supply of real estate market at the lowest level in the 5 past years
The third-quarter report of the Vietnam Association of Realtors (VARS) showed that the total number of products offered for sale on the national market reached 35,852 products, transactions reached 16,647 products, equivalent to an absorption rate of 40.9 %.
The current supply in the real estate market is mostly inventory from previous quarters, as projects have stopped construction because of the Covid-19 epidemic. New projects supply is very limited and shows no signs of improvement; supply reached the lowest level in the past 5 years.
Experts expect that the real estate market in the fourth quarter is under pressure to increase prices because of low supply, increased land prices (clearance), increased land tax, increased prices of raw materials and equipment.
Real estate still attracts a lot of attention from customers and investors even during the epidemic. Especially land plots because this is always considered a safe place to store assets and has a high potential for price appreciation.
Besides, experts also believe that the supply of land plots in the market is mostly not in approved projects, but mainly in local auction projects and spontaneous projects of small investors.
Why it’s important: Buying properties in big cities like Da Nang, Ho Chi Minh or Ha Noi is still a good investment. In long term, there’s still a big potential for capital appreciation. Should you need any assistance to invest in Da Nang, please do not hesitate to contact CVR agents.
5. Vietnam government agrees with the set of criteria for recognition and use of vaccine passports
Recently, Government leaders have agreed with the set of criteria for recognition and use of vaccine passports of countries in Vietnam proposed by the Ministry of Foreign Affairs.
This means both effective prevention and control of the epidemic while restoring and developing socio-economic; in which the campaign of vaccine passports, health green cards, or digital health certificates is considered a possible solution to gradually open up the economy, especially for industries related to services and tourism.
The Ministry of Culture, Sports and Tourism of Vietnam is coordinating with relevant agencies to research and develop a pilot plan to welcome vaccinated tourists to Vietnam, in the immediate future, the pilot will soon be implemented in Vietnam. Phu Quoc in the near future
Why it is important:
The recognition and use of vaccine passports by countries in Vietnam will help Vietnam’s economy open up and recover faster.
Interested in investing in Vietnam? We cooperate with local and international brands to offer our clients the best opportunities available. Contact our sales team for more information today!
As always, CVR is at your service and happy to provide help anyways we can!
Contact Us today to find the real estate investment in Da Nang which is right for You!
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