Week 41/2020 – 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 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 for Central Vietnam’s property market.
You will find a summary, 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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In an article titled “Office-for-lease segment has recovered quickly from the pandemic”, the author mentions that based on the 2020 third quarter report by Collier International Viet Nam, the office segment in Da Nang showed a slight drop at the end of July due to the second wave of Covid-19. However, thanks to the Government, the pandemic has been controlled very well, and the office market is recovering. The occupied ratio is around 75-95%, depending on the type of property.
Mr. David Jackson, the director of Collier International predicted that the demand for office rentals in Da Nang is high, and will keep rising in the near future, because Da Nang has attracted many companies and co-operations to open offices here.
Nearly 300 Japanese investors and ICT companies are looking for investment opportunities in Da Nang. The trend of moving manufacturing to Viet Nam with EVFTA (European-Vietnam Free Trade Agreement) is one of the main factors attracting more companies to Da Nang.
It is expected that 26.000sqm of offices will be provided to the Da Nang market (20.500sqm type B office, the rest is type C) through the end of 2020, most of them located in Da Nang city.
The opportunity for business in Da Nang is huge and growing! CVR offers our clients the best in commercial real estate sales and leasing in the Central Vietnam marketplace. We have an extensive, up-to-date database of properties. Over the years, we have assisted a wide range of businesses, from restaurants and boutiques, to IT companies and more. Are you looking for office space or the right property for your business? Contact our team of trusted professionals today!
The title of the next article is quite self-explanatory: “Tips from investors for buying a house”.
Thinking about purchasing a home? Consider these investor tips!
Prioritize a good location, convenient for traffic: One of the first rules when buying a home is where to buy it. A bad house located in an area with good infrastructure and spacious roads is more valuable than a beautiful house but located in the alley.
Buy from a seller who needs to sell urgently: Choosing to buy a house from someone who needs money urgently is an advantage because they will likely accept a lower price.
During the negotiation process, buyers should pay attention to the homeowner’s mentality. If the seller is looking for a quick sale, the buyer should apply the technique of “floating the goldfish” which means pretending to be undecided and in no hurry to buy. The seller will likely be impatient and automatically lower the price if in urgent need of money.
Increase the value of a house with beautiful feng shui: A house with a bad feng shui will have a sale price lower than the market value of a similar house by about 10-30%.
Considering investing in Vietnam? Our approach is to understand your specific investment objectives, risk tolerance, and target locations. Whether you are looking for your first rental property, buying and selling properties, or building value through long-term hold, CVR can help you maximize your investment goals.
An interesting article by Phuong Uyen is titled: “Many people lost money following the crowd”
Undeniably, many real estate investors have won big anticipating the market, especially large-scale projects that have a strong impact on real estate. On the contrary, there have also been many failures due to following misinformation.
More than a week after news that a large development group submitted a proposal to implement two projects in Chau Duc district, Ba Ria – Vung Tau province with a total area of 802.2 hectares, Binh Ba real estate immediately experienced “land fever”. Speculators, brokers and buyers from all over the country flocked here to hunt land, manipulating prices in the hopes of getting rich.
When the People’s Committee of Ba Ria-Vung Tau province announced that it only approved the survey policy, there was no official decision to guarantee that the project would definitely be implemented. This caused transactions to “freeze” immediately, leaving many investors struggling to sell.
This real estate company has continuously canceled project development plans in many provinces, making Binh Ba land even more devalued. The situation became even more tragic due to Covid-19.
Successful investors know that having a team of trusted advisors is key. Our expert knowledge of both the property market and business environment ensure 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!
The next article we find attention worthy is titled “Real estate market thrives in the third quarter”
The Vietnam Association For Real Estate (VARS) just announced real estate market data for the third quarter of 2020 with many positive results. Accordingly, the supply and selling rates of projects have increased sharply compared to the previous 2 quarters.
According to VARS data, in the third quarter of 2020, the country sold 73,933 residential real estate properties (including 46,773 apartments and 27,160 low-rise units).
The overall selling rate reached 35.5%, double the second quarter, and nearly 4 times higher than the first quarter of 2020.
The selling rate of new products also increased sharply, reaching about 43.4%, an increase of one and a half times compared to the second quarter, which saw an increase of 3.5 times compared to the first quarter.
The VARS report recognized that the two largest markets in the country, Hanoi and Ho Chi Minh City, were seeing a clear differentiation. Specifically, in Hanoi, there were 13,300 products launched to the market quarterly (mainly apartments), and the selling rate reached 22.3%.
CVR points out that although these figures focus on increases in the two largest markets, Ha Noi and Ho Chi Minh City, the whole country is on the road to recovery and the number of transactions will be up everywhere. Interested in learning more about opportunities in Central Vietnam? Contact the CVR team today!
A recent Batdongsan article is titled: “Are condos the preferred real estate?
Condominiums are forecasted to be the housing trend of the future, as infrastructure develops and the urban land bank can no longer “expand” with the population. Along with that is the rejuvenation of home buyers, who aren’t bound by traditional notions and very open in their choice of accommodation. They are comfortable living in small to medium-sized apartments, which fully meet their needs.
In fact, in the past few years, more and more apartment projects have been built, meeting the increasing demand of home buyers. Data from Batdongsan.com.vn shows that the level of interest in apartments has continuously increased over the years. For example, the search volume for apartments in the first quarter of 2019 increased by 27% compared to the first quarter of 2018. In particular, the 2020 third quarter market report shows that the interest in apartments is leading among real estate types with 29%, surpassing residential land (23%) and private homes (21%).
The above figures may not be enough to reflect a trend, but it partly shows that apartments are gradually becoming a preferred choice for home buyers because of more reasonable prices, good facilities, and connection to service areas. For the same price, buyers can own a small piece of property in an alley or suburb, where there is no synchronous infrastructure. The rapid increase in housing prices over the years is also the reason why many people cannot stick to the psychology of owning houses. In a recent survey conducted by Batdongsan.com.vn, up to 63% of participants choose an apartment instead of a 1-2m alley house with equivalent value.
With invaluable local and regional market knowledge, an extensive professional network, and up-to-date database of properties for sale, our team of experts will guide you through every step of the home buying 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!
The last piece of news worth mentioning for the week reads: “4 steps to check the reputation of a developer”
– The 1st step: Look up the developer’s profile.
For example, check out the investor’s financial capacity as reflected in the latest annual financial statements; look at their reputation as reflected in domestic and foreign newspapers.
– The 2nd step: Check if the developer cooperates with distributors.
These distributors should be reputable, experienced real estate companies who are transparent in providing project information to customers.
– The 3rd step: Evaluate the quality of the project information provided by the developer.
A good and reputable developer will be very transparent with the information they provide, especially the legality of the project, and bank loan information.
– The 4th step: Apply the principle of “seeing is believing”
Take the time to visit previous projects by the developer, talk to people who are living in the project to hear their feedback.
At CVR we offer a comprehensive approach to make sure you stay informed, and we work diligently to provide increased communication and accountability from start to finish. We are critical when marketing new projects to ensure we work with reputable developers. Considering investing in a new construction development project in Central Vietnam? Contact the CVR team for more information on current and upcoming opportunities.
As always, CVR is at your service and happy to provide help anyways we can!