Week 41/2022 – 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. Regulations on guarantees for residential houses to be formed in the future
This Circular takes effect from April 1, 2023.
Please open the attached file to receive the Circular
On September 30, 2022, the State Bank of Vietnam issued Circular 11/2022/TT-NHNN regulating banking
Commercial banks are eligible to guarantee future housing when:
1/In the establishment and operation license or in the document amending and supplementing the establishment and operation license of the commercial bank, there are provisions on the contents of bank guarantee activities.
2/It is not prohibited, limited, suspended, or temporarily suspended from providing guarantees for houses in the future.
The State Bank will publicly announce the list of commercial banks capable of guaranteeing housing in the future in each period on the web portal of the State Bank.
3/Circular 11 specifically stipulates for future housing guarantees issued only in the form of letters of guarantee
4/Accordingly, the letter of guarantee is valid from the time of issuance until at least 30 days after the time limit for delivery and receipt of the house as committed in the house purchase or lease-purchase contract, unless the guarantee is terminated according to the provisions of Article 23 of this Circular.
In case the commercial bank and the investor terminate the contract of guarantee for the future house ahead of time, the letters of guarantee issued to the previous purchasers will remain valid until the guarantee obligation. receive termination.
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2. Vietnam’s real estate market is forecasted to recover in 2023
At the Digital Transformation Promotion Conference for Vietnam’s real estate market, Dr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association gave an overview of the real estate market.
According to Mr. Dinh, in the past 9 months, the new supply of the real estate market was only about 20% compared to the same period last year. The products are also not really suitable for the market when the supply for the high-end segment is in excess, while the low-cost products that meet the real housing needs of the people are in short supply.
In the past 2 years, the economic crisis caused by the Covid-19 epidemic along with policy adjustment activities has had certain impacts on the real estate market.
The affordable housing segment has great demand but the supply is short and weak, so prices increase sharply, compared to 2021, the current house price has increased by about 30%, compared to 2019 it has increased by 50%. Especially with the segment of apartments at about 25 million / m2 now no longer found on the market.
House prices have increased and are not suitable for the market, so the absorption capacity of the market is low. Many promotional projects from 15-35% products to increase absorption.
Forecasting market developments at the end of 2022 and 2023, Mr. Dinh said: “From now to the end of the year, some segments with bright spots are resort real estate, industry, and social housing. the low-income potential is still large.
This expert added that, although the demand is great, there are difficult bottlenecks such as legal regulations and legal procedures that are causing many pending projects to be implemented.
“Recently, the Government is trying to remove difficult barriers, I believe the market will gradually have a better balance in 2023,” Dinh said.
Many experts also give the milestone of 2023 as the recovery period of real estate.
Importance: This forecast is a bright light in the current situation for investors/developers to wait for in 2023.
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3. Landowners strive to “pamper” buyers as the market for land declines
In the context of the real estate market’s decline in liquidity, many landowners have tried to “please” customers, even accept discounts and support as much as possible with procedures, but have not yet sold.
Nguyen Quang Hieu, Director of the real estate transaction office in Hanoi, said that the amount of land plots for sale is quite large, most of them have reduced by 10-20% compared to the time of land fever.
Many people who want to sell quickly contact and ask questions, just need to find someone who wants to buy, the rest of the land owners will negotiate, negotiate and promise to pay commissions as high as hundreds of millions of dong per transaction.
Currently, due to the local decline in the liquidity of land plots, many homeowners who want to sell have to work hard to “please” customers. If there are real buyers, most landowners agree to the requirements to find a common voice when dealing.
However, at present, there are many sellers, so buyers have many options to put down money. But they will circle around to prolong the time for the purpose of forcing prices, if the landowner approves a sharp reduction, they may reduce their money. Besides, there are many contacts who only try to bid to capture the psychology of the current land holdings.
In fact, the market has only slowed down for about half a year, those who reduce prices, and sell to cut losses at this time are all thin-capital investors who are under great financial pressure. So the negotiation is also quite easy because they just want to sell at an acceptable price to recover capital. Unlike when there was a land fever, now is the time to change roles, the buyer is the owner of the transaction.
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. Bringing golf home – passion fulfilled at Sunneva Island Da Nang Compound
With the advantage of being surrounded by 30 hectares of water surface, Sunneva Island will set up a golf practice area – an upper-class privilege for residents.
The system of floats, and nets to catch golf balls are arranged reasonably on the water surface so as not to affect the natural landscape. Although it is a mini training field, there is no complicated terrain like a golf course and familiar obstacles such as sand holes, ditches, and grass, but the large water surface space at Sunneva Island will bring spacious experiences for everyone. golfer.
In addition, Sunneva Island residents when using the golf course are also privileged to experience other services and facilities right in the area. The elite owner of Sunneva Island will freely experience a chain of 50 expensive utilities and rare landscapes on the island, with a scale of up to 16 hectares on a total of 26 hectares of the whole project including a marina, infinity pool, luxury clubhouse, or multi-purpose outdoor sports area…, along with a meticulously designed landscape system including 5 hectares of tropical riverside green park, 2.2 km of the road around the island with green space…
At the same time, Sunneva Island is also managed and operated professionally and professionally by Sun Property Management – Sun Property’s new urban area management brand, ensuring a safe, livable, self-contained urban area that is always cared for. meticulous.
No different from the million-dollar golf resorts in the world, all privileges of the mini practice area, health care services, sports, entertainment, and stunning scenery exclusively for Sunneva Island residents are focused on. .
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