Week 42/2021 – 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.
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1. What can the housing market take advantage of from the pandemic?
Despite the challenges from the pandemic, experts still see positive growth in residential real estate.
A chance to reflect on housing planning
Because big cities in Vietnam, such as Ho Chi Minh City, Binh Duong, and Hanoi, have a high density of planning, the pandemic spread quickly and had a profound impact on daily life.
Therefore, on the positive side, after the pandemic, urban planners will have the opportunity to reflect on how to develop planning most effectively.
Strategic planning for the long term
The second positive thing, according to the expert, is that through this pandemic, economic planners in general and real estate developers, in particular, will have the opportunity to rethink the long-term general strategy.
Difficult to surf, push the price
Commenting on the trend of real estate price changes in the last months of the year, the expert said that from now until the beginning of 2022, there will not be many big changes in the real estate market.
For individuals who have real housing needs, have available money to buy a house, do not have to use economic leverage, this is a good opportunity to buy a home.
However, for the speculators, this is not the right time.
This is a restarting and preparing period for the Viet Nam real estate market for a new healthy future.
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. Da Nang is about to auction 200 residential plots and two land plots near Vinco
Mr. Le Trung Chinh, Chairman of Da Nang City People’s Committee recently signed a decision approving the list of land funds for land use right auction (phase 2) in 2021 in the area.
The city will auction 100 plots of resettlement land located at the junction and intersection in Residential Area No. 1 of Nguyen Tri Phuong – Truong Sa urban area, Hoa Cuong Bac ward; residential area 494 Nui Thanh, Hoa Cuong Nam ward; Part Lang 1 residential area, An Khe Ward,…and auction 100 plots of land in Nai Hien Dong Resettlement Area; The resettlement area at the beginning of Son Tra – Dien Ngoc route; Northern residential area Southeast bus station,…
Also according to the decision, Da Nang will put two land plots in the center, near Vincom, Dragon Bridge, and Han River to auction. Specifically, the land area A1-2-1 is about 10,379 m2 in An Hai Bac ward, Son Tra district; A2 land area with an area of about 2,144 m2 in Nam Duong Ward, Hai Chau district.
This will act as an impetus to boost investment potential, a good opportunity for investors to choose products and promote city development.
As Da Nang continues to develop into a major economic center and international destination, CVR can help you find suitable real estate that fits your specific needs whether it’s for a business or new home. Interested in learning about opportunities in Central Vietnam? Contact the CVR team today!
3. End of real estate surfing period.
According to analysts, this is the right time for people with real needs to buy a house. However, for the trend of “surfing” real estate investment, it is not feasible.
In the last 2 years, facing the Covid-19 pandemic 4 times, most of the real estate segments have experienced a difficult period. Primary supply reached a low level, the complicated epidemic situation led to the delayed launch of new projects.
Assessing the housing segment,experts said that in order for the market to recover and develop quickly, it is necessary to have better measures to solve difficulties in terms of legal procedures and support policies from the State.
Therefore, the expert noted, for individual investment groups, if the housing need is urgent and the source of money to buy a house is available in advance and does not have to use economic leverage.
“In my opinion, this is a good opportunity to buy a house, because we have accumulated for a long time and it is reasonable for us to settle down and have Tet holiday with a new house. ,” said the expert.
Importance: The buyer will be sure of their capital before choosing to buy the property for their real need, not to surf as when the market was good.
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. Covid-19 has positive impacts on residential real estate.
On one side, following the pandemic, urban planners will have the opportunity to reflect on the most effective ways to build planning. Large cities in Vietnam, such as Ho Chi Minh City, Binh Duong, and Hanoi, feature dense planning. As a result, when the epidemic broke out, it spread quickly and had a significant impact on daily life.
The second positive side is that through the epidemic, economic planners in general and real estate developers, in particular, will have the opportunity to rethink the long-term general strategy: For real estate developers, this is a lesson for them to consider, look back in case of force majeure, where is their resistance and how to avoid the state of exhaustion and difficulty. can be revived
Real estate investment trends in the last months of the year:
It is relatively impossible for investors to carry out wave transactions to push prices in the real estate market in the near future.
For individual investment groups, if the housing need is urgent and the money to buy a house is available in advance, and do not have to use economic leverage, this is a good opportunity to buy a house.
As for foreign investors, their psychology is very cautious but still pays special attention to residential real estate, office real estate.
Why it is important: This information helps the investors can positive about the real estate market and have a plan for long-term investments.
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!
5. What type of investment should I invest in in the future?
Despite the severe negative impacts caused by the Covid-19 pandemic, Batdongsan.com.vn data for the first quarter of 2021 shows that the level of interest in real estate still has the highest growth in many years, 37% compared to the same period last year.
Real estate has its own advantages in investment channels. In gold, the rate of increase or decrease in price is not too high and fluctuates erratically.
If investors have a moderate investment, from tens of millions to several hundred million, they can invest in gold. Some investors with larger capital, maybe they will put a small amount of money in gold, the rest will choose other investment channels. With savings, at the present time, bank interest rates are quite low.
Besides, the stock market is an investment channel that not everyone can participate in. Investing in securities to have good results in addition to basic knowledge, must have a deep understanding of the market.
Meanwhile, compared to the above investment channels, real estate is a safe investment channel with high price growth and high-profit potential.
It is important because the reality shows that the land cannot be reproduced, while people are increasing day by day. Most of the rich in Vietnam and around the world are related to real estate.
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!
6. With the epidemic still affecting, is there a chance for industrial real estate in Viet Nam?
Effective disease control has helped Vietnam to attract investors in 2020, but the fourth wave of epidemics threatens the economy and development as well as attracting investment in industrial zones. Experts believe that only a few investors temporarily transfer orders to other countries rather than close their factories in Viet Nam.
The average industrial land rent in HCMC is still at $175 USD/sqm/term, equivalent to the first 6 months of 2021, the occupancy rate is 85% in most industrial parks. .
In Hanoi, according to Colliers Vietnam, in the last quarter, the average asking price for land in Hanoi was still at $140 USD/sqm/term and the occupancy rate was around 90%.
Although the economy was affected by the pandemic, there are still positive signs from FDI and some large investors still expanded their business activities in the third quarter. Specifically, Quantum Group has just signed an agreement with the Kinh Bac Group to invest US$20-30 million for some projects or LG Display Hai Phong increased its capital to US$1.4 billion this year.
In Da Nang, the average asking price is about 90 USD/m2/term with a high occupancy rate, stable at 85%. The local government has not yet planned to expand or develop new industrial zones.
“In the post-epidemic period, especially when domestic flights have been restored to their pre-epidemic levels and international flights are coming soon, foreign investors (FDI), as well as domestic businesses, will continue to expand production lines and investment in Vietnam” I believe.
As always, CVR is at your service and happy to provide help anyways we can!
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