Week 42/2023 – 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. Accelerating the pace of economic recovery
The Vietnamese economy is making positive strides towards recovery in the first nine months of 2023. However, several challenges remain, including difficulties in the export sector, market limitations, volatile fuel prices, and inflationary pressures. Despite these hurdles, there have been notable developments across various sectors, such as improved GDP growth, controlled inflation, and stable macroeconomic conditions. Notably, the import-export sector has experienced a resurgence, and investment, both domestic and foreign, is on an upward trajectory. The revival of the tourism industry and the establishment of new businesses have contributed to Vietnam’s economic performance.
Attracting foreign direct investment, particularly in the industrial real estate segment, is considered crucial for sustained economic growth. The government has implemented supportive policies and is actively working to enhance the business environment, fostering optimism for future economic prospects.
2. Strange direction on the market, developer has to follow Real Estate Agency’s word
Recent market reports highlight a shift in the real estate market, with real estate agencies prioritizing legal and safe sales while requiring developers to be meticulous and accommodating in their offerings. A survey conducted by Dat Xanh Services Economic-Financial-Real Estate Research Institute (DXS-FERI) revealed that brokerage businesses are increasingly cautious when selecting products for sales brokerage.
Factors influencing their decisions include the legal framework for safe sales, quick fee payment, investor reputation, affordability of products, and strong communication from investors about projects. These factors combined account for over 50% of brokerage businesses’ product selection decisions.
Investors are now under pressure to be more meticulous and flexible in order to successfully offer their projects for sale, which is expected to have a positive impact on the real estate market and enhance confidence among real estate buyers.
3. Establish a steering committee for the creation of a regional and international financial center
The establishment of a Steering Committee for the Development of a Regional and International Financial Center is a significant development in Vietnam. This committee is tasked with advising the government and the Prime Minister on various cross-sectoral tasks related to the construction of the financial center.
The committee is headed by Deputy Prime Minister Le Minh Khai and includes members from several ministries, agencies, and localities. Its primary responsibilities include proposing directions and solutions for the Regional and International Financial Center Project, coordinating activities between relevant bodies, and fostering cooperation with domestic and international organizations.
This initiative is expected to impact the real estate sector by driving economic growth, stimulating real estate investment, and influencing urban development and property values.
4. New regulations on land ownership certificates are effective from 2023
The Government’s Decree No. 10/2023/NĐ-CP has introduced notable changes to land red books in Vietnam. It grants local Land Registration Offices the authority to issue land red books for various entities, simplifying administrative procedures. The decree also outlines procedures for online issuance of land red books and extends their use to condotels and officials under specific legal conditions.
This is crucial for the real estate sector as it streamlines land-related administrative procedures, potentially making land transactions more efficient and accessible.
5. Prime Minister commits continuous support for entrepreneurs
Prime Minister Pham Minh Chinh has expressed his commitment to supporting businesses and entrepreneurs during a meeting with outstanding businesspeople in Hanoi. The government is determined to stabilize the macroeconomy, control inflation, and promote economic growth. They aim to enhance the business environment, remove unnecessary regulations, and build a digital economy and government.
This commitment is significant for the real estate sector as a stable economic environment and government support can stimulate investment, foster economic growth, and increase demand for real estate.
6. Da Nang will hold dialogues with coastal businesses about land rental prices
Coastal businesses in Da Nang are facing financial difficulties due to increasing land lease fees. These fees often exceed their revenues, and the rising land prices make it challenging for them to sustain operations. Despite efforts to reduce land-related expenses, the prices continue to surge. The authorities in Da Nang are planning a dedicated dialogue to address these concerns and find solutions to ease the financial burden on coastal businesses.
This is relevant to the real estate sector, as land lease fees are a significant factor in real estate development and investment decisions.
7. Real estate transactions have increased by more than 2 times compared to the beginning of the year
The real estate market in Vietnam is poised for potential growth. The country’s economic recovery, coupled with lower interest rates, is expected to drive demand for real estate. Despite this favorable environment, investors remain cautious. The market liquidity is improving, particularly in economically developed areas, and the number of real estate transactions is on the rise.
This news is significant for the real estate sector as it indicates potential opportunities for investment and development in various real estate segments. However, the limited supply of affordable housing remains a concern.
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