Week 44/2021 – 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. Asiana Danang model apartment design got positive feedbacks from customers
Customers from all across the country are drawn to the Asiana Danang model apartment because of its elegant and comfortable design style.
As the first development project on the Nguyen Tat Thanh sea route, Asiana Danang takes advantage of its location and feng shui to provide a standard resort life right in the heart of Vietnam’s most “worth-living” metropolis.
Located at the gateway to the Northwest, Lien Chieu District, Da Nang city, Asiana Danang is a long-term apartment project, featuring two tallest towers in the area, with 99% of apartments with direct views. Danang Bay. The project promises to bring homes worthy of sophisticated owners, knowledgeable in lifestyle. CVR is the project distributor that will support and accompany customers to bring a high-class living space in Asiana Danang.
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 a new home. Interested in learning about opportunities in Central Vietnam? Contact the CVR team today!
2. Important aspects to focus on when investing in real estate to be able to sell quickly.
The real estate market is still turbulent because the pandemic isn’t totally under control. To make a final decision, each investor must rely on their knowledge and experience. The market’s true demand is still very high.
Investors should target the mid-end segment rather than high-end and luxury, with specific products such as apartments and townhouses. Investors should target the segment with large demand and easier liquidity for those who want to sell soon.
For speculators, it’s impossible to “surf” the market at the moment, there are also not many products to choose from. Therefore, investors must be cautious as well as re-evaluate investment strategies of medium and long-term investments.
Not everybody wins the game of land investment. It would be better to do investment with well-inform projects which have adequate paperwork and choose those which had the pink book issued. A stronger and more transparent market means more opportunities! Considering investing in a new construction development project in Central Vietnam? Contact the CVR team for more information on current and upcoming opportunities.
3. Cold storage becomes a profitable market for industrial real estate as food and vaccine storage is required for enhanced preservation
The Vietnamese market has also recently witnessed an increase in investment in cold storage development services. The pandemic has strengthened the value of the supply chain, making this segment even more viable.
Industrial real estate and logistics have always been considered a potential market for investors in recent years.
As a special type of service and always in need of regular technical improvement, cold storage owners often sign long-term lease contracts, so the probability of lease renewal is much higher than other conventional types. An additional benefit to investors is that cold storage leases are typically made on a triple net lease (NNN), where the tenant commits to paying all costs of the property including taxes. real estate, building insurance, and maintenance. Therefore, investors will save a lot of general management costs.
Cold storage is intrinsically relevant to today’s vital issues of food security and essential retail spending. Regardless of the state of the economy, consumers still spend on food, and cold storage facilities are at the heart of the food supply chain.
Demand for cold storage continues to grow due to the Covid-19 pandemic and cold storage operators have had to adjust their supply chain models. Cafes and restaurants may have to close, instead food delivery has exploded, the way food is delivered to customers has also changed.
Why it is important: This is a good channel for investors to consider and invest in the real estate market.
Our expert knowledge of both the property market and business environment ensures 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!
4. Home loan interest rates in November 2021
Interest rates on home loans at banks are different, but they are accompanied by different conditions on proof of income, approval time, maximum loan term, and different disbursement limits.
Currently, the preferential lending interest rates applied by banks range from 5%/year to 8.5%/year with the preferential lending period from 3 months to 36 months
Specifically, in the list of surveyed banks, PVcomBank has the lowest home loan interest rate at 5%/year in the first 6 months and 12% from the 7th month onwards.
TPBank and VPBank have preferential interest rates of 5.9%/year with flexible terms. At the same interest rate, customers can choose a loan package at TPBank or VPBank.
Since September, Hong Leong Bank has adjusted interest rates down to 6.19% (down 0.56% compared to the previous month) with home loans of 400 million VND or more, the application period is from September 22 to December 31, 2021.
HSBC, Shinhan Bank and BIDV together offer a loan interest rate of 6.2%/year.
Sacombank and VIB are currently two banks with high-interest rates on home loans, belonging to the group of banks with high-interest rates, at 8.5% and 8.3%, respectively
The highest home loan interest rate of 8.99% was recorded at Bac A Bank with a loan term of up to 90% of the property value and a loan term of 25 years. It can be seen that the lowest home loan interest rates are applied at foreign banks and large banks in Vietnam.
This is important because with low-interest rates and preferential loans at this time, plus the advantage that real estate is standing still, the golden time for customers to decide to invest in real estate.
5. Real estate confronts with the storm of materials increases in price
The wave of rising prices of construction materials, along with a series of costs related to the escalating project implementation is putting many businesses in a difficult situation, also expected to put a burden on house prices.
Many businesses operating in the real estate industry are facing challenges when the storm of rising material prices has not passed, the fear of labor shortage has come after the gap.
According to data from the Institute of Construction Economics, the price of construction materials in the third quarter of 2021 increased by 10-20% compared to the same period in 2020.
According to statistics of the Vietnam Association of Construction Contractors in October, many steel enterprises adjusted their selling price by about 17,000 – 192,000 VND/kg of steel. Previously, the price of glass also increased by more than 30% compared to the beginning of 2021. Similarly, the price of cement also increased by an average of 80,000 – 100,000 VND/ton.
In some current projects, the cost of iron and steel accounts for about 15-20%. With real estate products, all these costs will be included in the selling price and must be borne by the home buyer. Therefore, the price of iron and steel increased by 40-50% forcing investors to adjust the selling price by 5-10%, even 15%. In case the selling price is not adjusted, the investor must accept to reduce the profit expectation.
According to the Vietnam Real Estate Brokers Association, the price of construction materials has increased rapidly over the past time, leading to a 4-6% increase in apartment buildings. It is forecasted that the price will increase by 10-15% in the near future.
6. The price of apartments in Ha Noi continue to increase
According to the latest reports, from 2017 until now, the price of newly opened apartments in Tu Liem has increased by 50% and the price of apartments in Cau Giay has increased by 85%.
Despite the impacts of the Covid-19 pandemic, the supply of new apartments in Hanoi reached 3,200 apartments, up 101% compared to the previous quarter. and up 3% over the same period in 2020.
With 3,200 newly launched apartments, currently, the total supply of primary apartments in Hanoi is 19,600 units, most of which are Grade A and B apartments.
Although the supply increased, during the period when Hanoi implemented the distance, the transaction volume decreased sharply, up to 50% quarter-on-quarter, equivalent to only 2,500 units sold. The absorption rate was only 12%, down 7% over the same period last year.
In terms of the selling price, 66% of the total supply of new apartments is priced at over $1,500/m2, equivalent to VND34.5 million/m2. In the first 9 months of 2021, the demand for products from 1,500 – 2,000 USD/m2 is on an uptrend, accounting for 50% of the number of sold units.
Importance: The price of the real estate market is always on the trend of increasing in the long term.
- Interested in learning about investing in Central Vietnam? With a decade of experience, we’re your number one resource for residential and commercial real estate opportunities in and around Da Nang. Contact the CVR team 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
Week 20/2022 – Central Vietnam Real Estate News Summary
Week 20/2022 – Central Vietnam Real Estate News Summary In this weekly or sometimes bi-weekly news flash – CVR: CentralRead more
Week 19/2022 – Central Vietnam Real Estate News Summary
Week 19/2022 – Central Vietnam Real Estate News Summary In this weekly or sometimes bi-weekly news flash – CVR: CentralRead more
Fusion Resort & Villas Da Nang - Official Launch of Phase 2
The first batch of 6 villas in Fusion Fusion Resort & Villa Phase II is open for sale today!Read more
Week 18/2022 – Central Vietnam Real Estate News Summary
Week 18/2022 – Central Vietnam Real Estate News Summary In this weekly or sometimes bi-weekly news flash – CVR: CentralRead more
APRIL 2022 CENTRAL VIETNAM REAL ESTATE NEWS SUMMARY
Each week we post a news flash with notable articles related to the real estate market in Vietnam. We askedRead more
Week 16/2022 – Central Vietnam Real Estate News Summary
Week 16/2022 – Central Vietnam Real Estate News Summary In this weekly or sometimes bi-weekly news flash – CVR: CentralRead more
Week 15/2022 – Central Vietnam Real Estate News Summary
Week 15/2022 – Central Vietnam Real Estate News Summary In this weekly or sometimes bi-weekly news flash – CVR: CentralRead more
Top Offices For Lease in Da Nang
Da Nang is considered an ideal location for business expansion in Vietnam. The city owns a large amount of realRead more
Danang Real Estate Market: Commonly Asked Questions Answered by CVR
By Peter Frieske, Managing Director Da Nang is positioned as a prestige real estate and resort real estate destination. TheRead more
Week 14/2022 – Central Vietnam Real Estate News Summary
Week 14/2022 – Central Vietnam Real Estate News Summary In this weekly or sometimes bi-weekly news flash – CVR: CentralRead more
MARCH 2022 CENTRAL VIETNAM REAL ESTATE NEWS SUMMARY
MARCH 2022 CENTRAL VIETNAM REAL ESTATE NEWS SUMMARY Each week we post a news flash with notable articles relatedRead more
Week 13/2022 – Central Vietnam Real Estate News Summary
Week 13/2022 – Central Vietnam Real Estate News Summary In this weekly or sometimes bi-weekly news flash – CVR: CentralRead more
Con Tien Hoi An Urban Area - A Project Sneak Peek | CVR
Con Tien Hoi An is Hoi An’s largest commercial project as well as the ‘s biggest luxury eco-resort villa. TheRead more
Week 12/2022 – Central Vietnam Real Estate News Summary
Week 12/2022 – Central Vietnam Real Estate News Summary In this weekly or sometimes bi-weekly news flash – CVR: CentralRead more
Fusion Villas Da Nang For Sale - Phase 2 Launch Event!
22 March 2022, Fusion Resort & Villas Da Nang welcomed local officials, contractors, and partners to attend its commencement ofRead more
Danang Landmark Tower - A Project Sneak Peek | CVR
Landmark Tower Danang is a high-end apartment building with a frontage on the 5-star Bach Dang street, which runs parallelRead more
VIETNAM: Top Real Estate Questions Answered
By Austin Weyers, Deputy Director at CVR. Want to invest in real estate in Da Nang, Vietnam? Vietnam offers aRead more
How much does it cost to rent a house in Danang? - CVR
Moving to Da Nang? Wondering how much a house in Da Nang costs on average? CVR is here to helpRead more
Week 10/2022 – Central Vietnam Real Estate News Summary
Week 10/2022 – Central Vietnam Real Estate News Summary In this weekly or sometimes bi-weekly news flash – CVR: CentralRead more