Week 45/2021 – 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. The living standards of the elite in the “new normal”
In the “new normal” life in the presence of Covid-19, this class is willing to “lower money” to own a perfect place to settle down, relax and take care of health. It has a high-class living space that affirms the owner’s position, providing unique and personalized experiences, an ideal home workspace and putting privacy, safety and security on top.
In fact, real estate near the sea or high-rise apartments with all services at the place of residence receive great attention from investors after the lockdown. According to a report by Knight Frank in the 2021 global buyer survey, about 19% of respondents have moved since the start of the pandemic, 33% say they will buy a second home in the future. near the. The report also shows that a unique new type of luxury apartment will become a viable option for many buyers looking for work-life balance with the rise of remote working habits.
In the uncertain economic situation due to the effects of the pandemic, the wealth of the world’s rich is still increasing at a record. In which, Vietnam is recorded in the Top 5 Asian countries with the growth of the upper class (with assets greater than 1 million USD). This opens up opportunities for real estate businesses to seize the opportunity.
Covid-19 has created changes in the daily lifestyle and housing standards of the elite. With stable financial resources, the elite often make high demands when choosing a place to live. In the past, they were satisfied with houses that only needed to be superficial and majestic, but today, they set very strict criteria for a classy living space and flexibly adapt to the times.
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!
2. Covid-19 improves the transparency of the Vietnamese real estate market
In the past two years, Covid-19 has affected all aspects of life, we are forced to change from the way we study, work, and live… to adapt to the general context. After two years of facing the Covid-19 epidemic, in the real estate sector, the digital transformation helps the real estate market develop more transparently.
The 5 main trends of digital transformation in the real estate industry are as follows:
Firstly, the proliferation of online trading platforms, like e-commerce for the real estate industry.
Second, promote automation and digitization in the way of real estate project management.
Third, technologies such as AR, 3D, virtual reality, augmented reality, … are thoroughly applied to projects and products related to the real estate market.
In addition, real estate companies themselves have been transforming themselves, through thoroughly digitizing documents, optimizing processes, and thoroughly applying automation in internal processes.
Referring to digital transformation, it is impossible not to mention data, the real estate industry is no exception, data science and artificial intelligence such as AI, … are all strongly applied trends in this industry.
These trends will help the market to develop transparently in the post-Covid time.
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!
3. Industrial real estate will be the bright spot of the market
According to the Ministry of Construction, industrial real estate is a potential segment of the real estate market, because Vietnam is gradually becoming a “stop” for many foreign businesses. Vietnam is considered an attractive destination thanks to its advantages in human resources, diverse free trade agreements, and the Government’s commitments to infrastructure development.
Prolonged social distancing, broken production and supply chains, and import and export stagnation have caused some businesses to shift orders out of Vietnam to cope with the epidemic situation. It is worth mentioning that depending on the extent of the impact of Covid-19, industrial real estate forms different pictures between the North and the South.
In the south, due to the more severe impact of the epidemic with an increase in the number of F0 infections, the market also became quiet, there was no new supply and the rent did not increase. Meanwhile, due to better control of the epidemic, the northern market still recorded excitement with many new supplies, and rents returned to a rapid increase. The average price of industrial land in the North region reached 108 USD/m2, an increase of 6.1% over the same period last year.
Why it is important: This is a real estate channel that deserves attention from investors, when the epidemic is soon controlled, industrial real estate will be the “bright spot” of the market.
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. Demand for real estate has increased sharply
According to statistics of batdongsan.com.vn, the number of people looking to buy real estate increased, with the search rate in Hanoi reaching 100%, Ho Chi Minh City 90%, Da Nang 70% compared to April – May 2021.
In October 2021, many localities effectively controlled the epidemic, and production and business activities were reopened, creating a strong recovery momentum for the market. In particular, the supply and interest in affordable apartments in Hanoi and Ho Chi Minh City increased by leaps and bounds.
Also according to batdongsan.com‘s statistics, apartments and land plots in suburban areas grew as soon as there was information about loosening social distancing measures, this development repeats the history of previous quarantines when the disease is under control.
These two segments recovered quickly because they were suitable for the budget of most buyers, with an average price of 30-34 million VND/m2.
Why it’s important: This is a good time for customers to enter the market with low bank interest rates and many reasonable properties for sale.
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. The real estate sector is forecasted to thrive in Da Nang in the next 5 years
A recent report said that Da Nang is currently among the top 20 markets in the world for luxury real estate.
The luxury real estate market recorded a growth rate of 230% over the past decade. Currently, the world has about 100,000 apartments in this area.
Supply is forecast to nearly double by 2026, associated with an increase in the number of active brands, from 69 brands in 2011 to 133 brands in 2021.
Around the world, branded real estate has developed successfully in big cities as more and more people have a need to own branded real estate. Brands increase the value of the real estate in terms of management, service, location, and excellence. In Vietnam, luxury real estate initially appeared in resorts and beach villas.
Da Nang has many luxury apartment projects with very reasonable prices. This segment is attracting many domestic and international investors.
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!
6. Real estate buyers are flocking to the suburbs in search of large-area residences.
The real estate market is witnessing many changes in the psychology and taste of home buyers after the Covid-19 epidemic. The real estate market report of batdongsan.com.vn shows that, after social distancing, the number of real estate searches in Ho Chi Minh City increased by more than 89%.
Particularly, the apartment segment saw a 74% increase in buyer demand, of which the affordable apartment product line increased by 89% especially for 80-85 sqm apartments.
The upside-down living habits make the diversity in the purpose of using the living space enhanced. Many families also have the desire to move to the suburbs to buy apartments with large areas, more rooms, high ceilings, and ventilation to expand living space more flexibly. Many investors also grasp this trend, deploying flexible sales policies for large-area products, helping buyers reduce financial pressure, not having to collect large amounts of money at once but still buying the house is spacious.
This movement is receiving positive feedback from the market.
The demand to move to the suburbs to buy apartments is forecasted to continue to increase in the context of increasing house prices in the central area under the pressure of land shortage and the high cost of construction materials.
The report of batdongsan.com.vn indicates that, in October 2021, apartment prices in Ho Chi Minh City continued to increase by more than 4% over the same period in 2020. The selling price increased in the context of tight supply and new projects entering the market, mostly in the high-end segment. With a budget of 3 billion VND, to own a spacious apartment, moving to the suburbs will be the choice of homebuyers.
For more news from Vietnam – check out Bizperspective portal
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