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Week 49/2022 – 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.
“CVR: Western Management – Local Knowledge”
1. Da Nang City recognized 4 large successfully auctioned plots of land
Recognition of the results of the auction of land use rights for the land with two fronts of Nguyen Van Vinh and Au Duong Lan streets for Thien Kim Import-Export Trading Production Service One Member Limited Liability Company (address No. Dong Xuyen Industrial Park, Rach Dua Ward, Vung Tau City, Ba Ria – Vung Tau Province).
The land area is 3,690.9 m2, the land use purpose is commercial and service land (construction of warehouses), and the land is leased by the State in the form of an annual payment. The winning price is 775,683 VND/m2/year.
In addition to the above land, this company also won the auction of land use rights for the land located at the junction of Huynh Tinh Cua – Nguyen Van Vinh with an area of 2,974.4 m2, the winning price is 722,362 VND/m2/ five.
Another land area with four fronts of Nguyen Hong Anh-Hoang Dao Thanh-Nguyen Bao-Le Dinh Dien with a huge area of 20,855.0 m2 belongs to the Asia International Primary School, Middle School, and High School. (address 41/3-41/4 Bis Tran Nhat Duat, District 1, HCMC) led by Mrs. Nguyen Le Thanh Truc as the principal. The auction winning price in the form of one-time payment is 10,583,000 VND/m2.
The remaining land area has four fronts of Nguyen Xuan Lam – Doc Lan – Doc Tuyet – Le Quang Dinh streets with an area of 4,112.0 m2, which has been occupied by Gia Dinh Doctor Medical Joint Stock Company (73 Nguyen Huu Tho, Ward). Hoa Thuan Tay, Hai Chau District, Da Nang City) won the match.
The purpose of the use is to build a medical facility. The land is leased by the State in the form of the annual payments. The winning price of this land is 941,103 VND/m2/year.
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. Should I buy a house near the center for convenience or go to the suburbs to save money?
Although suburban housing is much cheaper than housing near the center, it is suitable for those with limited financial resources and cannot afford the monthly installment payment. But it brings a lot of inadequacies that only the insiders understand.
A house far from the center often does not guarantee safety in terms of security, nor is it convenient for work or business, even if the way to work is far away and has many inconveniences.
Especially if you want to do business, you will face more difficulties in traffic, it is not safe to go out at night and miss many rare business opportunities, not to mention infrastructure in remote areas. The center is not high, and the works such as electricity, roads, schools, and stations are not of good quality.
For families with young children, buying a house far from the center also affects the child’s development. The population is sparse with undeveloped infrastructure and no preschool. To find a school has to go a long way, which means waking up early is not good for children’s health.
In addition, houses far from the center will not have convenient facilities such as medical facilities, schools, commercial centers, amusement parks, etc.
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!
3. Will the real estate market “defrost” when credit conditions improve?
New moves from the Government and the State Bank are expected to help defrost the real estate market.
In many cases, homebuyers have to queue for credit documents to wait for the bank to be granted a new credit line, and real estate businesses have not received any money. Therefore, the loosening of credit room and the Government’s solutions to remove difficulties are expected to “melt” a part of the real estate market.
With the amount of about 200,000 billion VND pumped out in the last month of the year, the absorption capacity will be very high. However, the expert also analyzed three reasons why real estate will still face difficulties in liquidity.
He said that besides buying houses with urgent needs, the rest still have the psychology of waiting, hoping that the price will continue to drop. With the investment group, when the market’s liquidity is relatively low, buyers wonder whether buying now, reselling or transferring is difficult or not.
And finally, regarding the issue of cash flow, businesses or homebuyers, if they want to buy, must have capital sources, including their own capital and loans, however, current sources of capital are basically the same. In a tight situation, the opening of a credit room only partially solves that difficulty.
With invaluable local and regional market knowledge, an extensive professional network, and an up-to-date database of properties for sale, our team of experts will guide you through every step of the homebuying process. Whether you are interested in an apartment, condo, or single-family home, the CVR team will help you find a property that works for you. Contact our sales team today!
4. Real estate CEO: There will be no chance to wait for the market to “collapse” or “reach bottom” to buy cheap apartments
The apartment segment still has transactions
Contrary to the somewhat quiet movements of the market, the apartment segment continues to demonstrate its strength when the transaction volume is stable at the end of the year. According to a broker (currently working in a company specializing in distributing apartment projects in Hanoi), apartment transactions are still positive, while land plots and residential land have almost leveled off.
According to Mr. Vu Cuong Quyet, General Director of Dat Xanh Mien Bac, in response to the question “Should homebuyers wait for apartment prices to drop to get in”, he emphasized: “For people with money, this is the time. suitable to consider buying a house”. According to Mr. Quyet, many people are in the mentality of waiting for the market to “collapse” or hit the “bottom” to buy cheap houses. But with the apartment type, Mr. Quyet emphasized, the price will still stay at the current threshold because the supply of inner-city projects is increasingly scarce.
Mr. Quyet predicts that the types of real housing demand such as apartments will still record liquidity in the near future. Especially with the signal of loosening the credit room from the State Bank of Vietnam, when adjusting the credit target by about 1.5 – 2% recently for the whole system of credit institutions, home buyers will have the opportunity to access loans will increase project liquidity. Mr. Quyet added that by 2023, the disbursement of home loans from banks will be “easier” because the new credit room is “wide”. As of the beginning of 2022, home buyers can easily access loans. It was not until mid-2022 that the credit room ran out, making it difficult for homebuyers to get a loan.
Considering an investment in 2022? 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!
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5. The real estate market now belongs to the buyer
In the context of the unpredictable real estate market, experts say that the opportunity right now is for buyers more than sellers.
“The real estate market is now for buyers, not sellers. However, investors should not think about using loans, must pay attention to the project’s legality because now is not the time to buy to surf. For non-professionals, I don’t think I should jump into investing at this time because I don’t know if the price will drop further or not. As for those who want to buy real property, I think this is also an opportunity,” said the expert.
Meanwhile, Mr. Dinh Minh Tuan, director of Batdongsan.com.vn in the South region, said that the group of customers with real needs are still waiting, but there are also those who want to have a house right away. looking for buying opportunities. According to him, real demand is said to be the “bright spot” to remove difficulties, so investors have to restructure debts, and sales policies, and focus all activities on serving this demand of customers.
However, in order for the capital flow to really open, there will need to be a large enough buying force. In order to activate cash flow from real buyers, real estate prices need to decrease further. Mr. Tuan forecasted that in the short term, the prices of some segments in some areas may still slow down, and owners who are under pressure from high-interest rates for a long time will be forced to sell their properties. The market is attractive enough to activate the “bottom-fishing” cash flow, open liquidity, clear the congested capital flow, and rescue the market.
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