Week 50/2024 – Central Vietnam Real Estate News Summary

1. 
   

   1. Which Segment Will Lead The Real Estate Market End Of 2024?

2.  

1. The real estate market is showing clear signs of recovery, so at the end of the year many real estate segments are predicted to attract investors’ cash flow.

2.  

   According to experts, apartments, mainly luxury apartments, will continue to lead the market. New apartment supply is contributed by the suburbs of Hanoi and Ho Chi Minh City.

3.  

   Specifically, the Hanoi apartment market has witnessed price increases for 22 consecutive quarters, especially “hot” from the end of 2023 to the end of the third quarter of this year.

4.  

   “The price of apartments in Hanoi is currently fluctuating between 50 and 100 million VND/m2, apartments priced below 30 million VND/m2 are almost non-existent. This price increase trend will continue in the last months of the year.”

5.  

   Most experts believe that apartment prices will hardly decrease in the near future, so this is still a segment that attracts investors’ cash flow.

   Related to Da Nang, lately there have been many projects that opened sale such as Nobu Residence with price over 120 million VND per sqm 82% of stacking plan was sold up to now. The apartment price in Da Nang is expected to keep increasing stably in the coming time.

6.  

Source: cafebiz.vn

2. Da Nang City Approved 9 Urban Subdivisions.

Da Nang City has approved 9 urban subdivision plans and aims to accelerate urban planning and investment in 2024. These subdivisions include areas such as the Green Core, High-Tech Park, Da Nang Bay, and Innovation Zone.

The city is actively promoting investments in priority sectors like high-tech, IT, AI, and semiconductors. Over 3,370 new businesses have been registered, with a 1.2% rise in returning businesses. By 2025, Da Nang will focus on key infrastructure projects, including highways, waste treatment plants, and urban drainage systems. Efforts are also being made to resolve challenges, enhance public investments, and develop strategic projects for 2026–2030.

Source: nhandan.vn

3. New Apartment Prices In Da Nang Increased By 20%.

In Q2/2024, primary apartment prices in Da Nang increased by 15-20% compared to early 2024, reaching 75-88 million VND/m². This surge is driven by high-end projects, with some central developments, such as those on Bach Dang Street, priced at 120 million VND/m². However, absorption rates dropped to 35-40%, reflecting buyers’ cautious sentiment amid rising prices and regulatory changes.

Speculative buying has declined, while demand for residential and long-term rental investments has grown. Buyers remain optimistic about Da Nang’s tourism recovery, with the city targeting 8.4 million visitors this year, which is expected to yield stable rental returns of 4.2-4.5% annually.

Experts anticipate that rising input costs will stabilize or slightly increase primary apartment prices in Q3, even though market liquidity remains weak. The revival of projects and the increased supply of mid-range apartments (Class B and C) in areas like Lien Chieu and Ngu Hanh Son will support market recovery in the coming months.

Source: vnexpress.net

4. Prevent Overheating Or Freezing Of The Real Estate Market.

Resolution 161/2024/QH15 by the National Assembly requires the government to direct relevant ministries and localities to regulate and stabilize the real estate market. This aims to prevent the market from “overheating” or “freezing,” which could negatively impact economic development.

Key measures include implementing and refining laws such as the 2023 Real Estate Business Law, 2023 Housing Law, 2023 Procurement Law, and the 2024 Land Law. Efforts focus on addressing shortcomings in existing policies, improving the legal framework, and fostering a safe and sustainable real estate market.

Solutions to Market Challenges
The government is tasked with reviewing existing issues, addressing legal barriers, and ensuring balanced supply and demand. Measures include:

Detailed guidance for new laws.
Streamlining regulations on land pricing and land use to ensure fair resource access.
Resolving legal difficulties for stalled real estate projects.

Promoting Affordable Housing
Programs to support social housing, including a goal of building at least 1 million social housing units by 2030, are prioritized. Policies for low-income workers, industrial workers, and poor households will be strengthened.

Legal Framework and Financial Market Reforms
The resolution emphasizes completing regulations on the securities and bond markets to enhance investment, address housing challenges, and support national economic development.

Source: baochinhphu.vn

5. Hanoi’s Private Housing Market Booms At Year-End.

By the end of the year, activity bustles in Hanoi’s private housing market as prices slightly increase and liquidity remains strong, particularly for properties priced between 5-6 billion VND. Private house prices in Hanoi have climbed from 95 million VND/m² in early 2021 to 164 million VND/m² by mid-2024, reflecting an average annual growth rate of 15-20%, according to data from Batdongsan.com.vn. Interest has surged significantly in districts like Nam Tu Liem, Hoang Mai, Dong Da, and Thanh Xuan, demonstrating strong demand across various price ranges.

A survey by Batdongsan.com.vn highlights strong demand for Hanoi’s private houses, particularly in the 5-6 billion VND range. Prices have risen 15-25% over six months, with small properties in areas like Nam Tu Liem and Ha Dong seeing notable increases. Homes with car access or in key neighborhoods have experienced the most significant growth, reflecting high year-end demand.

Source: batdongsan.com.vn

1. 1. 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 that is right for You.