Week 51/2020 – 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 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 for Central Vietnam’s property market.
You will find a summary, 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”
In an article titled “5 steps to appraise the value of a high-end apartment”, Mr. Tran Khanh Quang, General Director of Viet An Hoa Real Estate Company, said that when buying an apartment, you can perform 5 steps to appraise the value yourself.
Step 1: Determine the basic cost
Take the land price plus the construction price to find the total project cost. Then divide the total cost by the area of the commercial floor to calculate the price.
Step 2: Find brand equity
Multiply the cost by a factor of 1-1.2 depending on the reputation of the investor. Normally, if you are a reputable investor, specializing in developing high-end projects, you can multiply by the factor 1.2.
Step 3: Measure the “heat” of the area the project is located.
Step 4: Estimate the expected return of the asset
Customers can evaluate the quality of the project and the future growth potential to determine the expected return on the investment. For the high-end condominium market, the average expected return is 1.4 per total investment.
Step 5: Selling expenses
Selling expense in 2020 are multiplied by 1.1. Multiply the cost by this coefficient to figure out the cash flow to be paid for marketing.
Once the above 5 steps have been identified, the apartment price will be calculated by multiplying all results. This is a common process to find out what apartment prices are being offered on the market, excluding financial costs (loans). If the projects have loans from banks or other financial institutions, the apartment price will be multiplied by the financial solution factor of 1.05-1.1.
The CVR team is here to help you find the right investment property, new or used. Contact us today for more information on available resales and new construction projects.
In the next article we find notable the author presents a “Forecast on the recovery of the Real Estate market in 2021”
The size and number of transactions in 2020 decreased sharply compared to 2019.
A market report published by Batdongsan.com.vn at the Vietnam Real Estate Conference 2020 (VRES 2020) shows that, compared to 2019, the level of housing interest for buyers across the country decreased. The total number of real estate searches decreased by nearly 9%, although the number of listings remained at a stable level, or even increased at times.
Demand for real estate search decreases in most real estate segments in 2020. Source: Batdongsan.com.vn
In 2020 the market also witnessed a sharp decline in investment because of Covid-19.
How will the market recover in 2021?
Experts participating in VRES 2020 acknowledged that the market will partially recover next year and grow again in 2022. East City area of HCM City will be the area that thrives in 2021. This will remain the main growth area of the market for the next 5-10 years, attracting both investors and buyers. The cumulative supply of this area by 2025 is forecasted to reach 198,000 units, 3.6 times higher than that of 2005. House prices here will also continue to increase in 2021.
The Forecast is optimistic. The market will develop in the long run, with some temporary downtime as a result of the pandemic.
Despite contradictions in the market, there are great opportunities available and CVR is here to help find the one that’s right for you. Investors are optimistic and believe in the revival of real estate market in Viet Nam and so do we! Contact our team of experts today!
The next article we find attention worthy is titled “The real estate market adapts and finds its own way”
Vietnam’s real estate market in the first half of 2020 was at the lowest level it has been for many years, reflected in the decreasing trend of supply and transactions, especially in commercial segments such as tourism, resort, office, retail and luxury housing properties.
In addition to the impact of the pandemic, this cooling is seen as a necessary pause for the market to correct and restart. It’s also an opportunity for real estate businesses to change the way they do business, adapt to volatility, accelerate technology application strategies in long-term development, and shape new business strategies.
Business adaptation and restructuring after Covid-19:
The 2021 market will aim to develop large-scale cities in potential markets for infrastructure and commerce. In new market areas such as Quy Nhon and Quang Nam, investors will find many opportunities in coastal urban areas with land plots and townhouses.
Particularly for satellite markets such as Binh Duong, Dong Nai, and Long An, the development of industrial real estate will be the driving force to push the demand for settlement as well as create a large number of customers who are domestic and international experts. With this, the demand for luxury housing will increase and the above markets still lack this type of housing. Therefore, in the future, this will be a fertile land for investment.
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. Contact us today!
The title of the next article is quite self-explanatory: “The safest and simplest guide to changing the name of the red book 2020”
Step 1: Prepare the profile
Prepare 1 set of land change registration documents, including the following main documents:
– An application form for land, land-attached asset change registration
– Proof of transaction of transfer / donation / inheritance of land use rights, ownership of assets on land
– The original red book issued
– If the transferor is a household or individual, it is necessary to submit a personal income tax return and registration fee according to the form, except for cases eligible for tax exemption under the provisions of law (with evidence)
Step 2: Submit the application
Bring the dossiers to a competent agency. If the application is complete and valid, the agency will receive and process the land change registration. At the same time, the land registration office / branch of the land registration office will send cadastral information to the tax authority to determine and notify the collection of financial obligations to the land user.
Step 3: Return results
The time limit for processing the red book name change is not more than 10 working days from the date of receiving valid dossiers. This time limit is extended by 10 days for mountainous communes, islands, remote areas, and areas with difficult or extremely difficult socio-economic conditions.
Questions about red books or other common terms associated with a real estate transaction in Vietnam? Our knowledge of both the property market and legal procedures ensure our clients are provided the best advice throughout the process. Contact the CVR team today!
The last piece of news worth mentioning for the week is titled: “Quang Nam warned 70 real estate development projects they are not allowed to sell.”
On December 17, the Department of Construction of Quang Nam province posted information warning buyers about 70 real estate projects in the new urban area of Dien Nam – Dien Ngoc (Dien Ban Town) which are not eligible for sale.
Among these 70 projects, there are 13 projects by two companies, Bach Dat and Bach Dat An. Sentosa Riverside urban area is one of 13 projects of Bach Dat company that are not allowed to list their units for sale.
Buyers should be aware when buying land lots without ownership certificates, and avoid projects by the two developers mentioned above.
Interested in investments on Vietnam’s beautiful coast? Coupled with expert market knowledge, we offer a robust range of services designed to provide you with the insight to access and participate in investments in a variety of ways. CVR will help you find opportunities with the most potential and guide you through every step of the buying process. Contact our team for more information on current and upcoming projects today!
As always, CVR is at your service and happy to provide help anyways we can!