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Week 8/2024 – Central Vietnam Real Estate News Summary

Week 8/2024 – 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. 1. Seizing the Real Estate Opportunity: Vietnam’s Historic Interest Rates Drive Investment Surge in 2024


The decrease in interest rates for deposits and loans has created investment opportunities, with real estate being considered a promising avenue for growth.

Banks have been reducing deposit interest rates, with some offering record-low rates as low as 1.7% per year. Alongside this, mortgage interest rates have also been lowered, with some banks offering rates below 6% per year.

Experts believe that the combination of low deposit and lending rates is driving people to invest in real estate. The market is expected to improve in 2024, with increased trading volume, supply, and prices.


The legal and administrative framework is being improved, instilling confidence in investors. It is advised that investors take advantage of the current favorable conditions in 2024, as waiting may cause them to miss out on opportunities.

This is important because experts believe that 2024 is the golden time to invest in real estate. The market is expected to improve and continue to grow. Improved legal framework and investor confidence are crucial factors.

Waiting may result in missed opportunities. Government policies and interest rate reductions have attracted investment in real estate. The market is projected to improve from 2024, develop from 2025, and peak in 2026.


2. Social Housing Initiatives and Foreign Investment Interest: Vietnam’s Real Estate Landscape in 2024


In Resolution No. 01/NQ-CP dated January 5, 2024, the Prime Minister instructed efforts to complete approximately 130,000 social housing units nationwide in 2024.


This morning (February 22), the Ministry of Construction chaired a conference to implement the Project “Investing in the construction of at least 1 million social housing units (SHUs) for low-income earners, and industrial zone workers in the period 2021-2030” in 2024. Attending and directing the conference were Deputy Prime Minister Tran Hong Ha and Minister of Construction Nguyen Thanh Nghi.


At the conference, Deputy Minister of Construction Nguyen Van Sinh reported that, according to the consolidated data from localities, 1,249 land plots with a total area of 8,390 hectares have been planned nationwide. Alongside the proactive localities in attracting investment and promoting the commencement of SHU construction, Deputy Minister Nguyen Van Sinh assessed that some key localities, despite having significant demand for SHUs, still have limited investment in comparison with the targets of the Project by 2025.

For instance, Hanoi has only 3 projects, providing 1,700 units meeting 9%; Ho Chi Minh City has 7 projects, offering 4,996 units meeting 19%; Da Nang has 5 projects, supplying 2,750 units meeting 43%; while some key localities haven’t commenced any SHU projects during the period from 2021 until now (such as Vinh Phuc, Ninh Binh, Nam Dinh, Long An, Quang Ngai, etc.).


This year, localities have registered to complete a total of 108 projects, with a scale of over 47,500 units.

Leading the nation in achieving SHU targets are Bac Ninh, Binh Duong, and Hai Phong. Bac Ninh has registered to complete the most SHU projects with 5 projects, totaling 6,000 units. Following is Binh Duong with 20 projects, totaling 4,500 units. Hai Phong ranks third with nearly 4,000 units from 8 projects.


Hanoi has registered 3 projects with nearly 1,200 units, while Ho Chi Minh City has 6 projects with a scale of nearly 3,800 units. The targets of these two localities in the period 2021-2025, according to the Prime Minister’s project of building one million SHUs, are over 18,700 units and over 26,000 units, respectively. Many other localities have also set targets to complete over 1,000 SHUs this year, such as Quang Ninh, Bac Giang, Phu Tho, Ha Nam, Da Nang, Binh Dinh, Dak Lak, Can Tho, An Giang, etc.


Meanwhile, some localities have not registered to complete any SHU projects or workers’ housing this year, such as Hai Duong, Ha Giang, Lang Son, Tuyen Quang, Nam Dinh, Ninh Binh, Quang Binh, Quang Nam, Ninh Thuan, etc.

Regarding the credit package of 120 trillion VND, 28 localities have announced the list of 68 eligible projects for loans, with a loan demand exceeding 30 trillion VND.

As of now, 6 social housing projects in 7 localities have been disbursed with a total capital of over 530 billion VND.


3. Unlocking Investment Potential: Insights into Vietnam’s Real Estate Market in 2024


CBRE conducted the last two months of 2023. The survey asked about investors’ intentions and plans in the Asia-Pacific region in 2024. The results showed that Vietnam ranked second among markets. emerging countries are given investment priority, just behind India. The third place belongs to Thailand.



According to CBRE, the two segments that attract foreign investors when entering Vietnam are industrial and office real estate. Growing trade activities in Vietnam have fueled the need for supply chain management and logistics. Investors have recognized the potential of these dynamics, so they are very interested in industrial real estate.

In addition, investors and foreign investors are also very interested in land for housing development projects.


Many investors have actively searched for properties with discounted prices or whose owners are facing legal and capital difficulties. This trend shows the resilience and attractiveness of the housing segment in Vietnam.

However, CBRE notes that Vietnam’s real estate market has its characteristics: supply is scarce and assets that generate good cash flow are rarely offered for public sale. The difference in price expectations between buyers and sellers is also a major obstacle in transactions.


4. The Fierce Race for Land: Real Estate Giants’ Expansive Pursuit


The real estate market is witnessing intense competition among major players, including Novaland Group, Ha Do Group, and Kim Oanh Group, among others, who are aggressively expanding their land portfolios. Despite economic challenges forcing some businesses to downsize, these giants are investing heavily in land acquisition to fuel their urban, resort, and industrial park projects.

In recent months, notable moves include Vinhomes and Vietnam Investment Group’s joint venture to develop a large-scale urban area in Long An province, Ha Do Group’s proposal for industrial clusters in Ninh Thuan province, and Kim Oanh Group’s acquisition of a significant construction investment project in Binh Duong province.


Novaland Group is also actively pursuing tourism and resort complexes in Binh Thuan and Lam Dong provinces, while Dat Xanh Group is eyeing land for future projects across the country. Phat Dat Development Joint Stock Company, after restructuring its debt, is targeting land expansion for model urban areas in various provinces and cities, with a focus on resort real estate.

Additionally, other prominent players like Ecopark, Hoang Huy, and TNG Holdings are participating in large-scale project developments across the country. The competition has even extended beyond traditional real estate players, with companies like TH Group and Minh Phu Seafood Group entering the market with ambitious projects.


Despite facing challenges, experts anticipate the emergence of a new class of real estate giants post-recovery, driven by their strategic land acquisitions and mergers. This aggressive pursuit of land reflects a broader trend within the real estate sector, signaling dynamic shifts and opportunities for growth amidst adversity.


5. Vietnam 2nd most attractive emerging property market in the Asia Pacific: survey


Vietnam ranks behind only India as the most sought-after emerging property market in the Asia Pacific, according to a recent survey by property consultancy CBRE. The survey, which polled investors in the region in the last two months of 2023 about their investment plans for 2024, has Thailand in third place. 


The most attractive property segments for investors are industrial and office, it said. Growing trade activities in Vietnam have fueled the need for supply chain management and logistics, and for this reason, investors are interested in industrial real estate.



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