Land in the 'cold spot' stage, Da Nang apartment prices skyrocket, is there a phenomenon of 'colluding' to push up prices?

It's time to buy land to seize opportunities, Da Nang apartment prices are sky-high, townhouses over 30 billion VND dominate the market... are the latest real estate news.

Latest real estate: Experts say that from the second quarter of 2024, the land market will have clear changes. (Source: CafeF)

It's time to buy land to accumulate

According to many real estate experts, investors are taking advantage of the time when the market is "at rock bottom" to buy land, making it easier to negotiate. At the same time, investors can seize the opportunity before the Land Law and the Real Estate Business Law are implemented, which will likely change the price level of all types of real estate.

According to Mr. Vo Hong Thang, Director of Consulting Services and Project Development of DKRA Group, in general, the land market still faces many difficulties and the recovery is uneven across segments. Although it has overcome the most dire period and may record more positive signals in terms of total supply and total demand, both input and output, this period is still the "cold spot" of the land type.

Mr. Thang cited that in the first 4 months of the year, land transactions in the South were still quite gloomy, in most localities from Ho Chi Minh City to Long An, Dong Nai, Binh Duong or further such as Tay Ninh, Binh Phuoc, land liquidity only fluctuated around 20-25% of the amount opened for sale. Many areas that were hot in previous years now have no transactions recorded.

"The new regulations on tightening the subdivision and sale of land plots in the revised Law on Real Estate Business will make the land market need more time to recover. Therefore, at the earliest, land plots can "reverse" by the end of the year, and now is still a good time to hunt for goods at reasonable prices," Mr. Thang said.

Sharing the same view, Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn in the Southern region, predicted that the revised Law on Real Estate Business, which officially takes effect, will tighten the subdivision and sale of land, which may cause the level of interest in land to continue to decline. The land price level will also be adjusted down, especially for large plots of land. However, in the long term, land prices may continue to increase and transactions will return. The reason is that real estate prices also depend on other factors such as infrastructure development, economic growth, and people's income.

"With the mindset of "every inch of land is gold", the demand for real estate ownership and asset accumulation among Vietnamese people is very high. Therefore, land will still receive the most attention from consumers in the coming years. People with stable financial flows can consider buying land to accumulate now and earn good profits in the coming years," Mr. Tuan further analyzed.

Answering the question of whether to invest in land, experts say that from the second quarter of this year, the land market will have a clear change. Investors using financial leverage should not participate at this time. As for large investors with strong cash flow, now is the right time to look for opportunities.

Townhouses over 30 billion VND dominate the market in Ho Chi Minh City

According to Savills Vietnam, in the first quarter of 2024, the supply of new townhouses and villas in Ho Chi Minh City is very limited, only 42 units. The new supply only comes from one project in Thu Duc City with a selling price of about 10 billion VND/unit.

Regarding the reason for the limited supply in the past 3 years, experts from Savills Vietnam said that it is mainly due to legal barriers, leading to the stagnation of new projects.

In the first 3 months of 2024, the primary supply of townhouses and villas in Ho Chi Minh City reached 762 units, stable quarterly but up 13% year-on-year. Products with a selling price of over 30 billion VND accounted for 76% of the market share, and 85% of the primary supply was concentrated in Thu Duc City.

Savills Vietnam forecasts that in the remaining three quarters of this year, the supply of townhouses and villas in Ho Chi Minh City will reach about 1,149 units, mainly from the next phases of existing projects. The majority of future supply will be in the townhouse segment with a selling price of over VND20 billion/unit.

Meanwhile, assessing the market for townhouses and villas in Ho Chi Minh City and surrounding areas in the first phase of this year, DKRA Group said that market demand remained low, with transactions occurring mainly in the product group with a selling price of less than VND10 billion/unit. Ho Chi Minh City and Binh Duong led the market, accounting for more than 80% of primary product consumption in the quarter.

According to experts from DKRA Group, the primary price level of townhouses and villas in Ho Chi Minh City and neighboring areas remains high, with the average price ranging from 4.1 to 27.8 billion VND/unit.

Surveys show that the supply of townhouses and villas in Ho Chi Minh City is very limited, so the price of houses is pushed up. Most investors who have products at this time want to reposition their products and sell them at higher prices than in previous years. The market has also seen a situation where project owners “collude” to push up prices.

For example, the appearance of a super luxury villa project in Thu Duc City, with a selling price of more than 700 billion VND/unit. The unprecedented price of this project has caused the price level of neighboring projects to increase significantly. For example, a project that previously had a selling price of 15-17 billion VND/unit has now increased to 20-25 billion VND/unit.

The products for sale are mostly in the high-end segment, located along the Han River.

Danang apartments are expensive

In late May, the apartment market in Da Nang recorded prices as expensive as those in Hanoi, reaching 150 million VND/m2. Most of the new projects are located in beautiful, central locations, along the Han River.

A project located along the Han River with a price of over 100 million VND/m2 is The Filmore, with 206 luxury apartments, ranging in area from 48 to 125m2. The project is handing over houses to customers. A 2-bedroom apartment, with an area of ​​over 74m2, with a river view here is for sale for nearly 11 billion VND, or 145 million VND/m2. A 3-bedroom corner apartment, with an area of ​​152m2, costs 23 billion VND, equivalent to over 150 million VND/m2.

Next to it is The Royal project, which also has sky-high prices. A 2-bedroom apartment, 77m2 in area, costs 10 billion VND, equivalent to 129 million/m2.

In addition, another project on Tran Hung Dao Street has a scale of up to 8 hectares, including 3 towers, with more than 1,300 apartments, area from 25.8-112m2 each. Expected selling price from 65-100 million VND.

Or the Sun Ponte Residence project, also located on Tran Hung Dao Street, about 300m from Dragon Bridge. Depending on the floor location and view, the selling price of apartments here ranges from 65-100 million VND/m2. According to brokers, after only a few weeks of opening for sale, the project was almost sold out.

At the Panoma 1 and Panoma 2 apartment projects located at the foot of Tran Thi Ly bridge, the prices of high-floor apartments with nice views are also around 80-100 million VND/m2.

According to the Department of Construction of Da Nang City, in the first quarter of 2024, the number of real estate transactions in the city recorded 2,117 apartments and individual houses, an increase of 145% over the same period in 2023 and an increase of 103.2% over the fourth quarter of 2023.

Ms. Vu Quy Hoi, Head of Sales Department of Minh Minh Group, said that the apartment market in Da Nang absorbed quite well. Some projects that have just been launched have liquidated 90% of their products. The number of local buyers accounts for 40%.

According to Ms. Hoi, compared to the two ends of the country, Hanoi and Ho Chi Minh City, the price increase for apartment products in Da Nang is not much (7-10%). Besides, with low bank interest rates, many customers with idle money have chosen to buy apartments to live in or invest, and then rent out because most apartment projects are located in convenient locations, near rivers, near the sea, and in the tourist center of Da Nang.

Regarding the fact that luxury apartments with prices of hundreds of millions of dong still receive attention, Mr. Vo Hong Thang - Director of Consulting Services and Project Development DKRA Group commented that this is because the supply of apartments in Da Nang has been continuously scarce, with only 500 to less than 1,000 units being introduced to the market each year. The clean land fund for developing projects in the central area and near the city center is gradually depleted, and the cost of land is high.

In addition, most of the projects for sale are developed by large, reputable investors, have completed legal procedures, and have fast construction progress, creating trust in buyers. Many preferential sales policies and stimulus support are applied.

Revoking the license to build the basement of the Cu Hill Golf Course building in Da Lat

On May 29, the Department of Construction of Lam Dong province has just decided to revoke the construction permit for the basement inside the Cu Doi Da Lat golf building project invested by Hoang Gia DL Joint Stock Company.

This decision was made by the Department of Construction after determining that the investor had failed to correct the construction violations in accordance with the permit within the time limit stated in the violation handling document of the competent authority.

At the same time, the above enterprise is required to return the granted construction permit. The implementation time is 5 days, calculated from the date the decision to revoke the construction permit is signed.

In case the investor of the Cu Doi Da Lat golf course building does not return the construction permit as prescribed, the competent authority will issue a decision to cancel the construction permit.

Accordingly, in 2023, the Department of Construction of Lam Dong province granted a license to the investor of the above project to carry out a part of the basement of the golf service block at the Cu Doi Da Lat golf course building, with an area of ​​about 2,639m2.

Previously, during the inspection, the authorities discovered many illegal and unlicensed construction violations at the complex of works at Doi Cu Da Lat golf course. These violations were recorded by the authorities and decisions were issued to impose fines. Currently, the investor has stopped construction of the project.

Regarding this project, recently, Lam Dong Department of Natural Resources and Environment determined that about 5,629m2 of protective forest land that the enterprise illegally built in this project is not sufficient to change the land use purpose, and will not be converted to commercial and service residential land.

Therefore, the Department has proposed and is waiting for the opinion of the Provincial People's Committee, from which it will submit a report to the Provincial People's Council, proposing to adjust and cancel the use of 5,629m2 of protective forest land to commercial and service land to carry out the construction of a golf club building.

Source: https://baoquocte.vn/bat-dong-san-moi-nhat-dat-nen-o-giai-doan-diem-lanh-gia-chung-cu-da-nang-cao-ngat-nguong-co-hien-tuong-bat-tay-nhau-day-gia-273347.html