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| Latest real estate: As of December 31, 2022, the country has a total natural area of 33,134,482 hectares, including agricultural land area: 28,002,574 hectares; non-agricultural land area: 3,961,324 hectares; unused land area: 1,170,584 hectares. (Photo: HA) |
Announcing the results of national land area statistics in 2022
Deputy Minister of Natural Resources and Environment Le Minh Ngan has just signed and issued Decision No. 3048/QD-BTNMT approving and announcing the results of land area statistics of the whole country in 2022.
According to statistics, as of December 31, 2022, the country has a total natural area of 33,134,482 hectares, including agricultural land area: 28,002,574 hectares; non-agricultural land area: 3,961,324 hectares; unused land area: 1,170,584 hectares.
Land area statistics for 2022 are used uniformly throughout the country.
People's Committees of provinces and centrally run cities are responsible for directing the public disclosure and provision of local land area statistics results in 2022 to organizations and individuals for unified use according to regulations.
Land area statistics for 2022 must be regularly checked and reviewed to update and adjust changes in the land statistics results for 2023.
Land area statistics are performed and reported on land statistics and inventory software (TK-Online and TK-Desktop) of the Ministry of Natural Resources and Environment.
After the Prime Minister's telegram, real estate is expected to have easier access to capital
In addition to legal problems, the real estate market has also faced difficulties over the past year due to capital being "tightened". The government has continuously held many meetings and given instructions to remove obstacles for the market.
Recently, the Prime Minister issued Official Dispatch No. 993 directing each relevant ministry and branch with many solutions for the real estate market to develop safely, healthily and sustainably.
Notably, the Prime Minister requested the Governor of the State Bank of Vietnam to direct commercial banks to promote credit lending to the real estate sector; have appropriate solutions, and reduce costs to reduce interest rates.
Along with that, cutting down on inappropriate, troublesome and costly administrative procedures so that businesses, real estate projects and home buyers can access credit sources more conveniently. There are special credit promotion policies for feasible real estate projects with fast implementation progress, creating momentum for growth and promoting the market.
Real estate businesses feel very happy, expecting both home buyers and businesses to have easier access to capital and better interest rates.
Mr. Vu Cuong Quyet, General Director of Dat Xanh Mien Bac, assessed that this was the Government's effort to unblock capital sources and support the real estate market in the context of limited capital sources and high lending interest rates.
He said that since the beginning of the year, the Government has made great efforts to solve the capital problem, although there has been improvement but it is not really clear. Now the Prime Minister continues to issue a telegram with many solutions on capital that will be good for both businesses and home buyers. This is expected to improve the liquidity of the real estate market at the end of the year.
“Recently, home buyers have been able to borrow money from banks to buy houses, but the conditions for borrowing are still difficult, and interest rates are still high at 9-10%. As for businesses, the interest rate of 11-13% is quite high,” Mr. Quyet stated the reality.
He said that for businesses, the need for loans is always necessary, and when the market is difficult, businesses need to borrow even more. However, at this time, conditions are tight, interest rates are high, so they do not dare to borrow much capital to expand business activities; they only borrow to maintain operations.
The General Director of Dat Xanh Mien Bac said that although the Prime Minister has given instructions, how to speed up the progress depends on the banks.
“Hopefully, the Prime Minister’s directive will help banks speed up the lending process, making it easier for buyers and investors to access capital. To help the market open up and have transactions, banks should not be too cautious or strict in lending capital to home buyers. In particular, lending interest rates should be maintained at a moderate level, possibly around 8-8.5%/year, because the input mobilization interest rate is currently quite low.
For businesses with good safety indexes, banks should still consider lending, reduce asset valuation terms, and make mortgage conditions easier. Or for projects that are eligible for sale, banks should also lend. Banks being too cautious leads to excess capital," said Mr. Quyet.
Mr. Nguyen Anh Que, Chairman of G6 Group, said that the policy of reducing lending interest rates of the Government and the State Bank has been in place since February 2023. However, the actual reduction, although not as expected, has been reduced from 15% at the end of 2022 to 11-11.5%/year at the beginning of the fourth quarter of 2023.
“It is expected that after the Prime Minister’s directive, it will be the right time to adjust the lending interest rate down further, to around 10.5%/year. For fixed loan packages with a term of 12 or 24 months, it may fall to around 7.5-8%/year fixed for 12 months; or 8-9%/year fixed for 24 or 36 months,” said Mr. Que.
In addition, Mr. Que also expects that lending conditions will be "loosened". From there, banks will be able to disburse money, and individuals and businesses will be able to access capital.
“Not only real estate, the cash flow of the economy is in difficulty, real estate is an important industry related to many other industries. Therefore, it is necessary to “pump” a certain amount of money into the market, at the same time helping to circulate the cash flow. When real estate is “pumped” with money by banks; businesses are “infused” with bank capital, the cash flow will circulate better; the economy will develop better,” Mr. Que analyzed.
Also assessing that the solutions and directions given by the Government will have a very positive impact on the real estate market, however, economic expert Dinh The Hien said that real estate prices need to decrease further because prices have increased too much compared to before.
Contrasting developments in the office for rent and resort real estate segments
Data reported by the Ministry of Construction shows that in the third quarter of 2023, Class A office projects were the most selected, attracting many new customers, especially foreign companies.
Office relocations accounted for the majority of leasing transactions in the last quarter. Most tenants preferred the inner city, where there were new, high-quality projects with flexible rental prices to suit their needs.
Specifically, in Hanoi, office supply reached 2.16 million m2 (up 1%) quarter-on-quarter. In the third quarter of 2023, the Grade A office project Lotte Mall West Lake provided the market with a leasable floor area of over 22,000 m2 .
The rental price of class A office in Hoan Kiem district is about 1,000,000 VND/ m2 /month; Hai Ba Trung district is about 750,000 VND/ m2 /month; Cau Giay district is about 700,000 VND/ m2 /month; the average rental price of class B office is about 480,000 VND/ m2 /month.
According to the Ministry of Construction's report, in Ho Chi Minh City, office supply grew 3% quarter-on-quarter after 4 new projects entered the market with more than 93,000m2 of leasable area.
In Q3/2023, Thu Thiem New Urban Area dominated the new supply with 90% market share from two Grade A projects, The METT and The Hallmark. The central area of District 1 also provided 10% of the new supply in the quarter thanks to the re-launch of Waterfront Saigon (Grade B) after renovation and the entry of Grade C project L'MAK The Signature.
Accordingly, the rental price of class A office in the central area of District 1 is about 1,320,000 VND/ m2 /month; the rental price of class B office in the central area of District 1 is about 720,000 VND/ m2 / month .
In contrast to the positive changes in the office rental segment, the resort real estate segment continued to be sluggish in the third quarter. Accordingly, the hotel and resort market was supplemented with new supply from a number of projects that have been opened and launched on the market such as: Bang Onsen & Resort in Quang Binh, 5-star resort Lady Hill Sapa Resort in Lao Cai, resort, health care and residential area Hoi Van hot spring in Binh Dinh.
For resort real estate for sale, new supply continues to decrease compared to the previous quarter. According to some market research organizations, in July and August, the number of newly opened resort real estate transactions was very limited.
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| For resort real estate for sale, new supply continued to decrease compared to the previous quarter. (Source: Dan Tri) |
Low demand and low deposits have made many investors more cautious in bringing products to the market, causing new supply for this type of real estate to continuously decrease in 2023.
According to the survey results on the impact of mechanisms and policies, the Vietnam Association of Real Estate Brokers (VARS) survey shows that real estate businesses are starting to show positive signs.
Many businesses have succeeded in restructuring debt, restructuring business operations and starting to implement new projects that have been cleared in terms of legality and capital. However, many businesses continue to face many difficulties and challenges such as difficulties in transactions, difficulties in land law and are still facing many difficulties and challenges due to the pressure of paying off due bonds....
According to the reports of 52/63 localities, the real estate inventory in the third quarter of 2023 is about 16,940 units. The inventory is mainly in the segment of individual housing real estate and land plots of projects.
Binh Duong land prices increase widely
In Binh Duong, in contrast to the hustle and bustle of the apartment segment, from the beginning of 2021 until now, very few land projects have been launched by investors. Meanwhile, the demand for land here has always been very high because the price level is still quite reasonable and the growth potential is good thanks to the strong development of industry and infrastructure. It is the scarcity and the general situation of the market that has caused the price adjustment of the land segment in Binh Duong.
In the two cities of Thuan An and Di An, land projects in the central area or near industrial parks are currently priced from 40 million VND/ m2 . This price is considered attractive because compared to adjacent areas in Thu Duc city, it is only half. Besides, Thuan An and Di An have a higher population density, and their economic development is not inferior to Thu Duc.
Further away, the land market in Ben Cat and Tan Uyen has also reached the price of 17 million VND/ m2 . It is noted that in the past year, there have been no new land projects offered for sale in these two places, but prices have increased steadily. These are also areas that are considered to have a lot of potential because they are adjacent to the new city of Binh Duong and many large industrial parks are operating stably, attracting a large number of workers.
Meanwhile, Phu Giao and Bau Bang are considered newly developed markets, but in administrative center areas or near industrial parks, land plots priced under 1 billion VND/plot are considered "rare goods" to find.
In fact, in recent times, the Binh Duong land market has grown well but entirely based on the real potential factors that have been revealed. Specifically, Binh Duong is the largest industrial center, for many consecutive years ranked in the top 3 in attracting FDI and the economy has achieved impressive growth.
In particular, Binh Duong is promoting the construction of smart cities and creative urban areas as a fulcrum for sustainable development. A series of transport and social infrastructures are being invested in, so the increase in land prices is completely reasonable.
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