Surprise about the locality with the highest apartment rental performance in the country, Ho Chi Minh City market recorded positive signals, the place with the highest land price in Vinh Phuc... are the latest real estate news.
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| The average rental yield of apartments in Binh Duong is currently 4.7%, much higher than the 3.7% in Hanoi and 3.6% in Ho Chi Minh City. (Source: Crystal Bay) |
Ho Chi Minh City market gradually recovers
The real estate market of Ho Chi Minh City (HCMC) has gradually recovered, from a negative level in 2023 to positive growth again from the beginning of 2024. The growth rate is still slow but there are positive signs.
According to the report of the Department of Construction of Ho Chi Minh City, in the first 11 months of 2024, the City has built 7.8 million square meters of new housing floor space (reaching 97.5% of the target set for 2024 of 8 million square meters of floor space). Of which, individual housing is 3.830 million square meters of floor space, commercial housing is about 3.826 million square meters of floor space, and social housing is 0.144 million square meters of floor space. The City has completed 2 social housing projects, with a scale of 610 units and 50,831 square meters of floor space.
Currently, the real estate market in Ho Chi Minh City has gradually recovered, from a negative level in 2023 to positive growth from the beginning of 2024. The growth rate is still slow but there are positive signs. Some new projects have been approved for investment and some old projects have been restarted thanks to the removal of difficulties.
Accordingly, in the first 11 months of 2024, the City had 12 commercial housing projects approved for investment (including 1 social housing project); 2 projects were granted construction permits; more than 31,000 commercial apartments are under construction; 1,611 future apartments are eligible for capital mobilization and 3 social housing projects have been completed with 2,122 apartments.
Regarding the work of removing difficulties for real estate projects, the Department of Construction has advised the City People's Committee to continue to preside over and assign the City's Departments and branches to continue reviewing investment projects that are slow to implement due to problems arising in the process of complying with legal regulations to have a direction to handle them in accordance with legal regulations, avoiding waste of land resources, causing loss of urban beauty and construction safety...
Some apartment projects in Binh Duong have rental yields exceeding 7%/year.
According to the Binh Duong Apartment Market Overview 2024 data of Batdongsan.com.vn, the average apartment rental yield in Binh Duong is currently 4.7%, surpassing the 3.7% of Hanoi and 3.6% of Ho Chi Minh City. 3.6% is also the average apartment rental yield nationwide in 2024.
Notably, some projects in Binh Duong recorded apartment rental yields of 6% - 7.5%/year. This can be considered a record in Vietnam, nearly double the rental yield of apartments in Hanoi and Ho Chi Minh City.
Such good rental yields in Binh Duong are largely due to the fact that high-end apartments here have reasonable purchase prices while the rental prices are high and the occupancy rate is stable. This type of product with handover standards attracts customers from the high-end segment, willing to pay higher rental prices. On average, each high-end apartment in Binh Duong (purchase price of about 45-50 million VND/m2) can be rented at 12 million VND per month for a 1-bedroom apartment, 15-16 million VND (2-bedroom apartment) and 18-20 million VND for a 3-bedroom apartment. However, if in Ho Chi Minh City or Hanoi, an apartment with a price of 45-50 million VND/m2 can only be rented at about 7-12 million VND per apartment depending on the number of bedrooms.
Mr. Dinh Minh Tuan, Southern Regional Director of Batdongsan.com.vn said: “The occupancy rate for luxury apartments in Binh Duong is about 80-90%, even some projects are almost always “full”, this comes from high rental demand thanks to the strong development of industrial parks, attracting workers and experts to work.
Binh Duong is currently in the top of the country in attracting FDI and second in immigration rate. The province also implements many policies to support businesses in attracting and retaining workers. With the highest per capita income in the country, Binh Duong has become an attractive destination for immigrants.
Among the 5 largest rental real estate markets in the country besides Hanoi and Ho Chi Minh City, Binh Duong is the leading locality in both the number of interests and the growth rate of interest, surpassing other provinces and cities such as Da Nang, Hai Phong, Khanh Hoa. By the third quarter of 2024, the number of searches for apartments for rent in Binh Duong increased by 58% compared to the first quarter of 2021.
Regarding customer structure, the interest in Binh Duong apartments mainly comes from the demand for investment and some real residence of Ho Chi Minh City residents, along with the real residence demand of local residents. Of which, customers from Ho Chi Minh City account for 49%, customers from Binh Duong and neighboring provinces account for 33%, according to the data of Binh Duong Apartment Market Overview 2024 of Batdongsan.com.vn.
The high-end apartment segment in Binh Duong is considered a lever for the province's rental yield. However, the price of high-end apartments here is in the lowlands, 30-200% lower than in Hanoi, Ho Chi Minh City and other major cities, helping investors easily access the market while still ensuring high profit potential.
In Binh Duong, apartments priced from 45-50 million VND/m2 have high-end handover standards and maintain an occupancy rate of 80-90%, with monthly rental prices of about 15 million VND/2-bedroom apartment. However, in Hanoi or Ho Chi Minh City, apartments priced from 80-90 million VND/m2 can be rented at the same price.
Vinh Phuc announces new land price list
The People's Committee of Vinh Phuc province issued a new land price list according to the provisions of the 2024 Land Law. Notably, 54 locations have price fluctuations increasing from 5-8 times.
Accordingly, the revised and supplemented land price list has fully ensured locations, routes, and residential areas in Vinh Phuc province according to the new regulations of the 2024 Land Law.
Specifically, the newly issued 318-page land price list has added 715 locations and routes and removed 132 routes.
Of which, the number of positions with a fluctuation rate increasing from 3-5 times is 159 positions, accounting for 2.99%. The number of positions with a fluctuation rate increasing from 5-8 times is 54 positions, accounting for 1.02%.
The highest land price is in Vinh Yen city, the section from Ngo Quyen street to the intersection with Nguyen Viet Xuan street at location 1 has land price up to 52 million VND/m2.
In particular, in Tam Dao tourist area, land prices in many locations have also increased. In particular, the section from the Venus hotel intersection running around the central park belt to the school intersection, location 1 has residential land prices up to 49 million VND/m2, commercial and service land prices are 18.2 million VND/m2.
The current land price list is issued based on the results of investigations and surveys of localities and comparison of similar factors of locations to evaluate and propose land prices.
The new land price list of Vinh Phuc province takes effect from January 20, applicable until the end of 2025.
New regulations on selling social housing after 5 years of use, people benefit hundreds of millions
When transferring a social housing unit, people must pay 50% of the land use fee, which is around 120-200 million VND. With the new regulations in the Housing Law 2023, people do not have to pay this fee.
The General Department of Taxation (Ministry of Finance) has just issued a document responding to the Hanoi Tax Department regarding the collection of land use fees when transferring social housing apartments.
According to the General Department of Taxation, at Point e, Clause 1, Article 89, Housing Law 2023 stipulates: “...After 5 years from the date of full payment for the house purchase, the buyer of social housing is allowed to resell this house according to the market mechanism to those in need if a certificate has been granted; the seller does not have to pay land use fees and must pay income tax according to the provisions of the law on tax, except in the case of selling social housing as individual houses, the seller must pay land use fees according to the provisions of the Government and must pay income tax according to the provisions of the law on tax”.
Article 42 of Decree No. 100/2024 stipulates that land use fees must be paid when reselling social housing after a period of 5 years.
Accordingly, in addition to the amounts payable as prescribed, the seller must pay 50% of the land use fee. The time for calculating the land use fee is the time of submitting valid documents to recognize land use rights according to the provisions of the law on land.
In addition, at Point d, Clause 5, Article 198 of the 2023 Housing Law stipulates that in cases where social housing is sold and land use fees must be paid before the effective date of this law, but by the effective date of the 2023 Housing Law, land use fees have not yet been paid, the payment shall continue according to regulations.
Based on the above regulations, the General Department of Taxation said that in the case where the buyer of social housing is allowed to resell the house according to the provisions of the law on housing and transfers it after August 1, 2024 (the effective date of the Housing Law), he/she does not have to pay land use fees and must pay income tax.
In the case of selling social housing as individual housing, the seller must pay 50% of the land use fee and must pay income tax.
In the case of selling social housing, land use fees must be paid according to the provisions of the law on housing before the effective date of the Housing Law but land use fees have not yet been paid, the money must continue to be paid according to the provisions of the law on housing before the effective date of this Law.
In Hanoi, according to the market, many social housing apartment projects have been used for over 5 years and are eligible for transfer, such as Dai Kim Building, Rice City Linh Dam, 43 Tran Phu; 987 Tam Trinh...
Surveys at many social housing projects show that although the apartments have been used for many years, their prices have increased many times, equal to apartments in commercial housing projects. The selling price in some places is up to 50 million VND/m2.
Previously, when transferring a social housing unit, people had to pay 50% of the land use fee, which was around 120-200 million VND. With the new regulation, people do not have to pay this fee.
Source: https://baoquocte.vn/bat-dong-san-khong-phai-ha-noi-day-moi-la-noi-co-hieu-suat-cho-thue-chung-cu-cao-nhat-nuoc-thi-truong-tphcm-tang-truong-duong-tro-lai-301695.html
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