The Ministry of Construction talks about the 120,000 billion VND credit package that has only disbursed 0.5%, Ho Chi Minh City's commercial townhouses (shophouses) are of interest, Khanh Hoa's real estate market is flourishing... are the latest real estate news.
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| Latest real estate: In the first quarter of 2024, the entire Hanoi market recorded about 3,000 new apartments for sale. (Photo: HA) |
Ministry of Construction talks about 120,000 billion VND credit package, only 0.5% has been disbursed
To date, the VND120,000 billion credit package has only disbursed about VND640 billion for 8 social housing projects. The interest rate and interest period have not really attracted borrowers.
The above information was stated by the Ministry of Construction in a report sent to the National Assembly on the results of thematic supervision and questioning in the construction sector.
Thus, up to now, only 0.53% of the 120,000 billion VND credit package has been disbursed.
Specifically, BIDV Bank has disbursed VND95.7 billion to 3 project investors in Phu Tho, Thanh Hoa and Binh Duong provinces; Vietinbank has disbursed VND128.6 billion to 1 project investor in An Giang province; Agribank has disbursed VND415.7 billion to 4 project investors in Bac Ninh, Quang Ninh and Kien Giang provinces.
In addition to the four state-owned commercial banks (BIDV, Vietinbank, Agribank, Vietcombank), Tien Phong Bank (TPbank) has been responsible for participating in the support program under Resolution No. 33 with an amount of about VND 5,000 billion. Thus, the credit package has been raised to VND 125,000 billion.
The Ministry of Construction assessed that the disbursement of the above credit package is still slow.
Explaining the above situation, the Ministry of Construction said that the credit package still faces difficulties and obstacles; including the limited announcement of the list of social housing eligible for loans.
To date, 129 social housing projects, with a scale of more than 114,900 units, have started construction. However, only 28 localities have announced a list of 68 projects eligible for loans under the program, with a loan demand of more than VND30,000 billion. Thus, there are still 59 projects that have started construction but have not been included in the list of eligible loans of the localities.
In addition, some investors do not meet credit conditions, such as not ensuring credit balance conditions; not having other assets to guarantee credit (social housing projects are exempted from land use fees so they are not eligible for mortgage); have borrowed from other credit institutions...
Besides, although the State Bank has lowered interest rates twice, to 8% for investors and 7.5% for home buyers, the Ministry of Construction commented that these interest rates are still high, and the preferential period is short, within 3-5 years, so "it has not really attracted borrowers".
Faced with this reality, at the end of April, the Ministry of Construction issued guidelines on determining the list of projects, subjects, conditions and criteria for preferential loans. Accordingly, some conditions have been removed such as conditions on compensation for site clearance and construction permits to remove difficulties, and project investors will soon be able to announce their loan lists to access banks.
Hanoi lacks tens of thousands of apartments
Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), informed that in 2023, the total supply of new apartments in Hanoi will reach approximately 11,000 products, equal to 66% compared to 2022 and the downward trend will continue in the first quarter of 2024, when the entire market will only record about 3,000 newly opened apartments. Thus, from now until 2025, Hanoi will lack about 50,000 apartments.
The inevitable consequence of this scarcity has led to a prolonged price "fever" in the Hanoi apartment market. A recent report by CBRE said that 56 million VND/m2 is the average price for a new apartment in Hanoi as of the first quarter of 2024, an increase of 19% over the same period last year. However, in reality, the increase is much higher, approximately 70 million VND/m2.
According to brokers, due to the lack of new project supply in the secondary market, branded projects have increased sharply in the first months of 2024.
In fact, if in the past, with 4 - 5 billion VND, buyers could own an apartment of 70 - 80 m2 in the inner city, now, with this amount of money, buying a satisfactory apartment outside the center is not simple, so customers just wait for a project to be launched and then close the deal immediately.
Mr. Nguyen Thac Cuong, Deputy General Director of Mai Viet Real Estate Joint Stock Company, said that most people who intend to buy a house at this time pay very quickly when they find a suitable product, instead of spending a lot of time considering and waiting for the price to decrease further like in the previous period.
Consulting customers, this brokerage firm believes that if they have a large enough accumulated financial amount and a stable source of income, buyers should consider taking out a home loan now, when the lending interest rate has dropped and investors are applying many preferential sales policies.
“In the future, when the real estate market truly recovers, inner-city housing prices will certainly increase and at that time, buyers can only move to areas near Hanoi to get lower prices,” said Mr. Cuong.
Mr. Nguyen Quoc Hiep, Chairman of the Board of Directors of Global Real Estate Joint Stock Company (GP-Invest) also said that at the present stage, everyone considers low interest rates and economic recovery as two key points, from which purchasing power will also increase. However, the core issue of the market is whether there is goods or not, so the current dominant issue lies in supply, while demand is still very high and increasing day by day.
According to Mr. Hiep, apartment prices are constantly climbing but demand is still very high, people are "red-eyed" waiting for projects to launch. However, the difficulty here is that there are too few new projects launching at this stage, making housing prices even hotter. That is also the reason why investors who are launching or are about to launch projects will have a big advantage.
Commercial townhouses in Ho Chi Minh City are of interest
According to the market report of Batdongsan.com.vn , in the first quarter of 2024, the demand for buying street-front townhouses in Ho Chi Minh City increased by more than 45% over the same period. In March alone, the number of searches for buying commercial townhouses increased by 89%, the number of searches for renting this type also increased by 86% and was one of the two segments leading in rental demand, after warehouses. Both the demand for buying and renting commercial townhouses is concentrated in suburban areas such as Binh Chanh, Tan Phu, District 7 and District 9.
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| Commercial real estate that can bring good investment returns must meet the following factors: location, population density and general planning of the area. (Source: Labor) |
The trend of buying commercial real estate is shifting from expensive downtown areas to suburban residential areas due to reasonable cost factors and long-term potential. The demand for buying commercial townhouses in suburban areas is mainly concentrated in projects that have been handed over, have high population density, and are located near the regional administrative center.
It cannot be denied that commercial real estate can generate good cash flow for investors, but there are also situations where due to choosing the wrong products and projects, this segment becomes a burden, bringing "debt" to the owner.
Regarding choosing how to invest in commercial real estate effectively, Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn in the Southern region, shared that commercial real estate that can bring good investment profits needs to meet the following factors: location, population density and general planning of the area.
With commercial townhouses, location and population density will directly impact the ability to exploit business and reach customers. With projects with a large population, the rental and resale rate of commercial townhouses is always above 90%, the average price level increases by 10-15%/year. Especially in central areas with systematic planning and convenient connections, this rate can reach 30% per year.
Therefore, you should only choose to buy in projects with high internal population density, from 8,000-10,000 people or more, located in the center of the area, where there is convenient traffic connection, the existing population in the area is crowded, easy to trade and rent.
In addition, projects located in areas that are being planned to develop into centers, with large infrastructure projects, will also help increase commercial value and property value in the long term. The amount of commercial real estate here should only account for 2-3% of the total product of a project, thus ensuring competitiveness and more effective business.
On the other hand, before "choosing a place to invest", shophouse investors should carefully consider the brand and reputation of the investor. This is an important factor because if the business has enough passion to develop and manage the project well, the investment will ensure the expected profitability.
In addition, experts also recommend that when "marking" a commercial townhouse project, buyers should spend more time to learn more about the living environment, level of education, population density, and quality of the project after it has been handed over before paying.
When borrowing money from a bank, you need to carefully calculate your ability to repay the debt. You should not calculate the amount of money you pay the bank too close to your monthly income. You should make provisions in case your income suddenly drops during difficult economic times.
Khanh Hoa real estate market is flourishing
Recently, Construction Electronic Newspaper, Vietnam Real Estate Association, and Khanh Hoa Provincial People's Committee organized a forum: "Unblocking the flow of tourism and resort real estate".
Speaking at the forum, Deputy Minister of Construction Nguyen Van Sinh said that in recent times, the resort real estate market has developed significantly across the country, concentrated in localities such as Khanh Hoa, Da Nang, Binh Dinh, Quang Ninh, Kien Giang, etc.
With the participation of localities and businesses, in recent times, the real estate market has created very diverse and rich products, creating attraction for tourists and creating an environment and conditions for people to enjoy the values of resort real estate in recent times.
Accumulated from the beginning of the year to March 2024, the real estate industry ranked second with more than 1.58 billion USD, accounting for 25.6% of total registered FDI capital.
As a locality participating in organizing the forum, Mr. Nguyen Tan Tuan, Chairman of Khanh Hoa Provincial People's Committee, said: Khanh Hoa province's real estate market has overcome the most difficult period, although it has not reached expectations, there have been positive signs of certain growth (in 2023, 19,951 transactions occurred, with a total transaction value of 12,396 billion VND; 11 housing projects were approved for investment (2 projects were granted Construction Permits); in the first quarter of 2024, 5,941 transactions occurred, with a total transaction value of 7,630 billion VND.
Khanh Hoa is expected to maintain its economic recovery and growth momentum in the coming time. Strategic transport infrastructure is increasingly improved with the Nha Trang - Cam Lam and Cam Lam - Vinh Hao expressways completed and other expressways such as Van Phong - Nha Trang and Khanh Hoa - Buon Ma Thuot being accelerated, contributing to creating momentum for economic growth.
In addition, the Central Resolutions have created many breakthroughs in attracting investment resources, strongly promoting the potential and advantages of the province, creating a driving force to promote comprehensive and sustainable socio-economic development, creating an opportunity for the recovery and development of the tourism industry, as well as a driving force for investors to speed up progress and increase the supply of resort real estate to the local market.
Source: https://baoquocte.vn/bat-dong-san-moi-nhat-ly-do-giai-ngan-goi-tin-dung-120-nghin-ty-dong-cham-do-mat-cho-du-an-o-ha-noi-lam-gi-khi-da-cham-shophouse-272027.html
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