The market continues to recover slowly and steadily with gradually improving results; the number of apartments sold in Hanoi increased by more than 200%, the adjusted land price list in Ho Chi Minh City is only about 70% of the market price... are the latest real estate news.
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| By the end of 2024, the recovery process of Vietnam's real estate market will have clear progress. (Photo: Linh An) |
The market is recovering steadily
According to batdongsan.com.vn , Ms. Pham Thi Mien, Deputy Director of the Vietnam Real Estate Market Research and Evaluation Institute (Vietnam Real Estate Brokers Association), the Vietnamese real estate market is recovering sustainably.
According to Ms. Mien, supported by many positive factors, while waiting for the new Laws to "absorb", the Vietnamese real estate market will continue to recover sustainably with gradually better results. By the end of the year, the recovery process of the Vietnamese real estate market will have clear progress.
The Deputy Director of the Vietnam Real Estate Market Research and Evaluation Institute (Vietnam Real Estate Brokers Association) emphasized that on the basis of economic growth exceeding the set scenario, credit has escaped the "gloomy" situation, the loan interest rate level remains low, public investment disbursement continues to be promoted; the 2024 Land Law, the 2023 Housing Law, the 2023 Real Estate Business Law and Clause 2, Article 209 of the Law on Credit Institutions will take effect from August 1, 5 months earlier than the previous decision, which will have a positive impact, contributing to promoting the recovery and development of the real estate market.
When the Laws come into effect, the "waiting" mentality will be removed. Project development enterprises will start the race to untie the knot with the State management agency. Investors are more confident in launching their products. Investors are more confident, promoting the cash flow due at banks to flow into real estate. Brokers and brokerage service enterprises will actively improve their capacity, recruit, train knowledge, meet new regulations, etc.
According to Ms. Mien, during the time waiting for the new laws to "absorb", the real estate market will continue to recover slowly and sustainably with gradually improving results. By the end of the year, the recovery process of the Vietnamese real estate market will have clear progress. The recovery results will continue to be differentiated by segment and region but with a more even level of differentiation.
Ho Chi Minh City's adjusted land price list is only about 70% of market price.
On the afternoon of July 29, at the Ho Chi Minh City Press Center (HCMC), a press conference was held to provide information on adjusting the Land Price List according to Clause 1, Article 257 of the 2024 Land Law.
According to the representative of the Department of Natural Resources and Environment of Ho Chi Minh City, the draft adjusted Land Price List has increased by about 7 times compared to the land price list in Decision No. 02/2020/QD-UBND dated January 16, 2020 of the City People's Committee. However, the Land Price List according to Decision 02/2020/QD-UBND dated January 16, 2020 must be multiplied by the land price adjustment coefficient of 3.5 times when used. Therefore, in fact, the adjusted Land Price List this time only increased by about 2.5 times, accordingly, the land price according to the expected adjusted Land Price List only corresponds to 70% of the market price level.
For example, the land price on Dong Khoi Street, Nguyen Hue, District 1 according to Decision 02/QD-UBND is 162 million VND/m2 (equal to the maximum level of the land price frame according to the 2013 Land Law). In 2021, the City People's Committee approved the specific land price (market price) for a ground floor house at 680 million VND/m2, if calculated by interpolation, the land price in this area is equivalent to 970 million VND/m2. Now, the expected adjusted land price list for Dong Khoi Street, Nguyen Hue is 810 million VND/m2, which is consistent with the general level of the area.
According to the Department of Natural Resources and Environment, through preliminary assessment, the most affected group is the subject of land use purpose conversion and land use rights recognition of households and individuals. However, comparing the 2013 Land Law with the 2024 Land Law: Cases of stable land use before October 15, 1993 do not have to pay land use fees; in cases where the area exceeds the limit, the fee is collected according to the 2005 Land Price List. The remaining land use cases are considered based on the origin and time of land use to have an appropriate collection rate.
According to the draft Decree on land use fee and land rent collection that the Government is about to issue, the collection rate will be considered based on the time frame from 10% to 50% of the expected adjusted Land Price List. In addition, land users belonging to policy families, meritorious people, and poor households will be exempted from land use fees according to Government regulations.
“Thus, the proposed adjusted Land Price List is actually bringing the regulated land price closer to the common market level, contributing positively to fairness and transparency for land users and avoiding losses to the State budget. Land use will therefore be more economical. In the near future, the Government will adjust the collection levels (percentage) to suit the practical situation, limiting sudden increases in revenue,” said a representative of the Department of Natural Resources and Environment.
Hanoi apartment market shows positive signs of supply and demand
The Hanoi real estate market report for the second quarter of 2024, just released by Cushman & Wakefield, said that in the first 6 months of 2024, the Hanoi apartment market showed positive signs in both supply and demand. About 10,800 new apartments were opened for sale, nearly three times higher than the same period last year.
In Q2/2024, approximately 7,600 apartments were launched for sale, marking an increase of 140% QoQ and 155% YoY. This significant change was mainly due to the launch of new apartment projects in integrated urban areas, such as Vinhomes Ocean Park and Vinhomes Smart City. The West accounted for approximately 59% of new apartment supply in the first 6 months of 2024, and mid-range projects continued to dominate the market, accounting for approximately 90% of new supply.
About 10,900 apartments were sold in the first half of 2024, up 216% year-on-year. In the second quarter of 2024, new apartment sales in Hanoi reached about 7,400 units, up 110% quarter-on-quarter and 147% year-on-year. The average primary price reached nearly USD 2,640/m2, up 11% quarter-on-quarter and 30% year-on-year.
According to experts from Cushman & Wakefield, the growth in new sales in the first half of 2024 is due to the scarcity of new supply in recent years. Newly launched projects with transparent legal status, reputable investors, attractive sales policies and all-in-one amenities have recorded positive sales performance. Most of these projects come from large integrated urban areas in the West.
The increasing demand for apartments in Hanoi is driven by the increasing demand for housing along with the city's population growth and immigration. In addition, investment demand is gradually returning to the real estate channel in the context of economic instability.
Primary apartment prices continue to rise due to scarce supply. This price increase is also driven by mid-range and high-end supply accounting for 98% of new supply, while affordable apartment supply remains in short supply.
In the Hanoi apartment market, in the second half of 2024, the real estate market is expected to welcome about 9,500 new apartments. Most of this supply will be concentrated in the Western region, benefiting from its strategic location and established infrastructure. In addition, in the second half of 2024, the supply is forecast to continue to be concentrated in integrated urban areas such as Vinhomes Ocean Park and Vinhomes Smart City.
From 2025, suburban districts, including Dong Anh, Gia Lam, Ha Dong, Hoai Duc, Hoang Mai, Long Bien and Thanh Tri, are expected to dominate future apartment supply thanks to infrastructure development and urban planning initiatives by the Government. Notably, Dong Anh and Gia Lam districts are expected to become districts by 2025, contributing to the expected supply from large integrated urban areas such as Vinhomes Co Loa, Vinhomes Ocean Park and BRG Smart City.
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| In the first 6 months of 2024, the Hanoi apartment market has shown positive signs in both supply and demand. (Photo: Ke Toai) |
Cases of emergency evacuation from apartment buildings from August 1
The Government has just issued Decree 98 detailing a number of articles of the amended Housing Law on renovation and reconstruction of apartment buildings, effective from August 1.
According to the Decree, there are 5 cases where owners and users of apartment buildings must be relocated. Of these, 2 cases require urgent relocation and 3 cases require relocation according to the compensation and resettlement support plan.
Specifically, the two cases where apartment buildings must be urgently relocated are those damaged by fire, explosion, or natural disasters or enemy attacks that no longer meet safety conditions for continued use.
In this case, the provincial management agency must submit to the Provincial People's Committee an urgent relocation decision within 3 days from the time of conclusion that the apartment building is not eligible for continued use.
The decision must clearly state the location of the apartment building that must be urgently relocated, the location of temporary accommodation, the method, cost, and duration of relocation, and the responsibilities of the relevant organizations and individuals. If the apartment building owner does not relocate, the management agency will enforce the decision within a maximum of 7 working days from the date of the enforcement decision.
3 cases of apartment buildings must also be relocated according to the compensation and resettlement support plan.
Firstly, the apartment building's main load-bearing structures are in a state of overall danger, at risk of collapse, and do not meet the conditions for continued use.
Second, the apartment building is severely damaged, the technical infrastructure system of fire prevention and fighting, water supply and drainage, wastewater treatment, electricity, internal traffic does not meet the requirements of current technical standards and regulations or is at risk of being unsafe in operation. These works need to be demolished to ensure the safety of the owners and users of the apartment building and the requirements of urban renovation and beautification.
Finally, the apartment building has one of its structures damaged, including foundation, columns, walls, beams, and rafters that do not meet the requirements for normal use. These buildings do not fall into the two cases of demolition as mentioned above, but must be renovated and built synchronously according to the approved plan.
Owners and users of apartment buildings will be arranged temporary accommodation in many forms such as at the available resettlement housing fund; housing fund belonging to public assets in the area; purchasing commercial housing or investing in the construction of resettlement housing fund using local budget capital or capital from the development investment fund, local housing development fund (if any). In addition, owners can also be paid to arrange their own accommodation.
Source: https://baoquocte.vn/bat-dong-san-moi-nhat-tam-ly-cho-doi-sap-duoc-thao-bo-can-ho-phia-tay-ha-noi-chiem-song-gia-dat-tphcm-tang-bao-nhieu-sau-dieu-chinh-280646.html
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