The market witnessed an interesting "paradox", apartment projects in Hanoi traded well, even "sold out", regulations on recording land use fees when issuing red books... are the latest real estate news.
 |
| Experts say that new apartments priced under 50 million VND/m2 in Hanoi are about to disappear. (Photo: Linh An) |
Affordable apartments are gradually "disappearing"
The affordable housing segment is in high demand in the market but is severely lacking in supply. In 2024, nearly 67% of new apartments in the Hanoi market will be in the high-end and luxury segment.
It is predicted that the primary segment priced at VND50 million/m2 will disappear by 2025. Experts even believe that new apartments priced under VND50 million/m2 in Hanoi will soon disappear. The story of affordable commercial housing is expected to re-establish the balance of supply and demand in the market, but now it is increasingly distant.
Statistics from the Vietnam Association of Realtors (VARS) show that in the third quarter of 2024, the apartment price index in Hanoi increased by 64% compared to the second quarter of 2019, double the increase in Ho Chi Minh City. The average primary selling price is approaching 60 million VND/m2.
Mr. Nguyen Van Dinh - Vice President of Vietnam Real Estate Association commented that middle-income people in Hanoi are increasingly moving to the outlying districts, where the connecting infrastructure system has not been completed, to buy houses. This situation will occur in other urban areas in the near future if the project licensing mechanism is not re-planned. However, apartment prices in these areas are no longer at a "suitable" level.
Director of Batdongsan.com.vn in the South - Mr. Dinh Minh Tuan cited that 2024 witnessed an interesting "paradox" that although apartment prices in the primary market in both Hanoi and Ho Chi Minh City were high, purchasing power was still quite good. Up to 70% of brokers said that apartment projects in Hanoi had a positive transaction volume, even "sold out" in 2024. Similarly, this figure in Ho Chi Minh City also reached more than 40%.
This shows the strong attraction of the apartment segment, especially projects that meet real housing needs well. Apartments are always the pioneer in market recovery cycles, because they aim at real housing needs, a need that is always present and sustainable. The sharp increase in transactions is concentrated in apartments with small areas and reasonable prices. In addition, the projects chosen by buyers are often completed products, with complete infrastructure, low construction density, reputable investors, good payment progress and preferential interest rate policies, etc., Mr. Tuan analyzed.
Although the affordable and mid-range apartment segment is shrinking in big cities like Hanoi and Ho Chi Minh City, this is still the main segment, attracting great interest from real buyers, with the need to own a house to settle down.
From this reality, the development of affordable commercial housing is still an urgent need, especially in large cities. Mr. Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, said that it is necessary to propose an initiative to research and develop the affordable commercial housing segment because this will be an important factor to help the real estate market stabilize and be sustainable.
Should I invest in serviced apartments for rent?
Sharing at the workshop “Potential of apartments for rent” on the afternoon of December 23, Dr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, said that real estate prices in the central area are on an upward trend. The average apartment price in the 4 central districts of Hanoi has doubled compared to the beginning of 2019, 30% higher than the average increase in the whole of Hanoi.
For example, Hai Ba Trung and Dong Da are the two districts with the best price growth rate in the past 5 years, due to the relatively good price level compared to newly opened projects in the suburban areas. Newly opened projects in the past 3 years have continuously adjusted their prices, about 10% after each opening phase. New apartment projects opened for sale in 2024 with common prices from 125 million VND/m2. Serviced apartments are priced at about 88 million VND/m2 (excluding VAT and maintenance fees).
In the context of rising apartment prices, if you have more than 5 billion VND in cash, should you switch your investment to rental serviced apartments?
Mr. Le Dinh Chung, General Director of SGO Home, said that many investors tend to look for real estate with dual profit sources when there is stable income from rental and profit from asset growth.
Therefore, if you have 5.5 billion VND, Mr. Chung suggests, investors can find a flexible real estate that generates cash flow and can be used for living or renting. With such a flexible real estate, it will not be difficult to sell it later.
According to Mr. Chung, serviced apartments in the center of big cities like Hanoi and Ho Chi Minh City have received attention in recent years due to their stable income from long-term guests, experts, and the foreign community.
Moreover, the price of serviced apartments is 35-70% lower than the market in the same segment, but the rental price of serviced apartments is 25-50% higher than that of long-term apartments. This shows that serviced apartments for rent are real estate products that bring high investment efficiency.
The 2,500 billion VND tourist area project in Binh Dinh has an investor.
On December 23, news from the office of the People's Committee of Binh Dinh province said: Vice Chairman of the People's Committee of the province Nguyen Tu Cong Hoang signed Decision No. 4428/QD-UBND approving the results of the auction of land use rights to implement the project Point No. 2 (2-2), Nhon Ly - Cat Tien beach tourist area.
This is a project with a total estimated investment capital of at least VND 2,215.57 billion (excluding the auction winning money for land use rights), implemented in Cat Chanh commune, Phu Cat district, Nhon Hoi Economic Zone, Binh Dinh province.
Accordingly, the selected investor is Phu Gia Infrastructure Development Investment Joint Stock Company (headquartered in Quy Nhon city, Binh Dinh) with the winning bid price of VND 368.823 billion, a difference of nearly VND 21 billion (VND 20.877 billion) compared to the starting price of VND 347.946 billion.
The planned area for the project is over 40 hectares; of which, the area of tourism service land (tourist villa land, resort service land, hotel land, square land, commercial service land, swimming pool land) is over 14.4 hectares, the area of green land is over 15.3 hectares, the area of traffic and technical infrastructure land (traffic land, technical infrastructure land, parking land) is nearly 5.6 hectares, the area of beach and water surface land is 4.8 hectares. The form of land use is that the State leases land and collects land rent once for the entire lease term through the form of auctioning land use rights.
After completion, Binh Dinh will have more high-class resort projects such as: tourist villas, hotels, resort service projects, commercial service projects (restaurants, souvenir shops, karaoke, general business) for sale, lease, lease-purchase and other business activities according to regulations to meet the accommodation, resort, entertainment and recreation needs of tourists.
This project also promises to create more momentum for local tourism development, with many important items being built such as: hotels, resort villas, squares and commercial services...
According to the leaders of Binh Dinh province, this is also an area with a lot of potential but has not been well exploited. Binh Dinh province has had many policies related to calling for and attracting investment. From there, creating conditions for investors with enough capacity and experience to invest in the area to develop in accordance with the directions of the Provincial People's Council in each period.
Regulations on recording land use fee debt when issuing red book
Regulations on recording land use fee debt when granting Land Use Right Certificate (red book), ownership of assets attached to land need to be noted.
Clause 11, Article 18 of Decree 101/2024/ND-CP stipulates the debt of land use fees when granting Certificates of land use rights and ownership of assets attached to land (commonly known as red books), which is implemented as follows:
a) Subjects eligible for land use fee debt when issuing the first Certificate of land use rights and ownership of assets attached to land are individuals and households currently using land who have a need to have their debt recorded and heirs according to the provisions of law who have a need to have their debt recorded, they will continue to have their debt recorded;
b) The amount of land use fee recorded in debt for the case specified in Point a of this Clause is the total amount of land use fee payable at the time of issuance of the Certificate of land use rights and ownership of assets attached to land;
c) The order and procedures for recording, paying, and clearing land use fee debts, and the land use fee debt period for households and individuals who are entitled to land use fee debts as prescribed in this clause shall be implemented in accordance with the provisions of law on land use fee and land rent collection;
d) In case the person is allocated land for resettlement, the debt of land use fees shall be recorded in accordance with the provisions of the Decree on compensation, support and resettlement when the State recovers land;
d) The recording of land use fee debt for the subjects specified in Point a of this Clause shall be applied from August 1, 2024 to July 31, 2029. Payment and cancellation of land use fee debt shall be carried out in accordance with the provisions of law on land use fee collection and land rent.
Source: https://baoquocte.vn/bat-dong-san-thi-truong-chung-kien-nghich-ly-thu-vi-nhieu-du-an-chung-cu-chay-hang-phan-khuc-gia-50-trieu-dongm2-se-bien-mat-298500.html
Comment (0)