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| Latest real estate: After a month of "unleashing" subdivision and land division, land plots on the outskirts of Hanoi have begun to attract customers interested in buying. (Photo: N.Le) |
Regretting the price, investors are still "afraid" of apartments advertised for loss.
Recently, the market has been flooded with information about selling apartments at a loss or reducing prices. Some apartments in the urban area of nearly 300 hectares in the old District 9 (now Thu Duc City) are being offered for sale at low prices. A 2-bedroom apartment with an area of about 54 square meters was bought by the owner for more than 3 billion VND more than 2 years ago, but now they intend to sell it for about 2.7 billion VND. Or for an apartment in the resettlement area of District 2, the owner accepts to offer it for about 2.5 billion VND for an area of 80 square meters.
Many people want to take this opportunity to own an apartment for rent, creating a long-term source of income. However, the problem of cash flow and investment efficiency makes them hesitate.
According to calculations, if buying an apartment for about 2.7 billion VND, after the grace period for interest and principal has expired, the investor will have to pay about 22-23 million VND per month. If buying and renting it out, the rental price is only about 5-6 million VND/month, which is not enough to cover the interest costs. That makes many people hesitate and hesitate when making a decision.
The current average price of apartments in Ho Chi Minh City is around 60-70 million VND/m2. Meanwhile, the low-cost housing and social housing segment is lacking in supply. Apartment prices are increasing while rental prices are only recovering, causing the profit margin of this type of housing to not improve much in recent times.
According to a survey by a market research unit, the profit margin for apartment rentals in Ho Chi Minh City only reached 4.4%/year in the first quarter of 2023, much lower than the 5.9% in 2019. Affected by the pandemic, over the past 3 years (2020-2022), this rate dropped to 4.9%/year and then remained at 4.1%, and has only recently increased.
Interest rates are one of the current barriers in the market when people decide to buy real estate. In previous years, interest rates were around 10%/year, now they are around 13-14%/year, but people have difficulty borrowing.
Mr. Vo Hong Thang, Director of Consulting Services and Project Development, DKRA Group, said that currently, the market has apartments for sale at reduced prices, at a loss, many secondary products are even reduced by 30%. However, the opportunity belongs to those with financial potential, ready cash flow to take advantage of real estate with high discounts, good rental locations, and increasing demand.
For those who have to use financial leverage and borrow from banks, the story is the opposite. Currently, rental prices are stable and tend to increase, the average profit margin is about 4-5%/year but the bank interest rate is 13-14%/year.
Obviously, the proceeds are not enough to cover the interest on the loan. Therefore, if investors use financial leverage, buying an apartment for rent is not attractive at this time. Although the apartment may have the opportunity to increase in price in the future, the financial burden at this time is very large.
Sharing the same view, Mr. Dinh Minh Tuan, Director of Batdongsan.com in the Southern region, analyzed that when investing in apartments for rent, investors need to consider how much the apartment price can increase annually and what the rental profit margin is compared to bank interest rates. At good times in the market (2018-2020), apartment prices can increase by 10-15% annually. By 2021-2023, the average increase in apartment prices will only reach about 8%/year and will not fluctuate much. For secondary apartments, the price increase will only be 3-4%/year.
The market currently has two different trends, according to Mr. Tuan's assessment. That is, primary apartments are increasing in price while secondary apartments are being sold at a loss.
Secondary trading projects are still priced at around VND50-60 million/m2, but discount and quick payment measures are often used to adjust prices more appropriately. The rental profit margin of this group has not increased to the expected level (around 6%/year), is still lower than bank loan interest rates, and is burdened with loan interest rates. Therefore, it is difficult for investors to gain attractiveness if they buy apartments for new rent. "The most difficult thing in the market is to have borrowed capital, and accessing borrowed capital at this stage is extremely difficult," said Mr. Tuan.
In conclusion, Mr. Tuan said that for apartments that have been handed over and rented out, the rental price will increase. If investors buy for investment, they must consider the capital and interest issues.
Suburban land is bustling with transactions after 'unleashing' subdivision and plot separation
According to Vietnamnet , after a month of "unleashing" the subdivision and separation of plots, land plots on the outskirts of Hanoi have begun to attract customers interested in buying. Surveys show that most customers are only interested in plots of land with red books, clear legal status, and a price range of 1 - 1.5 billion VND.
Mr. Pham Duc Toan, General Director of EZ Real Estate Investment and Development Joint Stock Company (EZ Property) assessed that the information that Hanoi allows the subdivision and separation of plots will have a positive impact on the market. Although not strong, it will be a "push" for the market to be better, especially the land segment.
“Real estate is “sick” and should not create barriers to make the market more difficult. When divided into small plots, it will be suitable for the needs of the majority of people with real housing needs.
From there, real estate business will also have a more positive impact. Especially when the plots are divided, the market will have transactions, and the State will also collect transfer tax money," said Mr. Toan.
According to this person, areas such as Tu Liem, Ha Dong, Dong Anh, Me Linh... have a lot of land among the people, so when the plots are divided, it will create a good supply for the market.
Also assessing the positive impact on the real estate market since Hanoi resumed land division and subdivision, Mr. Le Dinh Chung, General Director of SGO Homes Real Estate Investment and Development Joint Stock Company, said that transactions have resumed in the suburban market.
“Compared to the time before Tet, the market has begun to receive attention from investors, with certain transactions. Basically concentrated in densely populated areas with real housing needs. Areas serving long-term investment needs in the direction of urban development such as Lang Hoa Lac…
The subdivision and separation of plots also helps the market recover from the perspective of real consumers, creating values suitable for more subjects. At the same time, it is also the driving force and general impact on the recovery of the real estate market," said Mr. Chung.
In the context of weak supply when the investor's products are currently almost difficult to sell, Mr. Chung believes that dividing and subdividing plots will create more sources of goods for the market. When the market has more products, there will certainly be transactions.
Regarding land prices, Mr. Chung said that in reality, market prices are still decreasing compared to the peak, decreasing by about 15-20%, in some areas by 30%.
"This is the time when supply and demand really have the opportunity to find good products, the opportunity to buy to live in," Mr. Chung added.
Commenting on the land segment from now until the end of the year, Mr. Chung said that it is unlikely that there will be "hot" or "feverish" stories like before.
Mr. Le Dinh Hao, Sales Director of the Northern region of Batdongsan.com.vn, assessed that allowing land subdivision again would be a "small ray of light" for the Hanoi land market.
According to Mr. Hao, in order for the land market to develop more sustainably, greater support is needed, such as promoting the relocation of administrative centers, industrial parks, projects, and universities to the outskirts of Hanoi.
Along with that, invest more in satellite urban areas in the West such as Hoa Lac, Xuan Mai and north of the Red River such as Me Linh, Soc Son, Dong Anh...
In particular, Mr. Hao said that the market needs real estate loan packages with more suitable interest rates.
“The lending interest rate is below 10% instead of the average of 11% - 13%. At the same time, priority should be given to lending to real estate that is put into production and business, creating cash flow, rather than speculative real estate,” Mr. Hao stated his opinion.
Khanh Hoa: Officially reclaiming land of 5 villas at Bao Dai Palace relic site
Khanh Hoa Provincial People's Committee decided to reclaim land of 5 relic villas at Bao Dai Luxury Resort project, Vinh Nguyen ward, Nha Trang city.
In Decision No. 1125/QD-UBND dated May 19, 2023, Vice Chairman of Khanh Hoa Provincial People's Committee Le Huu Hoang signed to reclaim 9,209.4 square meters of land of 5 Bao Dai relic villas leased by Khanh Ha Investment Joint Stock Company to build the Bao Dai Luxury Resort project.
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| Panoramic view of Bao Dai Palace relic site. (Photo: BXD) |
The land area of these 5 relic villas after being recovered will be handed over to Khanh Hoa Monuments Conservation Center for management according to the provisions of law.
According to the land recovery decision of Khanh Hoa Provincial People's Committee, Khanh Hoa Land Registration Office is responsible for recovering and re-issuing the project land use right certificate so that Khanh Ha Investment Joint Stock Company can adjust the project documents according to the provisions of law.
It is known that Bao Dai Palace relic site is located in Nha Trang Bay, this is a national scenic spot recognized by the Ministry of Culture and Information in 2005.
In 2013, Khanh Hoa Provincial People's Committee issued a decision approving the detailed planning 1/500 and locally adjusting the land use planning of the relic site at Bao Dai palace.
After that, Khanh Ha Investment Joint Stock Company was assigned land, including the land of Bao Dai Palace Relic Site, to implement the Bao Dai Nha Trang Resort project.
The Bao Dai Palace relic site is over 12 hectares wide, built by the French on Canh Long Mountain in 1923 to serve as a place for oceanographers to live. From 1940 to 1945, King Bao Dai and Queen Nam Phuong often came here to relax, so the name Bao Dai Palace dates back to that time.
Profile of changing personal information on red book
According to Construction Newspaper , the information of Mrs. Nguyen Thi Thu Huyen (Hai Duong) and her husband on the Certificate of land use rights and assets attached to the land is the Citizen Identification Card. Currently, both have changed and are using the Citizen Identification Card.
Ms. Huyen asked, in order to register a mortgage at the Land Registration Office Branches, do she and her husband need to correct the information about the Citizen Identification on the Land Use Rights Certificate? If the Citizen Identification information needs to be corrected, what is the procedure?
The Ministry of Natural Resources and Environment responded to this issue as follows:
Confirmation of changes in information about legal entities, ID card numbers, Citizen ID card numbers, and addresses on the issued Certificate is carried out according to the needs of land users and owners of assets attached to land and is carried out at the Land Registration Office or a Branch of the Land Registration Office.
The dossier is submitted in accordance with the provisions of Clause 16, Article 9 of Circular No. 24/2014/TT-BTNMT dated May 19, 2014 of the Ministry of Natural Resources and Environment regulating cadastral records (amended and supplemented in Clause 1, Article 2 of Circular No. 09/2021/TT-BTNMT dated June 30, 2021), including:
"a) Application for registration of changes in land and assets attached to land according to Form No. 09/DK;
b) Original copy of the issued Certificate;
c) A copy of the new Identity Card or new Military Identity Card or new Citizen Identity Card or household registration book, other documents proving personal change in case of change of personal information of the person named on the Certificate".
The Ministry of Natural Resources and Environment provides information for you to know.
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