'Slowly' having transactions, predicting the time of 'thaw', launching Vinhomes project in Ho Chi Minh City, soon to have a super urban area in Dung Quat

The market is waiting for positive effects from interest rate reduction, procedures that investors need to know to sell future housing, Quang Ngai wants to build a super city... are the latest real estate news.

For real estate businesses, when interest rates are high, at 11-13%, it will affect high costs. (Photo: Thanh Son)

Interest rates continue to decrease, when will real estate become 'hot' again?

According to Vietnamnet, since March, the State Bank has lowered its operating interest rates four times. Accordingly, from June 19, a series of operating interest rates have been adjusted downward. Notably, the maximum interest rate applied to deposits with terms from 1 month to less than 6 months has decreased from 5%/year to 4.75%/year.

This interest rate cut is considered by experts to be a good signal for the economy. Thereby, it is expected to have a positive impact on the real estate market.

From a business perspective, Mr. Vu Cuong Quyet, General Director of Dat Xanh Mien Bac Real Estate and Services JSC, said that the cooling interest rate has somewhat affected the real estate market, especially market psychology.

Mr. Quyet said: “Although the impact is not really clear, transactions have improved a bit. At Dat Xanh, from April until now, there have been transactions; on average, about 25-30 transactions per month, instead of only 4-5 transactions before. The transactions are mainly in the Hanoi market.”

According to this leader, despite the improvement, the number of such transactions is still very slow: “Input interest rates have decreased, but output and lending interest rates have not decreased much. Homebuyers are still paying interest rates of 11-12%, making it really difficult to 'pull up' real estate liquidity. Lending interest rates must fall below 10%, the market will have a clearer impact.”

As for real estate businesses, when the interest rate is high, at 11-13%, it will affect high costs. Businesses with projects want to sell at reasonable and cheap prices, but input costs, especially interest costs, are still high; production costs such as construction materials and labor do not decrease... forcing the house price to be high. When the selling price is high, liquidity is not good," Mr. Quyet analyzed.

Also according to the leader of Dat Xanh Mien Bac, although the Government has intervened to “solve” the issues of bonds, extend loans… and has had a very good effect on businesses in general, the interest rate for business loans must be reduced to 9-10% so that businesses can “breathe” easier. At that time, there will be sources of goods pushed to the market at better prices.

“Hopefully, the growth in the third and fourth quarters will be better, which will lead to a better economic market, and from there, real estate will also flourish. In the third quarter of 2023, with positive signals, the market will not be “frozen” like before.

However, to have a breakthrough, break the ice of real estate immediately or have breakthrough transactions in the market is not possible. Even so, liquidity will be improved better than this time", Mr. Quyet added.

Meanwhile, Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, assessed that the interest rate reduction will have a positive impact on the real estate market. However, with the current interest rate reduction, according to Mr. Dinh, investors and developers are only "excited", but to actually access capital, they still have to calculate because the interest rate is still at a difficult-to-absorb threshold.

“During this period, the price level “drops”, market absorption is weak, lending interest rates are still high… so borrowing from banks for investment will be low. Not only investors consider, but investors also consider borrowing investment capital at this time.

Meanwhile, for banks, lowering interest rates must also monitor and control inflation and exchange rate issues. Therefore, lending interest rates cannot be reduced immediately, and cannot keep up with the reduction in deposit interest rates. We still have to wait," said Mr. Dinh.

This expert believes that with the current situation, the real estate market will still be difficult to be vibrant at the end of the year and will only show signs of recovery.

“If in the third and fourth quarters of 2023, the legal issues of real estate projects are basically resolved, the projects will start to show signs of resuming operations; the real estate market will show signs of recovery. At that time, the market will gradually stabilize again,” Mr. Dinh added.

Vinhomes launches Glory Heights project in Ho Chi Minh City

Recently, Vinhomes held an event to launch the Glory Heights project, gathering 48 agents and an alliance with more than 7,000 sales professionals. In the context of the market showing many signs of recovery, Glory Heights has become a "blockbuster" fund sought after by real estate investors.

Inspired by the "billionaire city" Malibu, Glory Heights is invested in health care facilities appearing for the first time at Vinhomes Grand Park with a chain of 845m2 Malibu swimming pools, infinity waterfall, luxury jacuzzi, sauna room, unique dinosaur park, luxurious family karaoke area...

Along with that, the special location of Glory Heights right at the "heart" of Vinhomes Grand Park is also a guarantee for the value and profit potential of the project. Located right on the Rodeo shopping avenue, adjacent to Vincom Mega Mall, Golden Eagle square... with just a few steps, Glory Heights residents can reach the most proud amenities of the Metropolis.

Gathering all the special values, creating a superior quality of life for the middle and upper class, Glory Heights is considered a new generation of The Landmark (Vinhomes Central Park) right in the heart of the prosperous East, a place of residence for the elite community and a powerful profitable asset.

Quang Ngai wants to build a "super city" of more than 7,000 hectares

On June 22, Chairman of the Provincial People's Committee Dang Van Minh approved the task of surveying, planning and cost estimates for the 1/2000 scale construction zoning plan for the Southeast Dung Quat urban and service area.

Một góc KKT Dung Quất nhìn từ trên cao (Ảnh: Quốc Triều).

A corner of Dung Quat Economic Zone seen from above (Photo: Quoc Trieu).

Accordingly, the land surveyed for planning is located in the communes of Binh Hai, Binh Chau, Binh Tri, Binh Phuoc, Binh Hoa, Binh Thanh and Binh Tan Phu (Binh Son district).

The survey scale for planning of the Southeast Dung Quat urban and service area is 7,325 hectares. By 2045, this urban area will have about 200,000 people.

The Southeast Dung Quat urban and service area is planned to have one side facing the sea and the north facing the Dung Quat oil refinery. This will be an urban, tourism and service development area, the southeast gateway of the Dung Quat Economic Zone (EZ).

The Southeast Dung Quat urban and service area also has the administrative and service complex centers of Dung Quat Economic Zone associated with the development of Van Tuong urban area. This is considered the core of the Southeast Dung Quat urban and service area.

The goal of the planning is to build and develop the Southeast Dung Quat urban and service area to become one of the economic, commercial and financial service centers of Dung Quat Economic Zone.

Construct new modern, high-rise coastal urban areas combined with renovating existing areas to form modern urban areas and use land effectively, aiming for sustainable development.

Dung Quat Economic Zone covers an area of approximately 45,332 hectares, including Ly Son Island. According to the decision to adjust the overall master plan for Dung Quat Economic Zone, by 2045, the entire economic zone will be divided into 5 main functional sub-zones to control development.

In the period of 2036-2045, Quang Ngai will focus on investing in completing and synchronously upgrading infrastructure for urban areas, aiming to establish Binh Son City and Ly Son City under Quang Ngai province.

Procedures to know to sell future housing

According to the provisions of Point b, Clause 2, Article 19 of Decree No. 99/2015/ND-CP, the investor requests the Department of Construction to notify the eligibility to sell future housing. In case the investor has mortgaged the project or future housing, it must send a document of mortgage release or a record of agreement with the buyer, lessee and mortgagee on not having to release the mortgage.

According to the provisions of Clause 1, Article 147 of the Housing Law, in case the investor has mortgaged the project or future housing, the mortgage must be released before signing the sales contract, unless agreed by the buyer and the mortgagee.

So at the time the investor requested the Department of Construction to issue a notice of eligibility to sell future housing, there was no home buyer, so there was only a document from the mortgagee agreeing to buy and sell the house and the investor committed before signing the contract to release the mortgage on that house (except in the case where the buyer and the mortgagee agreed not to release the mortgage), was that in accordance with the above regulations? Is the Department of Construction's notice of eligibility to sell future housing in accordance with the above regulations?

Regarding this issue, the Ministry of Construction responded as follows:

Clause 1, Article 147 of the Housing Law stipulates: In case the investor has mortgaged the project or future housing, the mortgage must be released before signing the sales contract, except in cases where the buyer and the mortgagee agree.

At Point b Clause 2 Article 19 Decree No. 99/2015/ND-CP stipulates: The investor must send a document to the Department of Construction where the house is located, along with documents proving that the house meets the conditions for sale or lease-purchase according to the provisions of Clause 1 Article 55 of the Law on Real Estate Business; in case of a mortgage on the construction investment project or a mortgage on the house to be sold or lease-purchased, the investor must send along documents proving that the mortgage has been released or a record of agreement between the house buyer or lessee and the mortgagee that the mortgage does not have to be released and that the house can be sold or lease-purchased; in case of no mortgage on the project or mortgage on the house to be sold or lease-purchased, the investor must clearly state the commitment to take responsibility in the document sent to the Department of Construction.

Thus, Point b Clause 2 Article 19 Decree No. 99/2015/ND-CP has specifically stipulated the types of documents that investors must send to the Department of Construction to carry out the procedure of notifying eligibility to sell future housing. We suggest that you study, compare and implement according to the regulations.

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