Chủ đề: real estate

The latest report from the Vietnam Bond Market Association (VBMA) shows that the banking and real estate sectors continue to heat up the bond issuance race, successfully issuing VND170.80 trillion ($7.48 billion) in total, or 72.7 per cent of the total. Vietnam’s corporate bond market was quieter in July, down nearly 33 per cent against June. In the long term, however, indicators suggest that the market still has much room for development.

“Land fever” has spread all around Vietnam over the past three years. Faced with the risk of a real estate bubble forming and possibly bursting at any time, management agencies are trying to identify solutions to cool and re-regulate the market in order to make it a driving force of economic development.

Tourism real estate grappling with shortcomings in legal framework.

There are many conflicting views on whether to tax real estate given that “land fever” has appeared in recent times. Many analysts believe that imposing a property tax would be an effective tool to limit real estate speculation. Others, however, believe that even if the Law on Property Tax is enacted soon, it will not have much of an impact on real estate prices over the long term.

Although many real estate projects in Ho Chi Minh City are stagnant due to legal issues or the impact of Covid-19, selling prices continue to head upwards. Over the past year, apartment prices have increased 27 per cent and land prices 42 per cent, or three times higher than in neighboring provinces.

Only real estate markets in localities benefitting from planning and infrastructure are active at the moment.

The impact of Covid-19, inflation, and the Russia-Ukraine conflict are among the key factors behind investor cash flows seeking shelter in real estate. Many localities have also begun to focus on developing industrial parks to attract FDI and at the same time invest in tourism development to quickly recover their real estate industries post-pandemic. Such expectations have led investors to focus on acquiring land funds.

Outlook up in the air following an eventful 2021.

The real estate market in Vietnam’s central region will see many positive signs in 2022 as a number of key traffic projects are built and international flights are reopened. The potential of the local real estate market also stems from links with other regions and similarities in geography, tourism, and transport infrastructure, which create values, dynamism, and a new development force.

Recovery on way in 2022 for tourism and resort real estate market.

Rental space a likely driver of recovery in the retail real estate segment.

The biggest bottlenecks in the real estate market relate to mechanisms and policies. The industry is regulated by 12 different laws and there are differences between them, especially the three that are directly related: the Law on Land, the Law on Housing, and the Law on Real Estate Business.

The Asahi Japan Investment and Properties Management Services Joint Stock Company has been appointed to provide operations management services for the Green Bay Premium apartments in Ha Long city, northern Quang Ninh province. This marks an important step in the market expansion of the Japanese management company, which received a Vietnam Top Brand award this year.

Economic activities at the Lang Son border gate economic zone in northern Lang Son province, which shares a border with China’s Guangxi province, together with methodical investment in local infrastructure, traffic, and tourism will create opportunities for land adjacent to the border gate to attract investment.

Unlisted real estate companies have alarmingly low or very weak debt repayment capacity, while 28 out of 52 listed companies have been initially ranked as being weak or very weak in debt repayment capacity, according to recent market research from FiinGroup.

The real estate market in north-central Thanh Hoa province is experiencing a strong wave of investment, with major investors involved in large-scale projects. The province’s real estate market is predicted to remain heated over the last two months of this year.

The supply of office real estate in Hanoi and HCMC is insufficient as demand is high.

While real estate is considered a secure sector to invest in, investors still weigh up the pros and cons when deciding which segment to invest in.

Real estate has taken the lead in the value of corporate bond issuances. As of October 15, the value of corporate bonds issued this year by the real estate group stood at more than VND148 trillion ($6.48 billion), accounting for 37 per cent of such issuances.

Seven housing projects and six resort and vacation real estate projects were implemented in the south-central province Phu Yen during the third quarter of 2021. Seven other housing projects are completing procedures to kick-off construction, while three are completing procedures for investor recognition and six are selecting investors.