Chủ đề: real estate

The Ho Chi Minh City Real Estate Association (HoREA) has recommended that the State Bank of Vietnam (SBV) and commercial banks consider offering support to real estate businesses, investors, and borrowers. It proposed cuts of 2 per cent per annum to lending interest rates, facilitating access to new loans, and offering support in tax and land use fees.

According to the Ministry of Construction, about 80 per cent of real estate exchanges, which are only acting as brokers, will have to close. Only real estate trading platforms belonging to large-scale enterprises with financial potential and directly acting as project investors will continue to operate. Real estate brokerage activities have not won the trust of consumers because non-eligible real estate or real estate projects are still being offered on the market.

The Vietnam Association of Construction Contractors (VACC) and a number of other associations have suggested urgent solutions to allay the difficulties facing construction and real estate businesses affected by Covid-19. Recommendations include extending the time to pay value added taxes; cutting corporate income taxes by 50 per cent; implementing a 0 per cent interest rate on bank loans in service of construction sites and projects that have had to cease construction due to anti-pandemic measures; and deferring payment of land use fees.

VnDirect has identified four factors that will drive demand in Vietnam’s residential real estate market in the second half of 2021 and into 2022.

If Vietnam can control Covid-19 this month, the country’s real estate market will improve to the end of the year and there may be a new wave of investment, as existing investors are waiting to launch products.

With Covid-19 stalling real estate transactions, buying and selling have shifted from offline to online and property technology (proptech) has become a major trend and increasingly popular.

According to a recent survey by Colliers Vietnam, the country’s high-end real estate segment is being received very well with more than 80 per cent of products sold this year.

Urban resort real estate became more popular in the first seven months of 2021 as other real estate segments lost some of their appeal during the pandemic. Dr. Tran Nguyen Minh Hai, a real estate specialist from the Banking University, pointed out that there are three reasons the sector will still boast potential over the next five years. The pandemic has resulted in rising demand for healthcare resorts, customers have lost interest in traditional forms of tourism during the pandemic, and the recent falls in the stock market have made investors view resort real estate as a safer investment channel.

The Office of the Government released a conclusion from Deputy Prime Minister Le Van Thanh at a meeting on developing a draft decree regulating sea encroachment. The conclusion emphasized paying due regard to feasibility when determining land use fees, and land rents, while ensuring there is no loss to the State budget and that measures are not contrary to laws and regulations.

The steel price has increased 40 per cent this year compared to 2020, pushing up construction costs by 10 per cent. Many contractors have delayed construction while waiting for prices to fall, to avoid financial damage.

Commenting on the real estate market in 2nd half of 2021, Savills Vietnam believes that there are prospects for recovery in most market segments.

The retail real estate market has come across many difficulties in recent times but research companies are positive that this market will recover and grow, thus attracting both domestic and foreign investors.

Since the 4th wave of FDI is entering Vietnam, the demand for industrial real estate is increasing, thus resulting in the rising leasing fee at industrial parks (IPs). Experts say that the higher fee will affect the FDI incentives into Vietnam. Business insiders suggest that the government stabilize the leasing fee in IPs to maintain Vietnam’s attractiveness to foreign investors as well as to support the business expansion of domestic firms.