Southern real estate happy or sad after legal clearance?

Many projects launched

In the last months of the year, the real estate market in Ho Chi Minh City and surrounding areas recorded many projects being massively opened for sale and introduced in large numbers.

The Privia apartment project of Khang Phuc Housing Investment and Trading Company Limited (a member of Khang Dien Housing Company) was launched on the market with prices starting from 48 million VND/m2. This project is also a rare project opening for sale at this time in Ho Chi Minh City with prices considered reasonable for the mid-range and high-end segments.

The project is located in Binh Tan district, with an area of over 1.8 hectares, providing about 1,000 products. At the end of October, the Ho Chi Minh City Department of Construction confirmed that the project is eligible to sell future housing. Homebuyers in this project pay 20% and are supported with a 35-year bank loan, the investor supports interest rates for 24 months.

Also in Binh Tan area, on Vo Van Kiet Avenue, Nam Long Company introduced to the market Flora Akari City apartment products phase 2 with prices starting from 45 million VND/m2. The investor supports interest rate of 7%/year, principal grace period of 2 years, customers pay 40% divided into 6 installments, banks lend up to 65% of product value.

In the East - Thu Duc City area, 5 towers at Masteri Centre Point have completed internal facilities and apartment interiors, ready for handover. Selling prices range from 50-60 million VND/m2.

In Dong Nai , the investor Ecopark introduced the Eco Village Saigon River project in Nhon Trach district. The project area in Dong Nai is 55 hectares with products such as shophouses, townhouses, villas, and hot spring villas.

In Binh Duong , Pi Group introduced Picity Sky Park (Di An City) or Phat Dat has just completed the detailed planning 1/500 at 2 projects of Thuan An 1 and 2 high-rise complex housing area, with a scale of about 4,000 apartments. Bcons Group launched the Bcons Polaris project in Di An City, priced from 1.6 billion VND/apartment...

Bất động sản phía Nam vui hay buồn sau thời gian được tháo gỡ pháp lý? - 1 — Many new projects are launched on the market at the end of the year (Photo: Quang Anh).

Many projects are unstuck, will the market benefit?

Besides receiving new supply sources, the real estate market also witnessed many projects having legal obstacles removed during this period.

Novaland Group has just been granted a decision by Dong Nai province to allocate land in subdivision 1 and subdivision 2 of the Cu Lao Phuoc Hung high-end urban area (also known as Phoenix Island) to continue investing in the construction of technical infrastructure systems. The allocated land area is about 54 hectares, which is considered by the enterprise to be a very important procedural step for the investor to continue implementing the project.

Previously, Dong Nai also issued a document confirming that 752 low-rise houses in the Aqua City project are eligible to sell future housing. A subsidiary of this enterprise was also handed over land by the province to continue building technical infrastructure... Many other projects of Novaland in Ba Ria - Vung Tau and Binh Thuan have also been unstuck recently.

Bất động sản phía Nam vui hay buồn sau thời gian được tháo gỡ pháp lý? - 2 — Many projects in Ho Chi Minh City are about to launch (Photo: Khanh Duy).

Phat Dat Real Estate Development Joint Stock Company also had its obstacles resolved in the Bac Ha Thanh Residential Area and Urban Renovation Project in Phuoc Thuan Commune, Tuy Phuoc District, Binh Dinh. In October, the Binh Dinh Department of Construction granted a construction permit for the project. Based on that, Phat Dat performed the groundbreaking ceremony and officially started construction of the project in early November.

Mr. Dinh Minh Tuan - Director of Batdongsan in the Southern region - assessed that the real estate market has not shown many signs of recovery as expected by market psychology from policies to remove legal obstacles.

Some projects have been legally cleared and confirmed to be eligible to sell future housing, but in fact the goods have been sold under the form of a deposit contract. When the legal documents are completed, this contract is converted into a sales contract.

In essence, the market does not generate supply. On the investor side, they can raise more money from customers, because the legal process has taken a step forward. Banks can also easily finance projects, buying and selling is easier, and liquidity is better.

Experts predict that in the fourth quarter, the Southern market will have new supply mostly from apartments, while other segments will remain flat. The mid-range segment will dominate, and investors will begin to adjust the area so that the price of an apartment is at 2-3 billion VND, suitable for buyers' needs. Next year, in the third and fourth quarters, the market will really improve with new projects being launched, but the segment will be high-end - luxury.

Mr. Dennis Ng Teck Yow - General Director of Novaland - said that there are still 2 important difficulties that make the removal not very effective. First, the time for competent authorities to give opinions or approve legal procedures is still not synchronized with the actual development process, causing the stages to be delayed. Second, there is a lack of synchronization, overlap, inconsistency and lack of practicality between legal and sub-legal documents...

Also at the real estate credit conference on November 13, Mr. Nguyen Van Cuong - Vice Chairman of Hung Thinh Corporation - mentioned the legal conditions of real estate projects being implemented for a long time as in the past, suggesting that banks simplify lending conditions for real estate projects.

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