New capital injected into the real estate market.
The real estate market is showing positive signs as the State Bank of Vietnam has repeatedly cut interest rates to boost growth through credit channels, reduce financial costs for businesses and households, thereby stimulating investment and strengthening consumer confidence.
Over the course of four months, the State Bank of Vietnam (SBV) has cut the policy interest rate four times. With such a rapid pace of interest rate reductions, interest rates may return to the levels of 2019, only around 5.3-7.9% per year, for time deposits from 6 months to less than 12 months.
Continuously falling policy interest rates have made real estate more attractive to investors with substantial capital compared to bank deposits. (Photo taken at a resort real estate project launch event in May 2023)
Previously, according to statistics from the State Bank of Vietnam at the end of December 2022, total deposits at credit institutions amounted to VND 11.82 million billion due to deposit interest rates sometimes reaching 12% per year for a 12-month term. Currently, high-interest deposits with a six-month term are nearing maturity.
However, with the State Bank of Vietnam's interest rate reduction, continuing to deposit money in banks at the new interest rate of 5.3-7.9% is no longer attractive. According to analysts, this maturing capital may shift to higher-yielding investment channels such as real estate and stocks.
The potential of luxury real estate in Ha Long.
According to a report by the Vietnam Association of Real Estate Brokers (VARS), in the first three months of the year, the supply of luxury housing was very scarce, accounting for only 4% of more than 25,000 products across all segments. Projects developed by reputable investors, with convenient locations and guaranteed handover quality, still achieved an absorption rate of over 80%, with transactions in the luxury segment reaching 28%.
The scarcity and high absorption rate of luxury real estate are the reasons why professional investors with strong capital are choosing this segment for investment instead of keeping money in banks. In particular, beachfront properties with high added value are highly sought after, as forecasts suggest the real estate market will emerge from its downturn cycle starting in Q3 2023.
A view of the park from a Grand Bay Halong Villas residence. (Photo: BIM Land)
Luxury beachfront properties in Ha Long are becoming increasingly attractive to savvy investors. This is primarily because the remaining land available for ultra-luxury beachfront projects is quite limited.
Secondly, although beachfront projects have seen significant price increases, the price of similar properties in Ha Long is only about two-thirds the price of comparable properties in Da Nang, Nha Trang, Phu Quoc , etc.
Thirdly, these products must meet several criteria: prime beachfront location, private beach access, and long-term ownership. Finally, completing such projects requires large, reputable, and financially strong real estate developers.
The value of Grand Bay Halong Villas
In fact, when introduced to the market, ultra-luxury beachfront real estate projects often record rapid sales and significant price increases. In addition, positive developments in infrastructure, planning, and the tourism potential of Quang Ninh are also factors driving demand for beachfront properties in Ha Long, making them increasingly scarce and valuable assets with high appreciation potential.
Rendering of the Presidential Villa, part of the Grand Bay Halong Villas project. (Photo: BIM Land)
As one of the projects that caters to the tastes of discerning investors, Grand Bay Halong Villas by developer BIM Land is considered to have high potential for value appreciation.
The villas in the project are situated on extremely limited bayfront land on Peninsula 3 of the Halong Marina Tourist Urban Area, in an arc-shaped location with a private coastline stretching nearly 520m, featuring 3 large lakes and 2,600m2 of landscaped parkland...
The mansion's design draws architectural inspiration from Southern California, with a dominant color scheme of gray and white harmonizing with the bay, reflecting a timeless sense of elegance, sophistication, and luxury. Furthermore, high-end services and a secluded, private community offer a tranquil retreat, positioning it as a safe and secure investment.
With positive forecasts from real estate experts regarding a return to growth in Q4/2023, and idle capital seeking better investment opportunities, Grand Bay Halong Villas is considered to have great potential and is a suitable option for investors to consider.
Bao Anh
Beneficial
Emotion
Creative
Unique
Wrath
Source
