Land is in the 'cold spot' stage, apartment prices in Da Nang are sky-high, is there a phenomenon of 'colluding' to push up prices?

It's time to buy land plots to seize opportunities; Da Nang apartment prices are sky-high; townhouses priced over 30 billion VND dominate the market… these are the latest real estate news.

Latest real estate news: Experts predict that the land market will see significant changes starting from the second quarter of 2024. (Source: CafeF)

It's time to buy land as an investment.

According to many real estate experts, investors are actively "hunting" for land, taking advantage of the market's current downturn, which makes negotiations easier. Simultaneously, investors can seize opportunities before the Land Law and Real Estate Business Law come into effect, which are likely to significantly alter the price levels of all types of real estate.

According to Mr. Vo Hong Thang, Director of Consulting Services and Project Development at DKRA Group, overall, the land market still faces many difficulties and the recovery is uneven across segments. Although it has overcome the most critical period and may see more positive signs in terms of both supply and demand, both input and output, this period is still a "cold spot" for the land market.

Mr. Thang cited that, in the first four months of the year, land transactions in the South remained quite sluggish. In most localities from Ho Chi Minh City to Long An , Dong Nai, Binh Duong, or even further afield like Tay Ninh and Binh Phuoc, land sales only fluctuated around 20-25% of the offered quantity. Many areas that experienced booms in previous years now record no transactions.

"The new regulations tightening land subdivision and sale activities in the amended Real Estate Business Law mean that the land market will need more time to recover. Therefore, the earliest the land market can 'reverse course' is at the end of the year, and now is still a good time to hunt for reasonably priced properties," Mr. Thang observed.

Sharing the same view, Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn in the Southern region, predicts that the amended Real Estate Business Law, once officially in effect, will tighten regulations on land subdivision and sale, potentially leading to a further decline in interest in land plots. Land prices will also be adjusted downwards, especially for larger plots. However, in the long term, land prices may continue to rise and transactions will resume. This is because real estate prices also depend on other factors such as infrastructure development, economic growth, and people's incomes.

"The mindset of 'every inch of land is worth its weight in gold' means that the demand for owning land and accumulating assets among Vietnamese people is very high. Therefore, land plots will continue to receive the most attention from consumers in the coming years. Those with stable finances can consider buying land now for accumulation and earning good profits in the years to come," Mr. Tuan further analyzed.

Addressing the question of whether or not to invest in land plots, experts suggest that the land market will see significant changes from the second quarter of this year. Investors using financial leverage should not participate at this time. However, for large investors with strong cash flow, now is the opportune time to seek opportunities.

Townhouses priced over 30 billion VND dominate the Ho Chi Minh City market.

According to Savills Vietnam, in the first quarter of 2024, the supply of new townhouses and villas in Ho Chi Minh City was very limited, with only 42 units. This new supply came from only one project in Thu Duc City, with selling prices around VND 10 billion per unit.

Regarding the reasons for the limited supply over the past three years, experts from Savills Vietnam believe that it is mainly due to legal barriers, leading to the stagnation of new projects.

In the first three months of 2024, the primary supply of townhouses and villas in Ho Chi Minh City reached 762 units, remaining stable quarter-on-quarter but increasing by 13% year-on-year. Products priced above VND 30 billion accounted for 76% of the market share, and 85% of the primary supply was concentrated in Thu Duc City.

Savills Vietnam forecasts that in the remaining three quarters of this year, the supply of townhouses and villas in Ho Chi Minh City will reach approximately 1,149 units, mainly from subsequent phases of existing projects. The majority of future supply will be in the townhouse segment with selling prices exceeding VND 20 billion per unit.

Meanwhile, assessing the market for townhouses and villas in Ho Chi Minh City and its surrounding areas in the first half of this year, DKRA Group believes that market demand remains low, with transactions mainly occurring in the product group priced under 10 billion VND/unit. Ho Chi Minh City and Binh Duong led the market, accounting for over 80% of primary product consumption in the quarter.

According to experts from DKRA Group, the primary market price of townhouses and villas in Ho Chi Minh City and surrounding areas remains high, with average prices ranging from 4.1 to 27.8 billion VND per unit.

Surveys show that the supply of townhouses and villas in Ho Chi Minh City is very limited, driving up house prices. Most developers with available properties at this time want to reposition their products and sell them at higher prices than in previous years. The market has also seen instances of project owners colluding to artificially inflate prices.

For example, the emergence of a super-luxury villa project in Thu Duc City, with a selling price of over 700 billion VND per unit, has significantly increased the price level of neighboring projects. For instance, a project that previously sold for 15-17 billion VND per unit has now risen to 20-25 billion VND per unit.

Most of the properties offered for sale are in the high-end segment and are located along the Han River.

Apartments in Da Nang are expensive.

In late May, the apartment market in Da Nang recorded prices comparable to those in Hanoi, reaching 150 million VND/m2. Most new projects are located in prime, central locations along the Han River.

One project located along the Han River, The Filmore, boasts a price tag exceeding 100 million VND/m2, featuring 206 luxury apartments ranging in size from 48 to 125m2. The project is currently handing over units to customers. A two-bedroom apartment with an area of ​​over 74m2 and a river view is being offered for sale at nearly 11 billion VND, or 145 million VND/m2. A corner three-bedroom apartment with an area of ​​152m2 is priced at 23 billion VND, equivalent to over 150 million VND/m2.

Next to it is The Royal project, which also has exorbitant prices. A 2-bedroom apartment with an area of ​​77m2 costs 10 billion VND, equivalent to 129 million VND/m2.

Additionally, another project on Tran Hung Dao Street spans 8 hectares and comprises 3 towers with over 1,300 apartments, ranging in size from 25.8 to 112 square meters each. The expected selling price is between 65 and 100 million VND.

Another project, Sun Ponte Residence, is also located on Tran Hung Dao Street, about 300m from Dragon Bridge. Depending on the floor level and view, the selling price of apartments here ranges from 65-100 million VND/m2. According to real estate agents, the project was almost sold out within just a few weeks of its launch.

Meanwhile, at the Panoma 1 and Panoma 2 apartment projects located at the foot of Tran Thi Ly Bridge, the price of high-floor apartments with beautiful views is also around 80-100 million VND/m2.

According to the Da Nang City Department of Construction, in the first quarter of 2024, the number of real estate transactions in the city recorded 2,117 apartments and individual houses, an increase of 145% compared to the same period in 2023 and an increase of 103.2% compared to the fourth quarter of 2023.

Ms. Vu Quy Hoi, Head of Sales at Minh Minh Group, said that the apartment market in Da Nang is experiencing good absorption. Some projects have already sold 90% of their units since their launch. Local buyers account for up to 40%.

According to Ms. Hoi, compared to Hanoi and Ho Chi Minh City, the price increase for apartments in Da Nang is not yet significant (7-10%). In addition, low bank interest rates have led many customers with idle funds to choose to buy apartments for living or investment, with the intention of renting them out later, as most apartment projects are located in convenient locations, near rivers, beaches, and in the central tourist areas of Da Nang.

Regarding the continued interest in high-end apartments priced at hundreds of millions of VND, Mr. Vo Hong Thang, Director of Consulting Services and Project Development at DKRA Group, stated that this is due to the persistent scarcity of apartment supply in Da Nang, with only 500 to under 1,000 units released to the market each year. Clean land for project development in the city center and surrounding areas is gradually running out, and land costs remain high.

Furthermore, most of the projects being launched are developed by large, reputable investors with complete legal documentation and rapid construction progress, building trust among buyers. Many preferential sales policies and support measures to stimulate demand are also being implemented.

The permit to build the basement of the Doi Cu Golf Course in Da Lat has been revoked.

On May 29th, the Department of Construction of Lam Dong province issued a decision to revoke the construction permit for the basement inside the Doi Cu Golf Course project in Da Lat, which is owned by Hoang Gia DL Joint Stock Company.

This decision was made by the Department of Construction after determining that the investor had failed to rectify the construction deviations from the permit within the timeframe specified in the violation handling document issued by the authorities.

At the same time, the business is required to return the previously issued construction permit. The deadline for doing so is 5 days, starting from the date the decision to revoke the construction permit is signed.

If the investor of the Doi Cu Golf Course building in Da Lat fails to return the construction permit as required, the authorities will issue a decision to revoke the construction permit.

Accordingly, in 2023, the Department of Construction of Lam Dong province granted a permit to the investor of the project to carry out a portion of the basement of the golf service block at the Doi Cu Golf Course building in Da Lat, covering an area of ​​approximately 2,639m2.

Previously, during an inspection, authorities discovered numerous violations of construction regulations and unauthorized building permits at the Doi Cu Golf Course complex in Da Lat. These violations were documented and penalties were imposed. The investor has now halted construction on the project.

Regarding this project, the Lam Dong Department of Natural Resources and Environment recently determined that approximately 5,629 square meters of protected forest land where the enterprise illegally constructed buildings within the project lacks the necessary basis for land use conversion and will not be converted to commercial or service land.

Therefore, the Department is proposing, and is awaiting the opinion of the Provincial People's Committee, to submit a report to the Provincial People's Council, requesting the adjustment and cancellation of the project to convert 5,629m2 of protected forest land to commercial and service land for the construction of a golf club building.

Source: https://baoquocte.vn/bat-dong-san-moi-nhat-dat-nen-o-giai-doan-diem-lanh-gia-chung-cu-da-nang-cao-ngat-nguong-co-hien-tuong-bat-tay-nhau-day-gia-273347.html