Foreign capital flows actively into real estate; 3-star hotel supply gradually disappears in Hanoi

Nearly 1,400 real estate businesses have entered the market; Ho Chi Minh City has transferred the Phan Dinh Phung stadium project to public investment; Chuong My district is about to auction 34 plots of land, with starting prices from 5.4 million VND/m2...

Foreign capital flows actively into real estate

According to the General Statistics Office, as of April 20, the total registered foreign investment (FDI) capital in Vietnam, including newly registered capital, adjusted registration capital and capital contribution to buy shares, reached nearly 9.27 billion USD, an increase of 4.5% over the same period in 2023.

Many foreign real estate businesses are actively investing in Vietnam. Photo: Le Toan

The registered capital for 966 projects alone reached 7.11 billion USD, an increase of nearly 29% in the number of projects and more than 83% in value. Of which, the real estate industry ranked second with a registered capital of about 1.6 billion USD, an increase of nearly 4 times compared to the same period last year.

According to the Ministry of Planning and Investment , over the past 35 years, 66.4 billion USD of foreign capital has been poured into about 1,100 real estate projects in Vietnam. Among them, the most active investing countries are Singapore, South Korea, Japan, etc.

Nearly 1,400 real estate businesses enter the market

According to the General Statistics Office, in the first 4 months of this year, the whole country had 1,376 newly registered real estate enterprises, down about 1.3% compared to the same period in 2023. The number of enterprises returning to operation was about 1,302, up about 22% over the same period.

Meanwhile, the number of enterprises temporarily suspended for a period of time reached 2,766, an increase of about 30% compared to the same period last year. The number of enterprises that completed dissolution was 410, a decrease of about 10% compared to the same period last year.

According to brokers, many small real estate businesses have temporarily suspended operations in February 2024 because this is the Tet holiday period, with almost no trading activities. This is the reason why the number of businesses temporarily suspending operations has increased.

The Vietnam Association of Realtors (VARS) said that the real estate market is showing signs of recovery as investors are ready to "release" their products. Since the end of the first quarter of 2024, many businesses have started to implement many kick-off events to "heat up" the market, and some projects with good progress have officially received deposits.

3-star hotel supply gradually disappears in Hanoi

According to Savills, in the first quarter of 2024, hotel supply recorded 67 projects with 11,120 rooms, down 1% quarter-on-quarter.

Regarding the above figures, Mr. Matthew Powell, Director of Savills Hanoi, commented that the hotel segment is shifting towards 4-5 star category. This shows that market demand is increasingly focusing on high-class accommodation experiences with full amenities.

“It is expected that 9 5-star projects will account for 76% of the future supply market share and 4-star projects will account for 24%. Notably, no 3-star projects will come into operation in Hanoi in the next 3 years,” said Mr. Matthew Powell.

Over the past year, many 5-star hotels in the capital have reopened, such as Movenpick, Hilton and Fusion. In addition, the market has also recorded a number of other high-end projects such as L7 Westlake, Dusit Tu Hoa Palace, The Ritz Carlton, Four Seasons, Waldorf Astoria Hanoi and Fairmont.

Ho Chi Minh City transfers Phan Dinh Phung stadium project to public investment

The Phan Dinh Phung Stadium project has been agreed by Ho Chi Minh City leaders to stop implementation under the BT (build-transfer) form and switch to public investment.

Perspective of Phan Dinh Phung stadium project.

The above information is stated in the conclusion announcement of Chairman of Ho Chi Minh City People's Committee Phan Van Mai on the project to build Phan Dinh Phung Sports Center at 8 Vo Van Tan Street, District 3. The investor of this project is Phat Dat Real Estate Development Joint Stock Company.

The Phan Dinh Phung Stadium project was approved by the management agency for investment in the form of BT (build - transfer) since 2008 and implemented in March 2010.

Initially, the project had an investment of VND988 billion. However, by 2016, the project investment capital had increased to VND1,953 billion. Then, construction activities stopped in 2017. At that time, the investor only constructed test piles and static pile tests.

Currently, the Department of Planning and Investment is consulting the Ho Chi Minh City People's Committee on capital sources, capital balance capabilities and capital allocation for the project in the period of 2021 - 2025. The agencies said they will strive to complete investment procedures, start the project before April 30, 2025 and make this stadium a typical project to celebrate the 50th anniversary of national reunification.

Long An was transferred nearly 58 hectares of rice fields to build residential areas and industrial clusters.

Deputy Prime Minister Tran Hong Ha has just issued two decisions approving the People's Committee of Long An province to convert rice-growing land to non-agricultural land to carry out residential and industrial cluster projects in the area.

Specifically, Long An province is allowed to convert 14.8 hectares of rice fields in Can Giuoc district into Long Hau 3 residential and resettlement area. This project has a total scale of 19.1 hectares, of which residential land accounts for about 45%.

In addition, 43 hectares of rice fields in Duc Hoa district will be converted to implement the Tan Phu industrial cluster project. This industrial cluster has a total area of 50 hectares. This is one of 18 industrial clusters that have been put into operation and will be newly established in Duc Hoa district, Long An by 2030.

Thus, a total of about 57.8 hectares of rice-growing land will be converted to carry out the above two projects.

Thanh Hoa is about to have two more industrial parks.

Recently, the People's Committee of Thanh Hoa province has approved the 1/2000 construction zoning plan for Tuong Linh Industrial Park, Nong Cong district, with a scale of 350 hectares. The project has one side adjacent to Provincial Road 525, the other side adjacent to the road from Tho Xuan airport to Nghi Son Economic Zone.

The province aims to develop this industrial park as a place that prioritizes projects using high technology, assembling electronic components, telecommunications, and information technology. The project's workforce is about 15,300 people.

In addition, Thanh Hoa also asked for opinions from ministries and branches on the 1/2000 scale construction zoning plan for Giang Quang Thinh Industrial Park, Thieu Hoa District, with a scale of 350 hectares. The project is oriented to become a multi-industry industrial park, applying high technology, prioritizing the electronics industry. The labor scale of this industrial park is 30,000 people.

Thanh Hoa province said the establishment of this industrial park is to connect with Nghi Son economic zone and other industrial parks, thereby attracting and serving the needs of investors.

Chuong My district is about to auction 34 plots of land, starting price from 5.4 million VND/m2

Bao Phong Joint Stock Auction Company has just announced the auction of 34 plots of land at the Van Son Lake Golf Course resettlement area project, Hoang Van Thu Commune, Chuong My District, Hanoi City. The plots of land have an area of 167.2 - 706.2 m2, with starting prices ranging from 5.49 - 7.94 million VND/m2.

The auction is held in the form of direct secret ballot. The deadline for receiving auction documents is 5:00 p.m. on May 15. The units receiving the documents are the Chuong My District Land Fund Development Center and Bao Phong Joint Stock Auction Company.

The auction will be held at 9:00 a.m. on May 18 at the hall of the People's Committee of Chuong My district.

Source: https://baodautu.vn/batdongsan/dong-von-ngoai-tich-cuc-chay-vao-bat-dong-san-nguon-cung-khach-san-3-sao-dan-bien-mat-o-ha-noi-d214368.html