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| In the third quarter of 2023, the whole country has about 16 tourism and resort real estate projects for sale, providing about 970 products to the market, double that of the previous quarter. (Illustration photo) |
Illiquid resort segment
The recent real estate market report of the Vietnam Association of Realtors (VARS) shows that in the third quarter, the whole country had about 16 tourism and resort real estate projects for sale, supplying about 970 products to the market, double the previous quarter, but only 20% compared to the same period last year. The supply is mainly concentrated in the Central and Southern regions.
In addition to the slow improvement in supply, market demand for this segment is also low, leading to an absorption rate of only 1/10 of the same period in 2022 when it reached 23%, equivalent to 225 transactions.
With the inventory, mainly resort villas with high prices, it is difficult to liquidate. Most of the resort real estate inventory has remained "inactive" throughout the past time.
In the third quarter of this year, the selling price of this segment continued to trend sideways, without much fluctuation. Investors applied incentive programs, discounts, and interest rate support to stimulate demand.
The reporting unit forecasts that in the coming time, transactions will improve but the quantity will not be much and there will be differentiation between product lines. Condotel transactions are expected to have the highest increase because the primary supply of this segment has returned after a long absence from the market.
According to real estate company DKRA, in the third quarter, the country had 3 resort villa projects opening for sale in the next phase, with a consumption rate of 10%. A total of 81 units were added to the new supply, although slightly increased compared to the second quarter, but still at a low level, down 93% compared to the same period in 2022.
DKRA commented that investors are still quite cautious in bringing products to the market, thereby causing supply to continue to maintain a downward trend from the end of the second quarter of 2022 until now.
Continuing the gloomy trend, demand in the third quarter remained low when the new consumption recorded 8 units, equivalent to 2% compared to the same period last year. In general, the sales speed in new projects was quite slow, most transactions were concentrated in products priced under 10 billion VND/unit.
Regarding the market in the third quarter of this year, the Ministry of Construction said that resort real estate is a segment with high expectations but also great disappointment. In July and August this year, the number of newly opened resort real estate transactions was very limited.
Industrial real estate growth is hot
The strong wave of foreign investment flowing into Vietnam has led to an explosion in demand for housing for experts and commercial and service infrastructure for industrial parks, leading to hot growth in the industrial real estate segment.
According to the Vietnam Real Estate Association, the real estate market in 2023 is full of difficulties, but the two segments of social housing and industrial real estate have hardly cooled down, demand is always many times higher than supply. The market is witnessing a wave of international businesses moving to many countries in Southeast Asia, especially Vietnam.
The labor market, large land fund combined with inter-provincial transport infrastructure invested by the Government will create momentum for the development of industrial real estate. Therefore, the services following industrial real estate from accommodation, food and beverage, household shopping, sports fields, shops, markets, etc. are increasingly diverse, small-scale establishments or small retail businesses all have the opportunity to develop.
Mr. Nguyen Van Khoi - Chairman of Vietnam Real Estate Association commented: "From the second quarter to the third quarter of 2024, the real estate market will officially enter the recovery cycle, projects will be implemented more strongly, creating a large supply for the market. In which, social housing and industrial real estate are still dominant".
Sharing at the Vietnam Industrial Real Estate Forum held in Ho Chi Minh City at the end of October 2023, the Ministry of Planning & Investment also said that from the beginning of 2023 until now, the amount of FDI capital has continued to increase, causing the demand for industrial park real estate to grow positively.
In 2023, Vietnam will have 397 industrial parks established with a total land area of 122,900 hectares. Of which, 292 industrial parks are in operation with a total land area of over 87,100 hectares; 106 other industrial parks are under construction with a total land area of 35,700 hectares.
Industrial parks nationwide have an occupancy rate of over 80%, of which the key northern provinces reach 83% and the key southern provinces reach 91%.
The Northern Key Economic Zone recorded 68 industrial park projects with a leased land area of 12,000 hectares. Land rental prices increased by 30% year-on-year, reaching an average of 138 USD/m2/lease period.
The purchasing power of industrial real estate has not cooled down despite the difficult market, showing the sustainable potential of this segment. Notably, according to market surveys by many sales units, in addition to industrial park infrastructure, auxiliary real estate products and logistics for industrial parks are increasingly favored by investors.
Binh Dinh auctions and bids for many large-scale projects
According to the Binh Dinh Department of Planning and Investment, the province plans to find investors for 9 projects through bidding and prepare auctions for 21 investment projects using land in 2023.
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| Many projects are attracting investment in Nhon Hoi Economic Zone, Binh Dinh. (Photo: Dung Nhan) |
Regarding auction projects, the province has 14 projects outside the economic zone and 7 projects in Nhon Hoi economic zone. The largest project outside the economic zone is the Construction of housing and commercial services at the Southwest Land of Long Van Bridge, Tran Quang Dieu Ward, Quy Nhon City, with an area of nearly 9 hectares.
Some other projects include the construction of a new Phu Dong Bus Station in Phu My District (nearly 2 hectares), the construction of a vocational training center and the supply of labor to go abroad in Long Van Urban Area, Quy Nhon City (more than 2 hectares)...
In Nhon Hoi economic zone, many projects will be auctioned for land use rights such as Eo Gio Eco-tourism Area (over 10 hectares), Golf Academy Resort Villa Area (nearly 20 hectares), Project at Point 2 (2-1) Nhon Ly - Cat Tien Beach Tourism Area (over 28 hectares), Project at Point 2 (2-2) Nhon Ly - Cat Tien Beach Tourism Area (over 40 hectares), Project of Southwest Urban Area of Nhon Ly Commune (over 20 hectares)...
For projects preparing for bidding, the Night Paradise Nhon Hoi entertainment area, with an area of nearly 8 hectares, is proposed to continue to announce the project list for the second time this November. Previously, this project was announced on the national bidding network, with 1 investor registered but did not meet the preliminary requirements on capacity and experience.
Some other notable projects will be organized for bidding such as Tan Thanh Tourist Area (nearly 40ha), Tuong Van 2 Urban Area - Quy Nhon City (over 42ha), N4A Road Residential Area extended to the East of Area B of Project 1, An Nhon Town (over 10.5ha)...
In particular, Binh Dinh will bid for the project of investing in a high-tech agricultural zone to develop shrimp in My Thanh commune, Phu My district with an area of nearly 229 hectares. The project has been announced to invite investors, and the project list information has been posted on the National Bidding Network System. The registration period for project implementation is until November 6.
Regulations on basis of land use fee calculation
Article 5 of Decree 45/2014/ND-CP clearly stipulates the basis for calculating land use fees.
Specifically as follows, for households and individuals:
Converting from garden land, pond land in the same plot of land with a house in a residential area that is not recognized as residential land according to the provisions of Clause 6, Article 103 of the Land Law to residential land; converting from land that originated as garden land, pond land attached to a house but the land user separated it to transfer the right or the surveying unit when measuring and drawing the cadastral map before July 1, 2004 measured and separated it into separate plots to residential land, the land use fee shall be collected at 50% of the difference between the land use fee calculated according to the residential land price and the land use fee calculated according to the agricultural land price at the time of the decision to change the purpose by the competent state agency.
When converting agricultural land allocated by the State without collecting land use fees to residential land, the land use fee shall be collected at the difference between the land use fee calculated based on residential land price and the land use fee calculated based on agricultural land price at the time of the decision to change the purpose of the competent state agency.
Thus, the land use fee to be paid when changing the land use purpose from garden land, pond land in the same plot of land with a house in a residential area that is not recognized as residential land to residential land, the fee to be paid is equal to:
50% x (land use fee calculated based on residential land price - land use fee calculated based on agricultural land price).
Pursuant to Article 7 of Decree 10/2022/ND-CP, the price for calculating registration fees for real estate is stipulated as follows:
The price for calculating registration fee for land is the land price in the land price list issued by the People's Committee of the province or centrally-run city according to the provisions of the law on land at the time of registration fee declaration.
In case the land is leased from the State in the form of one-time land rent payment for the entire lease term, and the land lease term is shorter than the term of the land type specified in the land price list issued by the People's Committee of the province or centrally-run city, the land price of the land lease term for calculating the registration fee is determined as follows:
Land price of land lease term for registration fee calculation = Land price in Land price list x Land lease term.
Accordingly, the price for calculating registration fees for land is the land price in the Land Price List issued by the People's Committee of the province or centrally-run city according to the provisions of the law on land at the time of registration fee declaration.
In case the land is leased from the State in the form of one-time land rent payment for the entire lease term, and the land lease term is shorter than the term of the land type specified in the Land Price List issued by the People's Committee of the province or centrally-run city, the land price of the land lease term for calculating the registration fee is determined as follows:
The price for calculating land registration fee is calculated = Land price in Land price list x Land lease term.
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