Hello everyone! You are following the Vietnam Real Estate Movement of the Sen Vang Investment Channel. This is a report to update information on the real estate market. And to start the program, let’s review the main highlights of the past May in the real estate market:
The Government has decided to invest in a series of industrial parks in many localities across the country such as:
Vinh Phuc: Ba Thien Industrial Park – subdivision I with a total area of more than 247 hectares, investment capital of 2,500 billion VND.
In Bac Giang: Viet Han Industrial Park in Viet Yen district, and at the same time adjusted and supplemented the planning to develop a series of industrial parks in Yen Dung, Luc Nam and Lang Giang districts with the scale of each project from 100-300 ha; Quang Chau Industrial Park (Viet Yen district) with an additional area of 90 hectares; Hoa Phu Industrial Park (Hiep Hoa District) with an area increased by 85 hectares.
In Bac Ninh: Gia Binh Industrial Park has a total capital of more than 2,578 billion VND with a scale of 306.69 hectares, and Yen Phong II-A Industrial Park with a scale of 151.27 hectares. Bac Ninh Provincial People’s Committee also issued a decision to establish Gia Binh II industrial park with an area of 250 hectares in Gia Binh district.
In Hanoi: Soc Son clean industrial park, with a land-use area of 302.8 hectares and a total investment capital of nearly 3,227 billion VND.
In Ho Chi Minh City: Proposing to make a zoning plan to build 380.8 ha Pham Van Hai, Binh Thanh district into an industrial park.
According to JLL’s report, industrial land rents increased rapidly in the southern provinces despite the Covid-19. According to Colliers Vietnam, the average occupancy rate and asking price of industrial real estate are still high in Hanoi and Ho Chi Minh city.
Mong Cai city (Quang Ninh province) has just organized to pay compensation for site clearance of the urban area project on both sides of the road leading to Bac Luan bridge II (phase 1).
The urban area project on both sides of the road leading to Bac Luan bridge II (phase 1) has a total of 455 affected households. The total approved compensation for site clearance is 817 billion VND. Previously, in 2020, Mong Cai city paid 311.4 billion VND to 188 households affected by the project. It is known that Mong Cai city is also urgently paying compensation for site clearance for 118 households affected by the project of the urban area south of Bac Luan Bridge II with the total amount according to the approval decision of VND 123,156 billion in 2 days (6th and 7th May).
This is an opinion made by the Ministry of Finance on the afternoon of May 4 on the issue of adjusting tax policies, contributing to improving the efficiency of state management of the real estate.
The Ministry of Finance believes that these collection policies have fully covered the process of formation, ownership, use, and transfer of the real estate. Gradually being perfected to contribute to encouraging organizations and individuals to use real estate effectively. Gradually limiting real estate speculation and wasteful use of land.
Ha Tinh Provincial People’s Committee has just approved the detailed planning project 1/500 to build a logistics centre in Vung Ang economic zone. Accordingly, the logistics centre in Vung Ang Economic Zone has a planning area of 133.32 hectares, located in the Ky Loi commune. According to the proposal, the planning site has a total usable area of 133.32 ha; the Total estimated cost is about 1,393 billion VND. In which, the cost of compensation for site clearance is 453 billion VND, the cost of infrastructure investment is 940 billion VND.
By the end of March 2021, real estate credit increased by 3% compared to the end of 2020, equivalent to the overall credit growth of the economy.
1.85 quadrillion VND is the outstanding balance being lent by banks to the real estate sector. Capital for investment and real estate business has been squeezed harder in the last 4 years. Credit growth slowed from 26.7% in 2018 to 11.8% at the end of 2020.
Through monitoring and supervision, the State Bank said that the real estate credit growth rate in the first 3 months of the year did not have a sudden change. However, the State Bank affirmed that it will continue to require credit institutions to closely monitor cash flows and conduct post-landing checks on investments in this field.
Accordingly, the list of land use right auction projects in 2021 in Thanh Hoa province has 864 projects with a total planned land area of 1,676.2 ha, and the total land area for auction is 748.23 ha.
The total land use fee is expected to be 14,726.6 billion VND, of which the total land use fee after deducting costs for site clearance and technical infrastructure is 8,920.5 billion VND.
Specifically, Thanh Hoa city has 50 projects approved for land use right auction, including 18 transitional projects and 32 new projects. The total area of land for auction is 54.3ha, expected to collect more than 2,553 billion VND of land use fee.
Many real estate hotspots have cooled down because of the return of Covid-19: Batdongsan.com.vn reports that the Covid-19 pandemic is affecting the demand for real estate search and transactions. Specifically:
Hoa Lac land has cooled down: Hoa Lac land price is now much higher than 3 years ago. However, after the land fever at the beginning of the year, Hoa Lac land also followed the trend of cooling down when investment delegations went to see the land gradually fade away.
Land transactions in Bac Ninh dropped sharply because of Covid: In the districts where the area is blocked, the price is still kept, no loss or sell-off has been recorded, but the market has almost no transactions in recent times.
Dong Nai approves new urban planning of more than 1,900 ha: Dong Nai Provincial People’s Committee has just approved the task of zoning planning at the scale of 1/2000, subdivision 4 according to the adjustment of the general planning of Nhon Trach new urban area to 2035 and the vision looking to 2050. According to the approved decision, planning subdivision 4, Nhon Trach’s new urban area has more than 1,900 ha, located in Phu Hoi, Phuoc Thien, Long Tho communes, and Hiep Phuoc town.
Proposed elevated road No. 5 in Ho Chi Minh city: elevated road No. 5 has a length of 34km, coincides with Ring Road 2 (National Highway 1) from Station 2 intersection (Thu Duc City) to an intersection. Lac (Binh Tan district). The cross-sectional scale of the route is 31.5m.
Construction of an industrial park of 600 ha in Lang Son: Huu Lung Industrial Park has an area of nearly 600 ha for research and planning, belonging to the administrative boundaries of Hoa Thang commune and Ho Son commune, Huu Lung district.
HCM City auctions the right to use 4 land plots in Thu Thiem urban area: The People’s Committee of Ho Chi Minh City has just decided to approve the auction of land use rights of 4 land plots in the functional area No. 3 in Thu Thiem new urban area. Those are land lots with symbols 3-5, 3-8, 3-9 and 3-12.
Cheap houses on the bustling secondary market
Despite the pandemic, the price of private houses in the suburbs has increased steadily: In the last 4 years, the ready-built house segment has experienced a fairly stable price increase, about more than 10% per year. Due to the demand for real people, even during the pandemic, this segment still attracts customers.
Investors are still “hunting” for real estate amid the Covid-19: According to the actual research of Batdongsan.com.vn, many project opening activities took place in late April and early May. very positive signal.
Land price increase galloping forces investors to leave the city to go country for hunting land: According to a survey by Batdongsan.com.vn, land in the suburbs of Hanoi offered for sale at the same price as developed areas in the inner-city districts of the capital with prices up to 70-90 million VND/m2. This makes people in big cities like Hanoi flock to their hometowns to buy investment land.
Commencement of Dien Chau – Bai Vot expressway: Dien Chau – Bai Vot expressway project connecting Nghe An – Ha Tinh with a total investment of 11,150 billion VND has just been started in Thanh Binh Thinh commune, Duc Tho district, Ha Tinh province. Completion is expected by the end of 2024.
Increase investment capital of Ho Chi Minh City – Moc Bai expressway by 2,286 billion VND: According to the report, the total project investment is 15,900 billion VND, an increase of nearly 5,200 billion VND compared to the announcement in 2019 (10,700 billion VND) and an increase of 2,286 billion VND compared to the recent estimate (13,614 billion VND).
Building a road of more than 3,780 billion VND connecting Thai Nguyen – Bac Giang – Vinh Phuc: On May 19, the Provincial People’s Council delegates approved the decision on investment policy in the project of connecting roads and connecting Thai Nguyen and Bac Giang provinces. and Vinh Phuc. The project has a total investment capital of more than 3,780 billion VND.
Ho Chi Minh city: Proposal to build an elevated road from Cong Hoa – Nguyen Van Linh: According to the proposal, the whole route has a length of 14.1km, a width of 30m, the elevated road section has 4 lanes of 16m. The alignment is: Along Cong Hoa – Nguyen Van Linh road with an estimated total investment of about 30,000 billion VND.
The news just ended the Vietnam Real Estate Movement May 2021. Thank you for your attention. Please Like and Subscribe to be able to update the latest information from us. Goodbye and see you again in the next report of the Golden Lotus Investment Channel. Hope you have a good working week.