Viet Nam Real Estate Report 2/2022

This is the real estate movement program of Sen Vang investment channel. Today, we will present the latest information of the real estate market. And to start the program, let’s review the main highlights of the real estate market in February.

1, Tourism recovery – leverage for the resort market

Savills experts in Vietnam mentioned that the freedom of commuting had helped the domestic market to heat up again. Along with that, the opening of international routes in March will be a opportunity to Vietnamese tourism market.

Vietnamese Savills company said that after 2 years of “freezing”, the tourism industry has been recently showing many positive signs of recovery, especially when there is an order to ease social distancing from October/2021.

However, the recovery of the tourism industry becomes the most obvious when entering the early day of 2022.

According to the National Administration of Tourism, the 9 days of the 2022 Lunar New Year holiday welcomed and served 6.1 million domestic tourists and earned an estimated revenue of more than 25 trillion VND.


2, Many real estate investors are heading back to the Central region

Based on the overview of Hue – Da Nang – Quang Nam real estate market in 2021 by DKRA Vietnam Joint Stock Company (DKRA VietNam), in 2021, the resort real estate segment in the regional real estate market continued declining. However, the market for townhouses, villas and land plots continued to have a positive movement. This is considered a signal for 2022, it is forecasted that the market can recover in segments such as apartments, townhouses, villas, and resort real estate.

Based on the actual research, Mr. Vo Hong Thang – Head of R&D Department of DKRA Vietnam said that, after a quiet period due to the impact of the Covid-19 epidemic from the end of 2021 to the beginning of 2022, there are some signs showing the beginning of the beginning. A new period appeared in the real estate market of Hue – Da Nang – Quang Nam. Many investors across the country are turning to the central region.

3, Intense competition in industrial real estate

According to the CR and HHI indexes (basic indicators to assess the concentration of the market, including market share, the level of market accumulation), the structure of the real estate market in the South and the North has great similarities, but the competition in the South is extremely high.

Specifically, the Northern market has a CR1 index (Hai Ha Industrial Park, Quang Ninh) below 10%, while the CR3 index (3 leading industrial zones are Hai Ha, Dam Nha Mac and Ly Thuong Kiet) is nearly 3 times lower than the threshold of 65%. In addition, the CR5 index (including Hai Ha, Dam Nha Mac, Ly Thuong Kiet, Deep C and Nam Dinh Vu industrial zones) is only approximately 22%. These indicators show that the Northern industrial real estate market has no industrial zone with a dominant position in terms of area size in the market.


Meanwhile, the southern region is having a very high level of competition. The largest industrial park (Nam Can Industrial Park) also accounts for less than 10% of the supply in the market, while the top 3 industrial parks accounted for about 10% and the top 5 accounted for 20%. Therefore, the Department of Competition and Consumer Protection assessed that the industrial real estate market in the South is extremely competitive, there is no business dominating the market and the market share is distributed fairly evenly between industrial zones.


4, Foreign investors identified Vietnam as a key real estate market in the Asia-Pacific region

According to Mr. Alex Crane, Vietnam is a booming real estate market in Southeast Asia with a lot of growth potential in the long term compared to other Asian countries. After two years of being affected by the pandemic, the reopening of markets and loosening of borders are creating a wave of investment in Vietnam. Many investors in the Asia-Pacific region look forward to coming back and investing in Vietnam, they trust the economic development plan launched by the Government of Vietnam, as well as the rescue packages and stimulus. After the Tet holiday this year alone, foreign capital poured into Vietnam has been 3-4 times higher than the same period last year. One of the biggest deals is Viva Land buying a part of Capital Place building in Hanoi. Similar before the epidemic was the acquisition of the Kumho building. There will even be deals in the near future.



5, Foreign money poured into real estate increased sharply

According to data released by the Foreign Investment Agency (Ministry of Planning and Investment), from the beginning of the year to February 20, the total foreign direct investment (FDI) into Vietnam, including registered capital, new, adjusted capital and capital contribution to buy shares, purchase of contributed capital reached nearly 5 billion USD, equal to 91.5% over the same period in 2021.

Total newly registered FDI capital from the beginning of the year to February 20, 2022 reached 631.8 million USD with 183 projects granted investment registration certificates, down 80.9% in total capital but up to 45.2 % of projects over the same period in 2021.


6, The 4-minute clip of 10 plots of land is a staging, a trick to warm up the market

On February 22, a representative of the People’s Committee of Loc Khanh commune (Loc Ninh district, Binh Phuoc province) said that the gathering to buy and sell land in the locality has happened in recent months. The Commune People’s Committee propose people down to supervise on weekends. When the local government came in to handle it, many people ran away. About the viral clip, in just 4 minutes, more than 10 plots of land were deposited by customers, the People’s Committee of Loc Khanh Commune said it was just a staging.


According to Mr. Tran Quang Vinh – Chairman of Loc Khanh People’s Committee, this land is not a commercial housing project. The announcement that the land is a housing project is false information, Loc Khanh does not have a housing project or a residential project. There is no legal basis for the sale of project land.


7, Vietnamese people have the highest demand for real estate ownership in the region

According to the report “Vietnam real estate consumer sentiment in 2022” first published by this morning (February 24), the demand for real estate ownership of Vietnamese people is very high, especially after the Covid-19 pandemic. People with higher incomes have more real estate.

Assessing the domestic real estate market, 52% of people surveyed thought that prices were too high, but 72% said there was a need to buy and real estate prices had decreased due to Covid-19. 89% expect real estate prices to continue to increase in the next 5 years. This is also the reason that many Vietnamese people tend and like to invest in real estate.


The survey also shows that 80% of the participants own at least 1 real estate. Residential purposes account for the majority (70%), the rest is for investment and other purposes… People with incomes from 20-40 million VND/month own at least 1 real estate; If you have an income of 70-100 million VND/month, then 2 or more real estates (accounting for 73% of the surveyed), income over 100 million VND/month, you usually own 3 or more properties on average.


The survey also shows that the real estate demand of Vietnamese people is always high, after the Covid-19 pandemic, it increased by 60%-300%. The number of respondents intends to buy primary real estate, houses around where they live; 56% own 1-2 years and ¾ intend to buy more once they own a property.


8, Industrial urban area in Bac Giang receives 1 billion USD of investment

A Memorandum of Understanding on investment cooperation between CapitaLand Development (CLD – under CapitaLand Group) and the People’s Committee of Bac Giang province has just been signed with the goal of promoting the development of the first urban – industrial – logistics project in Vietnam. , with a total committed investment value of 1 billion USD…


The cooperation agreement will set the direction for CLD’s first urban – industrial – logistics project in Vietnam. Project for eco-industrial park, modern logistics area and smart urban area with a scale of over 400 hectares (including urban area project along Song Cau and neighboring industrial – logistics zone in Viet Yen district) will be a synergistic factor in the formation of a flexible supply chain network for the northern key economic region. The project is expected to create job opportunities for more than 20,000 local workers, making an important contribution to improving the lives of people in Bac Giang province.

The whole project and construction works are design-oriented according to the LEED certificates of the US Green Building Council. These certifications will reinforce CLD’s efforts in creating sustainable living spaces and contribute to reducing carbon emissions.


9, Many new policies on real estate and construction

At the moment, many decrees guiding the implementation of amendments and supplements to business support mechanisms, administrative sanctions related to real estate (real estate) and construction have come into force, which are expected to be effective. remove difficulties to help the market recover.


10, Compulsory application of contract form in real estate business

On January 6, 2022, Deputy Prime Minister Le Van Thanh signed and promulgated Decree No. 02/2022/ND-CP, effective from March 1, 2022 detailing the implementation of a number of articles of the Law. Real estate business, including: Contents of conditions of organizations and individuals doing real estate business; type of real estate business model contract; transfer of lease-purchase contracts for existing houses and construction works; transfer of contracts for sale, purchase and lease-purchase of houses to be formed in the future; procedures for transferring all or part of a real estate project.

Decree 02 with many innovative points will positively affect the operation of the real estate market, which clearly and more detailed regulations on a number of conditions as well as investor responsibilities when participating in business investment. , such as: Officially abolishing the regulation on legal capital for real estate businesses, adding regulations on the level of equity of real estate projects based on the scale of land use (not less than 20% of the total investment capital). in projects using less than 20 hectares of land, 15% of the total investment capital in projects using land of 20 hectares or more) as well as how to determine this level of equity.

Decree No. 15/2022/ND-CP stipulating tax exemption and reduction policies according to Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the Economic Recovery and Development Program – effective from February 1, 2022, is expected to reduce value-added tax with a total amount of about VND 49,400 billion and VND 2,000 billion, minus expenses for support and sponsorship of businesses and organizations for activities to prevent and control the Covid-19 epidemic. Accordingly, real estate investment and business enterprises in the group of goods and services are entitled to a tax reduction from 10% to 8%.


Decree No. 16/2022/ND-CP, effective from January 28, 2022, stipulating penalties for administrative violations in construction, in which the real estate business sector increases the maximum fine of 1 billion VND with a number of violations of the investor related to the transfer of the whole or a part of the project in violation of the order and procedures; mobilize capital improperly; handing over houses and construction works to customers when the investment in housing construction or construction has not been completed or the works are put into operation and use when the connection with the general infrastructure of the area is not yet guaranteed. ..