VietNam Real Estate Movement 12/2022

Welcome Real Estate Program of the Sen Vang Investment Channel. This is a program to update information on the real estate market. And to start the program, let’s review the main highlights of the past December in the real estate market:

  1. The risk of inflation makes the real estate market vibrant again

Based on the risk of inflation, Associate Professor Vu Sy Cuong (Academy of Finance) said: “In Vietnam, a package of VND 800,000 billion is expected to be pumped to the market in the near future. The sharp increase in production costs combined with the amount of money pouring into the market makes inflation assessed to become the main keyword of the economy in 2022.

In today’s popular investment channels, gold – securities – crypto currencies are erratic (/i’rætik) and difficult to quantify. The foreign currency is also currently volatile because of the risk of global inflation.

In this context, investors will have to withdraw money from banks whose interest rates can never keep pace with inflation and into attractive investment channels such as real estate. This is a lesson that has been proven through many periods of inflation both in Vietnam and the world.

2. Thu Thiem is one of the most expensive land in the world

On December 10, the Property Auction Service Center (Ho Chi Minh City Department of Justice) held an auction of 4 land lots with symbols 3-5, 3-8, 3-9, 3-12 belonging to the functional area No. 3, Northern residential area, Thu Thiem new urban area (Thu Duc city).

Accordingly, land lot 3-5 was successfully sold for 3,820 (three thousand eight hundred twenty billion VND, 6.6 times higher than the starting price. Next, the land lot number 3-8 with an area of ​​8,500 (eight thousand five hundres m2 was also successfully auctioned for 4,000 billion VND, 4 times higher than the starting price. With lots 3-9, the company won the auction with the winning price of 5,026 billion VND, 6.9 times higher than the starting price.

The last lot in the auction (lot 3-12) has the largest area of ​​more than 10,059 square meters. Viet Star Real Estate Co., Ltd won the bid with a successful winning price of 24,500 billion VND, 8.3 times higher than the starting level after 70 matches.

Not only is the price a record high in the country, the figure of 2.45 billion VND (more than 105,000 USD)/m2 also surpasses the land price in many big cities around the world.


3. Despite Covid-19, FDI in Vinh Phuc is expected to increase more than 2.5 times as planned

As of November 2021, there have been 32 new FDI projects granted registration certificates in Vinh Phuc with a total registered capital of nearly 878.8 million USD and 28 capital adjustment projects with a registered capital of 132 million USD. In general, the total newly registered and increased FDI capital in 11 months reached 1.01 billion USD.

With good control of the Covid-19 epidemic, ensuring a safe production – investment – business environment, Vinh Phuc expects FDI capital to continue to increase in the last month of 2021.

Accordingly, the total registered FDI capital for the whole year can reach over $1.1 billion and accumulated by the end of 2021, the province will have 429 valid FDI projects with a total registered investment capital of $7.1 billion.

4. Sungroup was approved to invest in a hot mineral resort urban project of nearly VND 7,000 billion in Thanh Hoa

The People’s Committee of Thanh Hoa province has just issued Decision No. 4832 approving Thanh Hoa Solar Joint Stock Company as the investor to implement the project of a hot mineral resort urban area in Quang Yen commune, Quang Xuong district.

Total project investment is about 6,848.9 (six thousand eight hundred forty eight point night) billion VND. In which, the preliminary total cost of project implementation (excluding the cost of compensation, support and resettlement) is 6,161.4 (six thousand one hundred sixty one point four) billion VND, the cost of compensation, support and resettlement of the project is 687,5 (six thousand eight hundres seven ty five) billion dong.

The project selects investors in the form of bidding according to the provisions of law. The project implementation progress is not more than 4 years, is expected to be started and built from the fourth quarter of 2021 to the fourth quarter of 2025.

5. Quang Nam spends more than 2,000 hectares of land on housing development

Quang Nam Provincial People’s Committee issued Decision of The People Committee No. 3790 approving the housing development plan in the province for the period of 2021 – 2025.

Accordingly, during this period, the whole province developed about 6,389 (six thousand million m2 of residential floors, equivalent to 60,904 houses. In which, commercial housing with about 5,137 million m2 of floor (equivalent to 80.4%); social housing with about 0.686 million m2 of floor space (accounting for 10.7%); Self-built houses with about 0.566 million m2 of floor space (accounting for 8.9%).

The total area of ​​land for housing development in the 2021 – 2025 period is 2,018 ha. The total capital demand for housing development is about 21,192 billion VND, of which commercial housing is about 15,771 billion VND.

6. Bac Giang is looking for investors for a worker housing project of more than 1200 billion VND

The Department of Planning and Investment of Bac Giang province recently announced a list of land-using projects that need to find investors for the project of Van Trung commune workers’ housing project in Trung Dong village, Van Trung commune, Viet Yen district, Bac Giang province. The housing area has an area of ​​6.09 hectares with a total project investment capital of more than VND 1,218.6 billion.

The project’s investment objective is to gradually complete the implementation of the housing development program in Bac Giang province by 2030; Project on development of social housing for workers in Bac Giang province to 2025 and orientation to 2030;…

7. Quang Ninh auctions an urban area with more than 1,300 townhouses and villas

Recently, City. Mong Cai and Quang Ninh Auction Partnership Company announced to organize an auction of land use rights, land lease for 50 years with one-time payment to implement the urban area project on both sides of the road leading to Bac Luan Bridge II (phase one) in Hai Hoa ward on December 31st.

The starting price is more than 840 billion VND with a reservation amount of more than 168 billion VND.

Specifically, the boundary of the auction land is to the east and north, bordering the inter-sectoral control area of ​​Bac Luan Bridge II and other projects within the boundary of the 1/500 detailed planning of urban areas on both sides of the North Bridge road. Wheel II; West and South borders the current residential area.