Property

Though new supply is limited, the absorption rate in the real estate market has been low since the beginning of 2020, at only some 35 per cent; the lowest level in five years.

Urban resort real estate became more popular in the first seven months of 2021 as other real estate segments lost some of their appeal during the pandemic. Dr. Tran Nguyen Minh Hai, a real estate specialist from the Banking University, pointed out that there are three reasons the sector will still boast potential over the next five years. The pandemic has resulted in rising demand for healthcare resorts, customers have lost interest in traditional forms of tourism during the pandemic, and the recent falls in the stock market have made investors view resort real estate as a safer investment channel.

Apartment prices in Hanoi are predicted to increase in the time to come due to a range of factors, such as land prices remaining high after a bout of “land fever”, land price brackets being increased by 15 per cent, construction materials and construction investment costs both rising by about 50 per cent, and project approval procedures taking longer due to legal obstacles, leading to higher costs and greater opportunity cost. Primary sales prices for apartments over the next two years may increase 4-6 per cent.

The real estate sector accounted for the second-largest proportion of bond issuances in the second quarter, with 21.2 per cent, totaling VND28.49 trillion ($1.23 billion), up 72.8 per cent compared to the previous quarter. The sector paid the highest interest rate, at up to 7.37 per cent.

The Office of the Government released a conclusion from Deputy Prime Minister Le Van Thanh at a meeting on developing a draft decree regulating sea encroachment. The conclusion emphasized paying due regard to feasibility when determining land use fees, and land rents, while ensuring there is no loss to the State budget and that measures are not contrary to laws and regulations.

The Van Don District People’s Committee in the northern province of Quang Ninh will adjust policies for many residential investment projects within the medium-term public investment plan for the 2021-2025 period. It suggested adjusting planning for existing residential projects, approved new projects in 2021, and added a medium-term public investment portfolio for the 2021-2025 period.