Property

According to the Ministry of Construction, about 80 per cent of real estate exchanges, which are only acting as brokers, will have to close. Only real estate trading platforms belonging to large-scale enterprises with financial potential and directly acting as project investors will continue to operate. Real estate brokerage activities have not won the trust of consumers because non-eligible real estate or real estate projects are still being offered on the market.

The Vietnam Association of Construction Contractors (VACC) and a number of other associations have suggested urgent solutions to allay the difficulties facing construction and real estate businesses affected by Covid-19. Recommendations include extending the time to pay value added taxes; cutting corporate income taxes by 50 per cent; implementing a 0 per cent interest rate on bank loans in service of construction sites and projects that have had to cease construction due to anti-pandemic measures; and deferring payment of land use fees.

Vietnam’s tourism real estate market has been hit hard by Covid-19, with transactions in resort projects almost coming to a standstill. Some hotels are operating with a skeleton staff or have closed, while others have been put up for sale.

The construction of a 15,000-sq m complex in northern Hai Phong city with commercial and entertainment areas, 5-star hotels, and office space is expected to boost the attractiveness of the local business and investment environment. Investment will exceed VND6 trillion ($262.25 million), coming only from investors’ capital, not public capital.

Increasing numbers of people are buying suburban villas as a second home. A number of resort projects in Ba Vi and Soc Son districts in Hanoi and neighboring Hoa Binh province have also seen a growing number of buyers recently.

The Prime Minister has signed Decree No. 69/2021/ND-CP, effective from September 1, on the “Renovation and reconstruction of apartment buildings”, replacing Decree No. 101 from 2015. According to the Ho Chi Minh City Real Estate Association (HoREA), more than 2,000 old apartment buildings around the country that are 50 years of age or older are in need of renovation or reconstruction and the endeavor will be costly.