MARKET SNAPSHOTS WEEK 13/2024
Cocobay Da Nang is applying to convert the building blocks
On March 20th, Da Nang Department of Construction announced a civil dispute between the investor and customers at Cocobay Da Nang project. The investor unilaterally terminated the purchase and sale contract without reporting to the Department of Construction. Currently, it has been approved for detailed planning 1/500 and licensed for construction for Zone 1 (30ha) and Zone 2 (21ha) in Hoa Hai ward, Ngu Hanh Son district. According to Decision No. 593 approving detailed planning adjustments at 1/500 scale issued in 2019, condotel buildings are proposed to be converted by 50% into apartments in HH2, HH3, HH5 and other types of housing such as apartment, villa, duplex villa in HH4, HH6, HH7. Besides, HH1 reduces its height from 50 floors to 40 floors and converted 50% in to apartment. However, from 2022 until now, the investor has not carried out related procedures. Therefore, Decision No. 593 of the People's Committee of Da Nang City in 2019 is determined to be the final decision for the Cocobay Da Nang project.
Ground-breaking ceremony of Mandarin Oriental in Da Nang
On March 20th, Mandarin Oriental began construction in Da Nang and is expected to operate in 2026. The project is constructed by general contractor Coteccons and managed by Mandarin Oriental Hotel Group. It was built on an area of 17.2 hectares including 60 one-bedroom resort villas and 20 three-bedroom villas, designed with a unique architecture combining modernity and antiquity. Mandarin Oriental, Da Nang will provide a luxurious experience with 5-star amenities and attentive service, the project promises to bring safe and sustainable profitable investment opportunities. Mandarin Oriental Group has created super-luxury villas in expensive locations around the world and Mandarin Oriental, Da Nang is one of them.
Ho Chi Minh City re-auctions "golden" land plots in Thu Thiem
On March 21th, Mr. Huynh Thai Ngoc, Deputy Director of the Center for Land Fund Development (Department of Natural Resources and Environment of Ho Chi Minh City), announced the plan to organize selling land plots in Thu Thiem New Urban Area from February 2024. Land plots in functional areas No. 1 and No. 3 will be prioritized for auction first, of which large plot 7-1 will be planned to build a hotel with international standards. In addition, after auctioning the previous 4 land plots, 3 others (3-8, 3-9, 3-12) will also be auctioned again. Ho Chi Minh City also plans to organize an auction of 3,790 apartments in blocks from R1 to R5 in Thu Thiem New Urban Area in 2024. This plan is carefully prepared to create favorable conditions for homeowners. investment in project development.
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Sunshine Sky City is under construction with a plan to top off 3 blocks from mid-April 2024
The Sunshine Sky City complex in District 7 is currently accelerating construction progress, with plans to top out buildings S4 (38 floors), S3 (36 floors), S2 (36 floors) in mid-April, Jun and July 2024. Operations are taking place at an average rate of one floor per week with modern technological machinery systems ensuring design aesthetic standards. While other projects face many legal difficulties, Sunshine Sky City has full transparent legal conditions and is expected to become the most beautiful "stock fund" in the Saigon real estate market with a riverside location, Wide view, ecological space and many high-end amenities such as restaurants, shopping centers, cinemas, swimming pools, 3D Golf Club, and many other amenities.
Dong Nai will start construction on 9,000 social housing units in 2024
On March 21th, the Provincial People's Committee considered implementing social housing projects. There are currently 12 projects with a total of 20,700 units that have been proposed for investment by localities, of which 5 projects with 9,000 units have been approved and the remaining 7 projects are set to start construction in 2025. However, there are still 5 localities that have not submitted investment proposal documents and 2 projects have preliminary approval decisions, but there are no instructions and forms according to Decree No. 23/2024/ND-CP for this type of new project. Chairman of the Provincial People's Committee said that currently the province has more than 1,000 hectares of land for social housing, with 12 projects proposed for investment policies, the total number of apartments is double the target of 10,000 houses. However, legal procedures on bidding, appraisal and investment policy adjustment are slow, affecting implementation progress.
Home loan interest rates dropped sharply, from only 5%/year
Currently, many banks in Vietnam have adjusted home loan interest rates in a downward direction. Agribank reduces home loan interest rates to 6%/year for a maximum loan period of 6 months. Other banks such as HSBC, VietinBank, VietinBank, Wooribank, Shinhan Vietnam, ACB, BVBank, VPBank and TPBank also apply significantly reduced prices. Statistics from the State Bank show that demand for consumer loans, especially home loans is slowing down, contributing to a decrease in credit growth until the end of February 2024. It is necessary to restore consumer credit of any product, thereby providing a signal for the overall growth of the economy. Experts also expect that with current productivity falling, credit for buying and repairing houses can recover, creating favorable conditions for people to buy houses and invest in real estate. However, there is an opinion that even though lending interest rates are low, if people's current loan demand does not exist, real estate credit growth will be difficult. Therefore, there should be credit packages with longer-term lending interest rates thanks to capital support from the State Bank.
Business Development Manager at Indochine Engineering
11 个月It is great to see a positive signal in the real estate market.