Want to be in the loop?
subscribe to
our notification
Business News
NEW DECREE TO RAISE INVESTOR CONFIDENCE IN LEISURE PROPERTY MARKET
A new government decree is expected to help remove difficulties for the domestic leisure property market, which is experiencing a 10-year low in demand, experts have said.
Decree No. 10/2023/ND-CP on amending and supplementing some articles of the decree guiding the implementation of the Land Law has come into force from May 20, 2023.
The tightening of real estate loans and high-interest rates are among the roadblocks to the market. Meanwhile, the channel for mobilizing investment capital through corporate bonds has yet to revitalize.
Real estate consulting company DKRA said the policies rolled out in the first months of this year aiming to untangle knots in the real estate market have failed to address liquidity-related issues.
“Vietnam experienced remarkable growth in the past ten years with international travelers increasing by 16.9% per year between 2009 and 2019," said Mauro Gasparotti, Director of Savills Hotels APAC.
“High demand boosted confidence in the sector, with a strong development pipeline. On average, about 10,000 rooms entered the market each year between 2017 and 2019,” Mauro said. “This strong growth was interrupted by the pandemic, and it will take time to recreate the necessary momentum to reach pre-pandemic levels. Given the strong pipeline, even pre-pandemic, Vietnam needed 20% to 30% growth in annual demand to keep pace with new openings.”
The main bottleneck lies in the issuance of ownership certificates for condotels, shophouses, and resort villas, as well as the determination of ownership rights and duration, among others.
Under Decree No. 10/2023/ND-CP, buyers of condotels, officetels, and resort villas have ownership certificates from May 20.
The ownership term of the condotel depends on the purpose of land use following current regulations but not exceeding 50 years of the ownership term for land allocated or leased by the State for commercial or service use.
Buyers may only own land and apartments during the remaining land use period, not for long-term use as residential land.
For many years, resort real estate development has been seen as a way to develop tourism infrastructure to achieve the goals of the Vietnam Tourism Development Strategy.
According to this strategy, Vietnam targets to become an attractive tourist destination by 2030 and in the world's top 30 countries in terms of tourism competitiveness.
The General Statistics Office reported that Vietnam's tourism industry recorded a strong recovery with a year-on-year 19-fold increase in foreign tourists to 3.7 million in the first four months of 2023.
The strong growth of the tourism industry in the first four months will revive the resort real estate market after two years of losses due to the COVID-19 pandemic and the return on rental income will bring confidence back to investors.
Source: VIR
Related News
DIGITAL TRANSFORMATION IN LOGISTICS – A KEY TO UNLOCKING SUSTAINABLE E-COMMERCE AND ECONOMIC DEVELOPMENT
Accelerating digital transformation in logistics is critical in order to promote the sustainable development of e-commerce, a conference on applying technology held by the Ministry of Industry and Trade heard on Thursday, as well as accelerating overall economic growth.
SOILBUILD EXTENDS ITS HORIZONS INTO VIETNAM INDUSTRIAL REAL ESTATE
Soilbuild Group, an integrated real estate group, has broadened its investment in industrial real estate to Vietnam through its Soilbuild International division. The official launch of Soilbuild International (Vietnam) took place in Hanoi on May 9th, 2024, and was attended by esteemed guests, including domestic and international partners.
SEMINAR: BUSINESS SPOTLIGHT - THE HONG KONG-INSPIRED PRESENCE NESTLED IN THE HEART OF HANOI'S EAST
16h00 - 18h00, Wednesday (May 22nd, 2024)Almaz Convention Center - Hanoi (GG map: https://maps.app.goo.gl/YtWyGgkiTwWvFnfX6)
VIETNAM SECURES REMARKABLE ECONOMIC SUCCESSES SINCE NATIONAL REUNIFICATION
Since the national reunification on April 30, 1975, Vietnam has obtained admirable economic achievements and is now on its way to become the 20th largest economy in the world. Back to 1975, Vietnam, torn by two major wars, was a backward economy dependent on agriculture and foreign assistance. Foreign loans and aid accounted for over 63 percent of its budget.
350 EXHIBITORS TO TAKE PART IN HCM CITY PAPER, COATINGS, RUBBER, PLASTIC EXPOS
They will have a total display area of 10,000sq.m, 30 per cent more than last year, and the participation of over 350 local and international exhibitors who will showcase thousands of products and technologies.
INT’L INVESTORS EYE VIETNAM’S DATA CENTER MARKET – REPORT
Vietnam’s data center market is increasingly attractive to foreign investors, driven by the country’s expanding digital economy, rising data consumption, and supportive government policies, said a new report by JLL. While Vietnam’s data center sector has traditionally been dominated by local telecommunications companies, global players are now entering the market.