Ministry of Construction asks Hanoi to clarify unusual price increases in apartments

Recently, the Ministry of Construction sent an official dispatch to the Hanoi People's Committee, requesting an inspection and review of the unusual price increase in apartments and a report to the Ministry before April 20.

According to Deputy Minister of Construction Nguyen Van Sinh, recently, public opinion has continuously reflected the situation of skyrocketing apartment prices. This "price fever" has also made other real estate segments more expensive. In some places, apartment and housing prices are increasing rapidly and at unusually high levels.

Many real estate consulting firms estimate that the average price of apartments in Hanoi has reached 56 million VND/m2. Notably, the affordable housing segment has almost disappeared from the market. Experts and public opinion believe that this phenomenon is the result of price inflation and speculation.

Proposal for new regulations on land rent exemption and reduction

On April 17, the Ministry of Finance held a conference to collect comments on the draft Decree of the Government regulating land use fees and land rents. Accordingly, one of the notable contents of the draft is the proposed regulations related to exemption and reduction of land rents and land use fees.

The land rent reduction will vary depending on the investment sector. Photo: Linh Dan

In Article 39 and Article 40 of the draft, exemption from land rent is to allow land users not to pay land rent for the entire rental period; reduction of land rent is to allow land users not to pay a specific amount calculated as a percentage of the land rent payable.

The draft also designs land rent reduction levels according to investment incentive sectors and investment incentive areas according to the provisions of law, basically similar to the current regulations. In addition, the draft provides general regulations on land use fee exemption and reduction incentives for projects in investment incentive sectors and areas, without establishing separate incentives.

Regarding the assignment of tasks, the tax authority will be responsible for calculating the amount of land use fees and land rent to be reduced; and submitting to the People's Committee of the same level for a decision to recover the amount of land use fees reduced by the authority. At the same time, the natural resources and environment authority will be responsible for compiling statistics and summarizing cases of land rent exemption.

Suburban land prices increase "skyrocketingly"

According to a report by the Vietnam Association of Realtors (VARS), compared to the low-rise and apartment segments, land prices are increasing quite impressively. In particular, for plots of land priced under VND2 billion in the suburbs, the increase can be up to 40%. In contrast, the low-rise segment only recorded a price increase of about 3%. For apartments, the increase is also only about 5 - 10%.

“Although land prices have increased, they are still about 20-30% lower than the peak of the fever. Currently, selling prices have stabilized and there are no signs of a decrease. Compared to the fourth quarter of 2023, land prices have increased by about 5%. Particularly in the market on the outskirts of Hanoi and associated with industrial parks, the increase has reached 10-20%,” said experts from VARS.

Regarding the change in selling prices, the report pointed out that although land prices have increased, they are still about 20-30% lower than the peak of the "fever". Currently, selling prices have stabilized and there are no signs of a decrease. Compared to the fourth quarter of 2023, land prices have increased by about 5%. Particularly in the market on the outskirts of Hanoi and associated with industrial parks, the increase has reached 10-20%.

“Sharks” start buying up land in Da Nang

According to DKRA Group, the overall demand for land in Da Nang and surrounding areas has shown positive signs in the first quarter of 2024. In addition, consumption has increased by 30% compared to the end of last year. Most transactions are concentrated in Ngu Hanh Son district (Da Nang) and Nui Thanh district (Quang Nam).

In the secondary market, land prices have increased slightly by 2-3% compared to the end of 2023. Liquidity has also witnessed many positive changes after the Lunar New Year holiday. Many "big" investors with cash have made moves to buy land after a long period of observation.

On the contrary, the selling price in the primary market has not fluctuated much compared to the previous opening sale. On the other hand, investors are still "all in" with many stimulus policies such as preferential interest rates, principal grace period, loyal customers, etc.

Binh Dinh calls for investment in coastal tourism area of ​​over 4,300 billion VND

On April 17, the Department of Planning and Investment of Binh Dinh province announced the call for investment in Tan Thanh tourist area. The project is located in Cat Hai commune, Phu Cat district, Binh Dinh province. The land area is nearly 43 hectares with the current status of land not yet cleared.

Perspective of Tan Thanh tourist area project.

The total investment capital of the project is 4,347 billion VND. Of which, the preliminary implementation cost is 4,247 billion VND, the compensation and resettlement support cost is nearly 100 billion VND.

The project is oriented to develop into a high-end tourist and commercial service area with amenities such as hotels, resort villas, low-rise mixed commercial service areas, entertainment, parks, health care spas... associated with the unique coastal landscape.

The investment period and progress shall not exceed 48 months from the date the project implementation contract takes effect or the decision approving the investor is issued. In which, the progress of completing investment preparation procedures shall not exceed 12 months. The land use period shall be 50 years from the date the investor is granted the land allocation decision or land lease decision.

The deadline for submitting project applications is 9:00 a.m., May 20, 2024.

Hoai Duc district has completed 27/31 criteria to become a district.

On the afternoon of April 19, Vice Chairman of Hanoi People's Committee Nguyen Manh Quyen had a working session with Hoai Duc district.

At the meeting, the representative of Hoai Duc District People's Committee said that recently the district has reviewed all the criteria for the district to become a district and the commune to become a ward. Accordingly, up to now, the district has met 27/31 criteria. Regarding communes and towns, 2/20 communes and towns have balanced their own budgets; 20/20 communes and towns have met the minimum infrastructure level to establish wards.

However, the leaders of Hoai Duc district admitted that the district still encountered difficulties and problems during the implementation process. In particular, some construction investment projects using non-budgetary capital are still slow, including the ICD My Dinh dry port project in Duc Thuong commune, the Truong Hai auto showroom commercial center project, and the Hoai Duc commercial service area...

Dat Xanh will increase capital to 10,000 billion VND

Dat Xanh Group Corporation (DXG) recently held its annual general meeting of shareholders in 2024. At the event, DXG leaders set the target of net revenue and net profit this year at VND 3,900 billion and VND 226 billion, respectively, up 5% and 31% compared to the results in 2023.

Sharing about the financial situation of the enterprise, Mr. Luong Tri Thin, Chairman of the Board of Directors of Dat Xanh, said that the unit has restructured all finances from short-term to long-term. Partners and banks are ready to finance the enterprise to implement the project. In 2024, the company will strive to increase charter capital to prepare for large projects, in the context of many new legal regulations being issued.

“Currently, the company’s charter capital is just over VND7,000 billion. It is necessary to increase the capital scale to at least VND10,000 billion to ensure capacity for projects,” Mr. Thin commented.

Sharing about the difficulties, the Chairman said that not only Dat Xanh, but almost all real estate businesses are currently facing many difficulties, especially in land compensation and project legality. However, the company has solutions to deal with the difficulties. This year, the company will complete the legal procedures of 8 projects to be implemented in the period of 2024 - 2025. Typical projects are Gem Riverside, Gem Sky World, Opal Luxury...

Nam Long sees 2024 as still difficult

At the 2024 annual shareholders' meeting, Nam Long Investment Corporation (NLG) set a target of net revenue and net profit of VND 6,657 billion and VND 506 billion, respectively, doubling revenue but increasing only 5% in profit.

Nam Long's Board of Directors assessed that the real estate market still faces many intertwined challenges and opportunities. Market challenges include the imbalance between supply and demand in different real estate segments; a crisis of confidence; large inventories; financial risks and potential debt crises; and slow project legal procedures.

However, the market still has many opportunities for businesses, when the real demand for housing is still high (affordable and social housing segments); lending interest rates have decreased; many new laws have been issued (Law on Land, Housing, Real Estate Business); the Government is interested in removing obstacles and promoting a sustainable real estate market.

In the above context, NLG has proposed many operational strategies for 2024 based on different orientations.

Accordingly, the company will focus on developing affordable housing products that meet market demand; promote the implementation of sales policies; focus on handling inventory, overdue debts, and customer contract liquidation; promote pre-sale (activities before sales); create revenue and profit in areas other than residential real estate, such as capital sales, project subdivision, commercial real estate, etc.

In addition, the company focuses on unlocking the legality of key projects such as Izumi, Paragon, VCD phase 2.

Vinhomes successfully mobilized 2,000 billion VND in bonds

Vinhomes Joint Stock Company (VHM) has just announced the successful issuance of bond package VHMB2426003 with a total value of VND 2,000 billion.

Specifically, the VHMB2426003 bond lot issued in the domestic market, volume 20,000 bonds with par value of 100 million VND/bond. This bond package has a term of 24 months and will mature on April 15, 2026.

Previously, at the end of March 2024, Vinhomes issued 2 bond lots with a total value of about 4,000 billion VND. Vinhomes did not disclose detailed information about the interest rate, issuance purpose, or bondholders of the newly issued bond lot. According to information on the bond page of the Hanoi Stock Exchange (HNX), all 3 bond lots (including the newly issued lot) will have an interest rate of 12%/year.