VN property market 2019:

Land prices escalate in some localities, ‘bogus’ projects break out

The real estate market was lackluster last year. The land fever in early 2019 was followed by a sharp decline in supply and the number of transactions.

1/ The ‘land fever’ which showed its first signs in late 2018 intensified in 2019, especially in areas expected to become new administrative – economic centers, the suburbs of HCM City and some northern provinces.

Land prices escalate in some localities, ‘bogus’ projects break out



Land fever broke out in Da Nang City in January and Van Don in February, after big infrastructure works became operational. Later, it emerged in Binh Thuan province after the news about the establishment of an airport in Phan Thiet and the plan by Phu Quoc authorities to build a city.

The real estate market was lackluster last year. The land fever in early 2019 was followed by a sharp decline in supply and the number of transactions.

In August 2019, the land fever occurred in Dong Nai province, especially in Long Thanh after the news about the dates to kick off the construction of Long Thanh Airport and the building of Cat Lai Bridge. In the last months of the year, rumors were that two towns in the province would be upgraded. 

 


2/ The supply from housing projects decreased significantly in 2019. A report showed that there were only 5 million square meters of construction floor throughout the country, a sharp decrease of 200 percent from the 14 million square meters in 2018.

According to the Ministry of Construction, in Q3 2019, HCM City had only 8 new projects eligible to sell apartments in the future, while the figure was 22 in Hanoi.

Some market survey firms reported that the supply of apartments in HCM City decreased by 74 percent compared with the same period last year, the lowest level n the last three years.

Meanwhile, the supply of affordable apartments continued to decrease. The situation has lasted since late 2018.

The short supply is attributed to the long time needed to approve projects. According to some analysts, the market has entered a correction period.

In 2019, the HCM City authorities allowed 124 projects to serve the inspection. The names of the 124 projects have not been made public.

3/ The year 2019 also witnessed a breakout of many ‘bogus’ projects.

Bogus projects appeared mostly in southern provinces/cities including Binh Thuan, HCM City, Ba Ria – Vung Tau and Dong Nai. In Phu My Town of Ba Ria – Vung Tau alone, there were 113 bogus projects. Some local households and companies opened roads and divided land plots for illegal sale.

Alibaba Company was found collecting 600 hectares of agriculture land and ‘fabricated’ 40 projects in Dong Nai, Ba Ria – Vung Tau and Binh Thuan. After that, it put the land up for sale though the projects had no legal status.

Chi Mai 

Issuance of land use certificates to be solved

Issuance of land use certificates to be solved

Authorities in Hanoi are committed to solving problems regarding the granting of land use rights and house ownership certificates to people who bought apartments in illegal projects by next year.

Ken Research reveals Asia credit cards market outlook to 2025

Ken Research reveals Asia credit cards market outlook to 2025

The report provides a comprehensive analysis of the credit cards industry within Asia covering various aspects.

 
 

Other News

.
Nam Dinh-based Rang Dong Textile Industrial Park sign land lease contracts with foreign firms
Nam Dinh-based Rang Dong Textile Industrial Park sign land lease contracts with foreign firms
BUSINESSicon  08/09/2020 

The signing ceremony of a land lease contract and land delivery for factory construction between Cat Tuong Real Estate Group, Top Textile Co., Ltd and Jehong Textile Viet Nam Co, Ltd took place on September 4.

Vietnamese rice takes bite out of global market
Vietnamese rice takes bite out of global market
BUSINESSicon  07/09/2020 

Vietnam’s rice exports have expanded during the pandemic to surpass rival Thailand in price for the first time in three decades, leading experts to suggest the sector should consolidate its position.

Alibaba.com rolls out export-focused program for Vietnamese SMEs
Alibaba.com rolls out export-focused program for Vietnamese SMEs
BUSINESSicon  07/09/2020 

Alibaba.com, the global business-to-business (B2B) e-commerce platform of Alibaba Group, has launched a landmark initiative to help businesses in Vietnam go online and reach an enormous pool of qualified global buyers.

Profit taking to weigh on local market, but September may be bright
Profit taking to weigh on local market, but September may be bright
BUSINESSicon  07/09/2020 

Vietnam’s stock market rally may slow this week as investors eye profits but the one-month projection is still optimistic.

E-commerce gives impetus to woodworking sector
E-commerce gives impetus to woodworking sector
BUSINESSicon  06/09/2020 

In the rapid development of e-commerce, online stores and factories are one of the solutions with which enterprises can cope with the prolonged Covid-19 pandemic while laying a foundation for digitalized business

Logistics groups strive to exploit EVFTA potential
Logistics groups strive to exploit EVFTA potential
BUSINESSicon  07/09/2020 

The EU-Vietnam Free Trade Agreement has created a new driving force for Vietnam’s logistics, but the industry needs to take further action to unlock its full potential.

The path to economic recovery and further growth
The path to economic recovery and further growth
BUSINESSicon  06/09/2020 

While Vietnam has experienced an unprecedented boom in recent decades, the current pandemic is now having a clear negative impact on the economic outlook. 

Vietnam’s plywood suppliers under scrutiny over practices
Vietnam’s plywood suppliers under scrutiny over practices
BUSINESSicon  06/09/2020 

As the trade tensions between the United States and China refuse to slow down, Vietnam-based plywood exporters are under pressure of investigation for alleged issues with the sources of their input materials.

Local wood industry overshadowed by sourcing issues
Local wood industry overshadowed by sourcing issues
BUSINESSicon  05/09/2020 

Vietnam’s wood industry has shown signs of recovery in the third quarter of 2020. However, legal complications may arise through illegally-sourced raw materials from foreign suppliers and a lack of uniformity.

Consumers beware of e-swindlers preying on fledgling cashback apps
Consumers beware of e-swindlers preying on fledgling cashback apps
BUSINESSicon  06/09/2020 

While cashback is considered a strong method to encourage cashless payments, numerous websites and apps are taking advantage of uninformed consumers with untransparent and illegal multi-level marketing models.

One fewer thing to worry for enterprises
One fewer thing to worry for enterprises
BUSINESSicon  06/09/2020 

Businesses will have one fewer thing to worry about in 2021 as the minimum wage is not expected to be increased for privately-owned enterprises.

New strategies required to set deeper roots for wood industry
New strategies required to set deeper roots for wood industry
BUSINESSicon  06/09/2020 

To expand Vietnam’s wood industry sustainably, its development strategy must not only focus on the policies of importing countries but also domestic priorities.

VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 7
VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 7
BUSINESSicon  07/09/2020 

Breakthrough solutions needed to attract foreign investment

Four Vietnamese-born billionaires in the US
Four Vietnamese-born billionaires in the US
BUSINESSicon  06/09/2020 

These are the most famous businessmen of Vietnamese origin in the US.

Airline service fees reduced by half for next six months
Airline service fees reduced by half for next six months
BUSINESSicon  05/09/2020 

Fees for takeoff and landing and aircraft operating services for domestic flights will continue to be cut by 50 per cent for the next six months to support airlines affected by the COVID-19 pandemic, according to a Transport Ministry circular.

More Vietnamese consumers now shop online
More Vietnamese consumers now shop online
BUSINESSicon  07/09/2020 

Online shopping and electronic payments in Vietnam have become more common in recent years as more of the country's population gains access to the internet, 

Funds enjoy growth in August
Funds enjoy growth in August
BUSINESSicon  05/09/2020 

Investment funds involved in Vietnam’s equity market reported positive growth in net asset value (NAV) in August due to a stock market upturn.

Local authorities tighten control over investments in condotels
Local authorities tighten control over investments in condotels
BUSINESSicon  07/09/2020 

Hanoi local authorities are seeking to strengthen management over the construction, investment and trade of condotels, officetels and resort villas.

Vietnam aims to diversify local retail market
Vietnam aims to diversify local retail market
BUSINESSicon  05/09/2020 

The Ministry of Industry and Trade (MoIT) plans to consolidate traditional markets in rural areas while developing a large number of convenience stores and diversifying types and methods of modern business.

Auto manufacturers in Thailand, Indonesia look to Vietnam to sell cars
Auto manufacturers in Thailand, Indonesia look to Vietnam to sell cars
BUSINESSicon  07/09/2020 

Car imports in Vietnam have increased again after a long slump caused by the impact of Covid-19. Thailand and Indonesia have been the biggest sellers.

 
 
 
Leave your comment on an article

OR QUICK LOGIN