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Weekly Vietnam Property News (26/06 – 02/07, 2020)

Weekly Vietnam Property News (26/06 – 02/07, 2020)

Vietnam industrial real estate is a reasonable choice for foreign investors

Vietnam industrial real estate is a reasonable choice for foreign investors

Demand in Vietnam’s industrial real estate market has remained high since the end of 2019 and is becoming active at the present time with the participation of regional and international investors.

By the end of 2019, Vietnam has about 326 industrial parks and export processing zones established, with the filling rate reaching 70-80%. The domestic market also witnessed an increase in demand due to multinational corporations planning to expand their business outside of China and choose Vietnam as an alternative destination. This demand increased especially when the Covid-19 pandemic appeared and China was one of the countries seriously affected.

In 2020, the industrial real estate market is considered to be an advantageous segment when the economy is stable, Vietnam participates in trade agreements, and the continuous appearance of policies. support such as tax exemptions and tax incentives for investors.

The “big migration” of real estate giants investing in neighboring provinces of Ho Chi Minh City

The "big migration" of real estate giants investing in neighboring provinces of Ho Chi Minh City

If a few years ago, “offshore fishing” activities of real estate businesses only showed in a few units, now it seems that this is becoming a trend of the housing market when a series of large and small enterprises. both invest in the neighboring provinces of Ho Chi Minh City.

In the past, this “migration” only occurred in small scale in a number of small-scale enterprises, now a series of real estate enterprises, from small to large, simultaneously attacked the suburban market, even ” sailing “in remote places, in” brand new “markets. In 2020 the “great migration” activity is shown at a dizzying pace. Many real estate giants do not even have a project in Ho Chi Minh City but put most of their resources to develop a series of projects in neighboring provinces.

Accordingly, real estate investment in suburban areas is a promising direction for investors with little capital in the current market. For individual investors with low financial potential, the purchase of small land plots in suburban areas is also a wise investment direction.

However, the legal, infrastructure and planning notes are still recommended by experts in the context that the market is still volatile. And also according to insiders, it is likely that the real estate businesses flocking to neighboring localities to invest is only a temporary solution, while waiting for the HCMC real estate market to reopen.

North-South Expressway has cleared the ground by over 80%

North-South Expressway has cleared ground by over 80%

11 projects of the North-South expressway component have been compensated by localities, handing over ground areas of 530.8 / 653.6km, reaching 81.2%.

The North-South expressway project previously consisted of 3 public investment projects and 8 PPP projects including Mai Son – Highway 45, Highway 45 – Nghi Son, Nghi Son – Dien Chau, Dien Chau – Bai Vot, Nha Trang – Cam Lam, Cam Lam – Vinh Hao, Vinh Hao – Phan Thiet, Phan Thiet – Dau Giay.

This is an important national project for investment priority in the period of 2017-2020. The total adjusted investment capital is 100,816 billion dongs, including 78,461 billion dongs of budget, the remaining is mobilized outside the budget.

House prices still tend to rise

House prices still tend to rise

The selling price of terraced houses in the primary market set a new record in the second quarter of 2020 at US $ 5,277 per square meter of land, up 35.9% year on year, and 5.2% quarterly.
The reason is that newly launched projects in the quarter offered higher than average prices, which once again confirmed investor confidence in periods of high demand and tight supply. Under the influence of Covid-19, a number of projects that were launched before the pandemic issued promotions after slightly increasing prices, helping these projects to stabilize prices compared to the previous quarter.

Regarding apartments, the primary price in the second quarter set a new record of US $ 5,277 per square meter, up 35.9% year on year and 5.2% quarter on quarter.
The reason is that newly launched projects in the quarter offered higher than average prices, which once again confirmed investor confidence in periods of high demand and tight supply. Under the influence of Covid-19, a number of projects that were launched before the pandemic issued promotions after slightly increasing prices, helping these projects to stabilize prices compared to the previous quarter.

Tighten the high-rise housing project in the heart of Ho Chi Minh City

Tighten the high-rise housing project in the heart of Ho Chi Minh City

According to the project “Building a housing program for the period of 2021 – 2030” that Ho Chi Minh City Department of Construction has just submitted to the City People’s Committee, by 2025, the central districts will restrict the development of new high-rise housing projects if not. invested in the corresponding infrastructure system.

For the central area of ​​District 1, District 3, the City does not approve the investment policy of housing development project if there is no corresponding construction of technical and social infrastructure; prioritizing population growth, land use coefficients, construction density … for renovation and new construction projects to replace old apartments before 1975. Reviewing, adjusting the planning, creating, and determining to specify the land fund for housing development under projects for each 5-year period.

For districts 4, 5, 6, 11, and Phu Nhuan, whose population has decreased in the past 10 years, it will limit the approval of the policy to implement investment projects to build new houses and high-rise apartments if not. have a plan to build appropriate and appropriate technical and social infrastructures. Districts 8, 10, Binh Thanh, Tan Binh, Tan Phu and Go Vap will promote the development of technical and social infrastructures to call for investment in housing projects in areas with construction plans. technical and social infrastructures are ensured and appropriate accordingly.

In addition, 6 developed urban districts including 2, 7, 9, 12, Thu Duc, and Binh Tan will give priority to the development of new housing projects, high-rise apartment buildings along the public transport axes. Large areas such as metro line 1, the areas that plan to implement the corresponding technical infrastructure system, give priority to the development of social houses. At the same time, restrictions on approving the policy of implementing investment projects to build new houses and high-rise apartments if there is no corresponding construction of technical and social infrastructure.

For 5 suburban districts including Cu Chi, Hoc Mon, Binh Chanh, Nha Be, and Can Gio, priority will be given to housing development under projects in towns, rural residential areas, and areas where infrastructure is available. synchronous connection technique with main traffic routes To develop tourist resorts combining eco-resorts, new urban centers, and satellite urban centers. It is also not to develop new projects to invest in housing construction in areas that do not have plans to invest in the construction of technical infrastructure.

According to a leader of the Department of Construction, the technical infrastructure system in many areas has not been renovated and upgraded adequately, resulting in an overload of common infrastructure. While the development speed of self-built houses is very high, the demand for infrastructure is high, but the speed of renovation and upgrading of infrastructure is not commensurate. Therefore, the City will restrict the development of housing projects in the central districts, and encourage businesses (businesses) to develop housing projects to ensure synchronization and consistency with technical infrastructure. arts and social infrastructure; develop high-rise houses in association with underground transportation systems, overhead railways in central areas, and existing urban areas.

Ho Chi Minh City completed 32 key transport projects by 2020

Ho Chi Minh City completed 32 key transport projects by 2020

The agency managing the construction investment project of Ho Chi Minh City traffic yesterday said it currently manages 252 projects implemented from various sources of capital.

In 2020, the Ho Chi Minh City Transport Construction Investment Management Agency has set a construction goal for 59 projects and strives to complete 32 main road and bridge construction projects.

In addition, the agency will complete the procedures for approval, adjustment of 18 projects, procedures for commencement of 31 bidding packages and projects; submit key projects to the People’s Council of Ho Chi Minh City such as Ho Chi Minh City – Moc Bai Expressway, two bridges on N2 and N4 roads in Thu Thiem New Urban Area, two belt roads No. 2, An Phu Intersection, expansion of National Highway 50 project, project of improvement of National Highway 22 and Nguyen Khoai Bridge connecting districts 1, 4 and 7.

The agency also proposed that Ho Chi Minh City will support and prioritize funding for the implementation of transport infrastructure projects in the 2021-2025 period, contributing to the completion of the transport infrastructure. Ho Chi Minh City.

Compiled from many sources by LOOKOFFICE

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