The good news: Being optimistic about the new gold price increase

The good news: Being optimistic about the new gold price increase

World gold prices have left their multi-week highs and plunged 2% amid recent political developments in the US prompting investors to pour money into the US dollar as a safe haven and decreasing the attractiveness of gold. Predicting the trend of gold prices this week, experts are still quite optimistic.

Source: Internet


Gold price today 30/9 still stands low as $ 1,496/ounce, almost unchanged compared to last week. Spot gold price in New York decreased by 8.4 USD/oz, equivalent to 0.6% reduction, to 1,496.9 USD/ounce. However, from the beginning of the year, the world gold price has increased by more than 17%.


Domestic gold price, closing the last trading session of the week, DOJI Jewelry was listed at: 41.50 million dong/tael (bought in) and 42.00 million dong/tael (sold out). Saigon Jewelry Company listed SJC gold price at VND 41.70 million/tael (purchased) and VND 42.02 million/tael (sold) in Hanoi.


USD and Pound appreciated The US dollar index, which measures the strength of the greenback against a basket of six major currencies, remained unchanged at 98,722. The pound rebounded from an earlier low, but remained in the red after Irish President Binha Simon Coveney said that the EU was ready to negotiate, but the US had not yet proposed a Brexit deal. The pound lost 0.1% to 1.2309, while EUR/USD rose 0.2% to 1.0947. The Japanese yen, considered a safe haven during times of market turmoil, has fallen, with USD/JPY down to 108.14.


On September 27, the central bank announced the central exchange rate of Vietnam dong and US dollar at 23,160 dong (up 5 dong). The reference rate at the State Bank of Vietnam is buying at VND 23,200 (unchanged) and selling at VND 23,800 (unchanged).


According to Hoang An

Southern provinces attract real estate investment

Southern provinces attract real estate investment

Binh Duong, Dong Nai, Long An... are considered as low-lying areas of real estate capital flow over time.


The investment wave has spread strongly to the neighboring provinces of Ho Chi Minh City. The completion of infrastructure and natural advantages have paved the way for the strong development of the real estate market in these localities.


Dong Nai plans to start building Cat Lat Bridge connecting Nhon Trach district with District 2, Ho Chi Minh City by 2020, many investors are starting to come to Nhon Trach district, especially the communes near Cat Lai ferry.


As the connection point between Ho Chi Minh City and the Mekong Delta region, Long An benefits greatly from the arterial highway system. In addition to the Ho Chi Minh City - Trung Luong Expressway, Long An also has Ben Luc - Long Thanh Expressway which will be opened to traffic in 2020, helping to connect directly to Ho Chi Minh City and Dong Nai.


According to investors, low land price makes Long An real estate market attractive to investors, becoming one of the three low-lying areas of the South.


A corner of Nhon Trach district (Dong Nai) was taken from flycam. Photo: Saigon Cen.


In the South, Binh Duong is the province that receives large foreign direct investment (FDI). In the press conference in the second quarter of 2019, the representative of Binh Duong People's Committee said that the locality attracted US $ 1.3 billion of foreign direct investment. This result increases the number of FDI projects in the locality to 3,639 projects with a total registered capital of 33.76 billion USD. Binh Duong continues to rank 3rd in the country in terms of FDI attraction (after Ho Chi Minh City and Hanoi).


The number of foreign experts and the labor force from provinces and cities to live and work is about 50,000 people. They are mainly concentrated in Thu Dau Mot City. According to experts, this is a factor attracting large-scale housing projects in industrial centers in Binh Duong recently.


With the apartment segment, the supply recorded more than 24,000 units and is growing sharply in both quantity and quality of houses, according to the Binh Duong apartment market report published by Jones Lang LaSalle (JLL) in August. The number of apartments in Binh Duong is 5.3 times higher than that of terraced houses, although the land fund for low-rise houses is very large.


In this report, 6,224 units have been launched and will open for sale in Binh Duong in stages in 2019-2020. However, new launch projects may continue to increase in the second half of 2019 and 2020 as investors continue to update the basket. The average price of apartments in the primary market of Binh Duong is 939 USD per m2 but still tends to increase.


The majority of these are concentrated in Thu Dau Mot, Di An and Thuan An. The market set the highest new price level in the past 10 years, reaching the threshold of 35 million per m2. This price increased by 20-30% compared to the end of 2018 according to a survey of Cen Saigon Real Estate Joint Stock Company.


According to Thanh Duong

Houses and offices benefit from industrial real estate

Houses and offices benefit from industrial real estate

An increase in the occupancy rate of industrial parks in Vietnam will create a huge source of housing and office demand for the real estate market.

Mr. John Campbell, Senior Consultant, Industrial Services Department of Savills Vietnam, said that in the first two quarters of 2019, Vietnam's industrial real estate market recorded positive growth and this will create a big push for housing market, office.

To date, 326 industrial parks have been established with a total area of ​​95,500 hectares. The market recorded 251 industrial parks which were operating with 60,900 hectares (74% of the filled area), 75 industrial parks (29,300 hectares) are under construction, compensation and site clearance; 17 coastal special economic zones have a total supply of 845,000 hectares with 3.6 million employees.

According to this expert, when the occupancy rate of industrial parks is increasing, the labor force, managers, experts working here will surely need houses. On the other hand, manufacturers (businesses, corporations) also need to set up working offices and representative offices in the production area to facilitate the management and trade connectivity.

Besides houses and offices, there are two connected markets with strong demand to connect with the industrial real estate market; it is likely that retail real estate will also benefit from this demand chain. Because where there are housing and office development, where immediately comes the service associated to serve this real estate ecosystem.

Mr. John Campbell said that FDI in the industry in the first half of 2019 recorded 1,723 newly registered projects, equivalent to US $ 7.41 billion. The manufacturing segment attracted 605 projects, accounting for 71.2% of FDI and US $ 13.15 billion, increasing 39.8% year on year.

According to data from the Ministry of Planning and Investment, Hanoi and Ho Chi Minh City are the two most attractive cities, accounting for 26.3% and 16.7% of total FDI. Followed by Binh Duong accounting for 7.4% and Dong Nai accounting for 6.7%. Capital investment from Hong Kong (China) accounted for 28.7% with 5.3 billion USD, followed by South Korea with 2.73 billion USD and China with 2.28 billion USD. In the first 6 months, the industrial zone and economic zone attracted nearly 340 FDI projects with a total capital of nearly 8.7 billion USD.

Vietnam's industrial real estate is growing on the rise of FDI capital 10 times during the past decade. Abundant industrial land is facilitating production projects and increasing rental options for both ready-built factory buildings (RBF) and custom-built workshops (BTS).

However, this expert said, Vietnam needs to carefully choose the upcoming industrial projects to grow more in the value chain, increase competitiveness and sustainable development. Cheap labor and investment incentives, especially preferential taxes, will continue to become the leading foreign investment attraction in Vietnam. But as it continues to transition to high-value industries, Vietnam must focus on quality rather than quantity of investment.


According to Ha Thanh

Foreigners increase housing investment in Vietnam

Foreigners increase housing investment in Vietnam

The policy of home ownership has gradually opened, making foreign tourists choose to invest in real estate for long-term stay and business.

Ms. Park Su Jung, a Korean, has been living in Vietnam for 2 years. Realizing the great demand for housing of her compatriots, she chose to work as a real estate broker.

"We Koreans like to live together, so once we choose a good place to live, we would like to recommend it to others. Some other foreign investors also own many apartments in one project then rent it to colleagues, fellow countrymen", Ms. Park shared.

According to real estate experts, foreigners when participating in the Vietnamese housing market, they have the advantage of understanding the tastes and languages ​​of fellow customers. People like Ms. Park are contributing to the growing trend of homeownership by foreign customers in projects in Vietnam.


Foreign guests prioritize projects with green campus, diverse utilities.

Statistics of TNR Holdings for 2 years from 2017-2019 in the project of the unit shows that the number of foreign customers is increasing year by year. For example, in 2017, Goldmark City had 8% foreign visitors. A year later, this figure increased to 15% and reached 18% in 2019. Or for The Goldview project, the percentage of foreign homeownership increased from 3% to 8% in less than 2 years.

The unit explained that the projects to attract foreign visitors are located in areas with many foreign organizations and businesses, mainly Korea and Japan. Besides, the investor focuses on building a modern utility system according to international standards, forming a civilized foreign resident community.

At the real estate trading floors, the western area of ​​Hanoi with synchronous utilities is the place where most of the foreigners live in the capital. "It is very cool, clean and especially has very nice art squares, the apartment design is very similar to when we are in Singapore. My friends are here a lot because we feel like we are at home", said Berth, from Singapore, who lives in TNR Goldmark City.

Evaluating this, Mr. Mathew Powell, Director of Savill Hanoi and Da Nang, said that foreigners who buy houses are very interested in the legality. They often observe whether the actual projects that the investor has done, the landscape, utilities are good or not.

Potential housing market for foreign visitors

According to a survey of TNR Holdings, the average house price in Hanoi is currently at 2,000 USD per m2, in HCMC 2,400 USD per m2. This is much lower than other countries in the region, making foreigners want to own houses in Vietnam to stay and invest.


West of Hanoi is one of the areas where the majority of foreigners live.

The HSBC Expat Explorer report says 15% of foreigners in Vietnam earn more than US $ 250,000 a year, compared with the global average of just 7%. In addition, 75% of foreigners in Vietnam say they are satisfied with the relatively higher disposable income. 49% of foreigners comment that prices in restaurants, theaters, music bars in Vietnam are very cheap. All of this makes Vietnam one of the cheapest living costs countries in the world.

In addition, the report also addresses many other reasons such as Vietnam's diverse culture, open people, cheap living costs, beautiful landscapes, pleasant weather,...

Currently, the open door policy for foreigners to buy houses in Vietnam has been adopted by allowing 30% of the products in a project to be sold to foreigners. Each ward-level administrative unit may have less than 10% of the projects (villas or detached houses) or 250 units owned by foreigners.

Although there are no specific statistics on the number of foreigners owning houses in Vietnam, but according to TNR Holdings, the positive signal from the market shows that this customer segment is rich in potential.

"Along with more open policies, I believe the housing market for foreigners will have many changes in the near future. This will be a change in line with the trend when industrial real estate is also waiting for a new wave from the trend of moving factories out of China", TNR Holdings said.

According to Thanh Duong

Smart technology changes real estate pricing

Smart technology changes real estate pricing

Artificial intelligence (AI) is supporting many real estate valuation stages in Vietnam market.

Savills Vietnam has just released a report on the valuation field of increasing professionalism in Asia and Vietnam, which refers to the introduction of artificial intelligence (AI) that is changing some of the real estate valuation stages.

The report said that the real estate valuation market in Vietnam is still quite new, but it is gradually complying with international valuation standards. On the positive side, real estate valuation in Vietnam has begun to have some automated processes.

Currently, startups in the field of real estate technology have contributed to changing the field of pricing by applying modern technologies. The advent of artificial intelligence (AI) has helped valuation experts to increase efficiency and interact with price movements in the real estate market recently.

This technology contributes to market analysis by providing pricing solutions for less complex real estate segments. In contrast, more complex types of assets will require more interaction with people and in-depth expertise.


Ho Chi Minh City real estate market. Photo: Tran Quynh

Despite the intervention of intelligent technology, the whole process of valuation still requires some details and professional experience to produce a standard valuation results. The current difficulties can be mentioned as the management of valuation quality and the inconsistent market information, which has not reached a high level of transparency.

Currently, the Government has recognized this gap and has made efforts to improve land management and land databases through a project funded by the World Bank by 2021. The goal of This activity aims to improve the efficiency and transparency of land administrative services, through the development and implementation of a national multi-goal land information system (MPLIS).

The project includes the development and development of a land database, financial digitization of maps and land use permit documents; update and integrate cadastral data, land price data, land use planning, statistics and land inventory. However, this system may have limitations with flexible transaction structures and informal transfer values.

Another factor that greatly influences the value and real estate market is planning. The land use of all projects should follow the master plan; however, ineffective planning management has led to a disturbance of market value, thereby making market information inconsistent. This is particularly important because land use planning is often not publicly accessible. Today, provincial governments have begun to announce the planning of real estate projects.

Finally, inconsistent real estate valuation practices for different purposes also cause inconsistencies in information and data. There are many systems and levels of real estate valuation. For example, land prices for land compensation purposes, land financial obligations and market values ​​according to the International Valuation Standards Council (IVSC) all have different values.

Savills said that the real estate valuation market in Vietnam is currently facing many difficulties and challenges but at the same time has opened up the potential with new opportunities with the application of smart technology. In the context of the hot real estate market which has been growing for nearly half a decade, the gap in quality and property valuation standards in Vietnam is gradually approaching the region. can bring a large source of valuation demand in the future.

According to Ha Thanh

Proposal of voting rights on condominium meetings regarding to m2 basis

Proposal of voting rights on condominium meetings regarding to m2 basis

HoREA recommends that the apartment building conference calculate a square meter per vote instead of per apartment.

Ho Chi Minh City Real Estate Association (HoREA) has just released a draft of the Draft Circular promulgating the Regulations on management and use of apartment buildings, including a new proposal for calculating the voting rights of apartment buildings regarding to m2 units.

According to current regulations, voting rights at apartment building meetings or apartment complexes are calculated by unit. Accordingly, each apartment corresponds to a vote. For other areas in a condominium other than apartments, each floor area of ​​construction floor is equivalent to the construction floor area of ​​the largest apartment according to the approved design in that apartment building with one vote.

However, the Association recognizes that the current regulations are not fair among owners of large, medium or small apartments. Or for the investor, the owner of another area, each floor area of ​​construction floor is equivalent to the floor area of ​​the apartment building with the largest area, is inadequate.

Because this makes investors and owners of other areas disadvantaged. Therefore, the Association proposed this voting right should be calculated in total m2 as the way of calculating voting rights in a joint stock company.

According to Vu Le

New "game" with the sea city

New "game" with the sea city

Along with many large-scale sea resorts of Vingroup, Sungroup... existed before, the Empire Group's Cocobay with tens of thousands of legal completed products or Novaworld Phan Thiet over 1,000 hectares of Novaland... are truly opening a new game with the true marine cities, after completion will create a new story of the resort real estate segment in Vietnam.

The new resort cities

Talking to a reporter of the Real Estate Investment Newspaper over the weekend, Mr. Nguyen Duc Thanh, Chairman of the Empire Group, proudly affirmed that, when completing the entire project, Cocobay will be the largest seaport in Vietnam with about 10,000 real estate products in many segments such as apartments, villas, shophouse, condotel...

“A marine urban project is very large, so the implementation process also faces many challenges, in which the legal bottleneck for condotel products was the biggest problem for Cocobay Da Nang in the previous period. Up to now, I can confirm that all legal issues have been resolved and at Cocobay Da Nang currently welcomes about 3,000 visitors every day to stay and experience”, said the owner of the flower contest. After Vietnam has just said, at the same time, it is expected that the legal improvement, adjustment of science planning and greener, especially when the majority of real estate products at Cocobay Da Nang have been approved to issue land use right certificate for a long time, will turn this place into a model sea city of Vietnam in the near future.


Cocobay Danang is the most enthusiastic project of the Empire Group boss

It can be said that the sea urban is an expensive, risky game, but it is also very attractive to real estate giants. Not only need great resources to go long distances, the owners also need a deep understanding and a wide enough vision of the sea real estate business, have diverse relationships at home and abroad to complete the massive legal profile as well as ensure that the metropolis can attract large enough tourists to maintain operations.

If it can be proved that it is easy to attract a large number of secondary investors to real estate products invested in marine cities.

Source: Internet 


Real estate giants understand that and this is the reason why a large flow of capital from abroad as well as inland is hunting for land to develop coastal real estate projects. In addition to the Northern business faces, there are many coastal projects that have been known for a long time such as Vingroup, Sun Group, Empire Group, BIM Group, FLC Group, etc. in the South recently witnessed the first-name enterprises. sectors like Novaland, Hung Thinh Group, Danh Khoi Group... are also stepping up their participation in the coastal real estate market.

 
Source: Internet

And as Mr. Duong Minh Tien, General Director of Asia New Time Company, the story of coastal real estate investment up to now seems to be not limited to the space, beyond the administrative boundary, by the region. What land has a beautiful beach and beach, that place will be like a million dollar gold mine.

Indeed, if before, referring to the resort real estate market, people only think of familiar lands such as Vung Tau, Mui Ne, Nha Trang, Da Nang or beyond are Phu Quoc, Ha Long ... , recently, many land areas attached to the sea have been hunted by reputable and professional investors, promising to create an explosion of the coastal real estate market. Specifically, mentioning the southern coastal markets, over the past time, many super real estate projects appeared along the coast such as the Novaworld Phan Thiet project with a scale of up to 1,000 hectares invested by Novaland, or the project. Novaworld Ho Tram in Ba Ria - Vung Tau province with the scale of stages also up to thousands of hectares. These are really big cities if they are properly invested, after completion, they will create a new story of the resort real estate segment in Vietnam.


Source: Internet 

In the Central region, in addition to the long-known markets such as Nha Trang or Da Nang, Binh Dinh has recently caught the eye of investors. As noted, from the beginning of 2019, some areas such as Quy Nhon, Nhon Hoi, and Nhon Ly of Binh Dinh Province have been landed by many investors.

Beginning in 2016, the People's Committee of Binh Dinh Province has a policy to call for investors with real capacity to invest in the form of socialization of land development, technical infrastructure development, and housing development. in commerce, new urban areas. And so far, Quy Nhon has attracted many large enterprises such as FLC, Hung Thinh, Phat Dat, Danh Khoi Real Estate Company (DKR). In particular, the most noteworthy recently is the Nhon Hoi New City urban area project developed by Danh Khoi, creating a new wave for this market, when more than 1,300 coastal red soil products have just been announced by investors.

Source: Internet

In order for "red carpet" to attract domestic and foreign investors and tourists, Binh Dinh province has stepped up its infrastructure development strategy in Quy Nhon with many road transport projects being implemented as extended routes Ngo May, national highway 1D, national highway 19B. In parallel, Phu Cat Airport is located away from the city center. Quy Nhon, about 35 km northwest, is being upgraded and expanded with a designed capacity of 1.5 million passengers/year, possibly expanding to increase its capacity to 2.4 million passengers/year. It is expected that the port will open the first international flight from Phu Cat airport in September...

According to experts' analysis, the real boom of the coastal real estate market in Nhon Hoi in particular and many other areas in general will be even stronger in the near future.

New "taste" of the real estate market

It can be said that the concept of "coastal real estate" has never been as meaningful to the market as it is now. According to experts, this is the most booming period of coastal real estate investment in the history of forming Vietnam's real estate market.

About 10 years ago, coastal resort real estate was known as a luxury property, because it was a game for the rich, the customer with the highest tip of the triangular tower. Therefore, there have been many projects, although beautiful and methodical, are quite difficult to sell. However, up to now, the real "taste" of the market has been changed, coastal real estate has not only become the demand of the majority of customers but also became a "game" full of Interesting investors.

According to the analysis of experts, the change of "taste" of Vietnam's real estate market is following the common rules of many countries in the world. Because coastal real estate in Vietnam is not only for the rich for the purpose of relaxation, but also a type of exploitation real estate worth millions of dollars.

Over the years, Vietnam has witnessed an increasing number of international tourists, in which lands with beautiful beaches and well-connected infrastructure are in the sights of tourists. According to the General Department of Tourism, in the first 7 months, visitors to Vietnam reached nearly 9.8 million, increasing 7.9% over the same period in 2018.

For domestic visitors, according to Nguyen Trong Thuc, Senior Manager of CBRE Vietnam Research and Development Consulting, rising income and the growth of the internet and social networks have helped stimulate demand of the Vietnamese. At the same time, there are significant improvements in infrastructure (highways, airports, number of flights ...) that increase connectivity between major cities and resort cities, as well like between resort cities and international markets.

The rapid growth of Vietnam's tourism industry has drawn the attraction of the demand for coastal real estate investment. From a market with a starting point is a lifestyle product for the super-rich - people are willing to go down if they like the location and design of the project, in which the megacities are full. Utilities and spacious space will have many advantages in attracting tourists and investors.

“A large sea city will form an attractive resort and experience ecosystem, as well as attractive trading and trading. Therefore, these will be the products leading the development trend of coastal real estate in the future”, said Nguyen Duc Thanh, Chairman of Empire Group.

Completing the legal process is one of the most important parts

 
Mr. Nguyen Duc Thanh, Chairman of Empire Group

Due to the huge scale as well as the complexity and diversity of products, the completion of legal documents for marine supermarkets in general and Cocobay Da Nang in particular requires a lot of effort and time. Meanwhile, this is the issue that customers are most interested in besides location, project design.

In order to do this, the understanding, transparency and demand of the investor are very important, along with the great support of the local government that locates the project and the relevant agencies in Center.

For Cocobay Da Nang, we have the advantage that most of the planned area is residential land. After the condotel product has been legally entangled, the investor has undergone a period of effort to complete the legal document including the following steps: Adjusting the plan from condotel to condominium and low-rise area, reducing the construction density and coefficient of land use, increasing the landscape and utilities to expand the urban space; receive land allocation decision; approve urban design including detailed perspectives to each unit.

The final step is until early August, we have received the decision to approve the sale. It is expected that after the Lunar month, Cocobay Da Nang will officially open the low-rise area, but so far, the number of customers has reached more than 100 villas and adjacent products.

Coastal real estate investment is becoming a wave

Mr. Hoang Kim Hoai, General Director of Phuc Dien Land Company

As the supply of urban projects in many big cities became scarce, real estate businesses had to fish offshore, leading to a new wave of investment in the coastal provinces and cities, especially are projects with marine elements.

With the strong investment in infrastructure, moving from the center to coastal provinces and cities is no longer as difficult and time-consuming as before, so owning sea properties is not far away in think of many people. Moreover, compared with big central real estate, marine real estate price is quite good, while immediate exploitation to bring cash flow for investors is very good.

Compared with other countries in the region, the cost of resort tourism as well as the price of marine real estate in Vietnam are still very low, so in addition to tourists visiting Vietnam, the work of foreign individuals and collectives property ownership in Vietnam is increasing. The standard of living of Vietnamese people has rapidly improved, the demand for relaxation has increased, and the second and third property ownership has become more and more familiar.

On the supply side, local real estate businesses have become more professional, know how to exploit the strengths of the project, diversify products as well as promote promotion. Moreover, the increase in the value of marine real estate products in recent years has always reached a high level compared to other regions, there are places with growth rates of 30-50%, there are projects that exceed 100% within 1-2 years.

To succeed, it takes not only the primary purchasing power but also the demand for tenants when the project operates

 
Mr. Nguyen Trong Thuc, Senior Manager, Research and Development Consultancy Department CBRE Vietnam

With the potential of the Vietnamese market, there is a large inflow of capital from abroad as well as the domestic market that is hunting for land for development of resort real estate projects, so the project trading market is expected to boil more in the future. In the North, with the opening of Bach Dang Bridge in September 2018 and the Ha Long - Van Don highway as well as the Van Don airport built, the Van Don resort real estate will attract more attention during the next time. In Khanh Hoa, in the next 3 years, Pham Van Dong and Bai Dai areas will be the project hot spots. In Phu Quoc, the next wave will take place in the North Island (where it is expected to have the first casino to allow Vietnamese to play), as well as the southern area of ​​the airport. In Da Nang, the area of ​​Son Tra district as well as the area along the road to Hoi An will be a hot spot in the future.

Increasing connectivity makes it more feasible to spread the project to newer localities such as Sapa, Van Don, Quang Binh and Quy Nhon. In addition, in the coming time, when the land fund for coastal resort projects is limited, real estate in mountainous areas may become hot spots. However, projects in mountainous areas need to be developed in accordance with natural conditions and cannot be forced to apply models such as high-rise condotels.

Successful developers are those who consider not only the demand for resort real estate products, but also the demand for rental rooms when the project comes into operation. In order to create accents and attract both of these demand sources, new projects may consider using non-existing management units in Vietnam, or more "boutique" names with new designs/concepts.

For individual investors: first, the buyer must really enjoy traveling at the project site, not so focused on the profit commitment numbers but need to understand the transparency of information. The project, as well as the ability to operate later (whether or not a professional management unit, if the investor is self-managed, do they have any experience or not, and there are sufficient facilities and amenities to attract tenants or not).

To meet the demand for tourism and convalescence becoming increasingly important to the majority of people

 

Mr. Duong Minh Tien, General Director of Asia New Time Real Estate Company

In fact, urban real estate or coastal real estate has its development rules, in which the common segment is that when demand is increasing, the value of use, exploitation is getting bigger. And when demand is greater than supply, rising prices become the rule of the market.

Coastal real estate in recent years has been a boom. This is easy to understand, because the tourism needs of international and domestic tourists are constantly increasing, in which the destinations chosen by most tourists are beautiful sea areas. As we have seen, nowadays on weekends, holidays, at airports often become overloaded with the number of passengers not only the rich but increasingly popular in many subjects. Saying this to show that the demand for tourism and relaxation has become essential for the majority of Vietnamese people.

Another fact, about 10 years ago, in coastal roads, specifically roads in the tourist cities of the Central region such as Nha Trang, Da Nang, Quy Nhon..., land prices are quite low as Vo Nguyen Giap street of Danang, or Xuan Dieu street of Quy Nhon, the land price is only around a few dozen million dong/m2, even lower. But these roads have become priceless now because no one seems to sell. And not only in the above areas, the survey shows that natural bays in Vietnam are increasingly scarce and become a multi-million dollar, even billion-dollar asset when discovered and embellished. and properly exploit...

Coastal real estate prices are still relatively soft

 
Mr. Ngo Duc Son, Deputy General Director of DRH Holding

For Vietnamese, the hobby of investing or accumulating assets with real estate has become a culture, especially in the context of the depreciation of the dong, which made many people go to real estate like finding a safe shelter of capital flows. And as analyzed, when the real estate investment opportunity in Ho Chi Minh City has lessened, the cash flow will surely turn to niche markets, in which investment in coastal real estate is becoming an option to be preferred.

On the other hand, comparing prices, real estate prices in big cities have increased sharply, leading to risky investments. Meanwhile, coastal real estate has had a strong growth in recent years, but it is still relatively "soft", the room for price increase is still large. Coastal real estate in the future will become increasingly scarce, as evidenced by many coastal lands up to the present time are being hunted by real estate developers. The price of coastal land in many areas has continuously increased over time, especially with high-value real estate properties, whose prices have increased by a dozen times compared to many years ago.

Besides, from another perspective, the demand for tourism and relaxation is increasing, in coastal real estate is the investment channel to meet this practical demand, so investment in coastal real estate becoming an inevitable trend.

According to Chau Ky

Resort real estate is changing phase 2, towards mid-end segment

Resort real estate is changing phase 2, towards mid-end segment

Savills recently released its report "The 2nd home - global buying and renting trends" in 2018. Interestingly, resort real estate is trending to be popularized.

 

Resort real estate is considered as a second home investment trend. Photo: Shutterstock.

Investment rate reduced

Savills conducted a survey of over 4,300 second home owners on HomeAway in seven major markets: the US, UK, France, Spain, Italy, Netherlands, and Portugal, and noted development trends of lower priced apartments on the second home market.

In 2017, 37% of transactions were real estate under $ 200,000. In 2018, the average selling price of a real estate was US $ 291,000, but it was still 37% lower than a decade ago. This is explained by the expansion of the condominium market: apartments accounted for 34% of the number of transactions in 2017 according to the survey sample, higher than the figure of 26% in 2007.

With the fact that Vietnam's real estate market is increasingly integrated, with a large opening, the evolution of the resort segment has also recorded similarities.

According to Savills, in the past, when the Vietnamese real estate market was just beginning to develop, it was the period of prime central projects, with limited land and limited supply, creating luxury products with high cost.

At this time, the main product type of this market is considered core products such as resort villas and coastal villas. Buyers are mainly investors with large financial potential with long-term investment objectives.

However, recently, with the development of Vietnam's tourism, the demand for accommodation services of mid-range customers has been increasing.

In 2018, Vietnam welcomed 15.5 million international tourists and about 80 million domestic tourists, up 19.9% ​​and 6.8% over the same period last year. Most of these travelers only have an average budget for their vacation and look for affordable accommodation products.

To meet this demand, investors also aim to invest and develop smaller area products and new products at more reasonable prices.

 

SolBeach House, a product of MIK Group in Phu Quoc.

Currently, the resort real estate market has appeared products such as serviced apartments, sea apartments, condotels - considered as a derivative from the traditional core model.

With a moderate area, the investment cost of the properties not attached to this land is not too large and suitable for a larger set of investors.

Emerging market potential

Besides the well-developed resort markets such as Da Nang, Nha Trang and Phu Quoc, investors are also gradually targeting new localities such as Ninh Thuan, Tuy Hoa, Quy Nhon... with demand sources. Significant calendars at pristine destinations and not yet too commercialized. Therefore, the resort market has quickly followed.

In addition, lower land costs in these emerging markets have also opened up investment opportunities for more investors.

The developers of resort projects are also offering flexible investment programs to attract customers, such as sub-leasing programs (commitment or profit sharing), long-term leases or sales and pledge to repurchase real estate.

Relative to the second home real estate investment products in Hanoi and Ho Chi Minh City, this is an attractive investment plan with not too large investment costs and positive profits. This is why the resort market attracts a large number of customers from two big cities of Vietnam.

Not only attracting domestic investors, the Vietnamese resort market has a big attraction for foreign investors. The interest of foreign visitors to buy a second home in Vietnam has been recognized for many years because of the potential resort market and competitive housing real estate prices compared to developed countries.

Since the Housing Law amended in 2015 allows foreign individuals and organizations to own real estate in Vietnam, the number of foreigners who are interested in and buying second homes in Vietnam has increased significantly. A number of projects in Hanoi, Ho Chi Minh and Da Nang, after being launched, quickly reached the maximum percentage of foreign buyers.

According to Thanh Nguyen

Enhance your apartment building with management technology

Enhance your apartment building with management technology

Instead of managing and operating the building in the traditional way, applying technology is an effective way to increase the quality of management services, and also help customers residents better access to the services of management unit.

 

Photo: Shutterstock

Digitized demand from reality

Professional management and operation of a building is a concept that has existed for a long time in the world, but in Vietnam, this concept is quite new. The strong development of high-rise buildings and apartments projects creates fertile land for real estate management units. Apartment projects have hundreds, thousands of people living, therefore, meeting the individual and community needs of residents requires the management team to be quality human resources, arrange suitable work. Reasonable, regular contact with residents and investors.

Although the model is still new in Vietnam, in the past 5 years, many building management units have been established. This is a good sign for the market, because customers will have more choices. If only 5 years ago, only a few foreign enterprises provided this service, so far, there have been many businesses both in the country and abroad providing building management services in the Vietnam market.

Although the number of units providing building management services has increased sharply in the past 5 years, the quality has not grown correspondingly. In particular, the current dilemma is that the traditional real estate management model has initially shown many backwardness. In particular, with a large workload, the traditional model shows many limitations in stages such as communication with residents, human resource management, resident records management, handling of resident requests, quality amount of projects (management standards are not guaranteed).

Managing and operating the building, especially in the apartment building, is the profession of making hundreds of them, including small stories, but it is the cause of disputes. The story of interacting with residents, handling requests and managing personnel are outstanding issues. In particular, the traditional model has many limitations in communicating with residents.

The common form of communication is message boards, notices, emails... However, in reality, this communication does not bring the desired effect, does not create the attention and attention of the people. In addition, this model creates administrative and economic pressures when the apparatus is constantly inflated (according to the project size, the number of projects increases each year).

This comes from the fact that the building management units are weak in technology application. Current technology is mainly of a general nature, such as technicians going to maintenance, repair of system equipment (e.g. elevators, generators), then recording the technical diary, then continuing to update. Information on website and software. The application of technology is more of a synthesis than a deployment or a solution.

Digital race in building management and operation

These pressures have urged businesses in the building management sector to develop new management technologies and applications to solve the problems that the old model posed. With the field of building management and operation, the current trend in the world is to promote the application of real estate management technology, with management software, artificial intelligence (AI) and big data systems (Big Data), automation of management cycles.

Building management software not only helps residents receive fee notices, book services, but also channels to reflect the quality of service. When problems arising are reflected, immediately the status will be updated to correct and resolve. Every little thing from electricity, water or rescue, security depends on the unit that operates and manages the building. Therefore, in the management process, it is unavoidable for unexpected incidents. In particular, one of the biggest disputes that often occurs between investors, management units and residents is not transparent in financial revenues and expenditures.

When the technology is applied to management, all revenue and expenditure are entered into the system for management and residents to check. When residents pay a fee, the voucher will be printed and cannot be modified. All data will be made into reports and transferred to the responsible individuals and departments to make the financial management more transparent.

With the expanding portfolio scale, the solution to manage and operate projects more efficiently and save resources. Instead of having to meet face-to-face or contact the management with a telephone to request a repair, schedule a utility use in the project or pay related expenses, residents can quickly manipulate the application simply on the phone app.

For management, instead of recording and saving information manually, management can store on the system and coordinate personnel quickly and effectively, reducing human error. Instead of transmitting notices to residents via message boards or direct contact, management or developers can send notices via the system, thereby saving time and resources.

Moreover, real estate management systems are capable of storing the information history of all projects; through which all information is exchanged between management boards. The management, the investor and the residents are all transparent and avoid unnecessary misunderstandings when disputes occur. All technical reports and feedback on service quality sent to the system by the residents will also be kept and a basis for the management and the investor to improve the management and operation of the project in accordance with time.

However, technology only helps to reduce the load and shorten the time to handle the management and operation of apartments, and more importantly, the quality of personnel. Considering the common ground, the building management and operation units in Vietnam are still unprofessional, the quality of human resources is still poor, not really meet the work requirements. There is a need for formal schools to train in the field of building operation management.

As a new field, not much experience, the business management and operation of buildings in Vietnam has made remarkable progress, but with rapid urbanization and increasing requirements. The current high level of customers requires the faster growth of businesses. This not only contributes to the steady development of all aspects of the real estate market, but also is an important factor to create civilized living spaces in urban areas.

According to Trinh Nguyen Tuan Anh