Daily Real Estate Briefing: New Policies, Urban Planning and Bond Maturity Pressure

The day’s key real estate developments center on policy and planning measures in major cities. The Government has assigned the Ministry of Construction to report in November on housing supply, liquidity, prices, transactions and property inventory, providing an overall update on the market’s health. In Ho Chi Minh City, authorities have proposed support for people who purchased houses or land through handwritten documents between after July 1, 2014 and before August 1, 2024, with support equivalent to land compensation when the property is recovered. The city is also considering land-rent exemptions, tax incentives and shorter procedures for outlet shopping center projects, while accelerating public investment disbursement and key projects such as the Moc Bai Expressway, Metro Line 2 and the Xuyen Tam Canal. In addition, four land lots in Thu Thiem, with a total area of nearly 43,000 square meters, have been allocated to Dai Quang Minh Company to settle the BT contract for the Thu Thie...
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Daily Real Estate Briefing: Electronic Property IDs, Major Infrastructure Projects and Market Price Trends

The main real estate development today is the official assignment of a unique 12-digit electronic identification code to every land parcel and construction project. People can access publicly available location information on VNeID. From September 1, homeowners and landowners will have their own identification codes, be able to look up information on the application, and no longer need to resubmit data already available when completing procedures. Meanwhile, Ho Chi Minh City is applying unified regulations on land parcel subdivision and consolidation across the city from August 28, with minimum areas of 36 square meters for residential land and 500 square meters for agricultural land.

The market is also seeing a series of large-scale infrastructure projects launched around September 2 in Ho Chi Minh City, Hanoi and Phu Quoc. These projects are expected to expand urban development space, create new growth poles and redistribute land values over the next 10 to 20 years. However, capital availability and the market’s absorption capacity remain challenges that must be addressed to generate stronger growth. In Ma Lang, a trillion-dong urban improvement project has officially started. Local residents hope to be resettled on site, receive proper compensation and maintain stable living conditions and livelihoods. Hanoi is beginning to concretize its 100-year master plan through 81 detailed plans, while also selecting a contractor for the West Lake waterfront improvement project. In the northern region, seven expressway routes are being developed through 14 projects or component projects, with their progress requested to be accelerated.

Regarding prices, some street-front houses in Ma Lang are being offered at more than VND 1 billion per square meter. Around West Lake, asking prices commonly reach hundreds of millions of dong per square meter, with some exceeding VND 1 billion. Eight land parcels in the new Cau Giay Urban Area are set to be auctioned. The 231-square-meter parcel has the highest starting price, at nearly VND 41 billion, equivalent to VND 176.6 million per square meter. Although genuine housing demand remains, mortgage interest rates of 13 to 16 percent per year are prompting many people to rent instead of buy, putting pressure on liquidity. Experts say home prices are unlikely to return to previous levels because land, construction, financing and legal costs all remain high. In the corporate sector, Vingroup paid more than VND 57 billion in remuneration, salaries and bonuses to senior executives during the first half of the year, while Chairman Pham Nhat Vuong received no remuneration. KDI Group also opened the Alora Nha Trang show house, providing customers with an opportunity to experience the project in person.

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