Business Business

20/02/2020 - 07:47

Opportunities from real estate market

The real estate (RE) in Hue has shown many good signals of development in 2020 if there is a good policy to lead the market.

The Manor Crown Hue Project precinct is renewed in a friendly direction

Bright spot of the resort segment

2019 was seen as a year of many breakthroughs in RE development when the land price in the residential and planned areas grew sharply. The suspended RE projects was also resumed; many new projects was implemented, and the projects transferred since the previous year were also accelerated in construction progress and opened for sale, which created a lively market in many new forms

On the last days of Quy Hoi (Pig) year, The Manor Crown Hue project invested by Minh Dien Vital Real Estate Joint Stock Company is focusing on the renewal of the project precinct.The villa area with 67 adjacent town houses and semi-detached villas has been completed in inspection and handed over to customers. Most residents of this urban area have come to settle, creating a joyful atmosphere on the days near Tet (the New Year).

Currently, the company is focusing the resources and human resources on accelerating the completion of the works in early 2nd quarter of 2020 in order to finish the investment and put the whole project into operation in the 2nd quarter of 2020.

The resort segment also has many bright spots when tourism activities have great prospects of development. Many big strategic and reputable investors come to research and explore investment such as Sun Group, FLC, Gami, Ecopark...

The total number of tourists to Hue in 2019 rose by 10.8% against 2018; tourism service revenue was estimated at VND 4,900 billion, and social revenue from tourism over VND 12,000 billion, which is the driving force behind this segment, with the highlight of My An hot mineral water resort.

Started in March 2019, after more than 9 months of construction, the project basically completed the underground infrastructure items, completed the rough construction of the works, except the hotel area and computer room. The company also made the submission to the Provincial People's Committee for the increase in the scale and capacity of the accommodation expected to be built and roughly completed in March 2020.

Mr. Dang Manh Cuong, Director of Minh Dien Vital Joint Stock Company affirmed that according to the approved plan and schedule, the Onsen villa works will be completed in the 2nd quarter of 2020 and put into operation in stage 1 in the 3rd quarter of 2020.

The hotel work and the overall project will be completed in September 2020, and the entire project will be put into operation in October 2020. With the combination of technology transfer and operation management of Kawara, the Japanese resort brand - the Kawara My An Onsen Resort complex - will help to create more highlights in tourism development in Thua Thien Hue. .

Land plots remain the No. 1 choice

In 2019, the price of land plots in new residential area projects grew sharply; the "warming" of the market was due in part to the increasing demand for residential land.

Most areas, especially the south and southeast areas, have very lively transactions. The projects of land plots in the districts and towns adjacent to the southeast city such as flourishing Phu Vang and Huong Thuy, create a new and continuous RE product chain.

The price of land in Xuan Phu planned area  previously VND 16 million / m2 on the main roads soars to VND 35 million / m2; Thuy Thanh and Thuy Van planned area land jumps from VND 7 - 8 million / m2 to VND 12-16 million / m2, or Vinh Ve and Phu Vang planned area land from VND 3 million / m2 to VND 5.5 million / m2...

Mr. Nguyen Minh Chau, General Director of An Nam Group Joint Stock Company, Chairman of Thua Thien Hue Real Estate Association judged that with Hue people’s psychology, land plots will remain the No. 1 priority in 2020. The housing segment also has many prospects of development when the project housing is in short supply, and many reputable investors have been launching many quality products to lead the market.

The need for policy of support

Mr. Nguyen Phuoc Buu Hung, Deputy Director of the Department of Construction said that the real estate investment trend in 2020 will still focus mainly on land plots. Types of apartments from the medium to high level has the great potential for growth

In the context of rising material prices, it is tough buying land for building houses. Customers, especially young people, tend to live faster and think more openly, so buying project houses gets attention. However, the supply of real estate market, especially the project housing segment, is deficient.

According to the forecast, 2020 will be an unfavorable year for real estate when banks tighten credit capital for real estate; there are no clear regulations for resort RE...

However, the encouraging signal for the real estate market is that Thua Thien Hue proves quite popular with big investors. In 2019 alone, the province granted licenses to 30 new investment projects with a total of newly registered capital and adjusted capital increase of over VND 22,711 billion, accounting for over 12% of the total registered capital so far, 2 times higher than the plan and 2.27 times higher in terms of capital.

Currently, the province has 559 valid projects with a total registered capital of about VND 170,000 billion, 450 of which are domestic projects with a capital of VND 85,000 billion, and 109 are of foreign investors with USD 3,798.97 million.

Story and photo: HOANG ANH

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