An uptick in transactions as well as investors completing procedures for new projects indicate that the Khanh Hoa property market has responded positively to several schemes announced by provincial authorities.
In the third quarter of 2023, the south-central province recorded 4,796 transactions with a total value of nearly VND3,364 billion ($133.8 million). This rose to about 5,061 transactions worth nearly VND4,522 billion ($180 million) in the fourth quarter.
In the first quarter of 2024, the number of transactions and their value rose to 5,941 transactions and nearly VND7,630 billion ($303.5 million), respectively. The transactions involved 211 apartments, 4,537 plots of land and 1,193 private houses.
The provincial Department of Construction said that the first quarter of 2024 also saw two housing projects prepare to offer their properties for sale.
In addition, six commercial housing projects with 1,435 apartments and 4,122 private houses are being implemented, the department said.
Just one social housing project for workers – NNOXH-02 in Phuoc Long New Urban Area, Nha Trang town – was completed in the first quarter, offering 260 units.
The province also has 26 resort tourism projects 12,149 apartments and 2,588 villas that are under construction.
Policy support
Recently, the province’s legislative agency, the People's Council, passed resolutions to grant in-principle approvals to a list of projects needing to recover land and to another list where recovery has been completed. Among these are two high-end urban area projects: Tu Bong and Dam Mon.
Previously, the provincial executive arm, the People's Committee, had proposed approval of a list of projects that needed land recovery, arguing that this would advance both local and national socio-economic development interests.
The list featured a total of 10 projects covering more than 3,340 hectares. The Tu Bong and Dam Mon high-end new urban areas need over 2,895 hectares.
The Tu Bong project needs to get 1,567.21 hectares of land in six communes: Van Tho, Van Binh, Van Phuoc, Van Thang, Van Khanh and Van Long; while the Dam Mon project needs 1,328.67 hectares in Van Thanh commune.
As both two projects need the prime minister's in-principle approval, the Ministry of Planning and Investment is collecting feedback from ministries, agencies as well as Khanh Hoa province.
The prime minister has already approved important plans for the province, including the Cam Lam new urban area master plan by 2045 and the adjusted Nha Trang master plan until 2040. Master plans for other areas in the province, including subdivision plans, are either in the preparation stage or submitted for appraisal.
According to the provincial Department of Construction, the plans form the premise to call for investment in housing, urban area and infrastructure projects, especially housing for low-income earners and workers.
The removal of bottlenecks will boost the provincial real estate market in the near future.
Phan Viet Hoang, general secretary of the Khanh Hoa Associations of Realtors, said that in the short term, segments related to residential real estate like townhouses, shophouses, affordable commercial housing, and social housing in particular, will lead the Khanh Hoa market in 2024.
"Recent data shows that in Dien Khanh and Cam Lam districts and the Van Phong Economic Zone, a number of large investors are completing the final steps to receive investment registration certificates in industry, logistics and urban areas. These projects have a fairly big scale of 1,000 hectares or more each. This is a very positive signal for economic growth of Khanh Hoa province, including the real estate market," he said.