According to experts, the current difficulties of the real estate market will only exist in the short term. In the long term, the real estate market still has great potential for both businesses and investors seeking opportunities.
The market always has an opportunity
The real estate market has started to be quiet since the end of 2018 and has shown signs of slowing down from the middle of 2019 until now, resulting in a decline in transaction volume. Especially from the beginning of the year until now, the market has been significantly influenced by COVID-19 epidemic, affecting buyers’ psychology.
However, many experts still believe that the current difficulties of the real estate market will only exist in the short term. In the long term, the real estate market still has great potential for both businesses and investors seeking opportunities. Therefore, the market still has many cash flows waiting for a good time to buy and close after the epidemic breaks.
For homebuyers, this is a good time for those with real needs. Because in this context, buyers will have more options, are less competitive and are able to receive good incentives from project investors without fear of being affected by speculators or investors.
In the secondary market, there is a situation of sell-offs and sell-offs of apartments for many investors due to financial difficulties.
Mr. Nguyen Van Dinh, Vice Chairman of Vietnam Association of Real Estate Brokers said that with the difficulties of the economy plus the competitive pressure, real estate prices may be adjusted in a more reasonable direction. Especially the high-end and luxury segment because this product line is oversupply.
When the prices are reasonable, they will certainly be closer to the demand and people will have more opportunities to buy houses, especially those who are in financial difficulties.
Recently, some big real estate investors such as Vinhomes, Capital House, Novaland, also launched products with many preferential policies such as discount, payment support, gift voucher.
Meanwhile, the supply of mid-end apartments is increasingly scarce while the real demand is very large. Experts predict that these products, if released to the market, will reach maximum absorption rates.
According to TS. Su Ngoc Khuong, Senior Director of Savills Vietnam, the impact of COVID-19 can last until the end of 2020. Therefore, this is a difficult time for many domestic and foreign investors in general. However, for a segment of individuals and businesses with good financial capacity, this is a great opportunity.
A series of supportive policies for the real estate market such as the Government’s support policies have been enacted, including fiscal and monetary policies; besides a credit support package of VND 250,000 billion; Businesses will receive tax reduction, tax payment extension and land rent, which is expected to help the market recover faster.
Choose face send gold
Savills experts also said that the real estate market will also undergo the purge of weak investors in financial capacity, doing business “grabbing”.
When the economy is “hit” by the COVID-19 epidemic, large inventories, negative cash flows may cause some real estate businesses to introduce more policies to lower product prices to recover cash flow.
In some projects, there has also been a decline in prices due to some investors who are stuck in capital and need to liquidate their assets. Therefore, this is an opportunity for secondary investors to consider and make buying decisions if they find a reasonable price.
Accordingly, investors need sufficient information to invest in reputable investor projects, with clear development strategies, and solid finance to avoid the risk of being buried or lost capital.
Especially for experienced investors, this is the opportunity to promote the ability of market analysis. Difficulties or fluctuations in the market in the short term are also challenges to help screen and find qualified investors in the market.
According to Ms. Nguyen Hoai An, Director of CBRE Vietnam, Hanoi branch, the real estate market will depend heavily on how quickly the epidemic is under control. Until then, the ability of the market to stand up will be verified when developers, investors and buyers to stay in the waiting state.
Source: vietnambiz.vn