The real estate market was interrupted and lasted for a long time in the first months of 2020 due to the impact of Covid-19. After the epidemic is under control, the most concerned question now is whether investors have returned to the market or are they still able to keep cash?
According to Ms. Nguyen Thi Van Khanh, an expert from JLL, said that with the psychology of ‘cash is king’ in the context of economic instability, investors often prefer to keep capital and focus on investing in markets. the school they were knowledgeable about.
However, due to the relatively well-controlled epidemic in Vietnam, many businesses are preparing for their business activities to return to normal. The negotiating position between seller and buyer is becoming more and more balanced. Therefore, JLL expects more successful transactions as the market is expected to recover in the second half of 2020 or 2021.
Although the outbreak in Vietnam made many businesses in financial difficulties, JLL has not recorded the trend of selling bad debt assets from domestic real estate companies in the first quarter.
Ms. Khanh said most investors are still optimistic and calm, they also pledged to continue to participate in Vietnam’s real estate market in the long term. Investors are waiting for a new opportunity.
Demand for office properties and housing remains stable, while industrial park properties are forecast to be the most promising market.
In fact, the market is recording positive signs when there are a series of open sale events, introducing the project taking place in the last days of May. Liquidity of transactions in real estate projects therefore has also been active. These things seem impossible in the past 4 months.
The S1.08 apartment tower is considered the heart of the newly opened Vinhomes Ocean Park urban area, the investor announced that 50% of the apartments were sold within 60 minutes via 3 online – offline and livestream platforms. ; apartment purchase transactions for apartments in Sky Oasis (Ecopark) have also been taking place quite actively with hundreds of apartments already owned; Or investors scrambled to book shophouse products in Aqua City as well as hundreds of townhouses and villas in the eco-urban area in the east of Ho Chi Minh City were purchased by investors.
Most real estate investors tend to buy when the market has been active, at this time everything has already formed, the opportunities are no longer or have greatly reduced.
That shows that the real estate market in May is taking place quite actively in many areas, investors started to gather again. Share with us, Mr. Nguyen Minh Khang, CEO of LDG Group, said that at the present time about 50% of investors have down money to buy real estate and 50% are still waiting. Other investment channels are quite risky, deposit interest rates are low, so investors are now inclined to use money to invest in real assets such as real estate, gold. The top priority of individual investors today is still legal, potential projects and reputable investors are they ready to “down money”.
According to Mr. Pham Thanh Hung, Vice Chairman of Cengroup, the market, whether exciting or difficult, will always have opportunities for investors. The important issue is whether or not a successful investor is due to their competence and professionalism, they must really know and have clear goals and financial potential to accomplish that goal.
According to Mr. Hung, it is difficult to correctly guess the “bottom” of the market, but there are signs to identify the “bottom” when the market begins to have good liquidity after a period of quiet. In the first phase, real estate prices have not increased, so investors have not tended to buy, only when the market is vibrant do they really come back to buy, at this point it is already, many investors are slow.
Therefore, according to Mr. Hung for successful real estate investment, investors must have a long-term view of 3-5 years or even 10 years. When the opportunity is clear, everything is already in shape, the opportunity is no longer for us or it has been greatly reduced.
Mr. Hung said that investors in the market today should not expect real estate prices to plummet. The reason is that the demand of the market is still very large.
Vietnam’s real estate market is still very potential compared to the scale of the economy and increasing incomes of people. It will take 10-20 years for the real estate market to be saturated.