The Covid-19 pandemic caused real estate investors to change themselves to adapt.
4 changes of real estate market after the epidemic
Mr Bui Vu Xuan, director of the VAGENT branch in Ho Chi Minh City, said that the Covid-19 pandemic would lead to major changes in the real estate market.
Firstly, because the market has been stuck in the market for too long, it forced investors to have a new product strategy to bring customers back.
Second, the market after the Covid-19 epidemic will have an advantage thanks to the economic stimulus packages with both finance and policy. Typically, projects that are having legal problems will be removed by the government to return to the market.
Third, the great lesson of the 2008 economic crisis will force banks to continue lending to real estate businesses to some extent, rather than shrinking and restricting lending.
Fourthly, if our country controls the epidemic well, investors will flock to it and this is an opportunity for real estate.
Mr. Xuan commented, since before Tet, professional investors expected that the market after Tet would be bad, so they restructured their assets to prepare contingency cash in the first six months.
For amateur investors, because they do not predict how the market after Tet will evolve, moreover they have used too much financial leverage to invest, so the outbreak happened that put them in a situation. confused and wishing to discharge goods.
Apartments with a value of over VND 3 billion, land plots of over VND 5 billion and townhouses of over VND 10 billion with owners borrowing over 70% of the bank value are most likely to be discharged.
Instead of falling, Mr. Xuan said, after the Covid – 19 epidemic, real estate prices would increase by 3 – 7%. However, this increase is more technical than the increase market, such as investors increase prices and then offer discounts or promotions.
The market will have a product with a long installment period, the investor will preferentially support bank interest from 12 – 24 months, even the investor can commit to buy the product again. This means that the investor does not want to sell the product in the immediate future but wants long-term stability.
In the apartment segment, Mr. Xuan said that high-end apartments in locations near the center will drop sharply, while the low-cost segment in the suburbs will meet the real needs of the people as well as The economy in general will increase the most.
Real estate in the suburbs is crowned in Ho Chi Minh City
Although newly appeared but garden houses in the outskirts of the city. HCM is becoming the destination of real estate investment cash flow.
Xuan also said that starting from the end of last year, there appeared a trend of investors looking for garden and farm land in the neighboring provinces. HCM.
Safety and health issues are the top priority of buying green real estate. This investment trend is also stimulated by the increasing proportion of people owning cars, so it is simple to move from the city center to neighboring provinces.”Because of these things, after the epidemic, the trend of garden and farm land will become the second home trend in Vietnam,” Xuan said. According to Mr. Xuan, there are four areas that will be the promising land for gardening investors in the coming time: the West, the East, the coastal area and the plateau. In the Western region, the provinces of Tien Giang and Long An are the most reasonable because of the city center. HCM from 2-3 hours drive. The Eastern region will witness the emergence of Dong Nai while in the highlands area, Lam Dong will be a new destination. In the sea, gardeners will thrive in Binh Thuan, Ninh Thuan, Ba Ria Vung Tau, even spread to Khanh Hoa.
“If you buy a garden house too far from the city center. HCM does not bring any benefit. Should choose a place with a travel distance of 2-3 hours, because with the development of current transport infrastructure, the distance of the property is determined to be how long it takes to travel, not how far how far the center is as before, ”Mr. Xuan said. Because of the increasing demand for investment in garden houses, the land lots with an area of 1000 – 3000m2 are within a radius of 100 – 200km from the city center. HCM is being traded a lot.
Real estate market movements in Hanoi after the Covid-19 epidemic.
Another senior expert of Real Estate Company VAGENT made a comment to the apartment market in Hanoi in case the Covid-19 epidemic was under control.
In the first case, if the disease is under control in the first quarter of 2019, the market is expected to receive nearly 30,000 new apartments with the average selling price expected to increase by over 5% compared to the first quarter of 2018.
The mid-end and affordable segments are forecast to have the strongest year-on-year growth due to the crisis is an opportunity for those in real need. These projects are expected to have a higher price increase, around 5% -7% YoY while luxury projects licensed in Hoan Kiem, Hai Ba Trung and Ba Dinh are expected to increase modestly. Only 1-3% by year. VAGENT forecasts that the number of transactions is expected to decrease compared to last year, mainly due to the decrease in transactions in high-end and luxury projects due to the impact of Covid-19. In the case of an epidemic lasting until September, the supply of new apartments will decrease, with a large decrease in the high-end and luxury segments, but in the affordable segment, the impact will be limited.