Land fever 2021 brings money to investors, but the crazy increase in land in 2022 is easy to bring “bitter fruit”
It can be seen that, in nearly two years of the Covid-19 pandemic, while production and business activities and services were stalled, the stock and real estate markets had many “fevers”. Land prices in many places have increased, and land fevers in coastal areas, industrial zones, etc. have taken place in many provinces and cities across the country.
Explaining the hot rise of securities and real estate in recent years, experts say that the main reason is that deposit interest rates are very low while new investment or business expansion is very limited, causing Idle money goes into hot investment channels like real estate.
Although land has increased sharply everywhere, in 2020-2021, most experts in the market believe that a housing bubble cannot happen. Because money in the market is mainly “real money”, investors rarely use financial leverage. Therefore, it is not possible for investors to accept to cut losses when the market goes down.
However, entering 2022, worries about the housing bubble have begun to appear when inflation is high, housing prices “dance” skyrocketing. People poured money into real estate in a crazy way, causing real estate prices in many areas to exceed real values, virtual fever, fever in the mouth of the stork.
Mr. Su Ngoc Khuong – Senior Director of Savills Vietnam emphasized, when inflation occurs, although real estate prices increase, but the market cannot afford to buy, there is no liquidity. At the same time, many investors also use financial leverage to invest in real estate, making low-liquid assets a great burden for them as well as putting pressure on the banking system.
Sharing the same view, many professional real estate investors also recognize that in real estate investment in 2022, investors need a very cool head, because the “price traps” are already set. Investors in a hurry are easy to get stranded because this year, inflation pressure on the economy is huge.
Commenting on this issue, Mr. Nguyen Van Dinh – Chairman of the Vietnam Real Estate Brokers Association – said that from the beginning of 2022, although the epidemic situation was still complicated, the market was hot in all regions. In the region, real estate transactions are still quite active, businesses are also very excited. However, in the long term, we will still face many crises, with inflation pushing up real estate prices, so real estate in 2022 will be quite harsh.
Many experts also warned that in the past, there was a scenario of high inflation leading to increased interest rates, causing the real estate market to stagnate when real estate in general and high-value assets in particular may face difficulties. difficulties in the inflation storm because of poor liquidity.
In fact, it shows that currently in the real estate market, there is a phenomenon of investors “full of goods” (holding a lot of goods) but the liquidity is sluggish due to high anchoring prices. Transactions on the market from the middle of last year to now have taken place very slowly, although prices are anchored 20-25% more in the city area, over 30% in the suburbs, over 50% in the locality. small town.
However, the longer buyers hold, the more likely they are to push the price up to reduce price slippage. When the whole market pushes up the selling price, it will cause real estate to establish a new ground. Projects formed in the future also calculate the selling price of 2-3 years after handing over the product because the investor includes the inflation part in the cost.
According to experts’ forecasts, in the next 12 months, there will be a paradox where housing prices continue to escalate but liquidity is sluggish, everyone races to own properties, leading to social resources buried in real estate.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
