The expert pointed out the reason why despite the “land fever”, the price increased, but investors still chose to “pour” money into the land at any time.

The reason for ‘earth fever’ everywhere…

Talking about real estate prices, especially land plots, which are increasing in many areas, Mr. Vo Huynh Tuan Kiet, Director of CBRE Vietnam’s Housing Marketing Department, said that in the period of 2018-2019, “land fever” had appeared. present in many places. At that time, many investors had financial problems when investing in the ‘fever’.

“By the end of 2021 and the beginning of 2022, our records show that land price increases and land fever continue to occur on a much larger scale than before. Typically, the land fever in Binh Duong, Dong Nai has previously spread to Binh Phuoc, Tay Ninh, some areas such as Ben Luc, Duc Hoa (Long An)… Currently, areas such as Phan Thiet, La Gi (Binh Thuan), or as far away as Bao Loc, Lam Dong, Dak Lak, Buon Ma Thuot… or some provinces in the North and Central region, there is also land fever,” said Mr. Kiet.

Many investors choose real estate as a haven, an investment channel that maintains the value of money and is profitable…

Talking about the factors that create the “land fever”, Mr. Kiet said that although the general economy in Vietnam has been affected by the epidemic for the past two years, the economic development rate is still relatively stable. In addition, many public investment activities in localities have been announced, information on planning adjustment, new planning, and implementation plans of infrastructure investment projects in many localities have made investors feel better. Investors pay attention to many areas and tend to invest in advance.

“Where there is planning information, infrastructure information is expected to be deployed, investors will “pour” in, causing land prices to increase, and in some places, they will be “pushed” up. Besides, inflation is forecasted to increase, many investors want to find investment channels to keep property values ​​and real estate is the first investment channel that comes to mind.

In particular, the purchase and sale of land plots takes place on a large scale when this is a segment that has always had high investment demand, the liquidity is also easier than other investment channels and the value of the land is through often also increase higher than other segments. This is also the reason why investors “rushed” into land plots is the initial factor for the “land fever” to happen”, Mr. Kiet analyzed.

In addition, according to this person, “earth fever” is the main psychological factor. Investor sentiment wants to confront the market, focusing on the forecasted area to develop well. But besides areas with economic potential, on the contrary, there is a potential area that is just side information, investors are drawn to that information and area, creating a ‘virtual land fever’. Accordingly, many investors were “bought to the top”, then the market “frozen” and could not be liquidated.

How to invest in real estate to avoid risks?

Real estate expert Phan Cong Chanh said that the stock market and real estate market are two interconnected vessels, which has been clearly demonstrated in previous cycles.

“After every impressive stock market rally, the real estate market will benefit. Specifically, through the beginning of 2022, the trend of many securities investors shifting their profits to a sustainable investment channel rather than real estate.

The war story between Russia and Ukraine has also led to a change in the investment taste of investors around the world, and this war story has also pushed up the cost of materials such as gasoline. In addition, many experts believe that Vietnam is facing the problem of inflation in the next 2-3 years.

Therefore, investors will face the problem of choosing a safe and profitable investment channel, and real estate will be an investment channel besides securities. Securities and real estate will be two prominent investment channels in the next 4-5 years”, Mr. Chanh analyzed.

With the investment experience of individuals from many years in many localities such as Da Lat, Phu Quoc, Long An, Ho Chi Minh City… Mr. Chanh assessed that, besides the traditional investment segments, there were also trends. new investment direction.

“For semi-professional or professional real estate investors, the product portfolio also needs to have many types of real estate to diversify risks. The familiar segment of land plots and townhouses in big cities is currently too high, and profit margin is also limited. When the epidemic occurs, a new investment trend of ecological and health products appears. In 2022, 2023 or 2024, the traditional segment may still attract investment, but eco-resort real estate investment will emerge,” said Mr. Chanh.

According to Mr. Vo Huynh Tuan Kiet, in the current context, if there are huge fluctuations in finance, the value of money will be affected when the inflation forecast increases.

Mr. Kiet said: “We are keeping the current 100 million dong, by the end of the year that 100 million dong may not be as valuable as the beginning of the year. Investors will find shelter channels, investment channels that maintain the value of money. Many people choose to buy gold, some investors choose to buy real estate. Real estate has a period of rapid growth, a period of slow growth or a period of no increase; If we don’t buy real estate during the bubble, most of the real estate value will remain stable and will increase.

If buying suitable real estate will be a shelter channel; if you keep money at the bank or at home, it may lose value and if you buy gold, it may fluctuate; But if you buy real estate, the value is mostly kept stable and will even increase over time,” said Mr. Kiet.

According to this position, choosing the right real estate product, the liquidity with the expected investment value is also easier than other investment channels. This is the reason why many investors with cash from other investment channels choose to invest in real estate.

ID