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Real estate market is easy to buy

Land prices “dance”

In recent years, many localities have continuously welcomed land “fever”. Accordingly, land prices have also increased 2-3 times, even up to 4 times in a short time.

Immediately after the Lunar New Year, the real estate market, especially the land plot segment, in many localities returned to bustle. There are times when rural land prices in some areas are recorded “dancing” by the hour.

The “fever” is also reflected in many places such as Quang Ninh, Vinh Phuc, Khanh Hoa, Ha Tinh, Quang Tri, Binh Duong, Kon Tum, and the surrounding areas of Ho Chi Minh City. Ho Chi Minh City‚Ķ

As explained by real estate expert Phan Cong Chanh, investment resources are still very large. In addition, after each impressive rally of the stock market, many investors tend to turn their profits into real estate.

Real estate market is difficult to buy - difficult to sell - Photo 1.

According to him, Vietnam is facing the problem of inflation pressure in the next 2-3 years. Along with that, geopolitical factors and the epidemic situation make business activities continue to be difficult. In this context, real estate is one of the channels that are noticed.

According to his observation, earth fever did not cluster in a few localities but spread everywhere. Many large cities recently lacked serious supply. In addition, land prices in big cities increased sharply. The Thu Thiem case is considered to have spillover effects to other localities.

Dr. Vo Tri Thanh – economic expert said, the healthy development of the real estate market is one of the driving forces for economic development. However, the situation of “land fever” when not well managed will lead to many consequences because this is a large cash flow market, which can cause macro instability and affect many families.

“Moreover, the unusually high land price will limit the accessibility of people and businesses, hinder the demand for housing as well as the need for premises for production and business development,” Mr. Thanh said.

Price increases but liquidity is poor

Mr. Vo Huynh Tuan Kiet – Director of CBRE Vietnam’s housing marketing department – also said that real estate prices will continue to increase, however, whether the increase is fast or slow depends on the absorption factor of the market. .

For the land plot segment chosen by many investors, Mr. Kiet noted that it is necessary to make an appropriate choice because participating in hot markets always involves great risks. In localities with good planning, prices will increase, but in many places planning information is only for reference or inaccurate, investors will be at great risk when entangled.

Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, also said that although real estate prices increase, the liquidity is not necessarily proportional. Because liquidity depends on many factors.

Real estate market is difficult to buy - difficult to sell - Photo 2.

Therefore, he thinks that individual investors, especially those who use financial leverage, need to pay attention to 2 aspects:

Firstly, it is necessary to pay attention to survey the price level in areas, because real estate prices in the North have increased 3-5 times in recent years. The anchor price is at a high level, so there may be difficulties in liquidity.

Second, it is necessary to pay attention to the movement of investment cash flows. As noted by this research unit, the cash flow is diverting from the North to the Central region.

According to data released by the General Statistics Office, on average, in the first two months of the year, CPI increased by 1.68% over the same period last year, core inflation increased by 0.67%. The world political situation also affects production and business activities in Vietnam. The expert said that under the impact of increasing prices of oil, precious metals and construction materials, real estate prices in the first quarter of this year tend to increase and are expected to continue to increase in the near future.

Assessing the current real estate market, Dr. Su Ngoc Khuong – Senior Director of Savills Vietnam said that both the residential and commercial segments in Vietnam are assessed to increase significantly in the coming time and are an investment channel to help reduce risks in the context of inflation. broadcast.

“However, 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. real estate, making low-liquid assets become a big burden for them as well as putting pressure on the banking system”, emphasized Savills Senior Director.

“I think that in the current complicated context, it is especially important to carefully consider when using financial leverage to invest in real estate, to avoid repeating the situation of “dead on the property pile.” has happened in the past.

In the next 9 – 12 months, it is possible for some investors to be forced to sell off assets because they cannot bear the pressure from financial support tools. However, the speculative nature of this group is not large, it is difficult to manipulate the market, affecting the price level,” emphasized Dr. Khuong.

https://cafef.vn/thi-truong-bat-dong-san-lam-canh-mua-de-ban-kho-20220401101133689.chn


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