Name the areas where the real estate market is ‘broken’, investors put down deposits

According to experts, this is a consequence of the real estate market when it has grown too hot.

Market survey, price real estate there is almost no sign of lowering but the wave of investors dropping their deposit has appeared. This phenomenon occurs in provincial markets, where there was a price rush in a short period of time.

Name the areas where the real estate market is 'broken', investors put down deposits - 1

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In Viet Yen district, Bac Giang, the land price has increased rapidly up to 58 million VND/m2 with the land plot located in a prime location. The average price of the land plot project ranges from 22-26 million VND/m2. Previously, according to a broker named Tan, when there was a land fever, most transactions were mainly through floor deposits. However, recently, the market has shown signs of going down, slowing down, some investors have started to put down their deposit because they are afraid that it will be difficult to exit.

Mr. Tan said that the phenomenon of depositing at first only took place in small numbers, after the number of people leaving piles increased. Explaining more deeply about the reason why investors dropped the deposit, Mr. Tan said, maybe initially the market in this area was hot in price due to two reasons, one was due to the information of real estate projects landing, Road planning and some “big hands” investors and staff blow up. The second is the psychology of pouring money into the land during the current epidemic and inflationary times.

Through the words of the sales staff, many investors fell into the mentality of “investing in land, because only land generates profits”. That’s why when a broker paints an image such as buying a deposit to surf, it is also profitable, an early deposit will have a diplomatic rate, a cheaper price than the market level, investors all want to put money down. However, when the market slowed down, some investors realized: “Making profits is not as easy as advertised”. They are also concerned about the legitimacy of the project, the progress of the project and the risk of burying capital, so they accept the deposit.

According to Mr. Tan, in addition to the phenomenon of some investors dropping their stakes, there was also a situation where investors fell into the situation of piles with the floor, but after the fever, the floor “split the sea” and left. “Previously, some investors who wanted to buy a project had to go through an exchange. Many brokers on the advertising floor would have a diplomatic rate, cheaper than the market. Investors sign and deposit directly. After the fever, some floor units left the board, investors could not contact the floor to ask for a deposit.”

In Hai Duong real estate market, the scenario of investors dropping their deposit was also recorded. According to Mr. Trung, a broker and investor in Hai Duong, a few months ago, in Binh Giang, there was a phenomenon of investors dropping deposits. Mr. Trung said that there was a price fever in the Binh Giang area due to a lot of project information. In addition to the real estate project, the route information that will be completed is the East – West axis, the North – South axis of Thanh Mien district, connecting with the Hanoi – Hai Phong – Ha Long highway in Binh Giang, making Real estate prices in this area increased, investors also flocked to a lot.

“Almost every commune conducts land auctions. Investors are very crowded when they take the stake. But after seeing the price is too expensive, they all put down the stake because they think it’s hard to make a profit.” Trung added.

Name the areas where the real estate market is 'broken', investors leave deposits - 2

Plot land in Bac Giang.

Previously, according to a recent report by the Vietnam Real Estate Brokers Association, clear signs of the real estate market were the appearance of local bubbles and high prices but low liquidity.

Experts say that the consequences of the price fever are huge. First, it is the phenomenon of investors “putting down deposits” that rattles the market. The loss will be on the investors who make the wrong decisions. However, this caused late investors to become overly cautious. Unknowingly, the hot fever area is difficult to attract investment cash flow because the anchor price is at a high threshold. On the other hand, the “broken wave” market comes from the fact that real estate prices push up too high. Investors have also been wise in their decision to put money into real estate.

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