The segment of townhouses increases investor attraction

Real estate is a safe haven

In the first months of 2022, the complicated fluctuations of the stock market, inflation… made many investors put their cash flow into safe haven channels, including real estate.

Ms. Vo Thi Tuyet Nga (sales director of a company in Ho Chi Minh City) said that the stock market continuously plummeted, causing her to “lose a big loss” of nearly 5 billion dong. For inexperienced investors like Ms. Nga, securities are too risky an investment channel.

“During inflation, gold prices fluctuated up and down, higher than the world gold price, making me insecure to invest. So, to be safe, I decided to put my remaining cash flow into buying houses. Real estate in Thu Duc city can’t earn as high and as fast as securities, but it’s safer and more certain,” Ms. Nga shared.

Ms. Nguyen Huong – CEO of Dai Phuc Land said that real estate and securities are always two connected investment channels. Accordingly, explosive capital flows from the stock channel tended to stop at the real estate market to take profits.

“Similarly, if the stock market has negative volatility, financial investors are more likely to return to the real estate market to find a safer destination. Thin, short-term capital flows often dock in the market. securities, gold or foreign currencies because these channels have high flexibility and low capital, it is also difficult to access real estate assets.

However, for investors with large capital flows, they can divide their eggs into many baskets and find it hard to resist the allure of real estate because of its high profitability, little rapid fluctuations on a session or daily basis, and at the same time a a relatively safe haven,” Huong said.

According to Mr. Dinh Minh Tuan – Director of Batdongsan.com.vn in the South region, currently the securities are in the stage of purification, under many impacts from gold price fluctuations, the corporate bond channel is tightened by legal regulations. Savings accounts have low interest rates, excluding inflation and exchange rates, so they are also less attractive, so real estate is the first choice.

In addition, increasing inflation makes the risk of currency devaluation, many investors choose to deposit money in real estate to keep capital flow safe. This is also a traditional investment channel favored by Vietnamese people so far thanks to its higher long-term profit margin compared to other investment channels.

Townhouses attract customers because of “safety”

Currently, the market is seeing a wave of long-term investors actively pouring money into holding high-value assets, focusing on “hunting” real estate against slippage. In particular, the segment of townhouses is particularly interested because of its ability to “keep prices” as well as commercial exploitation.

According to expert Dinh The Hien, the segment of townhouses is a type with high accumulation and safety, so it is often sought after by investors. This product line both ensures security and privacy and benefits in terms of value, even higher than other real estate segments thanks to continuously increasing land prices. Therefore, even if inflation occurs, townhouses and land plots will still be prosperous assets of families.

Survey by Cushman & Wakefield, in the first 5 months of 2022, real estate transactions in Ho Chi Minh City and neighboring provinces tend to increase sharply. In particular, the market witnessed the shift of many real estate “big guys” to the surrounding areas of Ho Chi Minh City with many land house projects being developed.

Accordingly, the total supply of townhouses in Ho Chi Minh City and neighboring provinces such as Binh Duong, Dong Nai, Long An, Ba Ria – Vung Tau, since 2004 has reached 50,000 units. In which, the supply in the city. Ho Chi Minh City accounts for 49% with 24,500 units. In the first quarter of 2022, in Ho Chi Minh City, there were 4 projects supplying 200 units to the market.

Regarding the selling price, the selling price of a townhouse in Ho Chi Minh City is 3 times higher than the selling price in neighboring provinces. Specifically, the average selling price in Ho Chi Minh City reached VND 173 million/m2, up 30% QoQ and 42% YoY. Meanwhile, the average selling price in neighboring provinces reached VND60 million/m2, up 6% QoQ and 46% YoY.

In fact, many competitive townhouse projects deployed in the province have attracted the attention of investors such as the villa and townhouse product line in The Standard isolated area of ​​Real Estate Group. An Gia in Tan Uyen is receiving interest from buyers.

In Long An, Thang Loi’s Diamond City project, Nam Long Group’s The Aqua villa or MIK Group’s Imperia Grand Plaza project all recorded good liquidity with the majority of investors’ buying demand.

Experts Cushman & Wakefield forecast that townhouses will continue to be a popular segment. It is forecasted that by the end of 2022, the supply of land-based houses in neighboring provinces will be more active than Ho Chi Minh City in the context of the wave of investment in non-CBD areas continuing to heat up.