Many investors determined to “surf” ready-made houses in the alley, but were swept away by “virtual” prices, now they have to “hold their regrets” because no one bought them at a loss.
Investors “surf” again “hug bombs”
Despite having a lot of experience in real estate investment, Mr. THH (Hoang Mai, Hanoi) still could not escape the situation of “hugging bombs” of ready-made houses in the alley. Need to sell the house quickly to recover capital, but he has not been able to sell for many months.
According to Mr. H., the house he is trying to sell with an area of 40 m2, built 5 floors 1 tum is for sale for 4.2 billion VND. “The selling price of this house is already 300 million dong lower than buying, but because I need to settle a bank loan soon, I accept to sell this house at a loss,” said Mr. H.
Mr. H. admitted that the reason why he had difficulty was choosing the right time to “close” the transfer transaction at the time when the market was active and caught up in the “virtual” price. “When I bought it, I was confident because there are many factors that can “surf” well, because the location of the house is close to the main road, the entrance to the car house can also go. But when the market is quiet, the house is difficult to sell for a good price. such as buying in and waiting for the price to increase is as risky as “holding a bomb”, Mr. H. shared.
Similar to Mr. H., Mr. DVN (Hoang Mai, Hanoi) is also “stuck” with the house in the alley in Hoang Mai district. The house in this lane was bought by Mr. N. and repaired to sell for a profit.
According to Mr. N., he bought a used house with an area of 30 m2, built 4 floors, 1 tum used for 2.5 billion VND. After the acquisition, he revised the design of the first floor to optimize the area and repainted the floors at a cost of about 400 million VND.
“Even though I’m a builder and have a lot of experience, the repair of this house is still more expensive than expected. Therefore, when adding the cost of buying and repairing, this house has reached 2.9 billion VND. , equivalent to nearly 100 million VND/m2”, Mr. N. said.
The selling price of this house is 3 billion dong, but Mr. N is unable to find buyers. He had to consider a plan to sell at a loss to get rid of the goods and repay the bank loan early to avoid “embracing the bomb”.
Liquidity is slow
According to experts, real estate prices are still increasing, but people who want to resell can not sell even though they have reduced prices below the common ground. Accordingly, in this context, businesses, entrepreneurs or investors who are “surfing” strongly, using a lot of borrowed capital will face difficulties.
Economic expert Dinh The Hien analyzed, many people pour into investment in an industry, the price increases. However, according to the law of supply and demand, when supply is high but demand is not there, prices will be reduced. The current market has pushed the virtual supply to many times higher than the real demand of real estate buyers.
As for Savills Vietnam expert Su Ngoc Khuong, there are 3 problems that the market will face, which is low supply, high selling price, and slow liquidity. The reason is that the market is illiquid because the land fund is no longer developing new projects, the projects are congested due to legal reasons, and the third is that investors push the expected profit too high.
In addition, according to this expert, the selling price of the primary market is very high, but the liquidity in the secondary market is slow because groups of customers who buy to invest always expect a higher profit margin than other times. previous point. After keeping real estate in the context of limited supply, the secondary price push in the near future is possible but the liquidity is very low. This is the paradox of the market right now.
(According to Dan Tri)
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