Real estate cools down, investors ‘escape’ from the land fever in the past 10 years

From the earth fever to the flight

According to a survey of the real estate business in Vinh City (Nghe An), the time of “land fever” happened nearly 1 year in Nghe An, Ha Tinh and Quang Binh markets. During this time, the peak of real estate fever occurred from October last year to the first days of April this year.

At the above time, do Covid-19 epidemic boom, people working in business, commerce, teaching and many other professions are very idle. As a result, many segments of society rushed to jump into real estate trading. Never before has the market in the central provinces become so exciting between “land storks and investors”, they are ubiquitous from urban areas to remote rural areas as at that time.

Nguyen Trung Kien, an investor in Vinh City, said: “In the past, houses and people flocked to real estate, pushing the market up abnormally from urban to rural areas. Everywhere, there are people from other fields but working related to land such as: teachers, tour guides, staff of bars, hotels, karaoke, restaurant owners… They take advantage of their time. Spending free time in real estate business.

In addition, the reason for the stimulus of the economy according to the policy of the state, foreign exchange money pouring in, gold price, conflicts in the world taking place…, people do not feel safe investing anywhere. so have invested in land speculation. This is considered a safe investment channel, bringing high profits if you know how to buy and sell it in a short time. However, it is at these times that investors pour too much money into the land, which will have high risks.”

Mr. Kien gave a specific example, if he previously deposited 1 billion VND in a bank, he would earn nearly 100 million VND in profit each year. However, so far, 1 year savings in the bank have only been more than 50 million dong. Therefore, at the time of “land fever” a few months ago, everyone put their money into the real estate business.

“Professional investors when there is a fever in land, they come to choose and invest. Particularly, the semi-professional members when investing in real estate only work in small areas in rural areas, towns and cities. Now real estate market started to slow down, many semi-professional investors gave up and sold the invested land plots,” said Mr. Kien.

According to Mr. Kien and some others, one of the most basic reasons is that the Covid-19 epidemic has been controlled, business and trading activities have returned to almost normal, therefore, Investors who “followed the land fever” that once created waves are now “selling out”, quickly escaping in the cooling spiral of the real estate market.

Mr. Nguyen Van Hoa, working at a hospital in Vinh City, Nghe An shared: “At the time of land fever before Tet, the couple could not afford to buy a project land. At that time, the sisters in the institute discussed the same money to invest in land. As excited as you are at first, the next days and months become more and more anxious. Because they bought a piece of land together for nearly 2 billion dong, but when this person needed to sell, the other said to keep waiting for the price to go up.

So, he and his wife fell into a state of turmoil, many meals lost sleep and were very tired because of anxiety. When selling, customers calling to see the land had to give up their jobs and run after them. Several families bought a piece of land with the same money, but it took more than 4 months to sell it and get back the capital. To tell the truth, now I say hello to this type of capital contribution and go back to work with peace of mind…”.

The “earth fever” is cooling down

Mr. Nguyen VC, owner of a real estate business in Nghe An, said, after more than 10 years, the real estate market once again “created a big wave” unprecedented in Nghe An, Ha Tinh and other provinces. in the country. The Covid-19 epidemic has brought the trading and production market to a standstill. Many businesses went bankrupt, small and medium-sized restaurants had to close without creating surplus value.

“It is the planned real estate projects that hang for too long or work in moderation to keep the land, leading to stimulating investors to buy land in the suburbs, waiting for the “big guys” to make the most moves. Since then, the land fever has been created by the land storks buying and selling for nearly a year. Like a cycle, the higher the land fever ends, the lower it will fall.

If in 2010, the land fever caused the economy to inflation and many people broke up, many families lost their homes because of high interest rates from 19 to 21%. Up to now, after 10 years, the land fever has continued to break out due to many subjective and objective reasons. However, the market cycle up and down occurs in all different areas in the development process” – Mr. C. said that the land fever will cool down in the last months of this year.

As for Mr. Lam Tung and Ms. TA, the land fever in Nghe An and Ha Tinh is gradually cooling down due to the following reasons: “Banks tighten lending activities for real estate business, high tax rates according to regulations. market. In particular, the State temporarily stopped the conversion of purposes, dividing plots and plots in districts and towns around the city.

Recorded at the one-stop transaction department of the People’s Committee of Vinh City (Nghe An), customers come for transactions mainly to transfer, return land cover results, delete and mortgage land. So far, the real estate market has begun to cool down. However, the situation of selling off land and leaving piles in series has not taken place like a “fever” for many months in the central provinces.

Quoc Huy