Compared to other investment channels such as gold or securities, real estate is still an essential demand closely associated with the majority’s psychology of possession. Despite fluctuations, the demand for accommodation is always available and cannot be lost. After a period of slowing down due to the epidemic, the market will become booming.
On March 17, 2020, most banks simultaneously lowered mobilization interest rates for the terms of less than 6 months as soon as the State Bank decreased the ceiling interest rate last night. Many banks even apply interest rates lower than the prescribed ceiling rate. The massive reduction of deposit interest rates by banks has affected the psychology of many investors. In the context of falling interest rates, fluctuating gold prices and stock market recession … the “hard-wearing” real estate segment like housing is creating an attraction for home buyers and investors.
According to a recent report, analysts from SSI Securities Company (SSI Research) believe that the real estate industry, including housing and industrial real estate, will not be affected by the Corona virus epidemic. SSI Research argues that the purchase of apartments is based on long-term needs and living plans, so it is not dependent on such events as epidemics.
Commenting on the opportunities for homebuyers today, Mr. Duong Duc Hien – Former Housing Sales Director of Savills said: “In my opinion, somewhat, the current time is a good opportunity for enterprises that have projects in progress, because according to the 2020statistics, there is not too much supply. The market will surely receive products with preparation time much longer than before. However, investors should pay attention to the factors: reputation of the investor, design, services, construction quality and operation manager … “.
Sharing the same opinion with Mr. Hien, CBRE experts also stated that, now investors as well as brokerage companies are forced to postpone their project launching activities due to the psychology of avoiding crow gathering during the epidemic outbreak. “Once the epidemic has been put under control, it is likely that investors will launch out new products at the same time, which will lead to severe competitions in the second half of this year. The purchasing power will be improved once the epidemic is out and a strong wave of investments will return to the market”, said the CBRE representative.
From the business side, many representatives also said that the real estate supply has been shrinking since the beginning of 2019. As the supply is scarce, it is hardly possible for a price decrease in this outbreak, especially real estate products to serve the demand for accommodation in urban areas like in Hanoi and Ho Chi Minh City. However, to stimulate the demand, real estate businesses will offer more incentive policies.
“While real home buyers tend to look for more apartments to be handed over soon, investors are gradually shifting from risky segments such as scalping investments on the foundation land or buying resort apartments to urban real estate in big cities like Hanoi and Ho Chi Minh City. Most likely, the apartment segment after a faint period will become an attractive investment channel in the current context”, shared the representative of a large real estate enterprise in Hanoi.
Sharing with us, Mr. Nguyen Van Dinh – Vice Chairman of Vietnam Association of Realtors said that the real estate segments serving real needs, especially real estate in urban areas of Hanoi and Ho Chi Minh City, tend to increase prices over the past time. Since 2019, the supply of this segment has become limited while the demand is still very large. “I think the epidemic situation will only happen in a short period. If the disease can be well controlled at the end of the third quarter, it is likely that the real estate market will witness a new exciting development wave in the fourth quarter. While the supply still remains scare and much lower than the demand, the price will surely increase”, said Mr. Dinh.
Thanh Nga
