Hunting for real estate investment opportunities after Tet
Hunting for real estate investment opportunities after Tet
Although the market faced a standstill at the end of 2022, wealthy investors are still hunting for potential business opportunities after the Lunar New Year holiday.
The real estate market became stagnant from the second quarter of last year, with investors looking for quick profits leaving the game as the market saw a decreased liquidity and real estate gradually fell back to its actual value.
This, however, has also ushered in opportunities for investors with available cash and a long-term vision.
Dang Van Thanh, a resident of Di An city in the southern province of Binh Duong, has just bought a satisfactory piece of land during a spring trip with his family in Tay Ninh – a locality in the southeastern region.
The land has an area of about 100 square metres and is located on a wide open road that is near schools and benefits from convenient transportation connections. The price offered by the landowner was around $52,170, equivalent to $520/sq.m, however, after negotiation the piece of land fetched nearly $43,480.
Without using financial leverage, Thanh and his wife did not hesitate to buy the land plot as a long-term investment.
In 2023, the process of adjustment and purification is expected to help institute a healthier, more transparent, and more sustainable investment and business environment.
Similarly, during a spring trip during the first days of Tet, Nguyen Van Hung, a veteran investor in Hanoi, decided to put money into buying a piece of land covering 90sq.m in Hung Yen province for $86,950.
Hung shared that as the land is located in a beautiful area with high potential, he paid a deposit right away and chose a good day to sign the contract.
“As the market is currently stagnating, it may not be profitable in the first year, but when the market reboots, land prices are likely to inch up by 20-30 per cent in value. Real estate is a long-term investment channel, the longer it stays, the higher the price will be,” said Hung.
Experts believe that 2022 saw many changes as it prepared for a new cycle in the real estate market. In 2023, the process of adjustment and purification is expected to help institute a healthier, more transparent, and more sustainable investment and business environment.
Therefore, investors with a long-term vision keep hunting for potential real estate purchases and are ready to put down money when they find suitable options.
Recognising this issue, Tran Khanh Quang, general director of Viet An Hoa Real Estate Investment Co., Ltd., said that the real estate market always has potential in the long-term thanks to the rapid pace of urbanisation, increasingly comprehensive infrastructure, and high housing demand.
As a result, if investors have available capital for 6-12 months, they can put money into real estate as it is deemed a durable and productive investment channel compared to many other options.
“The real estate market this year still has many promising bright spots. Investors should not put all their capital into a crowd-driven segment. Instead, they should choose a segment that is suitable for their financial means to create efficiency and reduce risks,” said Quang.
From the perspective of a business acting as a real estate distributor and developer, Nguyen Nam Hien, chairman of VPCORP and HKT GROUP, feels that the demand for housing is still huge this year, especially in the mid-range segment and in the satellite areas of Ho Chi Minh City.
“Average and mid-range housing is the key segment of the market this year because it will solve the accommodation needs of many customers. This is true not only in big cities like Ho Chi Minh City, but also in many satellite areas where human resources are concentrated such as Binh Duong, Dong Nai, or Long An,” Hien opined.
Businesses should therefore study products carefully, change themselves, and set forth clear goals and plans. In addition to building houses for the rich, they also need to focus on creating a place to live for those with average earnings.
