Prospects pick up within real estate market
Prospects pick up within real estate market
Real estate liquidity is moving into a positive direction, with investors planning several new rounds of funding.
Nguyen Duc The, a private investor involved in real estate for many years, said that at present the market was in a strong phase, with choices for both buyers and sellers. Besides those who have had to leave the industry, there are also many who stayed due to good management of resources.
“Many investors have turned away from high-risk products such as land plots or agricultural land in suburban areas to safer products such as town houses and apartments. They evaluate products not only in terms of cash flow, but also expect the ability to increase prices of each type. Products that serve real needs are in the sights of investors,” The said.
Despite the difficult market, many investors with a solid financial background have not hesitated to launch new products with flexible payment policies such as splitting payments terms, interest support and big discounts to woo buyers. Such moves have increased the opportunity to own real estate for people with real housing needs and even for small-scale capital investors to enter the market, The added.
Meanwhile, buyer Nguyen Thi Lan said products that meet real demand with good infrastructure connections are now on the radar. “Selling prices have decreased by about 15-20 per cent compared to last year, so it is time for end-users to buy their houses now,” Lan said.
Tran Hien Phuong, general director of SeaHoldings, said that now was is the time to look for real estate products. “The market is creating many opportunities for those who have cash or use financial leverage at a low rate to buy good-priced real estate. Currently, the new supply of real estate remains scarce. In the long term, real estate prices will still increase with support from policy,” said Phuong.
Nguyen Hoang, a real estate expert, said that people with idle money and investment experience, regardless of the market situation, still find opportunities, especially in distressed products.
“The belief in the recovery of the real estate market comes from the government’s supportive policies, which will help the market move positively,” Hoang said.
Meanwhile, in the latest Ho Chi Minh City authority meeting assessing the economy over the first four months of the year, the local Department of Construction confirmed that there were two more housing projects being formed with up to 1,100 apartments to become available.
Accordingly, Ho Chi Minh City Department of Natural Resources and Environment has issued a document to permit Moonlight Avenue and Moonlight Center Point by Hung Thinh Corporation to be sold to the market. Besides these, four other projects of the corporation were also permitted to hand over ownership to buyers.
Meanwhile, The Grand Manhattan in District 1 by Novaland has been permitted to continue its project, which was delayed for months due to a halt in bank capital. In the context of low liquidation and difficulties in mobilising capital, the green light from authorities to let such projects continue will help strengthen confidence in the market.
It is estimated that by the end of 2023, a total of 50 other projects will see legal obstacles removed.
