[NEWS] - The time when you put money into real estate that increases in price by the same amount will be difficult to come back

Dr. Dinh The Hien said that, in the prospect of 2024 - 2025 and many years to come, it will be tough to return to old-style real estate business and investment with high profits of over 20 - 30%/year just in the form of buying real estate and wait for the price increase.

In the real estate market from 2019 to the first half of 2022, land fevers are raging in all localities across the country. At that time, land prices continued to increase rapidly, and even in just 2 years, some areas increased their prices 3-4 times.

However, since mid-2022, the real estate market has become quiet, and liquidity and selling prices have gradually decreased sharply. There has even been a sell-off in the market from investors using large financial leverage. Many experts at that time assessed that the market was very difficult.

Up to now, the real estate market has many "leverages" such as reduced interest rates for both old and new loans, the legalities of projects are gradually being dismantled, selling prices have cooled,... Accordingly, Recently, the market has shown more signs of improvement. In some areas, real estate has begun to regain liquidity.

Dr. Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association (VNREA), and Chairman of the Vietnam Real Estate Brokers Association (VARS), said that the real estate market has begun to show better signs.

According to Mr. Dinh, with the Government’s drastic intervention, the real estate market is recording positive changes. Specifically, in the first quarter, supply decreased seriously, almost "standing still", with only more than 2,000 transactions on the market. In the second quarter, many projects were offered for sale again, with about 3,700 successful transactions. Notably, this number continued to increase in the first two months of the third quarter with more than 5,000 successful transactions and about 300 projects nationwide launched for sale.

This shows that investors’ confidence is returning. If in the first quarter of 2023, businesses and investors are not ready to put their goods for sale because no one buys them, then in the third quarter, confidence shows signs of increasing. Hence, the phenomenon of increased supply to the market appears more, and the quantity Trading is also better.

“These are the basis to affirm that, since the third quarter of this year, the market has sent many positive signals. Of course, compared to 2018 - 2019, it is still far away, just a few thousand compared to a few thousand. tens of thousands of past transactions. But in a difficult period like today, a few thousand is an encouraging number, creating motivation for the real estate market in the fourth quarter of 2023 and the first quarter of 2024 to have a chance to recover more clearly," said Mr. Dinh.

Regarding the prospects of the residential real estate market in the coming time, the analysis team of VNDirect Securities Company believes that the market will remain quiet in 2024, and the recovery will be clearer from the second half of 2024 when Monetary policy is loosened.

This unit also pointed out that there is a big difference between the present time and the period 2011-2012. In the previous period, the market was in a state of oversupply and inflation was very high, while currently the project supply is very limited and demand is still waiting at a high level.

Notably, VNDirect also predicted that, according to historical cycles, the next land fever could take place in the period 2025-2026.

According to Dr. Dinh The Hien, an economic expert, many investors expect real estate transactions to recover and prices to increase well from mid or late 2023. However, real estate transactions may recover in some segments. The segment can be exploited in urban areas, but the price will stand or decrease slightly rather than increase, of course except in some special locations.

Mr. Hien said that, in the prospect of 2024 - 2025 and many years to come, it would be tough to return to the old-style real estate business and investment with high profits of over 20 - 30%/year just in the form of buying real estate. and wait for the price increase.

Areas of land that are very old or cannot be urbanized, which means it is difficult to form a community of residents to live in, or cannot be exploited for mass tourism, or cannot be exploited for production and business rentals such as warehouses and houses. Machines, ports... prices mostly stand still and decrease. Indochina Holding is introducing to investors and businesses projects that currently have bad debt at credit institutions DATC and VAMC. At this time, investing in this project will also be extremely beneficial for customers and businesses.

Hoang Yen (Collection source)