[NEWS] - Two extremes of the real estate market: Speculation is quiet, real transactions are quiet

Amid the difficult situation, a few apartment projects still have transactions, while many projects are quiet in purchasing power. This has led many people to ask the question: Why?

The end of the project "hold the light and run first..."?

In a recent interview, real estate expert Tran Khanh Quang emphasized, this is the buyer’s time. However, it must be a project with both legal and well-constructed elements, meeting real housing needs. Because, at this time, the market is no longer a game of surfing or speculation.

“In the investment basket, real estate is still a safe investment asset, but the legal factor must be thorough and this is extremely important, deciding most of the projected liquidity in this period,” he said. strongest.

Indeed, the real estate market has witnessed many projects that have not yet been fully legal but have been offered for sale. By buying and selling transactions in the form of capital contribution contracts, investors promote discounts to attract investors and short-term cash flow. However, with real purchasing power, it is very little. As a result, the actual capital to put into the project is quite small, making the project slow in construction progress or quite challenging to grant residents books.

However, there are many apartment projects formed in the future with short-term investment rates accounting for 70-80%. The disruption of capital flows has dragged many projects "buried" progress for many years. Real buyers are those who are affected, have waited many years, and still have not had a house or have had a house but never had a red book.

Sharing at a recent seminar, Dr. Tran Du Lich, a member of the National Monetary Policy Advisory Council, emphasized that the source of the recent calm may partly stem from the distortion of the market. market when most stimulate speculation, instead of the real market. That is the same reason and demand is always out of balance.

“Specifically, the real estate market is only frozen in the high-end segment, the products are not legal enough in the speculative segment. Investors use financial tools excessively, prices are pushed up, and do not control risks, so the consequences are great. Meanwhile, for products that are suitable for buyers’ ability to pay, the supply is scarce and the demand is still large," the expert emphasized.

“More specifically, the frozen real estate market only appears in the high-end segment, products that do not have full legal guarantees in the speculative segment. Investors use excessive financial tools, prices have been pushed up, and cannot control risks, so the consequences are great. Meanwhile, for products suitable for the solvency of buyers, the supply is scarce as well as the demand is still large", emphasized Dr. Tran Du Lich.

The hot and unbalanced development of the market in previous years has left many consequences. After going through the period 2008 - 2012, the real estate market entered a new cycle of recovery and growth. From 2015 to 2019, the market witnessed a hot increase in supply, consumption, and price level. Compared to the period of 2015, the real estate selling price has increased by 2-3 times on average and even many places have an increase of 7-10 times (depending on the region).

The supply increased sharply, however, the main products still focused on the high-end and luxury segments, and affordable projects for the majority of people are becoming increasingly scarce and even nonexistent.

With the current market developments, with industry experts, it is a true purification project. The time of projects "holding lights to run in front of cars" has passed, giving way to units with sustainable development orientation, legal transition projects, and good construction.

Brokers still "close" the transaction

Why is it that, besides projects with quiet demand, even without any transactions at the beginning of the year until now, some brokerage projects still "close" for transactions?

“At this stage, the confidence of buyers is eroded because of what has happened in the past. Therefore, they have sought out reputable brands so they can be assured of their capacity, legality, quality, progress as well as policies ...", an expert emphasized when talking about the reason of a company. Some projects still have regular transactions when the market is facing difficulties.

Records show that, with some apartment projects in Ho Chi Minh City, there are still stable transactions and even breakthrough projects when absorbing up to 80% of the basket at this time.

For example, recently, the MT Eastmark City apartment project of Rio Land in the HCMC area. Thu Duc transacted more than 60% of shopping carts at this stage. Previously, the project also achieved a record of selling 1,000 units despite the difficult market. With prices ranging from 42 million VND/m2, this can be seen as the reason the project attracts real buyers.

Similarly, with the Mizuki Park project (Binh Chanh); Akari City (Binh Tan District) of Nam Long Group, in 2 weeks recorded more than 60 transactions, mainly from real demand.

However, projects of foreign investors with brands such as Hongkong Land, Keppel Land, Capitaland, Vinacapital, etc. also have outstanding transactions. For example, the De La Sol project in District 4 of Capitaland has an average transaction of about   3-4 units per day with an average value of VND 7 billion/unit, Hong Kong Land’s The Marq has sold 7 units as of last week. apartments with a transaction value ranging from 20-25 billion / unit, or recently, Keppel Land Group also launched 100 Celesta Nha Be apartments, in just 1 day, they traded up to 70% of the basket...

Most of the projects with high liquidity in this difficult period come from businesses that have proven over time in terms of product sustainability and brand reputation. Confidence determines purchasing power at this time.

“Currently, there are four factors that will help liquidity appear in real estate projects such as: first, customers still prefer to invest in safe real estate, second, real products, and good construction are still good. To attract customers to buy, third, reputable investors are prioritized to choose. And finally, the cash flow solution is at this point what needs to be kept in mind,” emphasized an industry expert.

Currently, the real estate market is facing many difficulties and especially cash flow, which is a problem many investors are afraid of. Understanding the difficulties of the market, Indochina Holding wishes to make some contribution to the recovery of the real estate market, we currently have many projects with bad debt at credit institutions DATC and VAMC introduced. to businesses to provide good investment opportunities. Besides, we also can mobilize capital with the lowest interest rate from funds to support customers.

Hoang Yen (Collection source)