Real estate investment with real value
Commenting on future real estate investment trends, Mr. Le Dinh Hao - Director of Business at Batdongsan.com.vn - believes that investors will focus on products with real value in the coming period. Several types of real estate, especially townhouses, are receiving significant attention.
According to him, this type of property is in high demand, with both selling and rental prices being very favorable. Besides living in it, one can also rent it out for business purposes.
"Typically, professional investors choose to invest based on cash flow, capital gains, or a combination of both. Meanwhile, townhouses meet both criteria, generating both capital gains and cash flow, so they are preferred over others," Mr. Hao analyzed.
Experts predict that townhouses will attract a lot of interest (Photo: Ha Phong).
Furthermore, according to Mr. Hao, the types of real estate suitable for the current context are infrastructure-related real estate and industrial park real estate. It can be seen that, after reopening following Covid-19, all of the government's macroeconomic policies have been adjusted towards economic recovery and social welfare to maintain the economic development target for 2022. Thanks to this, Vietnam's GDP still grew by approximately 8%.
Real estate related to infrastructure and industrial zones, such as factories, warehouses, housing for workers and experts in export processing zones, serving production and business needs, is projected to be more promising and secure for investment over the next year.
Besides townhouses and industrial real estate, and infrastructure, Mr. Hao also noted that the next type of real estate worth considering for investment is apartments, if investors have sufficient financial resources. Apartments have seen a significant price increase in the past year or so.
High-end projects in the city center have seen price increases of 700 million to 1 billion VND per unit. Projects outside the city center, such as in Hoai Duc, Ha Dong, and Nam Tu Liem, have also seen price increases of around 200-500 million VND per unit. However, Mr. Hao believes that if choosing to invest in apartments, priority should be given to newly completed projects as they will experience less depreciation.
Investors are not in a hurry to withdraw from the market.
Assessing the Vietnamese real estate market this year, Troy Griffiths, Deputy Managing Director of Savills Vietnam, noted that the demand for housing for the working class in major cities is very high, and the demand for affordable apartments continues to increase, which is expected to drive many real estate businesses to focus on developing this type of housing in the future.
Offering advice to investors in 2023, Troy Griffiths suggested that the next six months will be a crucial period, and individual investors should observe and carefully study market trends before making any decisions.
Speculative real estate will be weeded out (Photo: Ha Phong).
According to forecasts, the global economy is expected to stabilize and may gradually recover slowly in the second half of next year. The Vietnamese government is also doing a very good job of maintaining inflation within acceptable limits, and the Vietnamese economy is also on track to gradually stabilize in the near future.
Investors should not panic or rush to withdraw from the market at this time, but should cautiously view real estate as a long-term investment. Considering previous developments, the Vietnamese real estate market still has a very good position in terms of growth potential and long-term profitability, and remains a promising investment channel.
According to Mr. Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association, people with genuine needs will determine the true prices of real estate products. In that case, price inflation will cease, prices will become more realistic, and will be regulated to reflect true value, meeting real needs and balancing the market.
"Products that meet real housing needs, have good long-term liquidity, and high rental demand still record good absorption rates. However, transaction volumes are not high due to restrictions on credit lending," Mr. Dinh stated.
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