Should we 'buy the bottom' of Hanoi real estate?

According to Mr. Nguyen The Diep, Vice President of Hanoi Real Estate Club, the real estate market has warmed up, but not in all segments.

Apartments in the city are a segment that holds its value and is sought after by many people.

Talking about the real estate segment with long-term investment potential, Mr. Diep said that "land is still king". Besides, apartments in the city also have great potential. Therefore, investors who have money or use low financial leverage can consider investing and consider this as a "temporary bottom" period.

"No one can answer where the real bottom of real estate is because each segment, each market segment, each geographic area has a different "bottom". If you have money and decide to buy for savings or to live in, do not use leverage, and are not under pressure to pay high interest rates, you can put down money because the current price is not high," Mr. Diep advised.

Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, said that in recent days, he has received many questions about "whether we should buy the bottom of real estate or not".

According to Mr. Dinh, bottom or no bottom depends on each person's perspective because each person has different expectations about the bottom. From the perspective of experts and market observers, Mr. Dinh said that at this time, investors can consider investing in some segments with good liquidity such as apartments, individual houses in the inner city, street-front houses or potential segments such as land in beautiful locations in some suburban areas of Hanoi.

"If you buy it for personal use or to accumulate assets without using too much financial leverage, you can close it. If you buy it for investment, you should be careful because no one knows where the bottom is," Mr. Dinh said.

According to experts, financial leverage should not be used to invest in real estate at this stage, especially in the suburban land segment.

According to Mr. Dinh, the market is showing positive signs at this stage, and bad news affecting the market has decreased significantly. The suburban real estate segment of project land and residential land has had an adjustment of about 20-40% compared to the end of 2021. Therefore, it is easier to buy and sell.

With land in the suburbs of Hanoi such as in Hoai Duc, Thanh Tri, Thanh Oai, Dan Phuong, Quoc Oai, Dong Anh, Me Linh districts, etc., you can consider buying in potential locations. However, buyers need to have idle money. In case you need to use financial leverage, you should consider it at a moderate level and buy with a mindset of using or investing for the long term.

Villas, townhouses, and suburban land are unlikely to fall further

Dr. Can Van Luc, Chief Economist of BIDV Bank, said that real estate prices will hardly decrease further due to lack of supply and very high real demand for housing, especially affordable housing.

With the segment of individual houses in the city, land, villas, townhouses... are the assets of people with a fairly good economic foundation. These people buy or hold assets at high prices so it is difficult to sell at a loss. Only a small part of people use too much financial leverage, their income is reduced at the present time so they cannot withstand the interest rate, forced to sell. However, the number of "overwhelming" goods like this will not be much.

Thanh Nien 's survey in some suburban areas of Hanoi shows that real estate prices have decreased significantly compared to the period of 2020 - 2021. Villa prices in some projects in Hoai Duc, Dan Phuong, Me Linh districts such as Lideco, Hinode Royal Park, The Phoenix Garden... have shown signs of a sharp decrease compared to the fever period.

Prices of townhouses and villas in Hanoi's suburbs have dropped sharply, but purchasing power remains weak.

Townhouses in the Hinode Royal Park project are being offered for sale by many floors for around 44 - 45 million VND/ ^m2 , down from the peak period of over 60 million VND/ ^m2 . At The Phoenix project in Dan Phuong district, some 200 ^m2 lots are being offered for sale for around 38 - 41 million VND/ ^m2 , cheaper than the period of over 50 million VND/ ^m2 ... According to brokers, real estate has almost "bottomed out".

Mr. Nguyen Van Quang (45 years old, an investor in Dong Da District, Hanoi), said that around the end of 2022, he had 30 billion VND divided into 3 books deposited in 3 different banks. "The interest rate at that time exceeded 10%/year, I thought it was okay so I deposited for a long term of 9 months. The book just matured but the interest rate is now only 4 - 5%/year, so I decided to withdraw it to invest in real estate to keep the money, not using borrowed capital so I feel very secure", Mr. Quang shared.

Some of the targets that Mr. Quang and his investment group are aiming for are the suburban land segment with long-term investment, because the price has dropped sharply. Part of the money will be aimed at the street-front house segment so that it can be rented out for immediate profit while retaining good value for money. Part of the money will be used to hunt for farmland and resort land with deeply discounted prices.

Regarding land in the suburbs of Hanoi, according to Mr. Quang, with the rapid urbanization, traffic infrastructure is being invested in. In addition, the number of private cars is increasing, so traveling a few dozen kilometers to work is easy. Therefore, land in the suburbs of Hanoi is considered by Mr. Quang's group to have potential in the next few years.

Source link: https://thanhnien.vn/da-nen-bat-day-bat-dong-san-ha-noi-185231015173115457.htm