The trillion-dollar cash flow from maturing savings will prioritize returning to the real estate market.

Expected cash flow due to mature will "pour" into real estate

Recently, monetary tightening and legal problems have reduced cash flow, causing stagnation in the real estate market. This has directly affected 40 other industries, including construction materials, machinery, equipment, furniture, labor, etc.

Therefore, since the first months of 2023, the Government has actively implemented many solutions to help stabilize the economy such as: promoting public investment; issuing support packages, economic recovery and development; gradually loosening monetary policy; encouraging banks to lower lending interest rates; urging ministries, branches and localities to remove difficulties for real estate projects...

Many experts predict that there will be a cash flow of maturing debt "pouring" into real estate.

Accordingly, legal bottlenecks have been actively resolved by authorities at all levels, many projects continue to be implemented, supply is focused more on real demand...

At the same time, the State Bank has continuously adjusted down the operating interest rate to support businesses and the economy. Commercial banks have also simultaneously reduced deposit interest rates. Thanks to that, real estate businesses have more capital to accelerate project implementation, increasing supply to the market. These moves are rekindling the confidence of people who want to buy real estate.

Reducing interest rates will help people and businesses increase their access to capital, contributing to production recovery.

Discussing this, Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, assessed that up to now, interest rates have cooled down, credit room has opened, cash flow returning to the market will look for potential investment channels, bringing more profit than savings. Among them, real estate is still the preferred investment channel, suitable for the habit of accumulating assets, the ability to preserve capital is quite good compared to other investment channels from an economic perspective.

According to Mr. Dinh, this is probably the right time for investors to research and decide to invest, because the real estate supply continues to be scarce while the market is showing signs of positive change thanks to the Government 's support and difficulty removal measures.

Mr. Dinh also commented that the period of tightening monetary policy is showing signs of slowing down. It is forecasted that by the end of the second quarter of 2023, the period of tightening monetary policy will likely end... The third quarter of 2023 will be a key time when a large amount of bank deposits mature. If this continues - the market warms up, deposit interest rates decrease, it is highly likely that the maturing cash flow will prioritize returning to the real estate market.

The market is going through its toughest phase.

Information from brokerage firms also shows that in recent weeks, the real estate market has begun to have transactions again, and the number of interested customers has increased significantly.

Mr. Dang Quoc Viet, representative of Smartland Real Estate Trading Floor in Nghe An , said that since the bank lowered interest rates, the number of people coming to this locality to learn about products in projects with beautiful locations and unique designs has increased rapidly. At the Eco Central Park project, in addition to a large number of customers and residents coming to visit, there are also dozens of visitors coming to learn about the products every day. The number of successful transactions has also improved significantly compared to the beginning of 2023.

Eco Central Park project model house

Talking about Nghe An real estate, many people believe that the profit potential will be very large, because this is the fourth most populous province, the largest area in Vietnam, located in the center of the North Central region and has a fairly complete traffic connection system.

In addition to existing main traffic routes such as Ho Chi Minh Road, National Highway 1A, etc., according to the plan, the Hanoi - Vinh expressway is expected to be put into operation in 2030, shortening the travel time from Hanoi to Vinh to less than 2 hours.

Furthermore, the Government has agreed to invest in upgrading and expanding Vinh International Airport 2.5 times larger than the current size; building auxiliary works for Vinh International Airport; building Cua Lo deep-water port; building Hanoi - Vientiane expressway (passing through Nghe An)...

At the recent 13th Session, the People's Council of Nghe An province approved the Provincial Planning for the period 2021 - 2030, with a vision to 2050. Accordingly, the goal by 2030 is for Nghe An to become a center for trade, healthcare, education - training, science - technology, industry and high-tech agriculture in the North Central region; with a dynamic, fast and sustainable economic development; with a synchronous and modern infrastructure system...

To achieve the above goals, the province focuses on maximizing resources to develop two growth engine areas: Vinh City expansion and Nghe An Southeast Economic Zone expansion. At the same time, it promotes investment attraction in urban areas, industrial parks, etc.

Meanwhile, Eco Central Park is located on the frontage of Nguyen Sy Sach Street - the central location connecting all experiences in the quintessential land of Nghe An when it only takes about 7 minutes to move to the center of Vinh City, 10 minutes to Vinh International Airport, 15 minutes to Cua Lo Beach. Therefore, the real estate products of this project promise to bring great added value to investors.

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