Smart investors hunt for good priced real estate

Investors trapped in a spiral of peak apartment prices

Since the beginning of 2024, Hanoi real estate has been constantly hot, especially in the apartment and villa and townhouse segments. Not only is it hot in the central area, but also the suburban districts of the capital have increased rapidly. While the price of villas and townhouses in suburban districts such as Hoai Duc has reached 200 million VND/m2, the price of apartments has also increased to the point that many people are surprised when it quickly reached 80 - 100 million VND/m2 in areas far from the center such as Nam Tu Liem, Gia Lam, Dong Anh...

Mr. Nguyen Quoc Khanh - Vice President of Vietnam Association of Realtors (VARS) shared: " We ourselves, having worked in the profession for 15 years, could not have imagined that the average price of suburban apartments would reach 60 - 70 million VND/m2. Housing prices have increased so much, while income has decreased in the past 5 years. This makes it increasingly difficult for people to access housing."

Apartment prices increase to surprising levels

According to experts, investing in apartments at this time will be ineffective and easy to buy at the "peak" price. Currently, the profit rate from renting apartments in Hanoi is on a downward trend because housing prices have increased in recent times, pushing capital costs to a high level.

Specifically, if previously when buying a 2-bedroom apartment costing 2-3 billion VND, renting it out for 10 million VND/month, the profit margin would be around 5.2%. But now to buy a 2-bedroom apartment, you have to spend 4-5 billion VND in capital, the rental price is 15 million VND, the profit margin is only around 3%, lower than the bank interest rate. In case the investor uses financial leverage, the loan interest can erode the rental profit of the house.

On the other hand, many experienced investors also believe that the current apartment price is too high, so it will be difficult to increase further, the increase margin will decrease slightly or remain flat in the near future. Thus, with short-term investment needs, buyers should consider when the price and interest in apartments have cooled down, leading to a slowdown in liquidity.

Get out of the “narrow mat”, find the right product

In fact, during the feverish period of Hanoi real estate, buyers and sellers competed with each other even though prices increased by 20-30% in just 6 months, many areas' real estate prices adjusted to attractive levels, with great potential that investors did not realize.

However, the market still records that there are still groups of investors who have quickly sought out other markets with real estate products that have good prices, complete legal documents and completed infrastructure. These are also the criteria that many experts advise investors to pay attention to when making decisions on choosing investment products.

A right property needs to have three elements: first is safety and transparent legal ownership; second is clear potential for price increase when the product has a good price, is located in areas with good economic growth, has developed infrastructure and roads; and finally, the product has good planning and high aesthetics.

Right property includes criteria: safety, efficiency, sustainable vision.

Located in the center of Hoi An city, Hoian Legacity project has all the elements of a “right property” product ready to lead the trend. First, the project owns a rare remaining land fund in Hoi An city. Currently, the project has completed all infrastructure, the red book is ready to transfer to customers.

Next, with a total area of 66.24 hectares, Hoian Legacity is the largest urban area in Hoi An. In particular, the project is located right in the center of the connection of 3 main roads into the old town (Nguyen Chi Thanh - Nguyen Tat Thanh - Dien Bien Phu). The "golden location" center helps Hoian Legacity benefit from infrastructure leverage when the road through Nguyen Duy Hieu bridge (Ong Dien bridge) is completed, helping to connect the urban area to the billion-dollar coastal resort route connecting Da Nang - Hoi An, attracting tourists traveling from Da Nang City.

Finally, according to the assessment of long-term investors, Hoian Legacity brings clear potential for price increase for investors when possessing the dual advantage of location and legality, but the products in the project are priced at only 28 million VND/m2, only 1/3 of the current apartment price in Hanoi.

Forecasting the market developments in the coming time, experts said that although we cannot expect big “waves” like in previous years, choosing the right product (right property) will not only help investors bring sustainable profits but also contribute to promoting a healthy market. Converging the criteria of a “right property” product, Hoian Legacity is expected to pioneer a new investment cycle in the context of a strong market transformation.

Source: https://www.congluan.vn/roi-vong-xoay-con-sot-chung-cu-ha-noi-nha-dau-tu-khon-ngoan-san-bat-dong-san-gia-tot-don-chu-ky-tang-truong-moi-post305165.html