The market has bottomed out, should you buy a house now?

In a recent comment, Dr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, said that by the end of 2023, the real estate market had overcome a difficult period, and from the first quarter to the second quarter of 2024, the market continued to maintain good signals. In particular, from the end of the third quarter onwards, the recovery will be clearly evident.

So, this is the right time for customers to put money down to buy a house.

Explaining this, Mr. Dinh cited that in 2024, many macro factors will have a positive impact on the market such as: home loan interest rates continue to be adjusted down and social housing continues to be the focus of the Government 's housing development program.

At the same time, the approval of planning in localities under consideration will be promoted to be completed soon; focusing on promoting public investment, creating economic momentum in many key regions across the country... will be a "support" for the market.

Experts say you should buy a house now instead of waiting. (Illustration: Cong Hieu).

From mid-2024, the residential real estate segment will lead the market with a total supply of apartments estimated at over 30,000 products. Of which, Hanoi will have 15,000 products, Ho Chi Minh City 5,000 products and Binh Duong about 10,000 products.

While industrial real estate is still considered a good growth segment, tourism and resort real estate continues to face many challenges; commercial real estate has not fluctuated. Notably, mergers and acquisitions (M&A) activities still maintain their attractiveness.

Sharing the same opinion, Mr. Tran Quang Trung, Business Development Director of OneHousing, also said that this is a good opportunity to buy a house.

According to Mr. Trung, in investment activities, the most important thing is to see opportunities early and predict the potential of those opportunities. Because when the market has a clear signal, it is a signal for the majority. Therefore, investors should base their decisions on cash flow and financial capacity.

At this time, many investors have cut profits and built financial solutions through sales policies as well as payment schedules. That means investors accept to reduce profit margins.

" This is an opportunity for people with real needs and investors with real financial ability to buy," said Mr. Trung.

“ However, I think that, during this period, those who want to invest short-term should not. Instead, we should invest in the medium term, that is, at least 2 years or more to catch the market rhythm as well as balance the cash flow.

I think good real estate is not much affected by market factors. If anything, it follows a gradual progression chart, meaning that when the market is affected by factors, it goes down a bit, but when it goes up, it goes up even more. In my personal opinion, I think this is the time to buy real estate, to choose good real estate at a good price to own, ” Mr. Trung added.

According to this expert, you should buy real estate and wait instead of waiting to buy, because beautiful real estate rarely comes around a second time and there are not many opportunities.

However, Mr. Trung recommends that investors pay attention to product segments. Because there are segments that have decreased sharply but have no liquidity. For example, land products have low liquidity so they are not prioritized, or resort real estate has decreased very deeply and has not yet reached the stage of full recovery.

Meanwhile, segments serving real housing needs in big cities are still of great interest due to limited supply.

Low interest rates and many preferential policies will attract home buyers.

Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn in the Southern region, also said that the market has been and is in a period of strong purification, safe for buyers.

After the crisis, the real estate playground is now only for projects with standard legal documents and guaranteed progress. Real estate businesses that can survive at this time must be financially strong, transparent in business, and in compliance with the law.

“ Projects that can be brought to buyers at this time must not only ensure 100% “standard” legality, but also have suitable prices and the most competitive payment policies to be accepted by the market. This is considered the most active “filter” for home buyers, avoiding the situation of buying unripe rice or poor quality goods ,” said Mr. Tuan.

Similarly, real estate expert Tran Khanh Quang said that the real estate market at the end of 2023 has gone through the most difficult period, from now on there will only be recovery. The government has had many solutions and policies for the market such as removing legal issues to create more supply, and bank interest rates are currently as low as the interest rates before the COVID-19 pandemic.

Mr. Quang believes that the current market is still starting to recover, so it is still the time for investors to participate in the market with price advantages and many attractive options. For experienced investors, the current bank interest rate can use financial leverage to buy discounted real estate with good locations.

However, this is not the time to calculate short-term investments. New, non-professional investors should not rush to invest at this time.

As for those who buy houses for real housing needs, Mr. Quang assessed that this is a good opportunity, when the market price is attractive and the bank loan interest rate is good. However, one should not use too much financial leverage, only borrow a maximum of 15 - 30% of the property value to avoid risks.

Chau Anh

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