Real estate through the period of ‘local panic’, revealing the time to buy a house

Currently, customers no longer focus on residential products or real estate to spend “fresh money” but focus on products that are being supported with interest rates. Investors limit new products, continue to increase price Assessing the real estate market over the past time, according to Mr. Tran Minh Tien, Director of One Mount Real Estate’s …

Real estate through the period of ‘local panic’, revealing the time to buy a house Read More »

Currently, customers no longer focus on residential products or real estate to spend “fresh money” but focus on products that are being supported with interest rates.

Investors limit new products, continue to increase price

Assessing the real estate market over the past time, according to Mr. Tran Minh Tien, Director of One Mount Real Estate's Center for Market Research and Customer Understanding, the market has had many positive signals.

From the Government's drastic direction to remove difficulties of the real estate market from the beginning of 2023 to home loan interest rates at many banks, which decreased significantly in the first quarter of 2023; Many state-owned joint stock banks offer many attractive credit packages to stimulate production and business, including loans to buy houses…

However, records from the Hanoi apartment market in the first quarter of the past year showed that the supply of new openings for sale and consumption continued to decline. The majority of apartments sold in the first quarter of 2023 came from the fund of apartments that have been opened for sale before, showing that investors are limited to new goods at the moment.

Legacy Prime đang hoàn thiện, dự kiến bàn giao nhà trong năm 2023
Legacy Prime is under construction, expected to hand over in 2023

According to the statistics of this unit, the mid-end and high-end segments accounted for the majority of primary supply as well as consumption in the first 3 months of the year with about 880 mid-end apartments and about 860 luxury apartments.

“The number of primary units sold higher than the number of newly opened apartments not only shows that the newly launched apartment fund has a high absorption rate, but the remaining stock of the previous quarter was also consumed during this time” – Mr. Tien said. know.

Regarding apartment prices, Mr. Tien said that since 2017, the average primary selling price has increased by 7% per year. In which, the luxury and high-end segments increased the fastest with a rate of 12 -19%/year, the mid-end and affordable segments only recorded an increase of about 7%/year and 4%/year, respectively.

“The selling price of new projects is forecast to continue to increase by an average of 3-8% in 2023 thanks to infrastructure development plans and urban zoning plans that change the face of the city.” – Mr. Tien made a forecast.

Explaining the price increase of apartments “dizzy” in the past time, the director of One Mount Real Estate Center said that there are many factors. Besides the problem of supply, the current land fund is also not much.

Current apartment products are mainly located outside the 3rd belt, many projects, if any, still have problems with planning and cannot be implemented. With a limited land fund and large investors, new products are located in the high-end or near-high-end segment or higher.

Should down money?

With the positive signals from the macro related to credit and legal capital through the newly issued Resolution 33 and Decree 08, according to Mr. Tran Quang Trung, One Housing Business Development Manager, period “local panic” is over. The market is entering the screening and classification stage for both investors and investors.

Agreeing with Mr. Tien when commenting on the price increase of apartments in the near future, Mr. Trung said that at this time, it is difficult to wait for apartments to decrease in price.

According to Mr. Trung, on the side of individual investors, instead of spending money on bank deposits so that after 2-3 years, that amount is only equal to the amount in an investor's promotion program, they always grasp the “time of the day”. this body”. Buy good products at good prices and generate cash flow right away.

“Customers no longer focus on residential products or products that are not supported by interest rates, because they have to spend “fresh money”. They focus on products with low interest rates or stable low interest rates from reputable investors and banks with strong potential,” said Trung.

According to him, the apartment market will not have a bottom when primary prices continue to rise, supply is congested and input costs are high. This is also a segment serving real housing needs that can generate cash flow.

Commenting on whether to buy an apartment at this time, Mr. Trung said that the current real estate market is a “chasing price” market, if anyone has real needs with guaranteed cash flow, they should choose projects Clear legal status of reputable investors, ensuring progress, down payment at this time is reasonable.

 

Richland Residence owns a strategic location between the dynamic economic development triangle including Ben Cat – Thu Dau Mot – Tan Uyen.

“Investment decisions depend on the financial situation of the customer and the best support from the bank's lending policy. Currently, the real estate market has difficulties, so many investors offer stimulus packages, support for customers… This period can be considered as waiting for a red light. Vietnamese people still tend to buy according to the crowd, when racing to buy, the “shark” has already taken profits. Until the green light to join, the opportunity may have passed. In my opinion, don't be afraid to pay money at this time,” Trung said.

Hong Thanh

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