An expert reveals how to create real estate “waves” earlier this year

Right after the Lunar New Year, real estate market Hanoi welcomes a “wave”. Apartments are the leading segment of this “wave” when selling prices and transactions are continuous. increased.

According to reporter Dan Trithe secondary apartment market in Hanoi is bustling with apartment buying and selling activities. Many project< /a> Apartments all recorded an average increase in apartment prices of 200-500 million VND/unit compared to the end of 2023.

Similarly, the land segment in the Hanoi market also changed positively. especially when apartment prices increase rapidly. House prices in the alley or peri-urban land market also show signs of warming, asking prices also increased by 5-10% compared to the end of 2023.

Real estate market report February real estate of a real estate information channel showed that the level of interest in both the sales and rental markets increased by double digits in the first 2 months of the year. In the buying and selling market, the level of interest increased by 13% over the same period last year. The above positive signals show that investors are gradually returning to the market.

An expert reveals how to create real estate "waves" earlier this year

The opinion of many real estate experts is that the sharp drop in interest rates has caused many investment channels to There are real estate properties that are in the “sights” of investors.

The interest of searchers in the Hanoi real estate market recently is still largely focused on the real estate segment – The segment is still recording an upward trend in demand and prices in the two markets: sales and rental thanks to existing and increasing demand.

In addition, segments with investmentConsumer buying and selling behavior revolves around groups of factors to decide to “down” money such as: price and profitability, legality and investor, location and infrastructure and market psychology.</ p>

According to real estate expert Tran Minh, when the State Bank has a policy of lowering interest rates in the long term, the money of people and businesses deposited in the bank will tend to “flow” out.</p >

The channels to catch this cheap cash flow can be production, business, import-export investment, securities and partly in real estate. “This cheap cash flow makes the real estate market, especially the Hanoi market, grow rapidly” Mr. Minh emphasized.

However, according to him, this real estate “wave” will take place in a short time . Within half a year, real estate increased by 30-50%, especially old apartments and houses in alleys. Because compared to the opening prices of new low-rise apartment projects, new low-rise projects are very high.

“Speculators like to put money into old projects. In fact, old apartment prices have increased sharply because of the Sales of this project previously were low” he shared.

Commenting on this real estate “wave” in Hanoi this time, he said that this “wave” has a short period and has not spread to other regions. Therefore, many people will not feel it before the “wave” has ended.

Also according to Mr. Minh, the current real estate “wave” is shorter and different from the “wave” of 2019-2021. Because the previous real estate “wave” was a process of people’s accumulation and stable development of the economy.

According to him, the general formula for creating real estate “waves” this time still comes from speculators (people with large amounts of money or large brokerage floors). This “wave” takes place in a small group of people.

He took the example that in a market with 100 real estate speculators, speculators will buy and resell about 20-30 properties to create immediate liquidity. will increase. If the money comes in and moves the market, real estate owners who see prices increasing day by day will be afraid to sell. When creating a reputation, speculators will attract outsiders to “jump” into the market.

“Currently, the psychology of people with bank deposits is very fluctuating because interest rates are low for a long time and they immediately drop their money. At this time, speculators will immediately sell and earn a profit. Speculators only keep the profits and continue to spend money to find new markets. Only low-priced areas can attract other speculators,” Mr. Minh analyzed.