Real estate market 2019: Cash flow is forecast to drift to the suburbs

Trample “hunt” for beautiful land funds 

According to the The trend of investors moving to the suburbs has begun to increase since 2017, exploded in 2018 and is forecast to become more intense in 2019. This is an inevitable choice when the Hanoi and Ho Chi Minh City market is almost over. running out of land fund for development new project. This pushes investors and real estate developers to follow the market flow when the price of land funds in the inner city of Hanoi and Ho Chi Minh City is increasing.

Mr. Nguyen Quoc Hiep, Chairman of GP.Invest said in 2019 enterprise Focusing on the project of Southwest Viet Tri New Urban Area in Phu Tho province. The project has a scale of 585 hectares including a system of adjacent villas, high-rise housing and auxiliary works. The reason why the business is shifting to the suburbs is because after many successful projects in Hanoi, Mr. Hiep believes that there is no longer any land fund in Hanoi’s inner city, while to launch a project it takes 3 to 4 years of procedures, causing obstacles for businesses. enterprise. Mr. Hiep is optimistic about the provincial markets in 2019.

Real estate market 2019

General Director of LDG Group – Nguyen Minh Khang predicts that 2019 will be a “booming” year for real estate development in the provincial markets. only in familiar areas but also in previously unexplored markets.

Mr. Khang said that currently, finding land funds in suburban areas is no longer an easy task, businesses are having to “tread on their feet”. each other” to hunt for beautiful land funds.

The land fund factor is having a direct impact on businesses’ search for development capital. The current trend of mobilizing capital is considered the main and most stable one that can replace bank capital, which is mobilizing through the stock exchange. However, if you want to mobilize through this channel, businesses must also prove their capacity through the activities of land fund projects.

Chairman of the Board of Directors of Kosy – Nguyen Viet Cuong believes that the land segment has residual potential. is still very large, especially in small provinces. When Hanoi’s land prices increase many units business chose to move to neighboring provinces. Besides, some localities have relatively good infrastructure and have built many industrial parks, which are favorable conditions for the local real estate market to develop.

“Land fever in these areas The area is only local, basically the land market is quite well developed. The market has room to develop, but investors also need to consider carefully when investing and not use financial leverage when the market prices increase” – Mr. Cuong said.

 Be cautious in trading high price difference

Talking with the press at the recent fourth quarter real estate market meeting, Mr. Nguyen Van Dinh, Vice President and General Secretary of the Vietnam Real Estate Brokers Association, commented that the current real estate market in Provinces near large urban areas such as Hanoi and Ho Chi Minh City are developing quite well, mainly focusing on the land segment.

“For example, in Bac Ninh, Vinh Phuc, the price of a plot of land of 50 – 70m2 is equivalent to 1 Apartments in the city should still be a product suitable for the payment ability of consumers in the area. The growth of this segment in large urban areas is also maintained and developed. The amount of supply coming to the market and land transactions will also increase compared to 2018,” Mr. Dinh said.

New In early 2019, many suburban projects such as Hung Yen, Hai Duong, Vinh Phuc… investors created waves with large differences. Explaining this, the director of a real estate floor in Hanoi said that land prices in neighboring provinces of Hanoi have increased significantly compared to a couple of years ago. However, the level of transactions is not to the point of creating a fever, so there is no price fever due to high transaction volume. According to him, collecting external money and including it in service fees is essentially the difference that the distribution unit “pockets”.

Lawyer Bui Sinh Quyen of the Hanoi Bar Association warns home buyers to be cautious with real estate transactions with unusually high prices because this can create risks such as difficulty getting money back. If the project encounters difficulties during implementation. Furthermore, if the investor’s purpose is to avoid taxes, according to Mr. Vinh, it can also create other risks when the project is inspected, the buyer will definitely be affected.

According to Mr. Nguyen Hoang, Director of R&D Department DKRA Vietnam In recent times, the land segment has had a large speculative investment rate and with each transaction, the product price has been pushed up beyond the real value, so current buyers are somewhat “wary” and more cautious.</ p>

According to the report of the Ministry of Construction as of November 20 /2018 real estate market inventory of 2,316 apartments (equivalent to 3,392 billion VND); inventory of 2,724 low-rise houses (equivalent to VND 6,446 billion); inventory of 2,859,461 m2 of residential land (equivalent to 11,075 billion VND); Commercial land inventory: 507,270m2 (equivalent to 2,036 billion VND).

Mr. Nguyen Trong Ninh, Director of the Department of Housing and Real Estate Market Management (Ministry of Construction) said: “Market developments Real estate in 2019 is likely to be stable and positive. There are currently no signs of abnormalities in the market, although local fevers in each project and small area can still occur.”

According to Ngoc Mai
Tien Phong