Do not use leverage finance If you have money, consider buying land
According to many real estate experts, 2024 will be a challenging year for the real estate industry. Real estate, however, also opens up great opportunities to revive the market.
Economist Nguyen Minh Phong said that overall, 2024real estate market is still difficult difficulties and recovery levels are uneven across segments. However, the market has overcome the most “difficult” period and will record more positive moves than negative in both total supply and total demand, both input and output.
According to him, the housing segment at cheap pricesocial housing is also likely to change positively and record an increase in new supply because investors are aware of self-directing the structure. products to develop in accordance with the market flow.
However, the high-end commercial housing segment will likely recover more slowly because real demand has not yet surged. It is expected that in 2024 there will not be many investors who dare to develop this product line.
With the land segment, this expert commented that it is due to new regulations on tightening land division and sale activities in The Law on Real Estate Business was amended and liquidity was low throughout this year, so this segment also needs more time to recover. It is predicted that at the end of next year, the land may reverse.
“Investors using financial leverage should not participate in the land segment at this time. As for investors Large investors with strong cash flow have recently started looking for opportunities,” Mr. Phong advised.
Agreeing with the above opinion, Mr. Dinh Minh Tuan, director of a Real estate information channel predicts that in the coming time, the land market will continue to face difficulties, especially large plots of land.
The revised Real Estate Business Law officially takes effect from the beginning of 2025. Tightening land subdivision and sale activities may cause interest in land to continue to decline. Land prices will also be adjusted downward, especially for large plots of land.
However, in the long term, this expert also believes that land prices may continue to increase and transactions will return because real estate prices also depend on other factors such as infrastructure deployment and economic growth people.
Apartment prices are still pushed up
In a recent report, the Vietnam Association of Real Estate Brokers (VARS) said that Recently, the real estate market has been difficult but real estate prices are still “anchored” at a high level.
Even the apartment segment in big cities still maintains an upward momentum to establish a new price level. reached a record high, far exceeding the income of the vast majority of people. In contrast to the decline in price and liquidity of land products, villas, shops, townhouses, and townhouses.
Specifically, this unit’s research data shows that real estate prices have increased dozens of times over the past decade. via. In 2021 alone, the average house price has grown by double digits.
According to the project According to this unit’s report, in 2024, primary apartment selling prices will continue to increase by an average of about 3-8% because short-term supply has not yet been resolved.
Scarcity of new supply makes the market Lack of competitiveness, businesses with apartment projects opening for sale at this stage are “kings” if they do not have cash flow difficulties, investors will continue to keep prices high to maximize profits and at the same time, infrastructure will continue to improve The improvement will continue to push the price level even higher.
Shared at the recent Vietnam Real Estate conference, Dr. Can Van Luc, an economic expert, said that the Housing Law passed by the National Assembly was amended Changes and the revised Real Estate Business Law will take effect in the first quarter of 2025, which will bring a lot of positive energy to the real estate industry. However, it should be noted that the newly passed laws need time to “absorb”. policy.
In addition, violations this year will basically be handled. The macroeconomic recovery situation of Vietnam in particular and the world will also become clearer.
Mr. Luc emphasized that on that basis, it is expected that the market will recover in the first quarter of 2024. It’s entirely possible. Early next year will also be a favorable time for investors to make buying and selling decisions because interest rates will decrease and real estate prices will be adjusted to a reasonable level.
