Many brokers and experts believe that from now until the end of the year and into 2024, the real estate market will have many improvements.
Trading is back
Mr. Hoang Ngoc Nhat, a real estate broker and investor of dozens of land lots in Chuong My and Thach That districts (Hanoi), said that over the past year he had to invest hundreds of millions of dong in advertising and customer care to maintain business relationships. After a long period of no money, transactions have gradually returned recently.
“From the beginning of the year to the end of July 2023, there were almost no real estate transactions. There were times when I was so discouraged that I wanted to quit my job, but I still tried to stick with it. Recently, the Government has had many policies to remove legal and credit obstacles, so the real estate market has improved and investor sentiment has improved.
Thanks to that, I was able to close 2 plots of land in Thach That and push 3 plots of land to customers in Chuong My. All 3 plots of land of customers used financial leverage to sell at a loss, so the price decreased by nearly 30% compared to the peak period, the land was wide enough for cars to avoid each other, investors were satisfied so they sold quickly," said Mr. Nhat.
Suburban land is also being traded again (Illustration photo).
According to Mr. Nhat, it takes half a year to find a plot of land that suits the needs and finances of an investor. Once he finds the land, he has to take pictures of the plot and send the legal documents to the customer.
" At this point, if the customer agrees to go see the property, it is already half successful. Currently, the market has improved but not significantly. Many brokers post on social networks that they have closed 5-6 plots of land in a month, and that deposits are continuously deposited into their accounts. These are all "virtual" tricks, not real. Brokers who have an average of 1 transaction/month are considered good and can do business, " said Mr. Nhat.
Ms. Nguyen Thi Hien (Thanh Tri, Hanoi), a real estate broker, also said that to find customers, she had to use her house money to invest tens of millions of dong to post ads for selling residential land in the communes of Tu Hiep, Ngu Hiep, Van Phuc, Yen My, Tan Trieu, Thanh Liet...
“From now until the end of the year is the time when investors are likely to spend money to buy real estate. When posting the news, some investors came to ask for information, showing that they are still interested in investing in real estate.
However, due to the market being quiet for a while, investors are still quite cautious about returning to the market. Transactions have appeared but are quite few. Investors also carefully choose the area to invest and the selling price," said Ms. Hien.
As the market has urged the epidemic to resume, many brokers have returned to their profession and accelerated the posting of real estate for sale in the suburbs. After a difficult time, many investors want to collect cash flow to cover their living expenses, so the source of land for sale during this period is quite diverse.
Step by step recovery
After a period of waiting for the market to recover, recently Mr. Nguyen Ba Luyen (Thuong Tin, Hanoi) decided to sell at a loss of VND 570,000 million a villa plot of land with an area of 180 m2 in Thuong Tin town, the buyer is a local investor.
“Due to the pressure of bank maturity, I decided to sell to cut losses and clear bank liquidity. The initial plan was that it would be difficult to sell due to the difficult market, but after nearly 2 months, there was a buyer. The land has a beautiful frontage location, and the group regrets selling it below cost price. Currently, I am also calculating and looking to buy a smaller plot of land with less capital so that I can continue to sell the goods at the end of the year,” Mr. Luyen calculated.
Economist Le Dang Doanh said that one of the important driving forces is that the interest rate level has cooled down somewhat. Compared to the beginning of 2022, real estate loan interest rates have cooled down significantly, averaging 1-3%/year.
Lower real estate loan rates will help real estate transactions recover (Illustration photo).
Specifically, the interest rate for the first year of real estate loans is currently announced by banks at 8%/year. The cooling interest rate is one of the important driving forces that makes investors have more confidence in the market and decide to invest again.
" When bank interest rates decrease, it means that the money pumping policy increases. At that time, all economic sectors benefit, the surplus value of all economic sectors increases. There will be more people with accumulated profits, which means the demand for buying real estate increases," said Dr. Le Dang Doanh.
Responding to VTC News, Dr. Nguyen Van Dinh - Chairman of Vietnam Real Estate Brokers Association, Vice Chairman of Vietnam Real Estate Association - said that during this period, the Government has had many policies and they are having an effect.
In addition, banks are continuously lowering interest rates and creating incentives for lending, leading to many projects, especially those in the final stages, being activated, having access to capital and some procedures being removed.
“A part of the projects will be restarted, continue to run and start, then there will be activities. When there are transactions, investors will feel more excited, more confident, more motivated, so they continue to participate in the market. Although the market will not completely explode like in the years 2020 and before, there will be revived trading activities,” said Mr. Dinh.
PHAM DUY
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