Should I invest?
Economists say the real estate market has more opportunities than challenges. The market is now gradually recovering.
The last months of the year are often the most accelerated time for the real estate market. When interest rates have been and are decreasing, many policies have been implemented to ease the market, real estate prices have decreased more... Whether the fourth quarter of 2023 is a good time to 'put money down' to invest in real estate is a concern of many investors.
Sharing his views with VietNamNet reporter, real estate expert Tran Khanh Quang said that the real estate market has gone through the most difficult period, from now on there will only be recovery. The government has had many solutions and policies for the market such as removing legal issues, building highways, developing infrastructure; developing social housing to create more supply... Especially, bank interest rates are currently as low as the interest rates before the Covid-19 pandemic.
However, Mr. Quang said that the market is currently starting to recover slightly, with no signs of strong growth. Therefore, investors participating in the market should be cautious.
“If anyone has the concept of investing in the short term of 1 year, this is a difficult time. For experienced investors, the current bank interest rate can use financial leverage to buy discounted real estate in good locations. However, new, unprofessional investors should not rush to invest at this time,” the expert noted.
As for those who buy houses for real housing needs, Mr. Quang assessed that now is a good opportunity, when market prices are attractive and bank loan interest rates are good.
Meanwhile, Mr. Nguyen Quoc Anh, Deputy General Director of batdongsan.com.vn said that the "reversal" time of the market will start from the second quarter to the fourth quarter of 2024.
In the previous market cycle, it took about a year from the reversal point until the market returned to pre-crisis levels. Therefore, in this cycle, the market also needs time to stabilize, and it is reasonable to expect that it will return to pre-crisis levels by early 2025.
Therefore, Mr. Quoc Anh believes that at the end of 2023, individual investors who have a taste for quick investment and want to make quick profits should not participate.
“Investors should not use financial leverage to invest for the time being. Investors must have their own “real” money and have an expected time of about 3-5 years before investing.
At present, the market has entered the “bottom” zone, this recovery will take more time. However, this period is very good for investors participating in medium to long-term investment,” said Mr. Quoc Anh.
Which segment to invest in?
Expert Tran Khanh Quang noted that investors need to choose real estate products with full legal documents, located in locations with good liquidity.
With the segment known as the “king” investment channel – land, the expert said, it will recover in the second and third quarters of next year. Therefore, he said, buying land at this time needs to be considered, only professional investors should buy.
“The housing segment that serves real needs, which are apartments in urban areas, apartments on the secondary market that have been handed over, have full legal documents, or newly opened apartments… with extended payment policies will be very good for those who buy to live.
Townhouses priced at 7-8 billion VND, located in alleys that cars can access, or townhouses in frontage areas priced at less than 15 billion VND are still trading well. But the villa segment priced at over 30 billion VND is currently facing difficulties," said Mr. Quang.
Mr. Quoc Anh believes that the time for land to recover faster is from the second quarter to the fourth quarter of 2024. Therefore, for individual investors using financial leverage, this is not the right time to invest.
As for large investors, with strong cash flow and long-term financial plans, from the third quarter of 2023, they have started to search and consider investing in land quite a lot.
According to Mr. Quoc Anh, for the majority of people, this is not the right time to use financial leverage for investment.
“Those who use “real” money and have it available to invest also need to determine the long-term problem of about 5 years to have appropriate expectations. If you buy now and expect the price to increase in 3-6 months, now is not the right time for that expectation,” the expert added.
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