The market depends on buyer psychology
When the economy is in trouble, the real estate market is also heavily affected. Experts say that, in addition to legal factors, loans, etc., the psychology of buyers also greatly determines the real estate market.
At the Vietnam Real Estate Conference - VRES 2023 recently held in Ho Chi Minh City, Mr. Dinh Minh Tuan - Director of batdongsan.com in the Southern region admitted: "Currently, the psychology of real estate buyers is a factor affecting the development of the market as well as liquidity. Because when investors hesitate and do not have confidence in the product, the opportunity is considered to have passed."
Mr. Tuan commented that at the end of 2023, investors organized many sales events, inviting many customers and investors to visit. It is not yet certain whether customers will buy the products or not, but only based on the fact that investors are willing to go see the products, the opportunity to sell and the demand to buy real estate products still exist.
Customer psychology determines a lot in the story of land buying and selling.
Experts predict that the real estate market sentiment index in the first half of 2024 will increase by 3 points compared to the second half of 2023. Accordingly, the market sentiment index in early 2024 increased thanks to the level of satisfaction with the market, the belief that real estate prices will increase well in the future, the ability to buy a house, the assessment of the market situation, policies and interest rates all increased.
Sharing about the above issue, Dr. Can Van Luc assessed that the early period of 2024 will be a favorable time for consumers to make investment decisions in the real estate market. Because this will be a period when interest rates decrease and real estate prices are reasonably regulated. After a long period of stagnation, the real estate market will likely heat up from the first quarters of 2024.
2023 is almost over with a rather quiet picture of the real estate market. Looking back over the past year, experts assess the developments of the following prominent types: flexible and adaptive apartments, fluctuating townhouses, gloomy land plots and waiting for the right time.
The need for real estate speculation is still the common psychology.
According to Mr. Dinh Minh Tuan, the real estate market is still a channel that many people are interested in.
Specifically, the apartment segment was assessed in November 2023, the level of interest in apartments decreased by 20% compared to February 2023. However, the selling price of apartments in Hanoi in the fourth quarter of 2023 still increased from 6% to 9% compared to the first quarter of the year (depending on the segment).
In Ho Chi Minh City, the fourth quarter of 2023 witnessed high-end apartment prices remaining unchanged, while mid-range and affordable apartments decreased slightly from 1% to 4%.
Currently, sales policies and project legality are the conditions for customers to strengthen their psychology and seek to buy real estate products.
Apartment prices have not decreased, but people's ability to buy houses has increased thanks to flexible incentive policies from investors. Flexible incentive and sales policies are effective strategies to stimulate demand during difficult times and reach a wider customer base.
Rents are still high, despite adjustments in Ho Chi Minh City in 2023. To better suit affordability, smaller apartments (in Ho Chi Minh City) and further from the center (in Hanoi) are gaining more attention.
As for townhouses, in 2023, this type witnessed negative fluctuations. The phenomenon of returning premises appeared frequently on major streets in Hanoi and Ho Chi Minh City.
Mr. Dinh Minh Tuan explained that this situation stems from the fact that the efficiency of townhouse business has decreased due to changes in consumer behavior and competition from shopping malls. Online shopping habits are becoming more and more popular, with an estimated 9% increase in the number of consumers shopping online in 2023 compared to last year. Meanwhile, townhouse rental prices remain high, especially in central areas, and show no signs of adjustment.
Real estate with suitable price will be "consumed" by customers.
Mr. Ngo Quang Phuc - General Director of Phu Dong Group commented: "The psychology of owning real estate has penetrated deeply into the subconscious of Vietnamese people, so customers search and choose products a lot, although they do not decide to buy as quickly as before, they still want to learn and consider their choices for themselves".
“Currently, there is a lot of supply, if demand is not willing to buy, it will be 'stuck'. The condition for buyers to overcome their worries now is that real estate prices must be priced at an attractive enough threshold, instead of using savings or gold to buy houses.
Therefore, the supply source must provide suitable products, reasonable prices, to increase the attractiveness for buyers. Buyers will see that there is no better opportunity, from which demand arises. Currently, many people intend to buy a house, besides the low bank interest rates, people tend to withdraw money to buy houses to rent out... when inflation occurs, they convert money into goods", Mr. Phuc shared.
It can be seen that experts have many perspectives on the real estate market in 2024. In addition to legal assessments, opinions on buyer psychology are also carefully researched by businesses and investors.
Therefore, experts assess that if real estate businesses are meticulous, focus well on legal aspects and customer care, and hit the right psychological needs, the 2024 market will be a bright picture.
Source
Comment (0)