Investors need to be cautious about the 'virtual fever' of the real estate market.

VARS recommends that investors should be cautious about the "virtual fever" of the real estate market - Photo: VGP/Toan Thang

Real estate market receives much positive information

VARS believes that, with a series of positive information, real estate is an attractive investment channel - the result of the policy of expanding credit, reducing interest rates, and choosing. Along with the "stimulus dose" of information about merging some localities, many provinces and cities have begun to record an increase in real estate transactions at different levels.

According to VARS, it is undeniable that the fevers are influenced by speculative groups, but it can be affirmed that the real demand for real estate is increasing.

After about two years of struggling with high interest rates and tight credit, the real estate market has gradually recovered and shown signs of growth as the State Bank loosened monetary policy.

Accordingly, in order to ensure economic growth targets, in 2025, the State Bank of Vietnam sets a credit growth target of 16%, equivalent to injecting about VND 2.5 million billion into the economy.

Lending interest rates have also remained stable at a low level following the Government's direction on strengthening the implementation of solutions to reduce lending and deposit interest rates.

Pumping money into the economy not only helps businesses access capital more easily but also contributes to stimulating investment channels, including real estate. Especially in the context that the real estate market is benefiting from a series of positive information.

Specifically, it is the Government's effort to remove legal obstacles, with the implementation of a new legal corridor, helping many real estate projects have the opportunity to be deployed and restarted.

Urbanization, along with concerns about global inflation as geopolitical conflicts tend to increase and tariff risks, also encourage individuals and households to buy real estate assets to "shelter" their assets.

At the same time, the demand for real estate investment is also stimulated when a series of infrastructure projects are completed, promoting implementation, helping land to increasingly accumulate intrinsic value and creating potential areas to attract capital flows.

However, in reality, investors' money is only directed towards areas with synchronous and modern infrastructure and development planning. In particular, the trend of "hunting" for land in areas with merger planning and infrastructure development is the most obvious.

According to a survey by VARS, in some localities with plans to merge into large provinces and cities with higher land prices or expected to be new administrative centers after the merger, land prices are constantly fluctuating, even setting a new "peak" in 2022.

In particular, the cost of capital if investing in large cities such as Hanoi and Ho Chi Minh City is too high, causing many investors to look to suburban areas or places with potential for future development to optimize investment efficiency.

Accordingly, the areas being "hunted" have low prices in the provinces and cities on the outskirts of Hanoi, such as districts/communes in Ninh Binh, Lang Son, Bac Giang, Hai Duong,...

In the South, areas with large infrastructure capital flows, such as Binh Thanh (HCMC), Long An, and Binh Duong, are also recording a wave of increased transactions.

Investors need to be cautious about virtual real estate fevers.

VARS believes that the trend of "hunting" for land is increasing in some areas, but investors need to be cautious about virtual fevers.

Along with that, investors need to carefully study the land price level in the area where they plan to invest and clearly understand the progress of planning changes to assess risks and growth potential.

At the same time, liquidity and cash flow from real estate should also be a top priority. Places with specific planning and infrastructure implementation plans or projects with synchronous and modern investment, with many policies to "attract" people to live will be safer choices than areas where prices are only pushed up based on rumors.

VARS affirms that in order for the market to develop in a transparent and sustainable direction, avoiding prices exceeding real values, causing "virtual fevers", there needs to be close cooperation and coordination of all relevant parties.

In particular, the State needs to play a leading role, strengthen management and supervision. In particular, it is necessary to promote research, development and implementation of mechanisms and policies aimed at making the information system and data on the real estate market transparent.

For real estate brokers and real estate trading floors, VARS recommends that they strictly comply with legal regulations in the process of performing the role of connecting intermediaries. Absolutely, do not, for the benefit of individuals and businesses, assist individuals in pushing up prices, creating "virtual" fever, distorting real estate supply and demand.

According to VARS, at present, the real estate market is in the early stages of a new cycle and is very "sensitive" to influencing factors. Therefore, all relevant entities need to take the common market as the most important.

"If we only focus on maximizing short-term profits without paying attention to long-term factors such as supply and demand, the market will face the risk of adjustment, affecting all individuals operating in the market," VARS recommends.

Toan Thang

Source: https://baochinhphu.vn/nha-dau-tu-can-than-trong-truoc-cac-con-sot-ao-cua-thi-truong-bat-dong-san-102250324104926984.htm