Seasoned investors still interested in VN property market despite Covid

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Buyers are still hot on the Vietnam real estate market and are optimistic that it will recover from Covid-19. DAU TU BAT DONG SAN/VIET NAM NEWS

Experienced investors continue to sink money into the Vietnamese real estate market despite the problems the Covid-19 pandemic has caused for the sector.

Most property experts have said the real estate market would be able to recover after the pandemic.

They have said investors do not want to invest in the real estate market amid difficulties but have faith that it will rebound at a certain point.

Experienced investors would see the business opportunity in the difficult period while small investors would wait for market recovery, they have said.

Ha Van Thien, deputy general director of real estate firm Tran Anh Group, said in the previous real estate market crisis, investors that researched carefully found opportunities with reputable property developers.

Cen Group vice-chairman Pham Thanh Hung said like many other economic sectors, the real estate sector was affected by the pandemic, so prices in this market have levelled off after a period of high prices but not reduced.

Vietnam looks set to have a golden period in the real estate market next three to 10 years, he said. At that time, the property market will meet the basic demand for housing and people will have good financial conditions so they will invest in housing products to improve their quality of life.

Therefore, the market is expected to have a new price level higher than that at present, he said. Investors need to enhance investment in the property market.

The real estate market is entering a new period only for medium and long term investors. Some projects in regions with infrastructure projects, in urban areas with full facilities and in industrial zones have growth potential, he said.

Also assessing real estate prices will increase sharply in the medium and long term, Duong Duc Hien, former director of Savills Vietnam’s sales department, said real estate prices on the domestic market had not once decreased in the past 40 years.

Although the market had fluctuated depending on each period, in the long term, real estate prices would always go up because the population would always be increasing while land would not expand. “People always need housing products and in addition, costs related to land are on the rise,” he said.

Hien told the Ministry of Culture, Sport and Tourism’s online newspaper To Quoc (Fatherland): “We can see that in difficult economic times, many projects still have good liquidity.

“I still advise investors to only aim at medium or long term investment. Unfortunately, currently, Vietnamese investors still prefer short-term investments but forget that to gain high profits from real estate, they must invest long-term.”

Nguyen Xuan Thanh, a lecturer at the Fulbright University Vietnam, said investors who have spare cash should invest in the real estate market and accept a lower profit ratio than expected. But in the medium-long term, investment in the real estate market is still profitable.

Nguyen Thi Thanh Huong, CEO of Dai Phuc Land JSC, said in the short term, prices on the real estate market might slow sometimes, but in the long term the property market would still be a channel that brings good profits.

Investing depends on the needs and budget of each individual investor. Particularly for investment organisations, they will analyse and evaluate very carefully before entering the market, she said.

The experts said the difficulties in the property market this year will contribute to market purification for sustainable development in the future.

At present, the market opens up business opportunities for property investors and buyers that have real demand, they said. The market’s challenge is temporary in the short term, while opportunities on this market are in the long term.

VIET NAM NEWS/ASIA NEWS NETWORK