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|Investors look at a property project. Prices in this market have levelled off after a period of high prices but not reduced.- Photo batdongsan.com.vn|
Most property experts said the real estate market would be able to recover after the pandemic.
According to them, investors do not want to invest in the real estate market amid difficulties but have faith 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 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.
Pham Thanh Hung, vice chairman of Cen Group, also 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.
Viet Nam looks set to have a golden period in the real estate market next 3-10 years. 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, according to Hung. Therefore, the market is expected to have a new price level higher than that at present. 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, according to Hung.
Also assessing real estate prices will increase sharply in the medium and long term, Duong Duc Hien, former Director of Sales Department of Savills Vietnam, said in the past 40 years, real estate prices on the domestic market had not once decreased.
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.
"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, "Hien told toquoc.vn.
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, 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, Huong said.
According to the experts, 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. The market's challenge is temporary in the short term, while opportunities on this market are in the long term.