“Real estate will recover fastest compared to other industries”
“The supply-demand mismatch makes it difficult to reduce real estate prices, especially in quality real estate products. It is one of many notable remarks at the conference "Vietnam Real Estate in 2020 - 2021: Ready for a new cycle".
"In dangger lies opportunity"
Commenting on the special role of the real estate market, Dr. Can Van Luc said that although no one had yet reported on the role of real estate in the economy, last year the real estate directly had contributed 4.5% of GDP; hotel and restaurant accommodation had contributed about 3.8. % of GDP; and construction had contributed about 5.84% of GDP. In general, real estate and related industries contributed to about 17% of GDP and spread to 35 different industries, of which there were 4 major related industries, namely: tourism, construction, accommodation and banking and finance.
The impact of Covid - 19 on real estate could be considered "in danger lies opportunities". "We see three bright spots in the real estate market including industrial real estate, residential real estate and logistics real estate. Currently, the Government is promoting public investment, and real estate will be one of the industries benefiting the most,” said Mr. Can Van Luc
Dr. Can Van Luc
According to Mr. Nguyen Van Dinh, Deputy General Secretary of the Vietnam National Real Estate Association, in terms of macro factors, as soon as enterprises spoke out, the Government took very timely actions, with a series of policies that were introduced, such as the policiy to develop condotels or the Decree 25 on investor selection.
Generally observing about the recovery of all fields in the post-distancing period, Mr. Dinh said: real estate will recover fastest compared to other industries.
“In just two months after the social distancing, the market has recovered its efficiency. Thus, it cannot be said that real estate is in crisis, but only slow because of short-term effects" said Dinh.
Agreeing with Mr. Dinh's point of view, Dr. Nguyen Duc Huong, former Chairman of the Board of Directors of LienVietPostBank, said that Covid-19 as well as the US-China tensions caused many foreign investors to turn their attention to Vietnam. Many of his friends had invested abroad but were planning to return to Vietnam.
“The supply-demand mismatch makes it difficult to reduce real estate prices”
From the perspective of a real estate development enterprise, Mr. Trinh Van Quyet, Chairman of FLC said that compared to industries heavily affected by Covid such as tourism, aviation, etc., real estate enterprises themselves were not a concern.
“We have met many big real estate companies and most of them think that if we do business on real estate methodically, a crisis of 3 months or 1 year is not a big deal. Real estate is a product that the longer it lasts, the more effective it will be. If you do well in terms of utility infrastructure, perhaps after only 1 or 2 years or by the 3rd year, the price will double or triple," said Quyet.
Talking about the investment efficiency in this field, the head of FLC said that he rarely witnessed a real estate investors suffering losses; if the lossess occured, they often fell into the investment group following the movement, i.e. surfing for a few days or a few weeks, and then withdrawing investments immediately. 90% of this type of investment, according to Mr. Quyet, failed. Real estate investment must take into account the medium- and long-term story.
Regarding the psychology of waiting for prices to reduce further to make investment, according to Mr. Dinh, observing 3-4 crises in the past, there had been no crisis that had caused real estate prices to decrease but only increase steadily. On average, real estate was increasing in price by 5-7% per year. The places in infrastructure breakthrough could increase twice or 3 times in just a short time.
According to Mr. Quyet, the supply-demand mismatch made it difficult to reduce real estate prices, especially in quality real estate products.
“To complete an urban project, it currently takes 3-4 years or more, from the stage of project development until it is put on the market, with full of electric system, roads, schools and medicial facilites. This factor will make the supply increasingly scarce, while housing demand and investment demand will still increase. When demand exceeds supply, real estate prices are hard to reduce. Through two waves of the epidemic, I have not seen any signs of price reduction or dumping," said Quyet.
The view of investing in large urban areas only is outdated
According to Mr. Nguyen Manh Ha, Chairman of Think Big Group and Loc Son Ha, 10 years ago, in crisis, the real estate market had not had any low-interest housing loan support packages, but now there had already appeared, not taking in to account very good preferential policies from investors. This was a great advantage for home buyers at this time.
For resort real estate investment, Mr. Ha said that it was advisable to consider well-developed areas, located only 2-3 hours drive from big cities, for example, the distance between Sam Son, Thanh Hoa and Hanoi would be very convenient for both vacation and rental needs.
"At the moment, resort real estate makes many people afraid, but in a few years when the general situation gets better, it may not be the price level as it is now," forecasted Ha.
Dr. Nguyen Duc Huong.
Analyzing the investment sector, Dr. Nguyen Duc Huong said that 10 years ago, many foreign investors were only interested in investing in Hanoi, Ho Chi Minh City, Da Nang, etc., but such view was now outdated.
"I used to go to Quy Nhon, and many people said that Mr. Quyet was "nervous" when entering lands that were criticized, but now the value have increased many times", Mr. Huong commented.
Also according to Dr. Can Van Luc, currently Vietnam's urbanization rate was 39% at the end of last year, the Government aimed to increase this rate to 50-52% by 2030, so the demand for housing in Vietnam was still very large. With tourism real estate, this segment was for those who wanted to invest in the long term. However, not only resort real estate, according to the general assessment of experts, at this time, real estate surfing should not be considered, but only focus on medium and long-term investments, not use too much financial leverage.
According to Reatime
Retail market shows positive signs of recovery, and office rents will increase
This comment was standed by CBRE in the report announcing the focus of the real estate market in the first quarter of 2021 on the morning of April 07
Real estate is still an attractive investment channel, trusted by many people
At the Honor Ceremony of the leading real estate brand in 2020 - 2021 and the Spring Real Estate Talkshow recently organized by Vietnam Real Estate Online Magazine (Reatimes) and Vietnam Real Estate Research Institute (VIRES), experts have recognized, evaluated and forecast common problems of the real estate market in the period of 2020 - 2021.
Outlook for the real estate market in 2021
According to the survey results recently conducted by Vietnam Report Joint Stock Company (Vietnam Report), economic experts and businesses operating in the real estate field expect that in the first half of the year and for the whole year of 2021, the real estate market will continue to recover and grow, even boom in some certain segments and regions.
3 driving forces for the office market to grow steadily in 2021
In the context of macroeconomic recovery, the office market maintains stable gross rents and average occupancy rate. Many businesses have changed from fixed working style to flexible one to prioritize efficiency through the requirement of less fixed workspace and many shared areas.
Which real estate segment benefits from macroeconomic indicators
The internal force of the economy is the foundation that promotes the prospect of the real estate market. Accordingly, looking at the current macro indicators, real estate in 2021 will witness very good growth in some segments.
Office rents increase despite the epidemic
The average offer price of Grade B office spaces in Ho Chi Minh City increased sharply in the third quarter, while that of Hanoi only decreased by 1% over the same period last year.
Office market faces difficulties until the end of 2020
In the last coming months of the year, the office market will continue to face challenges when demand decreases and the vacancy rate is expected to increase further.
Retail and commercial premises: Changing strategies to "overcome the storm"
The Hanoi market records an increase in the vacancy rate in commercial centers and prime locations. And for the first time, the market have witnessed lessors negotiating prices with lessees.
The real estate market before a new cycle: After rain comes sunshine
Although starting the new development cycle with depression and difficulties, experts say that these are only objective factors, while the nature of Vietnam's real estate market still has a lot of room and opportunities for investment.
How does office market survive the 2nd time?
In the second quarter, the average rent of the Grade A segment decreased by 4.9% compared to the same period of last year and the vacancy rate increased by 9 percentage points year-on-year, at 11.8%. Grade B office rents remained unchanged without decrease tendency and the vacancy rate increased slightly.
Offices for lease in Ho Chi Minh City: Negative net absorption area was recorded for the first time in a decade
Real estate consulting company, JLL, has just released its Ho Chi Minh City Office Market Report in the second quarter of 2020, accordingly, the net absorption area was recorded negative for the first time in a decade.
