The real estate companies offer many average price products to the market, the buyers pay much attention to these products and the number of transactions is higher ... These are the signs showing that the real estate market is warming up as compared to the previous years.

 

House with price of less than 2 billion dongs still has good liquidity in the market - Photo: D.D.Minh

 

Many real estate agents said that from the beginning of the year until now, the many customers come to the agent to find out about the projects and the number of successful transactions have increased as compared to that of 2013. The banks are also more active in cooperating with the real estate companies and accelerating the disbursement for the borrowers to buy houses. Besides, the decrease in interest rate is expected to support the real estate buyers and it is forecasted that a part of the cash from the saving at the banks shall be gradually moved to other investment channels including real estate.

 

Ms. Ha Ngan in Tan Binh district (HCM City) said that she is looking for affordable real estate to use the saving amount for investment because the saving interest rate is much decreasing. “I don’t have much experience in other investment channels like gold, security, and the most important thing is that I want to buy a land field or an apartment for long term investment. Real estate is also an assets that many people want to have some more than their existing house” said Ms. Ha Ngan.

 

Speaking at the opening ceremony of a new project in District 2 (HCM City), Mr. Le Hoang Chau, Chairman of HCM City Real Estate Association, said that many new projects launched to the market have been sold quite well recently. They are mostly the apartments with medium and small area, the total payment amount is from 1.2 to 1.5 billion dongs; they are suitable with the demand and financial ability of many households; they meet 3 factors like the location is favorable, the design & construction ensure good quality and finally they are convenient for customers because of their utility like trade centers, cinemas, swimming pools.... In addition, according to many experts, in this year, the solution for the difficulties of the real estate market is one of the key tasks that the Government is aiming at. It is forecasted that during the period of 2014 – 2015, Vietnam shall have the recovery, growth and prosperity in many markets, including real estate.

 

Choose the appropriate product

 " Short term investment in real estate poses a risk this year while medium term investment can be considered as a good and viable " 

Financial expert Dinh The Hien

 

The choice of real estate type such as land, apartment or private house is still the concern of many people at the present time. Mr. Hoang Nguyen, an investor in District 1 (HCM City), said that he chooses to buy land or private house with the price of about 2 billion dongs in stable residential area. “My family considers it as a long term investment so we don’t set the goal to achieve higher profit in this year, but we shall wait for the right time to sell them” said Mr. Nguyen.

 

Meanwhile, Ms. Ha Ngan wants to buy an apartment with the price from 1 to 1.5 billion dongs for leasing instead of depositing money at bank. “An apartment worth 1.3 billion dongs in Tan Binh and Tan Phu can be  for lease with the price about 8 million dongs / month, it is equivalent to the saving interest rate. Meanwhile, the apartment belongs to our ownership, and when the price of real estate increases, we can gain the new profit” analyzed Ms. Ha.

 

According to financial expert Dinh The Hien, if 1 or 2 years ago, real estate was removed from the investment list because it showed no sign of prosperity; but from the beginning of this year until now, it is listed in the investment channels that should be considered and can find profitable opportunities. Short term investment in real estate poses a risk this year while medium term investment can be considered as a good and viable. However, depending on the capital, the psychology and the risk tolerance of each person, they can choose the suitable products. When making choice, it should be noted that every type of real estate strongly depends on the location, project as well as the price offered by investors” additionally consulted and noted by Mr. Hien: “At the present time, the type of medium cost apartment can be more profitable because it can easily be leased to wait for price increase. However, when the market is not really recovered, the profitability of 30 – 50% as it used to be can’t be expected”.

 

Thao Vy - Thanh Niên