Analysts believe that the local real estate market will be able to recover after the outbreak
Despite the drawbacks brought by the pandemic, The Phnom Penh Post reported that seasoned property buyers are still continuing their investments in Vietnam, most likely encouraged by industry experts’ predictions that the market will recover post-pandemic.
Most of these investors are hesitant to disperse their funds because of the current state of the market, but most are also optimistic that it will bounce back soon. According to experts, small investors would rather wait for the market to recover, while experienced investors would consider this situation as a business opportunity.
Ha Van Thien, the deputy general director of property development firm Tran Anh Group, shared that in the previous crisis that the sector had to go through, investors who did their research were able to find lucrative opportunities with trustworthy developers.
When it comes to property prices, the former director of the sales department at Savills Vietnam Duong Duc Hien forecasted that the rates will quickly grow in the medium to long term, revealing that real estate prices in the domestic market have not once declined in the last 40 years.
Even though the market did go through some fluctuations, he said that in the long term, the prices would still increase since the population keeps on increasing, but the land does not expand. “People always need housing products and in addition, costs related to land are on the rise,” said Hien.
“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,” he added.
Despite all these difficulties, experts are confident that the property market this year will give rise to market purification that encourages more sustainable developments in the future.
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