Although the “wave” of apartments has stopped, experts said that prices will hardly fall sharply.
The price of old Hanoi apartments has continuously increased hotly since the beginning of this year. However, the FOMO phenomenon has gradually decreased. After the continuous increase in prices, many people decide to stop their plans to buy a house, listen to market developments or someone decides to switch to buying a residential brothel.
Mr. H. – an investor with more than a decade of experience shared that the real estate market always has periods of price fever, pushing values up sky-high in a short time. The reason comes from a part of investors surfing, hugging cheap goods beforehand, creating virtual transactions, buying and selling back and forth with each other.
After creating a “wave”, apartment prices have been established new ground, which can hardly be reduced. Because, new construction areas are now valued at 60-70 million VND/m2. Therefore, when the “wave” stops, the price will move sideways, difficult to fall deeply.
Eventually, buyers who suffer from FOMO will bear the brunt of the consequences. Then, after each virtual fever, the price level of the market is pushed up 2-3 times, very miserable for people with tight finances, young people who do not have homes.
Sharing about the development of apartment prices, Mr. Nguyen Quoc Anh – Deputy General Director of Batdongsan.com.vn said: “The view that apartments will drop sharply in price later is very difficult. We should not use personal judgment but analyze based on supply-demand relations and cash flows.”
Citing a comparison of price graphs from 2015 to 2023, he said that price yields including price increases and rentals over 8 years increased by 97% on a national average. Seeing that, long-term holders with good apartments even increase by 200-300% is normal. Suppose, in the previous period some condominium holders until now the benefit is huge.
Mr. Quoc Anh analyzed the supply-demand relationship, currently there is not much supply. We expect a legal settlement for the project to come out, but how many developers meet the requirements of the amended Law on Real Estate Business.
“In my opinion, in the near future, small investors will face many problems and difficult to implement. And in the next stage, foreign investors enter a lot because they have large capital, ready to invest in projects with clean land funds, they can deploy.
After the recent survey we surveyed, real estate consumer sentiment the most important factor is investment reputation.
I see that the number of developers responding to the new law decreases. Land prices have never decreased, even increasing, so it is cheaper to take the land fund as a project. That shows that supply is definitely affected, cannot increase quickly,” Mr. Quoc Anh shared.
Regarding demand, he said that Hanoi and Ho Chi Minh City. HCMC is two big cities and the development trend focuses on big cities. Therefore, the demand in real estate is very high.
“Q3 last year to Q2 of this year, was the best buying period for the investment period. Now, the price is higher, investors have to consider more because they have to use price leverage a lot. Therefore, at this time, for real buyers, they do not have to worry too much in the short term but for investors need to be careful”, Mr. Quoc Anh shared.
