“Deposit Waiting for Price Increase and Missed Sales” – A Look at the Real Estate Market
Since the end of last year, the real estate market has shown signs of improvement, with fewer investors selling properties at a loss compared to the beginning of 2023. According to data from Batdongsan.com.vn, the number of advertised land plots at a loss has decreased in the last quarter of 2023.
At the start of 2024, the real estate market has experienced several boosts, such as low interest rates and restored investor confidence. Due to these positive developments, many investors have stopped reducing selling prices, and some have even accepted compensation to wait for prices to rise.
For example, Mr. Nguyen Hai, from Thanh Tri, Hanoi, has been continuously selling a 120m2 land plot in Soc Son, Hanoi, for 2.5 billion VND, a 20% decrease from the price he bought it for at the beginning of 2022. In mid-March, a customer in the city center paid a deposit of 50 million VND for the plot. However, soon after, many other customers contacted Mr. Hai to inquire about purchasing the plot.
“I noticed that the surrounding land plots have been increasing in price compared to the middle of last year. Moreover, many people have been inquiring about buying land recently, so I contacted the customer who placed the deposit and told them I won’t sell anymore. At first, they didn’t agree, but I accepted to compensate them with the amount of the deposit. The market has been more prosperous lately, so I’m willing to wait for the price to increase before selling,” Mr. Hai said.
In the condominium segment, prices have been continuously rising, causing many homeowners who have received deposits to feel uneasy about their decision.
Mr. Nguyen Tuan Quang, a real estate broker in Hanoi, stated that recently, he and a customer signed a deposit agreement for a 76m2, 3-bedroom apartment priced at 3.1 billion VND in Hoang Mai district. However, just one week later, the homeowner contacted them to say they no longer wanted to sell and agreed to compensate for the deposit.
“I connect buyers and sellers. But when the homeowner changes their mind and doesn’t want to sell, the customers blame me. Not to mention, if the transaction is unsuccessful, I won’t receive a commission. However, some homeowners who are sincere will compensate me a little,” Mr. Quang said.
“The Last Surge” – Time to Make a Move
Many believe that the current period is an opportunity for those with available cash to accumulate assets and be ready for a new cycle. Furthermore, if they miss this period, buyers may lose the chance to purchase real estate at favorable prices. Besides, with low-interest rates, real estate remains a top priority for investors.
According to a report by Batdongsan.com.vn on consumer sentiment and new trends, out of 1,000 surveyed consumers, an impressive 65% stated they plan to continue buying real estate in the next year. Among these, 42% already own two properties, 38% own one property, and 8% own more than three properties. Additionally, 60% of them buy for investment purposes, 48% for additional living space, and 22% to increase their ownership area.
Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), believes that the first quarter of 2024 is a unique opportunity for experienced and professional investors to gather valuable assets and make long-term investments, expecting high profits within 3-5 years.
“Starting from the third quarter of 2024, the market will begin to rise, and the opportunity to purchase real estate at the bottom will be extremely rare, or even non-existent. Therefore, the first two quarters of 2024 are the ‘last surge’ in the 10-year real estate cycle, and investors should seize the opportunity to invest,” Mr. Dinh predicted.
According to VARS Chairman, this period is suitable for investors with sustainable finances and a deep understanding of the market to capture the “last surge.” For those seeking actual living spaces, this is a great chance to realize their dream of settling down and achieving success since real estate companies are forced to restructure and adjust prices to stay in business.
Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn in the southern region, believes that the toughest time for real estate has passed, and the market is expected to recover in the middle of 2024. However, when the recovery period begins, real estate prices will rise again.
“Therefore, this is an excellent opportunity for individuals with available funds to ‘hunt’ for beautiful, high-potential properties with good discounts. It will be difficult to find such affordable real estate once the recovery phase begins,” Mr. Tuan shared.
In conclusion, the real estate market is showing positive signs of improvement, with fewer investors resorting to selling at a loss. Many homeowners are now waiting for prices to increase before selling their properties, while buyers are urged to seize the opportunity before real estate prices rise again. With low-interest rates and a strong demand for living spaces, real estate remains an attractive investment option for both experienced and new investors. Business Today.