Is it a Once-in-a-Decade Opportunity for Investors to Buy Real Estate at a Good Price?
The current real estate market is showing several positive signals compared to a year ago. According to a report by the Ministry of Construction on market deregulation, there have been significant improvements in the real estate market. Through the coordinated efforts of various levels of government, sectors, and local authorities, a series of policies, tasks, solutions, and measures have been implemented to address difficulties in the real estate market. These efforts have been led by the National Assembly, the Government, the Prime Minister, Deputy Prime Ministers, and ministries, particularly in terms of institutional obstacles, capital sources, and bonds.
As a result, the overall real estate market and project implementation difficulties have seen positive changes. This, in turn, has led to a gradual recovery of investor confidence. According to a survey by Batdongsan.com.vn on consumer sentiment and new trends, out of 1,000 respondents, 65% of them expressed their intention to continue buying real estate in the coming year. Among these potential buyers, 42% already own two properties, 38% own one property, and 8% own more than three properties. Furthermore, 60% of these buyers are motivated by investment purposes, 48% want to expand their living space, and 22% seek to increase their property ownership.
It is evident that real estate remains a preferred investment channel for investors. In the current market recovery phase, it is considered an opportune time for buyers to acquire real estate at favorable prices.
According to Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), the first quarter of 2024 presents a once-in-a-decade opportunity for experienced and professional investors to acquire quality properties for long-term investment, yielding high profits over a period of 3 to 5 years.
“From the third quarter of 2024, the market will start to rise, and the opportunities to acquire real estate at the bottom with good prices will be scarce, if not nonexistent. Therefore, the first two quarters of 2024 are the ‘last wave’ in the 10-year real estate cycle for investors to seize the opportunity to invest,” Mr. Dinh forecasts.
According to the Chairman of VARS, this period is suitable for investors with sustainable financial resources and a thorough understanding of the market to catch the “last wave.” For those with a genuine need for housing, this is a good opportunity to realize their dreams of settled and successful living, as real estate companies will be forced to restructure and adjust prices to stay in the market.
Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn in the southern region, believes that the most difficult period for real estate has passed, and the market may recover in the middle of 2024. However, during the recovery phase, real estate prices will start to rise again.
“Therefore, this is the right time for individuals with available funds to ‘hunt’ for well-located properties with potential for price appreciation and high discounts. If they miss this period and enter the recovery phase, it will be challenging to find good properties at reasonable prices,” Mr. Tuan shares.
As we can see, investors should consider the current market conditions as a unique opportunity to buy real estate at attractive prices. The first two quarters of 2024 are particularly crucial, as they may represent the last chance to capitalize on the 10-year real estate cycle. To make the most of this opportunity, investors should have sustainable finances and a deep understanding of the market. Now is the time to act and secure valuable properties before prices start to rise again.