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Buying real estate in the midst of the COVID-19 pandemic, investors should be really cautious

Buying real estate in the midst of the COVID-19 pandemic, investors should be really cautious

Wednesday 19, 08 2020
Recently, in the real estate market, there has been a phenomenon of hunting and collecting cheap real estate products. However, it is only a handful of investors who have a plentiful source of money, taking the opportunity to return to the pandemic season.

●     Cheap real estate hunting - waiting for the opportunity after the pandemic

Covid-19 pandemic returned with complicated developments and had a strong impact on the economy. However, many investors still choose real estate as a long-term investment channel in their hearts.
Mr. Nguyen Quoc Khanh - Chairman of the Board of Directors cum General Director of DTJ Investment and Distribution Company said that when the pandemic is difficult, the chance of this person will disappear will be an opportunity for others, many families. Investors must borrow money from banks, are strongly influenced by the economy due to translation, so they have to accept to sell their real estate products cheaper than the market to recover capital. This leads to the trend of some investors willing to cash flow and strong economic potential to hunt for those real estate products to wait for the opportunity after the pandemic.

"This period is not the extreme time of the real estate market, so the above phenomenon is not common. Moreover, our State is controlling well the pandemic situation, after a few months the economy may stabilize, the real estate market will also recover, so investors should be cautious, if they cannot afford it, they will wait for the following opportunities, "said Mr. Khanh.
A representative of a real estate trading floor said that if in the past, the land transactions with red books or not had been conducted regularly, but this translation was different. Most customers want to trade "safe" products with clear legal status and transparency and a red book must be a prerequisite.

●     Are investors really having difficulty getting loans?

Mr. Pham Duc Toan, Director of EZ Land Investment and Development Joint Stock Company, said: “Facing the current difficult pandemic situation, some investors have available cash resources, do not have to borrow money to target real estate products sold at a low price, cut loss to recover capital. The most common products are townhouses, land plots, but very few apartments or offices, except for those with real living needs. However, the above situation is not the culmination, many investors still intend to listen, wait for lower prices, or look for other investment opportunities, because the pandemic situation is still complicated.
“In the coming time, if the pandemic continues, the difficulty level of each business to an individual will be very great, especially those who have to borrow money. There are cases where I know the car has been squeezed by banks. The resilience of the real estate market in the coming time is very difficult because the cash flows into real estates such as remittances, savings, production, and business ... are slowing down, even if the State injects money, it will also check. control very closely. Therefore, investors need to be more cautious than ever when buying and selling real estate in this period ”, Mr. Toan noted.
Some investors also said that, in the face of the stressful pandemic, real estate projects that are being offered for sale, although not having direct discounts, have increased discounts, gifts, and bank interest rate support. However, these are only immediate support as the land availability and supply of new projects in Hanoi and HCMC are scarce.
Experts also forecast that, after the pandemic subsides, real estate will be one of the first industries that can recover quickly, because the demand for housing is huge, especially there are many repatriated overseas Vietnamese during the pandemic season. Housing prices in Vietnam are considered low compared to many countries in the region, so this field continues to attract the attention of foreigners and overseas Vietnamese.

Translated by Vietnam Credit

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