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After the Covid pandemic, the Russia-Ukraine war, economic recession,… caused the stock and real estate markets to weaken; Yet, analysts remain optimistic about the real estate sector, a traditional vulnerability for investors weathering difficult times.
According to SCMP, real estate experts still express a positive attitude in the face of complicated developments in the domestic and global economy, which according to them, “bad times will become opportunities for those who know how to grasp them.” .”
In the current market developments, real estate prices have decreased in many places, however, the phenomenon of selling out is not happening everywhere, but only in certain areas and certain projects. According to information provided from many secondary trading floors, the “wait” mentality is still overwhelming in the secondary real estate transaction market. Even though there is a need to buy, many customers still expect prices to decrease further and “fish for the bottom” in the coming period. According to Mr. Linh – Head of Sales Department of Sai Gon Luxury Company, while the stock market continues to fluctuate around the world, real estate values are still quite stable (relatively). Because real estate is not easily traded and therefore there is not as strong a reaction as during the “black swan” period.
Maybe sooner or later, the economic recession will have a significant impact on the real estate market, especially in the context of large-scale job losses. However, the market will still not panic.
Mr. Linh also believes that the “sleep at night” factor makes real estate even more attractive. He believes that real estate investment is a long-term, stable investment that requires time, to grow in value above all other considerations. It was truly a turtle in a running race – slow but steady.
Real estate has never ceased to be hot in the minds of Vietnamese people, especially in the current context, high-value assets, standard legality, and reputable CDT will be a safe haven. We see crypto, stock, and forex prices fluctuating every day, but real estate prices do not. At least we can sleep well because we have a pink book under our bed. Of course, in the short term, house prices will not increase as much as current bank interest rates. But in the long term it will be different, interest rates will not be able to increase forever, inflation will be controlled so that economic growth will continue, people will continue to increase but land will not.
According to Mr. Hung, a professional investor, added: economic recession, people deposit money in banks and do not focus on business and production; Interest rates increase -> the state prints money to pay interest -> Inflation increases. Furthermore, real estate is also the main industry in the economic structure, leading to many other supporting industries.
This period is really difficult for those who do not have reserves and those who use a lot of leverage. But it is an opportunity for the remaining group, the 20% rich group, to continue to accumulate and increase assets. There are still customers buying real estate, but the rate will decrease by about 4-5 times.
