REAL ESTATE 2020 AND CORONA – SURVIVAL OR GROWTH
According to the market research department of batdongsan.com.vn in the first 3 months of 2020, there is one project licensed in Ho Chi Minh City, the rest are waiting for permission. The situation has never been so difficult in the past 10 years, the health of investors and exchanges is no different from Corona disease, without Vaccine treatment, a series of possible fall into a difficult situation and even go bankrupt like playing.
Walking through a large number of CĐT in the market, Novaland sent a request for help to the Ministry of Construction asking to continue implementing the Residential project on an area of more than 30 hectares, Binh Khanh Ward, District 2, Ho Chi Minh City, Money is still a problem for Novaland. Alpha King, after two spectacular appearances as a movie star, also retreated at the time of the twilight and transferred it to the local. Vingroup, after launching a series of big projects from the North in the year, sold tens of thousands of apartments & condotels, suddenly turned to focus on technology and cars. Other investors listed on the stock market also had similar difficulties when stock prices plunged (ignoring the impact of the first two sessions of the year due to the Corona virus psychology).
Brokers after three golden years from mid-2017 until the first 10 months of 2019 must begin to change their strategy, focusing on new businesses (leasing, selling new products, focusing on creating cash flow. short to long …). The fact that developers face difficulties when there are not many new projects means that the primary market will be less exciting than previous years. The most likely is a stronger focus on the land market, rental, distribution of distant products and secondary markets, most of which find immediate difficulties. While the Corona epidemic is still ongoing, buyers will prioritize keeping money, limiting participation in events, attending sales conferences … avoiding the risk of disease. The recruitment of brokers and retention of good personnel is another issue of these units.
Agency, marketing, event organization, and real estate support services will not be out of the game, have to change strategies, change products and also strive to overcome difficulties in Q1 / 2020.
However, there are still many units that are well prepared and have a long-term strategy, so even if there is a Corona epidemic or changes in the upper class they are still safe and immune ….
In short, not seeing much positivity from the market, will be a year where the government has to work a lot, remembering that there are five state tax breaks for 6 months of personal income tax …. and exemption of corporate income tax is too good .
The most likely target is “SURVIVAL” rather than “GROWTH” ….