The fact proves that, over the past 40 years, real estate prices have increased continuously. Therefore, putting money into real estate is also the fastest way to increase asset value even in crisis due to covid-19 epidemic.
Over the past several decades, the price chart of real estate in Vietnam has followed a steady upward trend, despite breaking waves in some periods but the market quickly regained its form and continued to increase strongly. Specifically, according to the statistics of research units in the past 16 years, real estate prices in Hoan Kiem district, Hanoi have increased 27 times, in District 1, HCMC. Ho Chi Minh City increased 22 times, while the price of gold only increased more than 5 times.
According to experts, the price of housing in Vietnam increased continuously because of “tradition” of hoarding people’s assets. The average Vietnamese people’s savings rate is nearly 50% of their income, double that of most other countries. In particular, a large percentage of savings used to store real estate assets and spending on housing leads to very high housing prices here.
Mr. Duong Duc Hien – Former Director of Sales Department of Savills Vietnam commented: “The fact proves that, in the past 40 years, real estate prices have not decreased once. Therefore, we can see during economic difficulties. Many projects still have good liquidity, I still recommend that investors should only focus on medium or long-term investment. Unfortunately, the psychology of Vietnamese investors now still prefer short-term investment. , surfing, but forgetting that, want to earn high profits from real estate, they must invest in the long term. “
Sharing the same view with Mr. Hien, Mr. Le Hoang Chau – Chairman of Ho Chi Minh City Real Estate Association also said that real estate is always a potential investment channel, even in crisis. This was proved during the housing crisis in 2008-2011. Therefore, we can see that although the current covid-19 epidemic affects many economic industries, there is still a wave of real estate investors silently buying land to keep money.
Recently, analytical report from SSI Securities Company (SSI Research) also confirmed that because the real demand of people is now very large, house buying and selling activities are still taking place, despite the epidemic. The situation is complicated, especially in big cities like Hanoi and Ho Chi Minh City.
Talking to us, Ms. Tuyet Minh, an investor in Hanoi, said: “Currently, compared to other investment channels such as securities, gold or saving real estate, it is still more attractive. They are mainly interested in apartments or land plots in rural districts of Hanoi and determine long-term investments of 1-3 years. In my opinion, these are quite safe investment segments at the moment. has both the investment value and the value of the assets used, leased and stored. “
Assessing the psychology of investors in the current context, Mr. Su Ngoc Khuong, Senior Director of Savills Vietnam, said that currently, it is not because of the difficult market but investors leave the market. The cash flow of investors can be distributed in many places, many different channels. But, for experienced investors in the field of real estate, they will certainly see opportunities in difficulties. Although their way of allocating cash flow will tend to be more secure and safe, putting money into real estate is also the fastest way to increase their asset value.
In fact, in the market today, many investors are still quietly searching for real estate in areas that are under the construction of large and low-density transportation infrastructure projects with clear legal design and design. high standard. Although the trading was slower than the previous time, many investors still bought and sold with a quite good profit margin in the current difficult market period.
The same opinion as Mr. Khuong, Prof. Dang Hung Vo, former deputy minister of the Ministry of Natural Resources and Environment, also said that, from a positive perspective, many people will be able to buy houses at reasonable prices in the present time, investors can easily find products. potential products for your shopping cart. That is also a good point for the market !. In the words of the great investor Warren Buffett, when the market is afraid, it is an opportunity for those who know how to seize.