The positive impact of Covid-19 upon Viet Nam’s real estate market
Like many other segments of the market, residential real estate is going through an adamant time. Primary supply remained low, investor confidence decreased, leading to the delayed launch of new projects. However, the market outlook still has many positive signs. The epidemic has also left valuable lessons for real estate investors in plans.
Assessing the impacts of the Covid-19 pandemic on the residential real estate segment, Dr. Phong Cao, CEO of Masteri Thao Dien For Rent, commented, “On a macro scale, we can see that. Some of the positive aspects of the pandemic. In Vietnam, big cities like Ho Chi Minh City, Binh Duong, and Hanoi have high planning densities. Therefore, when the epidemic broke out, the speed of spread was very fast, profoundly affecting daily life. Thus, on the positive side, after the pandemic, urban planners will have the opportunity to look back on developing planning most effectively.
Large cities in some countries are planned to be far apart; between cities with forests or open areas, the rate of disease transmission is meager. As for countries in the Asia-Pacific region such as Indonesia, Malaysia, South Korea, Japan, and Vietnam, which have high population densities in urban areas, the transmission rate is very high when the epidemic occurs.
The second positive side is that through the epidemic, economic planners in general and real estate developers, in particular, will have the opportunity to rethink the long-term general strategy. Any economic activity cycle has its ups and downs and downs, possibly because of financial crises, wars, epidemics, etc. In particular, the epidemic will be one of the things that economic planners especially need to do. At the national level, it is necessary to consider the development orientation of economic sectors when incidents occur. Particularly for real estate developers, this is a lesson for them to think, look back in cases of force majeure, where their resistance is, and how to avoid exhaustion—exhausted, hard to recover. Big corporations in the world, with hundreds of years old in real estate, electricity, and electronics, are still overcome. However, for Vietnamese businesses during the recent Covid-19 period, some companies went bankrupt and never recovered. It is a lesson for policymakers and business people, genuine estate, to review their long-term strategy.
Real estate investment trends in the last months of the year
According to Mr. Phong Cao, CEO Of Estella Heights for rent, now that we are in October, which is also the beginning of the fourth quarter, from now until the beginning of 2022, there will not be any significant changes in the real estate market. It is relatively impossible for investors to conduct price-surfing transactions in the real estate market shortly, primarily when Vietnam has not completely controlled the epidemic and has limitations in the field of real estate. Social interactions, as well as business activities.
For individual investment groups, if the housing need is urgent and the money to buy a house is available in advance and do not have to use economic leverage, this is an excellent opportunity to buy a home. However, this is not the right time for the surfing investment group or the short-term investment group. As for foreign investors, their psychology is very cautious for foreign investors, but they still pay special attention to residential real estate and office real estate. In this case, going to Vietnam to study more about the market is limited because the routes have not been reopened. Real estate is a part of the Vietnamese economy, so when the economy recovers, real estate can return to its orbit. In addition, for real estate projects, especially the housing segment, to heal and develop quickly, it is necessary to have better measures to solve difficulties in terms of legal procedures. Policy support from the State.