The southern real estate market is a mixture of difficulties and opportunities. Therefore, identifying which segments and areas with potential for development will help investors minimize risks and bring profits in investment.
Ba Ria - Vung Tau is considered to become one of the focal points of the southern real estate market in the near future
Mixed opportunities and challenges
The southern real estate market in the past few years has witnessed spectacular growth, real estate prices soar everywhere, some people even compare, once buying, ganing profits later. Noting that, there were many investors "winning" due to investing in the right direction, but in fact, many investors kept "unwanted results" because of investment in the movement, lack of calculation and market analysis. Recently and the upcoming forecast, fog cover on the market gradually dissipated, opportunities or risks also exist clearly.
Speaking of the real estate market, perhaps Ho Chi Minh City is still the largest market in the South and over time, real estate prices here have been increasing. According to experts, this is indispensable, because housing demand always exceeds many times the supply, that is not to mention during the last time, most of the supply is "bundled" by tightened procedures. However, it is also because of the soaring price, so the real estate investment story in Ho Chi Minh City market is risky and beyond the ability of many investors with medium capital.
This is probably also the reason for the story of why over time, the market witnessed businesses and small investors flocking to neighboring localities to find real estate investment opportunities.
Long Thanh real estate (Dong Nai) is attracting high attention of investors
Looking back on the market from the beginning of 2019 until now, the peak is in the second quarter of 2019, the southern provinces markets such as Dong Nai, Binh Thuan, Binh Phuoc or Ba Ria - Vung Tau witness a wave of houses and people buy garden and upland land in rural areas. A hunt for real estate with a crowd element seems to take place without consideration. Many quiet countryside like Ong Que, Xuan Que in Cam My district (Dong Nai), coastal communes of Long Khanh (Dong Nai), or rural areas of Binh Thuan province... suddenly became a stir when Many people came and asked to buy, the price of land increased abnormally.
Until now, the "fog" on the market gradually dissipated, the consequences of investment in the movement also gradually exist. Reported by reporters of Real Estate Investment Newspaper in speculation hotspots such as Long Khanh, Binh Phuoc, Bao Loc, rural areas of Binh Thuan province... showed that, there was the beginning of the escapees on the market.
Specifically, in Long Khanh, in the second quarter of 2019, the price of land here suddenly increased by 50 - 70%, even doubling in a short time just because the information of Long Khanh Town officially came to the city from the date 1/6/2019. For now, the land price in Long Khanh plummeted, but there were still no buyers. The same thing happens in rural areas of Binh Thuan and Binh Phuoc provinces... According to records from professional real estate brokers in these areas, the situation of selling land here is increasing, but the buyer are not there and the price decreases day by day.
"Most of the people who are forced to sell at this moment are speculators who are caught up in the hot status of land, use financial leverage to invest, so they are forced to discharge goods to pay debts", a broker said.
While investors in the "fog" style of the market are half crying, half laughing, there are professional investors who have been "hit", thanks to the careful calculation and analysis.
Mr. Hung, a professional real estate investor in Ho Chi Minh City, said his real estate investment principle is not to invest according to the movement, but always to have very careful calculations with self-asked questions. As if any business is selling products, is that a safe real estate with planning and legal factors? Finally, what are the factors that will make room for price increases for the product?
Identify the "launch pad" market
According to analysts, basically, the southern real estate market now has plenty of room to develop, but to succeed, requiring investors to have high professionalism.
CBRE Vietnam's expert said, as a general rule of the real estate market, where there is more and more developed infrastructure, there will be a stronger real estate market.
According to Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association (HoREA), in the development strategy of Ho Chi Minh City, it will develop satellite urban areas according to the goal of developing multi-center urban areas. Calculating urban space, beyond the administrative boundary, in which areas such as Dong Nai, Ba Ria - Vung Tau, will gradually form new potential and attractive urban centers.
Indeed, after Ho Chi Minh City, in recent years, localities in the southern economic quadrangle have had very strong infrastructure development, leading to the strong development of the real estate market such as Long An, Binh Duong, Dong Nai and Ba Ria - Vung Tau. However, according to the analysis of experts, Long An and Binh Duong have developed before and are entering the saturation stage. Dong Nai, in particular, the focus of the area around Long Thanh Airport and Ba Ria - Vung Tau is located will become the main "launch pad" for the southern real estate market in the coming years, because here are emerging markets and expect a strong breakthrough in existing potential.
If Long Thanh, the biggest motivating factor is Long Thanh Airport and a series of connected infrastructure systems to form an airport city, then for Ba Ria - Vung Tau, also with great motivation is Long Thanh airport, inter-regional infrastructure system such as Ho Chi Minh City - Long Thanh - Dau Giay expressway, Ben Luc - Long Thanh expressway, Bien Hoa - Ba Ria expressway, Cai Mep port..., Ba Ria - Vung Tau also has a great advantage of being the only locality in the coastal economic quadrangle, a special advantage to develop smokeless industry and petroleum industry, logistics ..., which is the foundation for forming a “sleepless” city.
Analyzing from the perspective that investment should be invested in the context that the market is a mix of opportunities and challenges, Mr. Duong Minh Tien, General Director of Viet Holdings said that in any market, there are two sides of opportunity and risk.
“However, in my opinion, in the current market context, the principle that market participants aim to achieve is that real estate products must achieve two factors: safety in the present and true potential in the future market.
Safety at the moment means that the product must be developed by reputable businesses with clear planning and legislation, while the future potential is the impact factors such as infrastructure, vision, regional development planning and strategy”, said Tien. He added that in the coming time, the land real estate segment would still be the "king" investment channel of the market, considering the region, Long Thanh and Ba Ria - Vung Tau would still be the region with the most development space.
According to Tang Trien