From the beginning of the year until now, coastal land is the most frequently mentioned keyword phrase among investors. Experts said that in the remaining months of 2019, this segment will continue to dominate the market and be hot in some new lands.
Cash flow looking for coastal land
The trend of "offshore fishing" of Hanoi investors does not necessarily take place now, but rekindled from 3 to 5 years ago. Previously, the fact that customers in Hanoi bought a real estate in a local area hundreds or even thousands of kilometers away was considered a luxury story and only for "giants".
With the investment tastes constantly changing and transport infrastructure getting better, distance is no longer a problem, as long as it meets the needs of the investment problem. The fact that a person living in Hanoi owns a "second home" in Da Nang, Cam Ranh, Binh Dinh... to rent or wait for a price increase to resell has become extremely normal and is gradually becoming a trend. The most powerful in recent times.
As one of the most experienced investors in the provinces, Mr. Tran Tien (currently living in Nam Tu Liem, Hanoi) said that the current investors, especially the investors. from Hanoi is much more brave in the "down money" in the province's property, especially the localities bordering the sea.
The reason for this trend is because in urban areas such as Hanoi or big cities, housing prices will be relatively saturated if there is no shock information such as construction of large infrastructure projects or "Up to life" administrative units. Meanwhile, provincial real estate investment always needs less capital in big centers. The wave of "real estate" giants looking to the provinces to build trade centers, service areas, and resort resorts has also encouraged many individual investors to search for small provinces, causing land prices to rise.
According to Mr. Tien, recently, he and his group of friends are Hanoi investors who have visited some markets such as Phu Yen, Binh Dinh, Ninh Thuan, Quang Binh. The survey is not outside of the purpose of seeking investment opportunities in some of these localities, especially coastal land products of new urban development planning areas.
According to Mr. Tien, with the relatively low investment capacity and high growth potential, coastal land projects in these localities can be considered as an ideal address for funding. With the land products of just over 1 billion, most people who have spare money can participate in the market.
“I realize that there are many groups of investors who invest in several people, each spending only a few hundred million dong to collect a few plots of coastal land. This investment method often uses own capital so buyers are not under pressure to sell if the market is not favorable”, Mr. Tien said.
Sharing the same view, Mr. Nguyen Hoang Son, Deputy General Director of Sales - Marketing, Danh Khoi Real Estate Joint Stock Company said that the trend of groups of investors participating in the coastal land market flourished. Investors see the potential of this segment.
According to Mr. Son, compared to investing in apartments and new product lines such as officetel, hometel or condotel, the land investment channel is superior to 4 factors: the ability to increase prices sharply, sudden profitability rate. variable, limited supply and high guaranteed value. This is the reason for the recent time, the coastal real estate market is witnessing a wave of money pouring in, investors mainly from big cities of Hanoi, Ho Chi Minh City...
In particular, Mr. Son revealed, the projects distributed by Danh Khoi have a large group of Hanoi customers, many projects from Hanoi account for 60-70% of the order.
According to analysis of many investors, in the real estate cart, the land is the product to preserve the best value and profit. Coastal land has the added advantage of combining settlements and relaxation, so it will be paid more attention.
Mr. Vu Kim Giang, General Director of Hai Phat Real Estate Joint Stock Company said that coastal land type will be an attractive investment channel in 2019, due to the scarcity of land fund, fertility rate. High profits and psychology favor the mainland. Due to the small drop in supply, the resale of products does not take time and is easier to find customers than other segments.
"Compared to the current investment channels, land is still the most attractive segment in the market because of its high liquidity as well as low investment capital," Giang said and said, traditional land markets. Investors have begun to reduce their attraction, because the prices in these markets have increased to saturation level, so investors tend to look for new localities such as Binh Thuan, Ninh Thuan...
Sharing the same view, Mr. Nguyen Van Dinh, Standing Vice President and General Secretary of Vietnam Real Estate Brokers Association also said that investors are now looking to new areas where there is much potential for tourism, industrial real estate but land prices are still cheap.
However, according to Mr. Dinh, although land is a potential investment channel, investors should be cautious in choosing investment products. Particularly for land plots in young cities, investors need to pay special attention to legal issues.
"Investors should only buy land plots that have been licensed for sale, urban residential land and residential land to ensure the ownership of the products. Especially, projects with detailed planning should be invested 1/500, to concretize the content of the general planning and zoning planning, details of the arrangement of all works on land, technical infrastructure, and detailed planning for arrangement of each land boundary. shown on this map" Mr. Dinh recommended.
According to expert Nguyen Tri Hieu, the investment in coastal land is mainly investors' expectation in the resort tourism market. As such, buyers need to pay attention to the radius around the area they invest in to be able to exploit tourism, with potential for tourism development or not.
“Buying coastal land plots is more risky than ordinary land plots, having to consider the location, the legality of the land plots, that project, if you do not want to hug the goods then the dilemma, the sale cannot be kept incomplete. Absolutely limit bank loans to invest because the pressure will be great”, Mr. Hieu said.
According to Ninh Viet