That is the remark of Mr. Duong Duc Hien, Director of Savills Hanoi Housing Business Division when he considered the spontaneous investment in land movement.
Mr. Duong Duc Hien, Director of Savills Hanoi Housing Business Division.
Observing the movements of the market recently, Mr. Hien assessed that, around 2005, when the stock market was emerging, investors only need to see what is profitable to pour money into that code without caring about that. What is, what business, production, business like.
"After cases like Alibaba, I think customers are more cautious about legal issues. However, it is still necessary to recognize this as a long-term investment product" Mr. Hien said “So far, investors still do not have a very accurate view of the land plot segment.
According to Hien, Vietnam is one of the countries with the fastest urbanization speed in the world. In fact, there are people who come back after only 2 years, but there are also areas that are still covered with mats 10 years later. Therefore, according to Mr. Hien, the mistake in the story of land investment is that it is expected to increase prices to buy and sell. This is a serious problem, creating insecurities for the market.
“If we expect to raise prices to surf, there will be a situation where the whole country invests in land plots, some people hold lots of land but are not profitable. It is only profitable when it attracts residents to live, has infrastructure, is commercial”, Mr. Hien emphasized.
According to Savills representatives, other products such as townhouses and new apartments bring commercial value and help the market develop sustainably. However, even with the ground, there are exceptions, if there are many facilities around the area, there are commercial properties, such as land near the industrial park, will welcome many workers and experts. Even short-term investments are good.
“I met 10 people with 8 people who asked if it could be surfing. This shows that the proportion of people who are aware of long-term, short-term and medium-term investments is not much. Real estate investment must be medium and long term as it requires a lot of time. The most important thing is to account for products, cash flow and bring in revenue, so it will be a good and profitable product”, Mr. Hien emphasized.
According to Thanh Nguyen