The “fear of missing out” or finding a safe haven for the capital flow of many people makes real estate still a priority choice, despite the volatile market in the past 2 quarters.
FOMO . Effect
After a long time of “listening”, at the end of the second quarter, Mr. Pham An (37 years old, Hanoi) decided to put down money to buy an apartment at the project in Gia Lam. Pouring idle cash flow into real estate, especially when the 4th Covid-19 epidemic is unpredictable, this investor still believes in the long-term profit potential. According to him, with the factors of location, infrastructure, trends in suburban living or the Red River planning project…, house prices here will definitely increase after a few years.
Meanwhile, Lan Anh (30 years old, from Thai Binh province) has just bought a studio apartment in a project in the west of Hanoi, in the context that house prices are still increasing. As a freelancer, single, in addition to the accumulated money, she still borrows about 30% of the apartment’s value from the bank. “Many people advise me to wait for the epidemic to subside before buying, but I am afraid of missing the opportunity to enjoy the existing preferential policies of the investor. I also do not think that house prices will decrease here,” she added. about down payment.
“The current market is for buyers, in danger,” said Tran Khanh Quang, President of SREC “Real Estate Cafe” in an online conference on August 28.
This is a good time for people who want to buy real estate when they can choose their favorite products, already viewed at good prices. According to Mr. Quang, the cash flow into real estate has grown continuously since 2016. In 2020, the market shows signs of going down, but because of the large accumulated cash flow, real estate will continue to develop. Especially at the beginning of 2021, the sharp increase in apartment prices, spreading to the provinces, is a testament to the strong cash flow poured into real estate.
According to experts, the current Covid-19 epidemic is unpredictable, but the real estate market has not witnessed a sharp drop in prices or a sell-off phenomenon. This shows that professional investors have prepared for risks and waited for good signals from the market.
Some experts explain that many people still prefer to invest in real estate during the epidemic partly because of the FOMO mentality (fear of missing out). In the context of distance, business, production stagnation, low savings interest rates, scarce real estate supply, many people are afraid that if they don’t buy at this time, they will miss the opportunity to own a house at a good price, located at a good location. good. The mentality of keeping money in assets also gives them peace of mind. Many statistical data have proven that in the long-term 5-10 years, the profit rate of real estate is always much higher than other investment channels.
Safe haven channel
Despite falling transactions and the epidemic, real estate prices have quietly increased. Savills Vietnam’s first 6 months report shows that the primary selling price in the Hanoi real estate market
continued to increase for the 10th consecutive quarter, with selling prices per square meter up 7% QoQ and 11% YoY. Ho Chi Minh City is also on the same trend, with nearly 40% of projects increasing in the quarter, up to 15%. The market still witnessed many positive signs and prospects, especially in the medium and long term.
When the epidemic affected all economic sectors, house prices remained stable, showing that the attraction of the real estate investment channel has not cooled down. According to a survey conducted by VnExpress from July 22, real estate leads the priority investment channels, accounting for 32% of the total of more than 70,000 votes, ranked above gold, savings (7-10%). .
Mr. Thanh Chuc, an investor in the North, said that the high profitability ratio, low volatility of session or day like stock, gold price… creates an irresistible attraction for real estate. When the stock market fell into panic at times, savings interest rates were at record lows, large capital inflows tended to shift from securities, bank deposits… to real estate more, because the focus was on real estate. Reasons prefer to keep money safe in the property.
In addition, many economic sectors, production and business that have encountered difficulties and have their operations narrowed due to Covid-19 have also gradually moved capital into the real estate market to seek better opportunities. “I understand why some real estate stocks still attract cash flow. Investors have confidence in the ability of the real estate market to recover quickly after the epidemic,” he said.