Forecast capital inflows to real estate

Posted by Nguyen Harry on November 28th, 2020

The Covid-19 pandemic is an opportunity to reevaluate the "health" as well as the improvisation of real estate businesses, while also leading and delineating investment cash flows more clearly. This is the comment made at the seminar "Real estate investment after Covid 19: leading the cash flow" held on November 25.

Many experts say: the needs of buyers never stop and never stop changing. That requires the market as well as real estate investors to move and change constantly.

Mr. Nguyen Tho Tuyen, BSH Group Company, acknowledged: "In the past, investors often aim to" surf "to make a quick profit, now most of them are towards long-term investment. Target customers with more real needs Now, people do not buy a place to live, but buy a place to live.Therefore, people will prioritize looking to buy products full of factors: large scale , convenient, synchronous beautiful landscape, secure, smart, close to medical facilities, education, services ... Especially, under the influence of Covid, the demand for housing in the suburbs will also increase " .

Mr. Tuyen also said that the cash flow in the coming time will pour into coastal projects, places with beautiful landscapes, terrain, with unique indigenous cultures and long-term red books. Sharing the same point of view, Mr. Nguyen Thanh Trung, Director of Suburban Resort Development Joint Stock Company, said that at present, the demand for relaxation in the suburbs is extremely large.

For example, in Hanoi, with 8 million people, can provide 2 million visitors / year. But the number of existing rooms in the vicinity of Hanoi is now about 1,000 units. The market lacks resort projects run by professional organizations.

Analyzing more clearly about this, Mr. Truong Xuan Quy, General Director of Flamingo Land shared: "With the Vinhomes Riverside Resort project, including the recent Covid translation, we bring to the market a large number of products. and selling is still very good, it is a combination of many factors, from the brand name, the reputation of the owner, the reasonableness of the product line.With each project, we have a customer approach and Investment implementation varies, based on market-specific studies as well as customers and product locations and segments.

For example, for Flamingo, we enjoy the incentives from geographical location, nature, transport infrastructure as well as social factors. We aim to develop resort real estate with different competitive advantages. We are not committed to profit but offer parallel programs with customers buying products, by mutual after-sales development. Management solutions are given such as managing ceilings, floors and applying 5 star quality standards. So with a 7 billion villa, the owner can earn 150 million / month ".

According to Mr. Quy, apart from translating Covid, the legal regulations are also a test of the market. Mr. Quy emphasized: "Previously, we developed the project by the decision to approve the investment policy, the next legal procedures. However, now under the new regulations, all projects must be approved. Therefore, for investors with strong potential, the ability to develop is high, but with weak potential investors, the opposite will also create a screening mechanism, making Small investors with weak potentials make it more difficult to compete. In addition, the legal corridor system to support the auction and bidding has many shortcomings, making it difficult for real estate developers. real ".

Meanwhile, many experts believe that, with the above screening mechanism, the project supply is increasingly limited. Mr. Nguyen Van Dinh, General Secretary of the Real Estate Brokerage Association, said that in the past year, the number of newly licensed projects in Ho Chi Minh City and Hanoi could only be counted on one finger. In all localities, this is the case because a series of projects in the provinces have to stop to wait for inspection (about 20-60 projects / province on average), so the market is scarce in supply.

The supply shortage, but the strong demand, has prompted investors to seek profits in new lands, especially in the vicinity of big cities. The psychology of wanting to make a quick profit together with the lack of local control makes the prices of land in suburban areas, even in weak infrastructure areas, skyrocket. However, in the long run, Mr. Dinh said that the investment cash flow will be directed to land and apartment products in provinces with potential for economic development, tourism and localities with synchronous infrastructure. easy traffic. In which, the advantage belongs to the provinces near Hanoi and Ho Chi Minh City such as Quang Ninh, Hai Phong, Binh Duong, Dong Nai, Vung Tau.

"Macro and planning factors will affect investment cash flow. Differentiated products that exist in the market will be saved in the investor's collection. It is safe to synchronize, on schedule, and will attract buyers. In addition, technology also affects the movement of capital flows of investors into real estate projects. new for real estate businesses, ”said Ms. Tran Thi Thu Hien, BDS Thu Do's Director.

There are MANY OPPORTUNITIES FOR COMMERCIAL REAL ESTATE

As for commercial real estate, Mr. Nguyen Dung Minh, Hotel Development Director of IDS Equity Holdings, said that the resort hotel market is facing many difficulties but is still attractive for investment because this segment can will recover fastest after the pandemic due to the existence of demand for tourism by the people. Many investors are preparing a large cash flow to catch the return of this market.

Sharing the same point of view, Mr. Phan Xuan Can, President of Soho Vietnam said: "When the resort market goes down, it is an opportunity for investors to buy back projects at low prices. We are getting a lot of love now. Demand (with a total value of about 4,000 billion) looking to buy hotel projects with prices down from 20% compared to the market value but the number of projects for sale is very small. in the context of low interest rates. Only investors who borrow from outside have to accept to sell at 25% discount ".

Meanwhile, Dang Ngoc Tung, Deputy General Director of IMG said: "I see commercial real estate, and resort real estate projects will face many difficulties and challenges. South is increasing public investment, attracting FDI, increasing production, so both domestic and foreign cash flow will be poured into industrial real estate.Only 250 Taiwan enterprises have registered to invest in Dong. In the Mekong River Delta, they look for industrial land to invest in but the remaining land fund is very small.Therefore, this is the time of industrial real estate, and in 2021, capital investment in industrial land in Vietnam The South in general and the Southeast region in particular will be very large ".