Real estate prices go up and down in accordance with rumours

Experts said that the actual real estate prices are not as high as rumoured. Even when the prices really increase, the high prices are just precarious.

Real estate market not thawing, only prices pushed up

It always happens that after Tet, the real estate market becomes more bustling. Vietnamese consumers think that they need to make investments in something at the beginning of the year so as they can get good luck in the year.

Good opportunities for investment?

Real estate has become the investment channel favoured by many people, as the stock prices decreased continuously and the bank deposit interest rate proved to be unattractive.

People think that the real estate price has bottomed out, and it is now the right time to make investments. That explains why real estate centres these days receive a lot of visitors who come to learn more information and seek to buy land and houses. Meanwhile, the centres’ doors were silently shut for the whole day several months ago.

Nguyen Thi Hoa in Thanh Xuan district, who is seeking to buy some houses, related that right before Tet, when banks lowered the deposit interest rates, she withdrew money from the banks to purchase gold. As the gold price has increased, she decided to sell her gold. Hoa heard that the real estate price in Cau Giay district in Hanoi is ‘hot’ and she decided to come here to ask for more information to seek investment opportunities.

Edward Chi, Director of Minh Viet Investment Company who has experience in real estate investment in Hanoi, related that it is now the right time for investors to inject money in after a long period of the market’s hibernation.

However, Chi said that the ‘real estate fever’ this time has specific characteristics. He said that the fever does not take place on a large scale as it did previously, but is occurring in some areas where the infrastructure conditions are fairly good and not far from the centres.

Six months ago, people did not hear about low cost houses, while the concept has become popular to many people.

Before the global economy fell into recession, investors only made investments in high-grade apartments and villas, which could earn large profits. Therefore, the market fell into hibernation right after the global financial crisis broke out.

The prices virtual

The market has only warmed up again since the beginning of the year with the appearance of low cost products.

Chi said that in Vietnam, the sale much depends on the so called ‘word-of-mouth.’ People will rush to buy real estate in some localities if they hear that the real estate prices in the localities keep increasing.

However, he said that the actual real estate prices are not as high as rumoured. Even when the prices really increase, the high prices are just precarious.

The apartment price in the Bac An Khanh urban area has been cited as an example. At the time when the price in the locality was hot, some people could sell apartments at over VND 20 million per square metre. The price proves to be unimaginably high at this moment. However, the price fever in the locality has cooled down, and the fever is now attacking other areas.

Chi went on to say that it is too early to say that the real estate market has warmed up again even when the real estate prices in some localities have increased.

Trong Tuyen