Many people with money and without investing knowledge have chosen property as a safe haven, helping estate prices still increase despite the pandemic, experts have said.

A view of Dai Lai Flamingo project in Vinh Phuc province. Investors would
look for products with elements of large scale, synchronous beautiful landscape

Real estate gurus were speaking at a forum held by The leader magazine in Hanoi on November 25.

Nguyen Van Dinh, vice chairman of Vietnam Association of Realtors (VARS), said there were some signs showing recovery in the country’s property market after COVID-19. The absorption rate increased from 14% in the first quarter to 37% in second quarter and 50% in the third quarter this year.

“Through each quarter, we see a rebound. It is forecast that in the fourth quarter, the rate will be even higher. The market returns to the rule of every year as better transactions are recorded at the year-end months,” Dinh said.

Apartments with selling prices of VND25-35 million per square metre had high transactions while the high-end ones with prices of more than VND50 million per square metre had few successful transactions.

Nguyen Tho Tuyen, chairman of BHS Group said many people had found real estate as an investment channel in the difficult economic situation due to COVID-19. The big demand and lack of supply had caused estate prices to rise despite the pandemic.

“Not only in Vietnam, real estate prices in many other countries have been also increased. However, property prices in Vietnam increased higher as Vietnamese people have psychology to buy real estate if they have money,” he added.

Hoang Nguyet Minh, deputy director of Savills Hanoi, said: “In the upcoming time, when the macro indicators are improved and the investment environment continues to improve, the real estate market in 2021 will have a stronger development compared to 2020. In particular, banks have a huge surplus of money, making interest rate incentives still very attractive. The segments of housing, land plots, Grade A office and supermarket will attract investment.”

Some experts also said the domestic real estate market had entered a “new normal” as the COVID-19 pandemic was controlled in Vietnam, but still complex in the world. While some businesses had narrowed their business plans, many other firms had promoted disbursement with the aim of leading the market and leading the cash flow of customers and investors.

Tuyen said that if in the past, investors often aimed to “surf” to make a quick profit, now most of them were looking to long-term investment. People would look for products with large scale, having a beautiful landscape and which are secure, smart, close to medical facilities, education and services. Under the influence of the pandemic, the demand for houses in the suburbs would also increase.

For example, in Hanoi, with 8 million people there would be about 2 million visitors a year. However, the number of existing rooms in the city’s neighbouring localities was only about 1,000. The market lacked resort projects run by professional organisations.

Truong Xuan Quy, general director of Flamingo Land, said: “With the Flamingo Dai Lai Resort project, despite the pandemic, we introduced to the market a large number of products and sold very well. That is due to the combination of many factors, from the brand, reputation and the reasonableness of the products. In each project, we have different approaches to customers based on specific research on the market as well as customers.”

He said they aimed to develop resort real estate with different competitive advantages. So with a VND7 billion villa, the owner could earn 150 million VND a month.

“Macro and planning factors will affect the investment cash flow. Differentiated products in the market will be given attention from investors. Projects which ensure schedule would attract buyers. In addition, technology also affects the movement of capital flows into real estate projects. This will be a new opportunity for estate developers,” said Tran Thi Thu Hien, DTJ Company’s director.