The rush of land price in Ho Chi Minh City is controlled after the attempt on the leader of the people’s committee of the city. However, this craze was to leave “scar” for the market and many people are wondering if they should continue to invest in the land when the fever suffered the setback?
The craze was over but the implications remained
Some routes on the Phuoc Long B Ward (District 9) – the place has been considered as the “capital” of the offices, the real estate brokerage firms, the first scene that real estate investment reporter saw contrasting perfectly with 1 month ago.
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Currently, most brokerage centers closed all day. Occasionally, some offices open, however, they are not crowded which have only 1-2 staffs here. Visiting a brokerage office on Nguyen Xien Street (District 9), a realtor did not hesitate to confide: “A few months ago, a number of customers came to learn the information and purchase land which is crowded. But recently, the number of clients is not crowded. If coming, they just learn the information to sell the apartment”.
Although the rush has lower heat, the price of land in the areas is still pretty high and yet there are signs of the drastic reduction.
However, according to learn of the reporter, although the price of land in the coastal areas didn’t strongly rise no longer like 2 months ago, land prices only decrease in significantly at present, even some places still stagnated at the moment of the fever and has not returned to be the price as the original.
This makes many investors have the land in “the dilemma” because due interest comes that land is still not sold. And for many people want to buy, they are waiting that the price is down and then decide to buy.
Particularly, in the case of Mr.Van Duc Vu – an investor in Binh Thanh district, he said, due to listening to “broker”, he mortgaged the Red Book of his home in the Bank and borrowed the amount of money from others to invest 10 blocks in Nguyen Xien (District 9). However, it is time to pay interest, he has no money. To rotate money charged interest, he accepted to sell at a loss but it is unsold.
“I have put up for sale with the price of 1000 USD/sqm but I still don’t see anyone asking to buy. Even though the land price I bought that is 1050 USD/sqm, but currently I need the money, so I accept to sell a loss 1-2 blocks. Hoping that the rest blocks will be sold with the high price to return of capital, ” Mr.Duc said.
For Mr.Hoang Nam who looks for the land to buy to build a house, who is reluctant. According to him, the market is over the craze, the current land price is also quite high compared with the time before.
“Although the rush has lower heat, the price of land in the coastal areas is still pretty high and yet there are signs of the drastic reduction. If I buy at present I can slightly rush because the price is still expensive, I will wait a few months for the land prices decreasing and then decide to buy, “he shared.
Land is always the channel of effective investment
Many investors are wondering if they should invest in the land segment in this moment? According to them, land rush in Ho Chi Minh city at present is still smoldering and will probably make the “fever” back. Therefore, taking the “money” to invest now is the rush and have the adventure.
To answer these questions, Mr.Hoang Chau Le, Chairman of the real estate Association of Ho Chi Minh city identified this investment channel is always effective. The needs of the market are the needs indefinitely, especially land segment is the place the psychology of Vietnamese people enjoyed the instant house. However, it is important to choose a suitable product.
A real estate investor who wants to join in the land market should know the principles such as real liquidity; legal clarity; do not use financial leverage too high; team investments…
The experts said that at present in Ho Chi Minh city, the two areas are developed for the infrastructure best are the East and South. With those investors have idle funds, to ensure the sustainability, they should select two priority areas for investment.
Giving the opinions to appreciate about the land market in Ho Chi Minh city. In the coming time, the experts said that in the long term in this segment, the price will always increase. In the short term, the market will slow to watch information.
“With the product having Red Book, the construction permit, near the convenient traffic area and many utilities will continue to hold prices and tend to increase in the coming months,” Le Hoang Chau said.
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