Real estate market is no longer investors "surfing", capital flow has gone?

14/10/2018   Viewed: 2081
It is not difficult to see signs of sedation of the real estate market in recent years. The business is increasingly difficult, even many projects are very humid, especially the "high-end" products.

Buyers on the market today are mainly people with real needs so surfing investors have very few opportunities to make money. With the current market situation is quiet, the question is: where did the capital flow away when no longer put on the real estate as before?

In the third quarter of 2018, the apartment market in Hanoi has an additional 5,000 luxury apartments with sales of 90%. It is forecasted that in the next 1-2 years, there will be tens of thousands of middle-class apartments entering the market. Although the current segment is in demand, but with such a large supply, the problem of consumption is not easy to solve at all.
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Real estate projects come out daily, especially high-end products. Illustration

Speculation is increasingly difficult
Ms. Bich Ngoc, an investor who participated in "surfing" profit from the moment the market entered the crisis, said the advantage, she was "hug" many pieces of land and apartments cut losses. . By 2015, when the market gradually recovered, this investor has collected tens of billion profit thanks to investment capital not to borrow.

But fortunes do not last forever. She said: "From the beginning of 2018 to now, I have dropped the capital of more than 5 billion in apartments from January to now have not sold. It's mainly from real demand. "

Similarly, investor Nguyen Phuong Thuy also said there are five apartments scattered in five different projects in Hanoi. The project has handed over the house since 2017, but so far have not sold any property, investors have to repair two apartments for rent to remove gauze.

Unlike Ngoc, due to borrowing interest should not sell the goods, Ms. Thuy as "sitting on fire". "Maybe we need to cut losses to get money to pay banks in 2018, but with this situation, we can not afford to pay," said Ms. Thuy.

With homeownership, although the supply is increasingly limited but the number of investors "surfing" is also less than before, the market makes room for people with real needs. Moreover, in order to invest in residential and residential land, investors have to have a lot of capital and have a certain relationship with the investor to buy incentives. If you have to borrow from banks, this time no investor dare to risk because the margin is quite slow, not enough interest rate.

The market is quiet so even the investors and real estate brokerage floors are facing many difficulties. Although there is no need, many people are constantly being bothered by telephone calls to buy real estate from the brokerage staff.

In addition to "terror" phone, customers also bothered to go through the ongoing projects as sales staff rushed to welcome, hello. Real estate products of this time no longer "to the same" as before but sold in the street as vegetables, fish even worth a billion.

Some real estate experts say that the market is currently in a difficult situation. Although the 10 year crisis may not appear, it is clear that the real estate downturn has occurred in the context of saturated supply and demand.

Where does the money flow?
Over time, the State Bank of Vietnam continues to implement the roadmap to tighten real estate credit. This move makes it difficult for investors and investors are not enough financial capacity. Investors are looking for ways to raise capital from various sources such as credit guarantee from banks, bond issuance, IPO ...

For example, Saigon Thuong Tin Real Estate Joint Stock Company, Dat Xanh Real Estate Service and Construction Joint Stock Company, CEO Group, Vinhome, Century Real Estate Group, Kinh Bac Investment Group , FLC Group ... have announced on the floor.

During the month of May and especially in July, in the context of the stock market "flames", the real estate businesses have remained largely or not significantly reduced, even some enterprises increase .

Q2 / 2018 business results show that most real estate businesses are profitable and attract large amounts of capital on the stock market. However, profits do not come from single real estate products but from many different sources.

According to Mai Tu Linh, a real estate investor veteran in Hanoi, if not using financial leverage, land investment must never worry. However, if capital is thin, investors should not venture into the real estate market now, instead can transfer cash flow to the stock market.

This investor acknowledges that he himself is struggling with the real estate business, which has to pay off a lot of money, so she is considering switching to stocks.
In fact, from August 20, 1818, cash flow tended to move to the stock market, helping the market more active. As confirmed by the representative of Tri Viet Securities Company, about 2 months ago, thanks to the cash flow of many domestic investors, the stock market has recovered quickly.

"This may signal that investment channels such as gold, foreign currencies, real estate ... are no longer attractive, while the stock market is still profitable and effective," Tri Viet said.

According to the annual ranking of the FTSE Russell Index, the Vietnam stock market has been added to the list of upgraded classifications to emerging markets.

These are positive signals that the stock market attracts foreign and domestic investment. Many real estate investors are waiting for this investment channel eagerly.

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