Defying the overall impact of the pandemic, real estate prices nationwide continue to rise, with some areas and projects up more than 10% compared to the beginning of 2020. In Da Nang in particular, the real estate market of the “most livable city” still holds many opportunities.
Undeniably, the Covid-19 pandemic has had a negative impact on the real estate market, unsettling many investors. Not only real estate but every other sector is also “holding its breath”, waiting to see how this outbreak unfolds.
From crisis to opportunity
However, experts believe the current challenges are only temporary and will have little impact on the market in the long term, because real estate has always been an asset class with limited supply relative to ever-present demand.
At the same time, the Vietnamese tradition of passing assets down to the next generation continues to strongly influence customers' purchasing and investment decisions. As a result, products with clear legal status, which can both generate business income and serve as assets to hold, are all the more “valuable” at this time.
This was evident during previous Covid-19 waves, when real estate prices still rose across many segments, even sparking a widespread land fever early this year.
In Da Nang, for example, many transactions have resumed after a quiet period caused by the pandemic. In the land plot segment alone, April saw a dramatic increase, with prices in some places rising by up to VND 500 million per plot thanks to the positive impact of major projects getting under way.
In addition, the Prime Minister's approval in March this year of the adjusted master plan for Da Nang City to 2030, with a vision to 2045, has also helped restore investor confidence in the market.
Opportunities lie ahead
In particular, in the current climate, apartments are expected to appeal to more investors than houses in small alleys, as young people's demand for homes with integrated amenities will remain a major trend in the period ahead.
In fact, many investors in today's market are quietly seeking real estate in areas that “follow” key transport infrastructure works and major investment projects. Although transactions have slowed compared with the pre-pandemic period, many investors are still actively buying and selling.
On the positive side, the recent lull in the market has gradually weeded out opportunistic, short-term speculators, shifting the focus toward long-term, sustainable investment. Projects that want to sell must now offer transparent legal status, synchronized infrastructure, full amenities and reasonable prices. This market shake-out has allowed many people to own quality, affordable property that they would have struggled to find before the pandemic.
In Da Nang specifically, the market has seen many fluctuations, yet this presents opportunities for savvy investors, as Da Nang remains the top destination of choice for domestic customers.
Through previous outbreaks, Vietnam's economic conditions and ability to contain the disease have built a new image of its capacity for public governance and economic management. As a result, there is strong confidence that this Covid-19 wave will also be handled successfully. Many investors believe the real estate market will recover quickly once the outbreak is under control, as it did on previous occasions.
A golden opportunity to “buy the dip” as the market gathers momentum for a rebound in the coming months
Experts believe that reduced supply in 2020 will lead to scarcity in the real estate market over the next two years, pushing house prices higher. This is the time to “buy the dip” as the market builds momentum for a rebound in the coming months.
Source: Thoi Bao Ngan Hang