While the stock market remains quiet, the real estate market is warming up as securities investors have decided to withdraw money from stocks to inject in real estate trading deals.
Previously, the rising stock market once attracted real estate investors, but now, with the market in a decline, investors have come back to the property market. It is simply because it is less risky to invest in real estate than in stocks, while the investment can bring more profit than deposits at banks.
Le Khac Tien, an investor on Bao Viet Trading Floor, said that if they sold shares at this moment, investors would incur losses of 30%. As there is no sign of the recovery of the market, it is wiser to inject money in property trading.
Real estate trading floors now are bustling these days. HUT’s floor, for example, receives 10 people a day who come to seek information about real estate projects, and all of them are securities investors. A staff here said that the number of successful transactions had increased by several times in the last one month.
Sacomreal’s trading floor also said that houses and apartments traded in the last month all had high value. Most of the buyers have been stock investors, who make decisions quickly.
Experts have said that the HCM City property market has been warming up since the beginning of the year. Buyers now tend to buy houses and apartments in areas which are expected to become the central areas of the city in the near future.
Meanwhile, house prices prove to be reasonable at this moment, which helps create many successful transactions. Only apartments in central areas or near the city centre like district 1, Binh Thanh and district 4 have seen slight increases in prices, while the prices remain stationary in other areas. The 70 sq m, 100 sq m apartments at HUT, Nguyen Ngoc Phuong and Ngo Tat To residential quarters in Binh Thanh district and H3 in district 4 have increased by 10% in price in the last two months, while the prices in other areas remain ‘soft’. Therefore, investors believe that it is the right time to buy houses and apartments, anticipating that the prices will increase rapidly at the year’s end.
While the demand of stock investors for buying houses and apartments is increasing, the supply seems to be short, especially the supply of high-grade apartments.
Nguyen Hoang Minh, Director General of Khang Viet Real Estate Joint Stock Company, the owner of The Mansion project, said that the company had announced the sale of the apartments in B area of the project at a price 10% higher than in A area. The apartments in A area in two 15-storey buildings have been sold out, which shows that high-grade apartments are very attractive.
Source: VNE
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