INVESTORS: CHANGE THE DIRECTION OF REAL ESTATE INVESTMENT

One of the recent investment trends of investors is to choose a type of real estate that generates stable cash flow, and can be used for multiple purposes instead of speculation or "money lying in the land".

After the fluctuations in the real estate market, real estate investors also have changes in their investment methods. Recently, Mr. Tran Quang Trung, Business Development Director of One Housing, introduced 4 trends leading the Hanoi apartment market.

Trend 1: Young people will locate the high-end apartment segment

Specifically, most homebuyers pay attention to apartments with "all-in-one" facilities for easy weekend getaways. This is also the demand force that determines the development of high-end real estate in the future in big cities.

Mr. Trung said that young people today have an investment mentality from a very early age. They dont want to spend all their money on buying a house. Instead, young people only spend 20-30% of their capital to serve the settlement.

“The current real estate market is a ‘price chase’ market. If a young person now does not pay attention to wanting to own a house now, it will be very difficult for them to accumulate assets in the future," commented Mr. Tran Quang Trung.

Trend 2: Choose to invest in stable cash flow instead of surfing and speculating

This expert emphasized that the criterion of "generating good cash flow" will be crowned this year.

To achieve this factor, investors will consider “3 yess”: Having good legal status for easy transfer; available or rapidly forming surrounding residential communities for immediate rental; and having a good location (scarcity), multi-utility service complex, the professional operation to ensure the potential for price increase in the future.

According to Mr. Trung, that line of real estate can be found in reputable investors with financial potential. Because only then can they have a beautiful land fund, large enough for infrastructure, quality assurance, and convenient handover, legal promotion is extremely important.

Trend 3: Multi-purpose investment to limit risk

Buyers can reduce money to buy a house for many reasons such as renting, keeping the property, giving to children, doing business...

To find a real estate line that meets the above goals, according to him, there are almost only high-end apartments.

"I take an example with townhouses now, the investment rate is too large but the return value is too low (about 2%). A townhouse in urban areas costs about 25-30 billion, but a months rental income is only about 50 million. Multi-purpose investors, immediately see the opportunity. With that money, can invest in 5-8 luxury apartments, with rental prices of about 15-20 million/month, generating 3 or 4 times more cash flow than townhouses. In the end, investors only care when they spend money, after 5 years they get what," he said. Trung shared.

Trend 4: The influx of foreign visitors promotes the formation of new rental premises

According to Mr. Trung, from the beginning of 2023 until now, the Hanoi apartment market has recorded waves of investment from Taiwan, Hong Kong, and even in Ho Chi Minh City.

The reason comes from the fact that the price of apartments in Hanoi is much lower than in Ho Chi Minh City. Investors expect the price to go higher in the future. In addition, in the meantime, they can rent out immediately to ensure cash flow.

“The first concern of foreign customers is service standards and convenience. The essence of high-end apartment markets has long been established in other countries. They know what a luxury apartment is. Therefore, when they come to Vietnam, they will choose reputable investors with a methodical investment, "said Trung.