According to experts, all investment stories always have the principle of matching the investor’s risk appetite. If the risk is high, the profit is high and vice versa.

The market-leading segment 2021

The year 2020 is a year of low levels for the economy in general and the real estate market in particular. In which, the first quarter and second quarter the market showed signs of decline, showed signs of recovery from the third quarter and is forecasted to be better in the fourth quarter.

According to some experts, although the market is quiet and difficult, there are still many bright spots. In the medium and long term, the market remains optimistic as the refinement is stronger, increasing transparency and safety for investors.

Sharing at the online exchange “Real Estate Market in 2021 – Forecast of investment trends and opportunities” recently, Economist Dinh Trong Thinh said that land and industrial real estate are still two segments with many bright spots in the market in the context of epidemics.

For industrial real estate, this is a segment that attracts a huge amount of foreign investment. Moreover, the trend of shifting the production supply chain out of China also opens up an opportunity for Vietnam, promoting a vibrant market development.

In addition, the suburban land is almost “immune” to the impact of the disease, when some areas in Hanoi and Ho Chi Minh City still have quite active transactions, prices slightly increase. One of the reasons is the investment shift from the central area to the suburban and satellite areas.

“Therefore, localities also have plans to develop residential areas and new urban areas. Therefore, the land has become an investment attraction channel.

In the past year, land plots still have good transactions and price increases. However, investment in land must be a long-term, oriented to real demand, not surfing, ”said this expert.

According to Mr. Nguyen Manh Ha, Vice Chairman of the Vietnam Real Estate Association, housing real estate will always be a segment with potential growth in the medium and long term. However, in the coming time, there will be new segments with more potential for development.

According to Mr. Ha, the next 5 years will be the period for industrial real estate to welcome many new opportunities thanks to the trend of relocating factories to Vietnam. Accordingly, the housing segment for workers in industrial zones will be very large.

“This will be a bright segment for the real estate market in the next 5 years. Some localities with great potential such as Bac Giang, Thai Nguyen, Hai Phong. In the South there are provinces such as Tay Ninh, Tien Giang, … “, Mr. Ha said.

With land plot projects, Mr. Ha said that this segment is often far from the center and is only suitable for people with small investment, small capital, and periodical investment.

“For the investment in this product, the most important thing is still the legality of the project, whether to be licensed to trade in land or to invest in construction works before being sold.

Industrial real estate, housing, and land plots are highly potential for experts to increase in the coming time. (Photo: Hoang Huy)

‘2021 is not a explode year’

Commenting on the prospects for 2021, Mr. Ngo Quang Phuc, General Director of Phu Dong Group said that there will be more supporting factors for the better market.

The first is that the epidemic will be controlled by vaccine. Second, the professions are also gradually expanded, the economic recovery, the people’s income is also better. As a result, the demand for investment increases, the demand for real estate ownership will also increase.

On the other hand, the Government is rushing to overcome bottlenecks to clear up and promote better legislation to improve supply.

“The two factors above show that 2021 will have more signals than 2020. In my prediction, 2021 is not a boom year in real estate but at least the volume of transactions will increase, supply and demand also increased, “Phuc predicted.

In addition, according to this expert, there are three segments that will lead the market in 2021.

First thing is the housing market. The product lines that meet the real needs with suitable payment values ​​around the price of around 2 billion VND will increase both supply and demand, when the market is improved.

Second is the townhouse market. The products of townhouses with prices from 5 to 10 billion VND are still selected.

Third, land plots in the suburbs, with good traffic connections, … especially those of reputable developers, continue to be the segment favored by investors in 2021.

Do not abuse leverage

Having shared at a seminar not long ago, Mr. Dang Van Quang, Director of JLL Vietnam, said that Vietnam currently has about 90% of million dollar millionaires directly or indirectly in real estate business.

Especially among the 100 richest people in Vietnam, that is, over 30 million USD, the figure directly related to the real estate business is 99.1%.

This figure shows that real estate is a popular investment channel and is chosen by many people. In addition to the large investors, there are also many small investors participating. However, it is not just the investment that wins.

According to TS. Can Van Luc, Chief Economist of BIDV, all investment stories have principles that are consistent with investors’ risk appetite.

Specifically, in terms of investment principles, if the risks are high, the profits will be high and vice versa. In this case, direct investment (buying real estate products) will be risky but also more profitable.

Indirect investment (through buying stocks, bonds), especially corporate bonds, will receive a stable interest rate according to the interest period. And investing in shares of real estate companies, dividends and stock prices will eat according to business results of that business.

If ranked from low to high risk order would be bonds, stocks, buying real estate products. However, it depends on which real estate segment buyers want to invest in because the housing segment will be less risky than other segments.

“In the end, the principle of diversification, not using too much leverage and avoiding public sentiment is what investors should consider,” said Luc.

Sources: vietnambiz.vn