Which opportunities for real estate
investment during the second wave
of the pandemic?
The global long-term effect of the COVID-19 virus has made the economic recovery, especially the real estate market, face many difficulties.
After the first wave of the covid-19 pandemic plus the limited new supply, the local real estate market recorded positive signs of recovery by the end of the 2nd quarter of 2020. However, the second pandemic and the gathering limitation dispatch on 30 July has delayed many launch event plans, affecting homebuyers’ psychology as well as the number of transactions from foreign customers.
In this context, the majority of real estate investors have decided to postpone and observe. The pandemic has changed the mood of nearly all the market segments, from exciting to quiet, resulting in a limited number of transactions and swing trading opportunities.
For the mid-end segment and affordable apartment, income cutdown concerns and payment terms have made many home buyers hesitate when deciding to own a real estate project. Statistics show that some investors are now accepting to resell their investment turn with lower prices to secure their funding. Some customers who buy houses on installments, due to their insolvency, began to cut their apartment losses with bank loan installments.
The complicated pandemic situation and the traditional trading restrictions – July in Lunar Calendar will continue to affect the trading psychology of the market in the next month. It is forecasted that at least for the next 2 months, the number of real estate transactions will not have many positive signs.
For high-end and luxury segments, although it has some negative impacts from the pandemic and the selling price of apartments has temporarily stalled, this may be an opportunity for real estate prices to gain momentum in the future, especially for projects located in prime locations in the medium and long term.
It can be said that, from the perspective of experienced investors, the crisis is always be considered a golden opportunity. American billionaire Warren Buffet once said, “Be fearful when others are greedy and greedy when others are fearful”. While many customers choose to hold their cash during this difficult time, experienced investors will seize the opportunity and make decisions to own properties located in a prime location with a spectacular view and get the advantages of the primary price, flexible payment terms with incentive programs from the project developer.
Overall, for the real estate market, this is a difficult time for mid-end housing buyers. However, for a part of real estate experienced individuals and businesses with a good financial condition, this is a good opportunity to own properties with high-profit potential in the future.
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