The real estate market has never been as gloomy as it is now. New real estate projects are starting up, while old projects are almost "inactive", many real estate floors are only operating at a low level and sometimes have to close, leading to thousands of employees having to quit their jobs. Along with that, corporate debt and bond debt are increasing and are at risk of "exploding" at any time.
The "magic" attraction has cooled down
The real estate business in general and the high-end real estate market in particular are one of the key economic sectors, contributing greatly to the growth and GDP of the whole country. In addition, real estate helps millions of workers have jobs and income and is closely related to many industries: Construction materials production, tourism - resorts, banking and finance, construction... However, in the context of tightly controlled credit, along with a number of legal difficulties that have not been resolved, real estate project investors are not financially strong enough, and the legal documents are not complete, so "customers" do not pay as quickly and easily as before. This leads to slow sales, the real estate market is almost in free fall and is creating an unprecedented gloomy scene.
Recently, due to the impact of the Covid-19 pandemic, the world economy has encountered difficulties, inflation, and increased bank interest rates have deeply affected the real estate market, especially the high-end real estate segment. Many new real estate projects have not been licensed, old projects are behind schedule, making supply increasingly scarce. Meanwhile, many real estate projects have been sold out but the investors have not completed them for use as planned, leading to a series of abandoned villas, overgrown with grass, causing waste.
Abandoned villa, overgrown with grass, wasting resources
Many foreign investors believe that the real estate market in Vietnam has the characteristics of a large population and a high demand for real estate, which is always an attractive reason for them to pursue. Vietnam is promoting urbanization while the Government is determined to build a smokeless industry as a spearhead for development. In addition, the number of high-class customers is increasing, they see this as an investment channel with high profitability, although it is determined to have many risks.
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According to data from the Ministry of Planning and Investment, if in 2021, registered FDI capital invested in real estate only reached 2.6 billion USD, by 2022 it had increased to 4.5 billion USD and the first quarter of 2023 still had positive signs. Real estate is the second sector attracting FDI capital, after the processing and manufacturing industry.
Mr. Le Minh Hiep - a high-end real estate trader in Nam Tu Liem district said: "My two friends and I invested together. A few years ago, we made good profits and had quick liquidity, but from 2021 until now, we have almost not bought any more villas, while some of the ones we had previously "held" have not been sold yet. Although some people asked to buy, they offered too low a price". Mr. Hiep added: "Luckily, when we bought, we did not borrow money from the bank. If we had borrowed and paid interest until now, we would have had to sell urgently".
It can be seen that at this time, real estate is no longer at its peak like many years ago.
Is supply and demand virtual?
Real estate experts say that the inventory of the high-end real estate segment (especially villas) is quite large. However, new supply will become increasingly scarce because there are very few prestigious high-end real estate projects with sufficient financial potential being implemented. Meanwhile, the supply of villas and shophouses (a housing model combined with commercial business) in Hanoi and the northern provinces has decreased sharply. Currently, the supply is mainly in real estate projects implemented before 2020. From 2021 to the first quarter of 2023, only a handful of real estate projects related to the high-end segment have been implemented, while this segment is mainly for the upper class, not for low-income people. Therefore, the already gloomy market is now even more gloomy.
Mr. Dinh Van Troi - Sales Director of Dai Phong Construction Investment - Real Estate Joint Stock Company commented: The supply of villas and townhouses in Hanoi has been continuously in short supply for a long time, while the new supply in 2022 and early 2023 mainly comes from ongoing projects and is concentrated in the suburbs of Hanoi. In some ways, it will provide more products to the market but not significantly for selection.
The project of Thuy San Hill Villa Area in Bai Chay Ward, Ha Long City (Quang Ninh) has many unfinished works.
According to a survey by reporters in Quang Ninh province, the supply of villas and shophouses is still abundant, but mainly from old real estate projects such as: BIM Group, Geleximco Group, Tuan Chau Group... and almost no new real estate projects are being implemented, new supply has hit rock bottom.
Meanwhile, the supply in the localities of Ha Nam, Bac Ninh, Phu Tho, Hai Phong, Hoa Binh, etc. is also not very promising. In these provinces and cities, there are few high-end real estate projects, limited transactions, and in recent years, very few high-end real estate projects have been implemented. While old projects are operating at a standstill, many villas and shophouses, although owned, are not put into use, leading to abandonment, causing waste and potentially causing social evils.
That is the supply, and in terms of demand, experts say that the trend of villas and shophouses associated with green space, optimal utilities, located in a complex and convenient transportation connection will be the top choice of customers. In addition, the urbanization rate, natural population growth rate and the increase of the middle and upper class are also the main driving forces to boost the demand for villa consumption in the coming time.
In fact, once the economy recovers strongly after the Covid-19 pandemic, the Government's policies to remove obstacles and difficulties for the real estate market are seriously implemented by localities, plus the "credit room" is loosened, corporate bonds are guaranteed, then corporations, companies and individuals will soon have access to the necessary capital, from there, real estate projects will be deployed and provide a variety of high-end real estate products: villa real estate, shophouse, resort, health care... to the market, the purchasing and selling power of the real estate market will be vibrant again.
Mergers and acquisitions appear
This is a natural law, the strong overwhelm the weak, the weak are acquired and merged into the strong is a normal thing in the real estate industry in recent times. However, recently there have been "sharks" from home and abroad, they use many investment funds or spend cash to buy back high-end real estate projects, projects with clean legal documents for development.
It can be seen that from the beginning of 2023 until now, Vietnamese real estate companies have been divided into 4 typical groups: Risk, balance, potential and "new players". In which, the "new players" group includes companies, investment funds... looking for opportunities to penetrate the real estate market through mergers and acquisitions.
Typical examples include FLC Group, Tan Hoang Minh... After the leader was involved in legal trouble, a series of "big guys" wanted to jump into the potential projects of these groups. Bamboo Airways has officially separated from FLC Group, leading to many real estate projects of this Group in Quang Ninh, Thanh Hoa, Thai Nguyen, Vinh Phuc, Phu Tho... at risk of having to stop implementation or be forced to transfer to other partners to continue researching and implementing the project.
Many high-end domestic real estate projects are currently attracting foreign investors.
In addition, many other acquisitions are in the negotiation stage. According to many economic and real estate experts, with the current sluggish real estate market, coupled with the difficult financial situation, if this situation continues, many project investors will no longer have money to turn around, and they may have to think about transferring or selling off real estate projects. That is not to mention many companies and foreign investment funds are preparing money waiting for the opportunity to acquire domestic real estate projects when businesses encounter difficulties and are forced to sell.
Mr. Le Hoang Chau - Chairman of the Ho Chi Minh City Real Estate Association (HoREA), proposed: The Government and the National Assembly Standing Committee consider allowing enterprises to transfer real estate projects by agreement according to the pilot mechanism stipulated in Resolution No. 42/2017/QH14 dated June 21, 2017 of the National Assembly. According to Mr. Chau, if implemented, it will remove difficulties in cash flow and liquidity for real estate enterprises, including enterprises issuing bonds that are about to mature. Allowing enterprises to transfer projects by agreement, according to demand, the State will both collect taxes and strengthen the effectiveness and efficiency of state management of the real estate market, increase transparency, and overcome the situation of "underground" project transfers disguised as share transfers, causing losses to the State budget.
Ms. Do Thu Hang - Senior Director, Research and Consulting Department, Savills Hanoi, said: The supply being sold directly from investors in current projects in this segment is very limited, stemming from the small number of new units being brought to the market. However, townhouses are still the main product line, followed by villas and then shophouses, which only account for a small proportion of the current total supply.
Lesson 2: Racing to "finish" slowly
There are many reasons given by real estate project investors, but most of them are due to slow site clearance, changes in legal mechanisms and tax policies, plus the weak financial capacity of many businesses... leading to slow project completion.
Slow-progressing real estate projects spread widely
Most of the 63 provinces and cities have behind-schedule real estate projects, however, the high-end real estate segment is mainly located in large provinces and cities with favorable geographical locations, potential for tourism exploitation, transportation and infrastructure development.
The locality with the most delayed real estate projects is Hanoi. According to incomplete statistics, Hanoi currently has several hundred projects that are behind schedule, equivalent to an area of over 5,000 hectares that has not been exploited, causing great waste.
Some real estate projects are delayed by up to ten years, such as: Kim Chung - Di Trach Urban Area (now renamed Hinode Royal Park Urban Area - PV), in Hoai Duc District. Or Nam An Khanh Urban Area of Song Da Urban and Industrial Park Development Investment Joint Stock Company (Sudico), which was once promoted as a paradise of life. However, the site clearance work has not been completed, many villas and townhouses are still abandoned, causing waste of resources. Sudico's media representative said: Due to the recent sluggish real estate market, many customers investing in villas only hold land, waiting for positive changes in the market. This leads to a situation where some villas are abandoned, causing the overall beauty of the project to be lost.
In Phu Tho, the Thanh Thuy Hot Mineral Water Resort Project, invested by Song Thao Company Limited, has a scale of more than 87 hectares, is more than 2 decades behind schedule and has many violations... The project is currently abandoned and used by people as a place to graze livestock.
Mr. Tran Van Kien - Vice Chairman of Thanh Thuy Town People's Committee frankly said: "The problem of Thanh Thuy hot spring project now lies in the capacity of the investor. The project currently has a clean site, full legal documents but cannot be implemented because the investor has weak capacity. Our locality is also very impatient because voters have many opinions but the authority to handle it belongs to Phu Tho province".
Thanh Thuy Hot Mineral Water Resort Project is currently abandoned and used by local people as a grazing area for livestock.
Ha Nam province has a real estate project that is no less thrilling, which is to turn public works and service land into commercial housing (shophouse) and then leave it abandoned. That is the commercial and residential complex of Thang Loi Thanh Liem Company Limited. Up to now, the project has completed the rough construction, some households have bought houses and moved in, many items in the planning have not been built, while some projects show signs of deterioration and abandonment.
In the Inspection Conclusion Notice No. 161/TB-TTCP dated January 17, 2023 of the Government Inspectorate regarding the project of the Complex Commercial Center of Thang Loi Thanh Liem Company, Ha Nam province allocated land but did not go through the form of auction of land use rights, violating Article 118 of the 2013 Land Law. More seriously, this land area is planned as public works, services, and commerce land, without residential land function, violating Article 26 of the 2009 Urban Planning Law and Article 14 of Decree 37/2010/ND-CP dated April 7, 2010 of the Government.
Remove the “tumor”
Localities with real estate projects that are behind schedule, even stagnant for many years are: Hanoi, Quang Ninh, Phu Tho, Hoa Binh... In Hanoi alone, there are currently hundreds of real estate projects that are behind schedule and have not been implemented, of which many projects have been given a red alert and a few projects have been revoked by the Hanoi People's Committee.
A typical example is the Phuong Vien Luxury Housing Project in Me Linh District, invested by Phuong Vien Trade and Tourism Services Joint Stock Company. The project was allocated land in 2008 but was slow to implement, so the Hanoi People's Committee issued Decision No. 4058/QD-UBND on land reclamation, canceling the land allocation decision for the above project. In addition, there are projects: Truong Giang Construction Company with the project of building garden villas; Anh Duong Joint Stock Company with the project of building technical infrastructure for Sunny Light villa area; Vinalines Vinh Phuc Real Estate Joint Stock Company with the project of Vinalines New Urban Area... The Hanoi People's Committee has issued a decision to reclaim land.
Villas and townhouses of Tan Viet Urban Area Project, Hoai Duc District are still sparsely populated.
Regarding the Thanh Thuy Hot Mineral Water Resort Project invested by Song Thao Company Limited, Mr. Ha Minh Duc - Deputy Head of the Department of Land Management, Department of Natural Resources and Environment of Phu Tho province said: "In Document 2308/UBND-KGVX dated June 21, 2022, the People's Committee of Phu Tho province directed the Provincial Tax Department to collect the land rent that Song Thao Company owes, and at the same time, assigned the Department of Planning and Investment of the province, Thanh Thuy District People's Committee and relevant agencies to review and separate an area of about 37 hectares in the total area of the project for the company to implement. Mr. Duc added: Currently, the Investor has not yet carried out the procedures for approving the 1/500 Detailed Planning, so there is no basis for measuring and separating the area according to the direction of the People's Committee of Phu Tho province. On March 25, 2022, the People's Committee of Phu Tho province issued a decision to revoke the Investment Incentive Certificate of the above project.
Mr. Tran Nhu Long - Director of the Department of Natural Resources and Environment of Quang Ninh province said: In the coming time, Quang Ninh will continue to review, inspect and examine the land use of projects that are behind schedule, prolong the completion of technical infrastructure, resolutely handle and recover in accordance with the law, not to let the situation of "suspended" planning, "suspended" projects recur and prevent and combat group interests, negativity, budget loss, waste of land resources, contributing to the health of the real estate market.
These are some typical projects that have been resolutely revoked by the local authorities and enforced by law. However, there are still many projects that are behind schedule, have been extended many times, and are overgrown with weeds, but have not been handled. For example, in Quang Ninh, many projects such as: Cao Xanh - Ha Khanh New Urban Area; The Bay View Tower mixed-use commercial and apartment service project (Ha Long City) ... are behind schedule. In addition, many real estate projects have been put into use but the occupancy rate is not high, many villas and shophouses have owners but have not been put into residence, showing signs of deterioration, causing waste of resources and loss of urban beauty.
Mr. Nguyen Huu Nha - Vice Chairman of Ha Long City People's Committee said: Recently, the city has resolutely implemented the review, report and propose the province to consider, handle and revoke dozens of projects that are behind schedule and violate the law, in order to avoid the situation of "holding land" for a long time to let weeds grow, causing waste of land resources, affecting environmental sanitation and urban landscape.
For real estate projects, especially high-end real estate, local authorities need to take strong measures to inspect and thoroughly handle projects with serious violations, slow progress, lasting for many years, seriously eliminate projects with poor planning, limited financial potential, and deliberately "holding land" without implementing.
We need to eliminate the mindset that if this province has a high-end real estate project, our province must also have one.
Lesson 3: Staying in a million dollar mansion
Low-income people live in million-dollar villas, they rent villas, shophouses to live in, open grocery stores, sell vegetables, beer bars... to do business to make a living, it sounds like a joke but it exists in most urban areas (KDT) that are expected to be livable, civilized and modern.
Turn villas and shophouses into… “markets”
It is not difficult to see that many villas and shophouses with wide frontages, next to residential areas or at the foot of apartment buildings in Hanoi are often used for rent to open cafes, restaurants, grocery stores, fast food stores, fresh food stores, etc. This is not prohibited by law, but it has unintentionally created a shabby appearance for urban areas that are considered civilized and modern.
Adjacent, shophouses are rented by people to open shops, stores... to do business.
Mr. Nguyen Quang Truong, living in Hoai Duc district, rented a shophouse in Tan Tay Do new urban area, Dan Phuong district, said: "My two friends and I rented the shophouse to sell fast food, coffee... Initially, we rented it to sell goods for 5 million VND/month (rented from the landlord - PV). Later, because we sold all night, we had to pay an additional 2 million VND/month to stay overnight.
A “service broker” specializing in renting shophouses here said: The tenants are mainly workers from the provinces, they rent cheaply to open breakfast shops, sell vegetables, beer bars… the rental is not binding, no need to deposit much money, when the owner takes it, it must be returned.
The fact that small traders have concentrated on renting shophouses to organize business has turned this place into a spontaneous flea market. A resident living in the HHA Apartment building, in Tan Tay Do Urban Area, said: Buying and selling is convenient, but every morning and on weekends, there are a lot of buyers and sellers, many vehicles go in and out of the urban area, potentially causing traffic safety problems. Not to mention the shops discharging wastewater, garbage... which is very messy.
Reporters went to the field in some urban areas in Hoai Duc, Gia Lam, Nam Tu Liem, Bac Tu Liem, Hoang Mai districts... and found that the situation of villas and shophouses being rented out by owners... appeared everywhere, each place had different characteristics and different rental prices. But all had one thing in common: contributing to the shabbiness of the civilized and modern urban area.
In the provinces and cities of Hai Phong, Phu Tho, Ha Nam, Hung Yen, Thanh Hoa, etc., the situation is not very optimistic. Although there are fewer tenants and prices are cheaper, it is still very messy. Meanwhile, the abandoned houses are overgrown with grass and show signs of deterioration.
Many "no"s in million dollar villa
In the role of a person renting a villa to stay temporarily, we were led by Ms. Nguyen Thi Bich to tour around Nam An Khanh Urban Area, Hoai Duc District, Hanoi City. Here, we saw a few villas and shophouses with people living there. Although the exterior of the villa was not yet completed, the doors were temporarily installed with plastic panels, some doors were made of thin corrugated iron sheets... inside, clothes were hung haphazardly, the sleeping places were temporarily made of wooden boards by workers, some places had mats spread straight on the concrete floor, the kitchen was set up temporarily and more specifically, this place did not have a proper toilet.
Mrs. Bich asked: "How many people do you plan to rent the villa for? If there are many people, you should rent the whole villa, the area is from 200 - 300m2, the price is only about 6 - 8 million VND/month, you can choose how many people you want to stay. If you agree, tell me so I can call the owner."
Most of the workers come from Nghe An, Thanh Hoa, Nam Dinh, Vinh Phuc, Tuyen Quang... they live in villas, shophouses, during the day they work as janitors, construction workers, mechanics... at night they gather together in a million dollar villa but "lack" everything: no electricity, no clean water, toilets do not work...
Temporary life in a million dollar villa of a freelance worker - Photo by Ngoc Vu
Le Khac Nam (from Thanh Hoa) is currently living temporarily in a villa in Hoang Mai district. He said: "I dropped out of school in 9th grade and followed my neighbor here to work as a construction worker. Now I am a construction worker. If it weren't for everyone's support and guidance, I don't know where I would be now."
These days, students are on summer vacation, many children are taken to Hanoi by their parents, for the first time they are staying in a million dollar villa with their parents. Ms. Le Thi Hai (from Nghe An) said: My child is on summer vacation, she said she misses her parents so I came back to take her here to play. There is no air conditioning, some days it is so hot that I can't sleep until late at night, I feel sorry for my child but there is no other way. I plan to let my child stay for 1-2 weeks and then take her back to the countryside to live with her grandparents.
Ms. Hoang Thi Sy - the main chef who cooks for more than 30 workers, said: "These days, the boarding house is much happier. There are 5 children who are welcomed by their parents. During the day, I cook and also take on the role of nanny. The good thing is that each of them comes from a different hometown, but they play together very unitedly and give in to each other."
In some urban areas in Hoa Binh, Ha Nam, Quang Ninh... here, low-income workers temporarily live in villas,
Shophouses still exist, although not many. When we approached them as reporters, they refused to answer or in some cases actively asked not to disclose information or take pictures… for fear that the landlord or investor would not continue to rent them out.
(Note: Names in this article have been changed to protect privacy.)
Lesson 4: Perfecting institutions, bringing high-end real estate to its true value
Real estate project developers and investors need to sacrifice small, short-term benefits for long-term benefits, proactively restructure businesses, focus on core projects, reduce debt, control corporate bonds well and limit over-reliance on credit institutions. As for management agencies, the State needs to soon complete a clear legal system from the central to local levels and clearly divide management power, avoiding overlap and lack of cohesion as at present.
Sacrifice small benefits
For businesses, benefits are always given top priority, sacrificing short-term benefits for overall, long-term benefits is indeed an extremely difficult choice. However, for a business specializing in high-end real estate, it is necessary to have courage, vision and certain understanding to face the need to sacrifice unprofitable projects or projects with low profitability, at the same time, restructuring the business, reducing debt, focusing on the main business, core projects... that is the wise decision.
Mr. Dinh Van Nghi - Chairman of the Board of Directors - General Director of VinaPol Joint Stock Company - a unit with many years of experience in developing real estate projects, frankly shared: Real estate enterprises should take advantage of this time to look back at themselves, must restructure the enterprise, reduce debt, reduce dependence on credit institutions, boldly cut off high-risk projects, do not invest in a scattered and fragmented manner. Avoid chasing quantity and hasty development, because once facing difficulties, it will be too late to turn back.
For "gods", in addition to having money, it is necessary to carefully study the legal aspects of the real estate project that you intend to invest in or buy for long-term residence. This is not difficult but requires investors to seriously consider, avoiding "closing the barn door after the cow is lost". In fact, there are currently many high-end real estate projects that, although they have been built and even allowed customers to move in, the legal procedures have not been completed and the infrastructure is not yet synchronized. This leads to the situation where villas and shophouses have owners but no one lives there, are left abandoned, overgrown with grass, and waste resources.
Domestic real estate businesses are having to tighten their belts, reduce debt, reduce dependence on credit institutions and boldly cut high-risk projects, not investing in a scattered and fragmented manner - Illustrative photo.
Localities should also carefully select investors with reputation and strong financial potential, should not follow trends, avoid the mindset of developing high-end real estate widely, lacking planning orientation. This is a wrong mindset, which can lead to many consequences later. In addition, localities need to strengthen inspection and supervision, frankly handle investors who violate regulations, delay progress, even revoke projects, avoid abandonment, causing waste of resources while the State loses tax and fee revenue.
Need the "hand " of the State
In fact, the real estate market in general and high-end real estate in particular have long been "loose" in terms of prices, while taxes and fees for this sector are still low, not commensurate with the pace of market development, leading to rampant speculation and price inflation, making it difficult for people with real housing needs to access. Not to mention the difference in real estate prices between urban and rural areas, even in big cities such as Hanoi, Hai Phong, Ho Chi Minh City, etc., there are also clear differences. Therefore, many real estate experts believe that the State needs to directly participate in regulating the real estate market, because currently the State has enough legal tools to control this.
According to many experts, the high-end real estate market is congested, leading to an imbalance in supply and demand, which in turn reduces the growth momentum of many other industries. Therefore, it is necessary to immediately unblock the real estate market, thereby increasing the flow of money from domestic and foreign countries into real estate and the purchase and sale, merger of enterprises and real estate projects will take place according to market rules... thereby contributing to promoting economic growth and creating a spillover effect for all other industries to develop.
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Resolution 18-NQ/TW dated June 16, 2022 of the Central Committee pointed out: "Continuing to innovate and perfect institutions and policies, improving the effectiveness and efficiency of land management and use, creating momentum to turn our country into a high-income developed country", which is expected to have a strong impact on many aspects of the Vietnamese real estate market in the coming time.
On the other hand, although administrative procedures for businesses to implement land projects have been resolved, they are still entangled and prolonged.
This vicious cycle repeats itself over and over again, from project to project, from enterprise to enterprise, year after year... that's why there is the saying "fear of not having enough legal basis", or "waiting for instructions from superiors", causing investment projects to be stuck, unable to be implemented, and causing social resources to not be used effectively.
Regarding investment capital support, a business specializing in real estate project development (name withheld) said: "Currently, credit institutions are doing a very good job of deferring and extending debt for businesses: The government has directed to "loosen the credit room" for real estate, but, in my opinion, it should be accompanied by unblocking bonds for businesses. Currently, it is very difficult for us to access bank loans. The fear mentality has spread everywhere and is at risk of turning into a "social disease".
Many real estate experts believe that the State needs to directly participate in regulating the real estate market, because currently the State has enough legal tools to control this.
The completion of institutions and policies on land management and use in a synchronous and consistent manner with the development institutions of a socialist-oriented market economy will unlock land resources, helping the State manage, exploit and use land to ensure the most economical, sustainable and effective use of land. To do that, the completion of amendments to the Land Law, Housing Law, Real Estate Business Law, etc. must ensure synchronization and unity, which is an urgent requirement. In addition, it is necessary to perfect the organization of the State land management apparatus, ensuring streamlining and unity, eliminating intermediaries, promoting decentralization and delegation of power, accompanied by a mechanism for inspection, supervision and control of power.
Delegate Dang Bich Ngoc - National Assembly Delegation of Hoa Binh province
Need to solve the problem of suspended and delayed projects
The Draft Law on Land (amended) submitted to this 5th Session is based on a synthesis after a wide public consultation. Personally, I highly appreciate the efforts of the Ministry of Natural Resources and Environment in synthesizing and collecting opinions from voters and people nationwide, based on screening, evaluating and adjusting the Draft Law on Land (amended) submitted to the 15th National Assembly in this 5th Session.
The draft law needs to address the problem of suspended and delayed projects. For example, currently in many provinces and cities, many projects have been granted investment licenses, but due to many objective factors, they are slow to be implemented or only a few procedural steps are carried out, then they are not implemented for 5 years, even 10 years, causing waste of land resources and frustration for the people.
I hope that the Draft Law on Land (amended) this time must have strict and specific regulations to help localities handle this issue fundamentally and thoroughly. Because, in the past, many projects were suspended or delayed, but when inspected and checked, the investors still had reasons: Partially implemented or due to objective conditions.
Lawyer Nguyen Hong Bach - Director of Hong Bach and Associates Law Firm
Be careful when investing money
Currently, in the current economic situation, real estate investment is still a safe destination for investors. Therefore, real estate projects are attracting a lot of attention. Therefore, learning carefully about real estate projects, especially high-end real estate, is extremely necessary and meaningful for investors.
However, real estate investors need to be careful when "putting money down". First, they must carefully study the legality, brand, and reputation of the investor. Second, they must know the progress of the project, so buyers need to monitor and update the construction progress of the project to avoid risks that may affect their rights and interests. Third, the legality of documents such as: Project Investment License, Construction License... buyers need to pay attention to the above documents, because when there is a dispute, it will be easier to handle the rights. Fourth, the content of the contract terms and other costs. Real estate project investors must read and carefully understand the terms of agreement stated in the contract before signing the contract and making the decision to "put down money".
Ms. Do Thu Hang - Senior Director, Research and Consulting Department, Savills Hanoi
Pay attention to the legality of the project
The supply being sold directly from investors in current projects in the high-end segment is very limited, one could say scarce, while new real estate projects that have just started construction can be counted on the fingers, partly due to the impact of the global financial crisis, partly due to many projects not being completed or having difficulty completing legal procedures to start construction... these are the main reasons why the supply of high-end real estate in the coming time will be limited.
However, investors need to equip themselves with the clearest information about the project, and at the same time, there must be specific commitments, binding many parties together. In addition, the legal framework must be comprehensive, complete, clear, and provide detailed instructions... to help purify investors and promote sustainable market development, avoid creating many fluctuations in prices, while still ensuring benefits for the State.
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