Will real estate market freeze after the pandemic?

The real estate market is still a channel attracting the attention of investors and people.

This was said by experts in the online quarterly report and announcement on data on the real estate market in the first quarter of 2020 organized by Batdongsan.com.vn on April 22.

Transactions plummeted

According to statistics, due to the impact of the Covid-19 pandemic, in the first three months of 2020, the interest rate in the real estate market decreased 23% over the same period of 2019 and 18% compared to the fourth quarter of 2019. This is recognized as the lowest rate in the past three years, in which the Central real estate market decreased 46% compared to the same period in 2019. For real estate for sale, project land is most affected, with a 30% drop in the interest rate compared to the fourth quarter of 2019; real estate for rent and townhouses saw a 35% drop in the interest rate compared to the fourth quarter of 2019.

The real estate market is negatively affected in both supply and demand. The number of newly established real estate enterprises decreased 12%, while the number of enterprises stopping operations is over 94% and dissolved is about 69% compared to the same period last year.

Consequently, many brokers have no income, investors suspend or cancel sales plans. The number of new real estate projects for sale is also insignificant. In this quarter, the whole market has four projects opening sales in the North, one project in the Central region and 12 projects in the South.

Attractive investment channel

However, according to Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, the Covid-19 pandemic and the current difficulties of the real estate market are only short-term and an opportunity for the market to purify weak projects, investors and enterprises. Enterprises can take this chance to review their business, focus on feasible and effective projects; focusing on personnel and training issues to create momentum for the future, when the market recovers.

According to analysis and assessment by Batdongsan.com.vn, despite suffering heavy influence of the Covid-19 pandemic, the investment and housing demand are always very high in the Vietnamese market. If the pandemic is controlled in the second quarter of 2020, the real estate market can recover in the fourth quarter of 2020.

Real estate projects and investors still need to pay more attention to quality, utilities, especiallyenvironmentally friendly and green living spaces, as well as reasonable prices

Mr. Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association, also said that although it was extremely difficult, after the pandemic was over, the real estate market would recover and grow again.

Real estate is still considered a safe asset storage channel in case of economic crisis, especially the housing market segment that has reasonable costs and meets real needs, continues to play a leading role and sustainable development. As the practice demonstrated through the crises of the real estate market freezing in 2008 and 2011, in order to consolidate trust and seek solutions to effectively respond to impacts of the Covid-19 pandemic.