According to real estate research and consulting company CBRE Vietnam, an investment perspective that cannot be ignored at this time is real estate thirsty for capital. This type is continuing to exist in the Vietnamese market, with many backlog projects over the past 12 months. There is also a group of opportunistic investors looking for real estate that is thirsty for capital.
Investing in real estate for capital
According to preliminary statistics of more than 60 enterprises listed on the Hanoi and Ho Chi Minh Stock Exchange recently, the inventory is worth more than 84,000 billion, accounting for approximately 46% of the total assets of these enterprises. Large inventories are also making the financial situation of many real estate businesses extremely dangerous, making it difficult to continue implementing projects that have been planned or are under construction.
Surveying in Hanoi market, there are dozens of apartment projects in the state of “covering mats” or in moderation due to lack of capital by investors. While accessing capital from banks at this time is almost impossible. According to Mr. Tran Van Tan – Head of Credit Department, Credit Department, State Bank of Vietnam, because banks are concerned about bad debts increasing, the appraisal and lending must be done much more closely and cautiously, especially for the real estate sector.
Thirsty for capital, investors are looking for ways to “hold on” and “rescue” the project, including efforts to link up with businesses selling construction materials and supplies in the form of barter. exchange materials for m2 of apartments) to continue to have materials for construction.
However, this form of connection is still loose, the risk of breakdown is not without. Many construction material businesses admit that they are not very interested because they think that they themselves do not have “professional” real estate business. Holding an amount of apartment area already, they must have sold it to recover capital. Therefore, linking with capital-hungry projects like this also means that they are participating in a risky investment form, due to current market characteristics (high inventories, prices in a downtrend). bring..
There have also been some investors who have “shocked” lower prices for their projects to attract investors and home buyers. Looking at the general trend of the market, a sharp price reduction to get real money (not keep virtual value) to reinvest in projects with higher liquidity is really an effective solution for businesses. real estate industry.
However, experts say that not all projects with sharply reduced prices are good and worth the investment. Investors who intend to invest in these projects also need to carefully learn information about the investor, especially the financial capacity and reputation of the investor, information about the project, before when deciding whether to invest in it or not. Avoid the case that investors’ money is completely misappropriated, or lose money if the market does not improved.
The ways to “hold on” and “rescue” the project, including efforts to link up with businesses selling construction materials and supplies in the form of barter. exchange materials for m2 of apartments) to continue to have materials.