Housing in Nice Location: Easy Sale

According to the survey, the residential property prices in the four urban districts of Hanoi are still high at around VND70-85 million/m2; in the area of Cau Giay and Tu Liem districts, housing prices are lower at about VND 60-70 million/m2, in Ha Dong district land offering price reaches VND 45-55 million/m2.

 

Outlying areas such as Hoang Mai and Thanh Tri districts, residential house prices are about VND30-35 million/m2, in Dong Anh - Me Linh area, the prices are about VND20-25 million/m2. For mixed housing types without land certificates, the prices are cheaper by half.

 

Mr Ngoc Tuan (Thanh Xuan district), a consumer wishing to purchase a house in the next few months, hearing that the real estate market may be reduced again, he waited for the market to continue coming down. Now he still has not bought a new house.

 

Recently, he went for a field survey in the western projects such as: Van Phu and Xa La, he also asked his friends and went to the housing areas in the older population areas or corners to ask for reference related to price. For fear of losing his capital, Tuan is still “in neutral" – holding his money to track the evolution of the market and has not decided to buy a house, hoping that the price will decrease.

 

Mr Tran Ngoc Quang, Construction Company in Hanoi, said that: "All goods are subject to the rules of the market. As the only lifeline, bank credit, is inaccessible; investors have no way but to save themselves. So in order to stimulate demand, investors have adopted different forms of promotion to drop prices. The trend from now to the end of the year is that the property market will have more and more product promotions and discounts, and the loss for investors will be increasingly clearer."

 

Many people believe that real estate is a special commodity of great value; that the customers just keep waiting for prices falling again before buying is unreasonable, because the property location is always a factor to determine the price. If costumers buy in this time, they will have the right to choose nice location and view with cheap price. In contrast, if you wait for the price to drop, the beautiful location will no longer be available.

 

When the market is better, the number of apartments and land array of projects with a convenient location and nice view will increase, while the houses with bad position will be really difficult to sell. Thus, waiting for market decline is not necessarily a good strategy.

 

Public opinion recently focused on lower real estate prices, but the majority of concern is exaggerated. The average prices of real estate are high due to long-term speculation from the previous price fever; therefore, for the real estate market to return to normal trading, the first condition must be the lower prices. Property in a convenient location with enough space for living, convenience associated with social infrastructure and feng shui will govern the desire to own property rather than the issue of price. In wholesale, price will be put on top, while with consumer demand, this is the time to select the appropriate places.

 

That the discount is regulated in normal market conditions is a good thing, as consumers think that their land owners and speculators inflated the price too much, even doubled four times compared with the current price with the same position plot of land and project. They might now not be so foolish to buy land at this time, and many consumers consider that they should wait for acceptable low prices.

 

Besides waiting psychology, consumers fear of being pickpocketed again, of course also the impact of the crisis and tight cash flow, though it is the self-regulation of the market. Discount is good for consumers, as well as the opportunity for real estate investors to reconsider, reset policy, and restructure their products to meet market demand.