Investors seeking real estate from old projects

A lot of people are hunting the projects with the completion of ground clearance and houses on basis of competitive land price and construction cost.

Investors offloading the projects with uncompleted legislative procedures

Investing in real estate is always the purpose of many urban people because everyone thin that the investment will come to victory, never loss. So, not only those with abundant money but also the people with modest funding all have chosen specific segments to invest.

However, since the market became gloomy, the real estate price has fallen sharply, many investors had time to calm down and learn lessons for them.

Coming from the reality, prices of the projects with uncompleted procedures or ground clearance are slipping. Typically, the price of Thanh Ha-Cienco 5 project (Ha Dong Dist, Hanoi) plunged 40-45 million dong to 20-25 million dong per square meter, Kim Chung-Di Trach from 50-55 million to 25-30 million dong/sqm, An Thinh 6 project from 28 million to approximately 20 million dong/sqm.

Bich Lien, Director of Hanoi real estate trading floor said that in Ha Dong Dist, the project land prices saw a clear difference. While the prices of urban areas such as Van Khe, Van Phu, Xa La fell 7-10 million dong/sqm on average, that of the others like Thanh Ha dropped 20 million dong/sqm.

“Currently, the market is focusing on the completed projects and available delivery. And the projects with pending ground clearance are not attractive and almost unmoved for the last one year”, she added.

House buyers in the past recent really lost faith in real estate projects because there have been a lot of legislative conflicts between buyers and investors. So the market is shifting to the safe investment trend due to limited credit of banks and limited money source of buyers.

Opportunities from old projects

The market trend is offering good opportunities for completed projects.

Nguyet Nga, Director of Phat Loc Real Estate Company was quoted as saying that the property price is at low level therefore many customers decided to join the market at this time. The point is that customers are paying attention to completed projects only. A house in the projects in Ha Dong Dist costs around 7-8 billion dong per 80-90 square meter unit. But with only 4-5 billion dong, customers can afford to buy a house with completed body construction, which is attractive for long term investors and real demanders who do not have financial pressure. - Source: Vietbiz24