Hanoi (VNS/VNA) - Many people with money and without investingknowledge have chosen property as a safe haven, helping estate prices stillincrease despite the pandemic, experts have said.

Real estate gurus were speaking at a forum held by The leader magazine in Hanoion November 25.

Nguyen Van Dinh, vice chairman of Vietnam Association of Realtors (VARS), saidthere were some signs showing recovery in the country’s property market afterCOVID-19. The absorption rate increased from 14 percent in the first quarter to37 percent in second quarter and 50 percent in the third quarter this year.

“Through each quarter, we see a rebound. It is forecast that in the fourthquarter, the rate will be even higher. The market returns to the rule of everyyear as better transactions are recorded at the year-end months,” Dinh said.

Apartments with selling prices of 25-35 million VND per square metre had hightransactions while the high-end ones with prices of more than 50 million VND persquare metre had few successful transactions.

Nguyen Tho Tuyen, chairman of BHS Group said many people had found real estateas an investment channel in the difficult economic situation due to COVID-19.The big demand and lack of supply had caused estate prices to rise despite thepandemic.

“Not only in Vietnam, real estate prices in many other countries have been alsoincreased. However, property prices in Vietnam increased higher as Vietnamesepeople have psychology to buy real estate if they have money,” he added.

Hoang Nguyet Minh, deputy director of Savills Hanoi, said: “In the upcomingtime, when the macro indicators are improved and the investment environmentcontinues to improve, the real estate market in 2021 will have a strongerdevelopment compared to 2020. In particular, banks have a huge surplus ofmoney, making interest rate incentives still very attractive. The segments ofhousing, land plots, Grade A office and supermarket will attract investment.”

Some experts also said the domestic real estate market had entered a “newnormal” as the COVID-19 pandemic was controlled in Vietnam, but still complexin the world. While some businesses had narrowed their business plans, manyother firms had promoted disbursement with the aim of leading the market andleading the cash flow of customers and investors.

Tuyen said that if in the past, investors often aimed to “surf” to make a quickprofit, now most of them were looking to long-term investment. People wouldlook for products with large scale, having a beautiful landscape and which aresecure, smart, close to medical facilities, education and services. Under theinfluence of the pandemic, the demand for houses in the suburbs would alsoincrease.

For example, in Hanoi, with 8 million people there would be about 2 millionvisitors a year. However, the number of existing rooms in the city’sneighbouring localities was only about 1,000. The market lacked resort projectsrun by professional organisations.

Truong Xuan Quy, general director of Flamingo Land, said: “With the Flamingo DaiLai Resort project, despite the pandemic, we introduced to the market a largenumber of products and sold very well. That is due to the combination of manyfactors, from the brand, reputation and the reasonableness of the products. Ineach project, we have different approaches to customers based on specificresearch on the market as well as customers.”

He said they aimed to develop resort real estate with different competitiveadvantages. So with a 7 billion VND villa, the owner could earn 150 million VNDa month.

“Macro and planning factors will affect the investment cash flow.Differentiated products in the market will be given attention from investors.Projects which ensure schedule would attract buyers. In addition, technologyalso affects the movement of capital flows into real estate projects. This willbe a new opportunity for estate developers,” said Tran Thi Thu Hien, DTJCompany’s director./.