Updated: Aug 5, 2020
We just conducted an independent survey with more than 200 Vietnamese individual real estate investors –the ones who spend money on apartments, houses, land to live or invest and play the most important role in the real estate market. Below are their thoughts about the current real estate market. (Part 1)
(Vietnamese Investors at an Investment Event. Photo: VnInvestors)
The survey was conducted on people - who have bought houses and land, by direct interview via email, text, phone. We sent questions to people who related to this subject and they independently give their thoughts and assessments by answering all or part of the questions. The survey team is independent, does not represent project owner, government or any other organization (ex: credit institutions, banks) that may affect the independence of the respond. This is the summary of the opinions in the survey.
1 / Have you ever invested in a house / land?
All answer yes.
2 / What are your good and bad impressions about the project owner / seller or broker?
Apartments: insecure about handover progress, ownership completion, management, operation, and commitment of seller.
Land: no transparent information about legal issues, ownership rights, and potential disputes.
3 / In your opinion, what are the risks in real estate investment?
Projects's legal status.
The uncertainty of the commitment of project owner / seller.
Unclear details of terms and conditions.
Operation and maintenance.
Infrastructure and connections of surrounding facilities are inflated, distorted, or not as synchronized as in the description.
4 / Have you ever been put at risk (or cheated)? If yes, could you please tell us?
37% of the respondents answered that they have purchased the apartment for many years but still have no pink book.
21% said they were involved in disputes when buying land.
All said that they are dissatisfied with at least one or more issues related to legacy / construction progress / handover / infrastructure / description and actual products / commitments of sellers.
5 / Have you ever witnessed any family member or friend being put at risk (or being cheated)?
All answered yes.
6 / How do you feel about the current real estate market?
The market will be challenged due to the general economic impact of Covid-19.
Renting is difficult.
Price is still higher than real value.
The information is not transparent and difficult to verify.
There may be opportunities to buy cheap real estate of current owners or project owners who are in need of liquidity.
7 / If you want to invest, what is the best time to buy?
26% answered this moment is a good time to buy.
53% answered that they would wait until the end of the year and consider the situation.
21% did not answer or said that it was unknown.
8 / Do you have any advice for project owners / sellers / brokers or government agencies?
Project owner / seller / broker: Information should be transparent and complete.
Govt. agencies: need to set up a real estate database webpage, publish the list of projects, planning and legal details to protect the investors’ rights.
There should be an interactive community page for connecting the parties of the market.
COMMENTS FROM VnInvestors’ SURVEY TEAM Covid-19 has been affecting many aspects of our daily life, business and behaviors. The real estate market has always been manipulated into prices, information,... by Sellers (project owners, sellers, brokers, exchanges,...). Any product or service market must focus on bringing the benefits to Buyers. A market manipulated by Sellers can not be sustainable. Sellers are often the main component in many workshops and conferences in the real estate market or in press conferences, which can not reflect the whole picture of the real market. Covid-19 makes people more cautious about everything. 10 thousands VND worth vegetables must be bought from a clean, reliable and safe place. As a result, investing in a product that worth hundreds million or billions VND is an important decision for any individual or family. The signs of violating the commitment by Sellers has risen and has been more and more serious (such as not being able to provide pink book, not handing over on time, not keeping the promise of paying interest,...), which will make investors become more cautious about the real estate market. The demand for transparent and complete information is indispensable. Therefore, the sellers who are working in a transparent and reliable way will gain buyers’ trust.
Samples of the survey interviews
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