Analysts say that investors now tend to be more cautious when making investments. Previously, they only considered expected profits and did not care about long-term value and ignored liquidity impact. But now these factors are the most important for them.

The investors’ tastes have also changed in terms of investment fields. Previously, most investors sought to buy land plots, but now the demand is more diverse.

The closed urban area projects with high selling prices have interest from buyers for investment and buyers with real accommodation demand.

Buyers now not only look for apartments with medium prices, but also high-end products priced at up to VND100,000 per square meter.

In addition, investors now tend to accept products outside central areas.

Those who have real demand for accommodation and limited financial capability will accept well-equipped apartments far from the city’s centre though they have to travel a long distance. Realizing the demand, investors now are moving to the suburbs of cities or provinces to develop long-term projects.

In general, investors have become more demanding with high requirements in quality. They will only inject money into high-quality products.

Nguyen Thi Thanh Huong, CEO of Dai Phuc Land, many projects are situated far from the center, but they still can lure buyers thanks to good design and equipment.

“The liquidity of projects heavily depends on the quality,” she said. “Buyers now want high-quality products with natural landscapes, amenities and transport infrastructure.”

Previously, the technical value of properties accounted for 70-90 percent of the value of houses, but now, ‘soft value’, or the factors related to living conditions and internal infrastructure, make up 50 percent of value.

Therefore, real estate developers not only spend big money on apartment blocks, but also on infrastructure items, worth up to VND1 trillion, in urban areas in order to improve liquidity. The projects located in isolated areas, with no favorable transport conditions, parks and schools, will be refused.

Such large-scale projects can only be developed by some big realtors. Dai Quang Minh, Dai Phuc, Novaland, Phu My Hung and Cat Tuong Group, for example, have created livable urban areas.

A representative of Cat Tuong said the group has kicked off the construction of a shopping mall with the area of 70,500 square meters at Cat Tuong Phu Hung project in Dong Xoai City in Binh Phuoc province. This is one of 18 facilities in the urban area to be developed there.

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Real estate activity falls as market conditions are unfavorable

The real estate market developed well in 2014-2018, but unexpectedly has cooled down since the beginning of 2019.

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