Slow liquidity due to price expectation difference
The real estate market is entering a screening phase, as liquidity slows down and buyers are becoming more cautious in their decision to spend money. However, surveys show that cash flow has not left the market but is mainly waiting for the right time and product to return.
According to Mr. Dong Quang Canh - Senior Manager of Batdongsan. com. vn, currently the real estate market has not seen the situation of selling off, selling off or selling at a large loss.
He said that in Hanoi, sellers mainly come from the need to convert residences to suit living conditions or restructure investment portfolios. Meanwhile, in Ho Chi Minh City, many owners choose to sell when assets have reached the expected price and decide to take profits.
A survey by Batdongsan. com. vn shows that most sellers are still selling at prices higher than the initial purchase price. Specifically, 83% of respondents said the current selling price is still higher than the cost price, of which 42% said the selling price is about 10% higher.
According to Mr. Canh, this means that if there is a price adjustment, it is mostly just reducing the expected profit level, not accepting to sell at a loss.
In fact, if there is a price reduction, in many cases it is only a profit cut, not a loss cut," Mr. Canh said.
Representatives of Batdongsan. com. vn said that this is also one of the reasons why market liquidity in the past time has not improved as expected. According to him, the biggest difficulty currently is that buyers offer low prices, while sellers still maintain high expectations, causing the two sides not to find a balance, the negotiation process is prolonged and transactions are slow.
From another perspective, Mr. Canh assessed that the market is showing positive signals about cash flow. A survey by Batdongsan. com. vn shows that when asked what to do with the money earned after selling real estate, up to 84% of sellers said they would continue to buy another real estate.
According to him, this shows that cash flow is still circulating in the real estate market itself instead of shifting strongly to other investment channels.
Today's supply may become tomorrow's demand. This is a positive sign because cash flow continues to circulate in the real estate market," Mr. Canh assessed.
Mr. Canh said that survey data shows that the current context is different from previous market decline periods. Disappearance pressure has not appeared widely, most sellers still record profits, while most cash flow after transactions still choose to return to real estate. Slow liquidity mainly reflects price expectations between buyers and sellers rather than a sign of a wave of loss-cutting sales across the market.
Cash flow is still waiting for an opportunity to return to the market
Meanwhile, Mr. Tran Quang Trung - representative of OneHousing - said that the real estate market is no longer in a widespread hot growth cycle but is entering a restructuring phase, strongly screening according to project quality and development location.
According to him, Ho Chi Minh City has early developed in the direction of product segmentation and closely following the actual needs of each customer group, while Hanoi is in a stage of adjustment with delays. Only projects that meet legal requirements, planning and investor capacity can maintain competitiveness.
Regarding Hanoi's announcement of the 100-year vision plan, Mr. Trung said that every time the market enters a major planning cycle, a "rest" appears, when investors tend to observe and wait for a clear direction before disbursing.
OneHousing's survey of Northern customers shows that cash flow has not left the market but is in a state of waiting for entry points. In which, 17% of respondents expect to buy houses in the next 6 months, 41% in the 6-12 months, 28% in 1-2 years and only 7% have no demand. Notably, the proportion of customers planning to buy in the 6-12 months has increased from 32% to 41%, reflecting that potential demand is accumulating again.
According to Mr. Trung, the slowdown in transactions stems from many factors such as reduced landed house liquidity due to the psychology of waiting for planning, interest rates, real estate prices that have increased in the previous period as well as expectations for more suitable products in the new cycle. In the short term, the bottleneck is still liquidity when the absorption rate of many projects decreased compared to the previous year, reflecting the cautious psychology of cash flow.
