Experts show how to choose real estate with long-term value

Bình Nguyên |

Experts recommend that investors prioritize real estate associated with planning, infrastructure, population growth and liquidity to create value in the long term.

After the period when the real estate market recorded many notable fluctuations, experts recommend that investors need to adjust their strategies, prioritize liquid assets and closely follow planning, infrastructure, population potential and long-term development potential of each region.

Mr. Tran Quang Trung - Business Development Director of OneHousing said that this is the time for investors to review the entire list of real estate they own, assess which assets should continue to hold, which assets need to be prioritized for investment and which will be the key real estate in the list in the next 5-10 years.

According to Mr. Trung, profit is very important, but liquidity is even more important. Investors need to anticipate market trends to determine how buyers' tastes will change in the future, thereby considering suitable segments instead of investing based on feelings.

For buyers to live in, it is necessary to note that the target is completely different from the buyer to invest, so do not confuse the need for housing and the speculative target.

A representative of OneHousing said that currently the picture of planning, infrastructure and urban development orientation is much clearer, and planning information is public. Therefore, investors should rely on planning to decide where to live or focus investment in the future.

Mr. Trung cited the periods that created opportunities to increase assets such as when Thu Duc City was established, Hanoi expanded its administrative boundaries after the merger of Ha Tay or the eastern Hanoi area developed strongly. However, according to him, the current context has changed, and successful strategies such as land subdivision and sale or trend investment in localities are no longer as suitable as before.

According to him, when choosing valuable real estate in the future, the most important factor is not how beautiful the project is, but the population planning of the area in the next 5-10 years, along with the development of infrastructure, metro, schools, hospitals, commercial centers and dynamic projects. These are the factors that determine real estate value in the long term.

After determining the area worth investing in, investors consider the financial problem. Mr. Trung believes that it is not advisable to use all resources for a deal but always need to maintain provisions to respond to market fluctuations. In investment activities, cash flow management is the most important factor, and the use of financial leverage is only truly effective when investors still control debt repayment cash flow.

From a market perspective, Dr. Nguyen Van Dinh - Chairman of the Vietnam Association of Realtors believes that buyers waiting for planning stems from Hanoi's new development orientation. Accordingly, instead of focusing on the central area, the city will expand its development space, form many growth poles and connect with provinces in the Capital Region.

According to Dr. Nguyen Van Dinh, when the State invests in infrastructure and develops new growth poles, it will attract people, jobs and investment, thereby creating a better living environment, business opportunities and real estate value.

He also said that, according to the plan, Hanoi aims to achieve an average income per capita of 14,000 USD/person/year by 2030, double the current level, and about 100,000 USD/person/year by 2065. As income increases, people will tend to choose areas with better living conditions to settle down, develop their careers and improve their quality of life.

Bình Nguyên
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