“I have received many questions whether the real estate market is heating up or cooling down this year. I am confident that 2019 is going to be a great year for the market. Starting from earlier this year, we observe that the market is seeing good prospects with surging purchasing power .”
This is the sharing by Mr. Chu Thanh Hieu, General Director of MIK Home, on the prospects of the real estate market in 2019.
Mr. Hieu shared with VnEconomy that: - The real estate market is seeing unusual trends this year. Usually, the market would heat up just before the Tet holiday but the trend is reverse this year, with much better transactions in the early months of 2019 after Tet. Even our own projects have shown improved liquidity since Tet, with revenues increased by 1.5 times compared to before Tet.
It is partially because most projects, including ours, are in finalizing stages of infrastructure construction. Imperia Sky Garden developed on the ring road 2 might be taken as an example. In a broader sense, better market information also plays an important role in lifting the market. Information about economic prospects was not so clear by late last year, causing buyers to wait and hold off decisions. However, the picture starts to get clearer in early 2019, thus the market is seeing an upward trend.
So can it be understood that the market is progressing well, in your opinion?
Based on my observation, the market has been seeing positive signs, some are even very positive. Purchasing power has remained high since January. Reports by consulting agencies and real estate trading floors show that liquidity of real estate has improved after a long period of stagnation. In Hanoi, prices have slightly risen in all market segments, from condos to villas.
I think investers still need to consider how to make our projects respond to the buyer demand.
Do you see any changes from the buyer side, the homebuyers?
Changes are minor. Homebuyers still prioritize such factors as good facilities, premium quality and easy access.
Especially, upper-tier market is becoming more potential due to the growth of the super-rich group. A study by Wealth-X shows that Vietnam ranks 3rd in the world with the fastest growth in ultra-rich populations during the 2012-2017 period Knight Frank estimates the number of millionaires with a net worth of 1 million USD and above in Vietnam will grow from 14,300 to 38,600 by 2026.
Therefore, some new projects, such as closed residential areas of luxurious condos or villas adjacent to a park or a lake, have recently become a promising community for wealthy populations.
Buyers of these projects tend to be business owners, millionaires, celebrities, or the so-called “elite” group.
Do you think there is a high demand in the luxury sector?
Yes, I do. There is a considerable number of people who can afford luxury projects and are willing to make quick buying decision if the projects have unique features and make great first impressions. But that does not mean those people are easy to work with. High-incomers tend to have great taste and high demand when it comes to lifestyle. As a result, when building a community for the “elite” class, inveslopers of luxury projects are required to pay great attention to small details of accommodations, landscapes and also technical infrastructure.
- can take Elegant Park Villa (Thach Ban, Long Bien), one of our projects, as an example. We pay great details not only to each villa or detached house but also to the residential landscape. Even the selection of plants, flowers or sculptures must be done with great care to create a unique and picturesque living environment which inspires owners every day. Each selected plant also represents the symbol of wealth and prosperity for the owners.
In fact, the real estate market is very competitive and MIK Group is no exception. Our projects are featured with good facilities and premium quality, meeting most demands of homeowners. Especially , their locations have very easy access, making it convenient for residents.
We have learned many lessons from our past projects and realized that one of the key attributes of MIK Group is to create a community of civilized and elite residents. This is the big goal of our group. We will do our best so projects developed by MIK Group will always be top of mind for homebuyers.
Some opinions are that the upward trend of the market is thanks to “huge” promotion offered by inveslopers, such as 35-year mortgage provided by MIK Home in partnership with VPBank?
I would not deny it is a contributing factor, but the good prospects of the market are attributed to a combination of multiple factors, including macro-economy. Financial aid policies by MIK Home such as 35-year mortgage with 10% down payment and loans up to 75% are not only our own efforts but we also need to collaborate closely with the bank partner. Thanks to such policies, Imperia Sky Garden has received good responses and made its name in the market.
You shared that nowadays real estate projects must be featured with premium quality and modern facilities. But it means that the prices will be marked up?
In the long run , investlopers always need to upgrade the quality of life for residents, especially those in Hanoi who have higher and higher living standard. Therefore, facilities must be ready for the future. I think prices will see slight augmentation. When comparing our projects with other similar projects, our prices are not higher . I believe we set the price at a very attractive benchmark for buyers.
What advice would you give to individual investors in 2019?
Always be a smart investor. When selecting projects for your investment, you must take into account multiple factors, including legal aspects, traffic and enclosed facilities.
In addition, geographical location should also be taken into consideration given that the inner city land can no longer be developed, especially those in the 4 central districts.