VIETNAMESE PEOPLE RESERVE LONG-TERM REAL ESTATE
Vietnamese investors prefer long-term asset ownership and are reluctant to downplay money to buy property for 50 years.
At the seminar on Trends of Real Estate Ownership: International experience and Vietnam practice organized by VTV24 and Vietnam Real Estate Association on August 16, many experts acknowledged that there were too many psychological barriers to with real estate with limited time of ownership.
Mr. Nguyen Huu Quang, Deputy General Director of Netland Company, said that most Vietnamese people have access to real estate products for a definite time with very reserved attitude. This is understandable because the psychology of long-term property ownership is ingrained in people’s minds. In addition to concerns about limited ownership, the legality of timeless products is unclear as well. For example, is the original ownership period extended and not renewed for how many more years? This is a quite big obstacle that makes customers cautious when making investment decisions.
Meanwhile, Mr. Nguyen Hoang, Director of Market Analysis of DKRA Vietnam recognizes that legal issues with real estate have a very complicated deadline. Many people question the condotel red book or pink book (certificate of ownership) or not? The answer is that this type has only been developed for a few years, so most of them do not. “There has been a lot of speculation recently about getting a pink book for the condotel project, but the deadline for ownership is empty,” Mr. Hoang said.
The expert also said that investors are still worried about whether the real estate has a function of residence (long-term) or not because most of this type of property only has a function of staying (short-term). ). This reflects the concern of current buyers not only concerns about ownership period.
Ms. Duong Thuy Dung, Senior Director, CBRE Vietnam said, in the past, there are many new products that are real estate with limited term (officetel and condotel) rising beside the long-term property. (apartments, villas, townhouses).
The psychology of real estate buyers in Vietnam loves products with permanent ownership, so the consumption of this type of property in the market is high. The trend of consumption by both buyers and investors is still the type of housing with long-term ownership. However, in the first 6 months of 2019, the number of long-term real estate projects offering for sale dropped sharply with the same period in 2018. This is also the time when proprietary products have begun to receive the The interest of investors.
For hotel apartments and resort villas, buyers are mainly for investment. In two big cities, Ho Chi Minh City and Hanoi, there are also officetels – hybrid products between offices and apartments, but there are many ownership issues. Although a portion of investors have been accustomed to owning real estate for 50 years until the law becomes clearer, the majority of buyers remain cautious.
According to Dung, the legal factor is what investors place the most on access to property with definite time. There are many questions for this. What is the specific term of ownership for 50 years or 30 years? Is it possible to extend the ownership period and how much will it cost to extend the ownership period … Is the legal factor clearly stated in the contract? Next is the concern about financial factors such as selling price, rental profit, payment method, tax, bank support, the ability to increase value …
General Director of Dai Phuc Land, Nguyen Thi Thanh Huong said that the best solution for investors to receive real-time property ownership is the strong commitment of investors. Investing in product lines with potential risks (related to legal status, financial support for investors). Therefore, in order to have more attractive time-limited products, investors must commit to more attractive profits.
According to Vnexpress.net