Real estate gets hot again, demand overwhelms supply
In the late stage of 2023 and early 2024, bank interest rates continue to decline. In March 2024, interest rates on savings fluctuate from 1.7% to a maximum of 4.65% per year, which is equal to or lower than the expected inflation rate of about 4-4.5% in 2024. With low interest rates, savings are no longer attractive, and investor funds are gradually shifting to more profitable channels like real estate.
Even without this shift in focus, the demand for real estate ownership in Vietnam has always been high, with the mindset “settling down – becoming prosperous” deeply ingrained across generations.
After the demand for settling down, real estate continues to be sought after as an asset-holding channel or to upgrade the quality of life and expand space for multiple generations of families.
In addition, owning rental properties is also an effective option compared to other channels such as digital currency or stock market, which are not friendly to new investors. According to a survey by batdongsan.com.vn, in January 2024, the demand for room rental and lodging increased by about 12% compared to December 2023. The current rental rates have increased by 10 – 20% compared to the early 2023 period.
While the demand for both residential and investment properties and rentals is increasing, the supply is limited. Over the past year, there have been no new projects launched in Ho Chi Minh City, and business activities have mainly relied on existing projects.
Also according to a report from batdongsan.com.vn, in the lunar New Year period, the number of real estate ads decreased by about 19% compared to December. However, the level of market interest increased by 66% compared to the same period in 2023. In the context of the market recovering and entering a new growth cycle, experts believe that the best opportunity to buy is “now ready”, especially for quality real estate with good policies.
Easily own luxury homes with attractive policies
To kickstart the new growth cycle, in early 2024, Vinhomes introduced the program “Buy luxury homes – Secure your finances” with a support program for installment payments “with 1-0-2” in the market.
Applicable in 3 Vinhomes Grand Park and Vinhomes Ocean Park urban areas 1 and 2, the policy allows homebuyers to enjoy a fixed interest rate of up to 15 years. Customers will have the principal rescheduling period parallel to the fixed interest rate of 6 – 7% per year depending on the low-rise or high-rise products in the first 2 years. After that period, the interest rate will be applied according to the market but not exceeding 8 – 9.5% per year. Customers only need to prepare 30% of the property value to receive the house for living or renting immediately.
This preferential policy solves the problem of “home ownership” for many people in need. Instead of waiting for decades to accumulate savings, many young people have the opportunity to immediately own quality apartments and experience a well-crafted, comprehensive life in top living areas with a “carefree” payment plan.
This installment payment policy by Vinhomes is a 1-0-2 opportunity for investors to catch the market’s growth wave.
Take the case of Ms. Thu Thao’s family (Vinhomes Ocean Park 1, Hanoi). With a savings of over 700 million VND, she calculated that if she deposited her money in a one-year savings term with an interest rate of less than 5%, she would only earn a few million VND per month, equivalent to 1/4 of the rental costs. Meanwhile, by buying on installments, she and her husband can immediately move into a luxurious 1-bedroom apartment with a monthly payment of just over 9 million VND in the first 2 years.
“Thanks to Vinhomes’ ‘guarantee’, my husband and I don’t have to worry about market fluctuations affecting the floating interest rate, which could rise up to 15% per year like in 2022,” Ms. Thao shared.
For families who want to invest in a second or third home as an accumulated asset, they can also take advantage of this “double advantage” policy from the developer to optimize cash flow. In this case, buyers can use this home for rent, generating monthly income, and feeling secure as their property is not empty during the waiting period for an increase in value. The installment cost will be deducted from the new income source, making the cash flow even more stable.
Investors can also cleverly leverage this policy as financial leverage to invest in luxury real estate, capitalizing on the market’s price increase. Since they only have to pay 30% of the initial cost to immediately receive the house, investors can optimize their existing capital, with reasonable upfront costs and monthly interest rates, while still having excess capital to allocate to other channels.
“Not investing now is a waste. After the initial 2-year preferential period, when the market starts buzzing again, I can sell this installment house at a bargain price, as Vinhomes has a great advantage in terms of price potential and high liquidity,” said Mr. Quoc Tuan, a seasoned investor in Hanoi, after recently investing in another townhouse at Vinhomes Grand Park 2 on an installment plan.
The combination of a strong market recovery wave and unprecedented preferential policies from Vinhomes has created a strong boost for the overall real estate market. This is also the golden opportunity to increase assets and capitalize on the upcoming growth cycle.
Seize the golden opportunity to own Vinhomes’ luxury homes without worrying about interest rate fluctuations with the most attractive policy of “Buying luxury homes – Secure your finances” in the real estate market at the beginning of 2024.
Customers only need to prepare 30% of the property value to immediately own a Vinhomes Ocean Park 2 villa or a The Zenpark – Vinhomes Ocean Park 1 apartment (Hanoi), The Beverly Vinhomes Grand Park apartment (Ho Chi Minh City). Vinhomes’ policy helps dispel all concerns about market fluctuations when the fixed interest rate starts from 6% – 9.5% per year, the installment period is up to 15 years, and customers can move in or rent immediately to enjoy a comfortable life, as well as the chance to “make money with money” in the top living areas in Vietnam.
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