Phenomenon of phase shift between segments
Since the end of 2022, the real estate market has experienced a noticeable slowdown. Many projects have stalled, requiring extended payment deadlines or additional incentives for customers. In particular, speculative products with low actual demand, such as land, condotels, and detached shophouses, have almost no liquidity.
In contrast to the above phenomenon, segments that meet real demand such as apartments, houses, and central townhouses that can be immediately inhabited and used for business have continued to increase in price. According to a report by the Ministry of Construction, the primary selling price in apartment projects has increased by 2-4% since the end of 2023, reaching an average of 53 million VND/m2 in Hanoi. In line with the actual market situation, before the Lunar New Year 2024, the price of inner-city houses also suddenly rose by several hundred million VND per unit with a surge in transactions.
The phenomenon of phase shift between segments indicates that in addition to short-term and easily impacted investment capital cycles influenced by macroeconomic factors, a significant portion of funds from actual buyers serve as a “support” to sustain the market during an economic recession.
That being said, wise real estate investors will not stop investing, especially when deposit interest rates continue to decrease, currently at only half of the previous peak period; stock market fluctuations remain uncertain, and gold prices continue to soar.
Having experienced a “wave of euphoria,” investors are now more cautious in choosing products. Mr. Nguyen Quoc Hung, an investor in Hanoi, said, “Investing in long-term projects with a 5-10 year horizon is very risky. I will only purchase properties that can be used or leased to generate cash flow for loan interest payments. It may be difficult for real estate to replicate the previous period of hot growth for speculation.”
In the first three months of 2024, many projects have started to release their products to the market, making the overall market more optimistic. However, some projects with unfinished legal procedures have caused controversy.
2-in-1 project: Real value with complete legal procedures
Although newly launched on the market, Vaquarius has been highly regarded by investors because it combines these two elements: real estate with real value and complete legal procedures.
Vaquarius – The most bustling commercial hub in Van Giang.
The project spans 7.3ha in the most strategic location of Van Giang, facing the District Party Committee and the district’s People’s Committee, which will become the administrative, economic, cultural, and festival center of the most dynamic satellite city, just 15km from Hanoi. The project is surrounded by a crowded residential community with a commercial tradition and convenient amenities such as schools, hospitals, markets, cinemas, golf courses, all within a radius of under 1km.
Vaquarius has an open design with diverse utilities and different, flexible product designs to meet three objectives: generating cash flow, residential living, and investment. At the project, customers not only own the most commercially potential product in the area but also an ideal living space for multi-generation families. Moreover, they also possess a long-term, legally recognized asset with potential for price appreciation based on the development of Van Giang becoming a city in 2025.
Especially, the project brings a breakthrough in the market with the design of shophouses with underground floors, which not only follow the principle of “tall and wide houses” but also provide exclusive enjoyment spaces for owners, including additional areas for wine cellars, spas, banquet halls, entertainment rooms, etc.
Shophouse with underground floor functional illustration at Vaquarius.
Currently, Vaquarius has completed technical infrastructure construction, fulfilled all legal requirements, and has been confirmed by the Department of Construction of Hung Yen Province to meet conditions for residential business formation in the future for all 285 low-rise units in the project.
Vaquarius (New Urban Area in Van Giang, Van Giang District, Hung Yen Province) – A rare product, a sustainable and safe investment destination, and an heirloom asset that affirms the class of owners will be ready for sale in the second quarter of 2024.
Website: www.vaquarius.vn
