Return of the “King of Investment Channels”
Interest rates on savings accounts continue to drop to record lows, approaching 2%, resulting in a decline in interest rates on loans to 6% for new loans. The availability of cheap money has encouraged people to borrow to buy homes and invest in real estate. In addition, the lower interest rates have made savings accounts less attractive as an investment option. Many experts predict that excess liquidity may shift to other channels, with real estate being one of the potential markets.
Analysts believe that after the surge in the apartment market in Hanoi, the land segment has started to “thaw” and is expected to grow in the coming months. Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn, said: “We previously predicted that land, especially low-rise products in urban areas, would be the slowest segment to recover, with signs of improvement not expected before the end of 2024. However, this segment has already shown its appeal, and the “king of investment channels” has returned. In the first quarter of the year, several large groups of investors have been actively acquiring land. This could lead to an earlier-than-expected upturn in land prices, possibly starting in the second quarter of this year.”
Urban land, the “king” of investment channels, is making a comeback.
As observed, prices of land and adjacent properties are currently stable, but the number of investors with excess cash available to purchase land has been increasing since the end of the first quarter. As demand rises, prices will likely follow. Several real estate agencies have confirmed that land prices are adjusting even within this month of April.
Experts believe that after apartments and villas in Hanoi, the influx of investment money is spreading to other provinces in search of suitable real estate products with clear legal procedures and completed infrastructure. So, where will this strong investment flow head to?
Identifying the Investment Haven
As the second-largest city in Quang Ninh province, Cam Pha has proven its potential and strong economic foundation in the decade since it became a city. This is one of the reasons why, as the real estate market in Hanoi heats up, substantial funds from investors have begun flowing into Cam Pha.
Observations indicate that the real estate hotspot in Cam Pha is centered around the Safabay Entertainment Bay project. Strategically located at the heart of Cam Pha, the Safabay Entertainment Bay project has attracted investors’ attention because of its prime location stretching over 2.6 km along the Ha Long – Cam Pha coastal road, with a pristine 1.2 km private beach and an unobstructed view of the heritage Bai Tu Long Bay.
Safabay Cam Pha is considered a “value zone” for pricing.
Safabay’s transparent legal status and affordable pricing have made it particularly appealing to investors. The project has completed its entire infrastructure, and individual land plots have been issued with red books, ready for transfer to buyers immediately upon completion of the sale and purchase contract. However, the prices of products in the project start at just 38 million VND/m2.
This competitive price is considered a “value zone” when compared to long-term coastal land products in other coastal cities. It is estimated that similar locations in Ha Long have already surpassed 200 million VND/m2. Even more remarkably, prices at Safabay Cam Pha are only 1/10th of the prices of long-term coastal land in Da Nang – Nha Trang.
In addition, the developer of Safabay Entertainment Bay has introduced support policies for development and operation to provide current cash flow to customers. Specifically, for completed products, customers will receive principal and interest deferrals for up to 24 months. The developer will also waive prepayment penalties, giving customers financial flexibility and control over their plans.
For unfinished products, the developer offers a special furniture package worth 1 million VND/m2 of constructed floor area for customers paying in full or 95% upfront, and a furniture package worth 500,000 VND/m2 of constructed floor area for customers using loan support with interest rate assistance. The developer also supports business operations for unfinished products at 20 million VND/month for up to 2 years.
Moreover, throughout April, Safabay Cam Pha will host a series of lucky draw events for customers with successful transactions. These events will award many attractive prizes, totaling billions of VND in value. Specifically, with every 15 successful transactions, customers will have the chance to win a grand prize of a Mercedes-Benz C200 car; with the first 100 successful transactions, customers will have the opportunity to win a Lexus ES 250 car. In addition to these grand prizes, the lucky draw also offers many other attractive rewards.
With its central location facing the heritage bay, long-term ownership rights, and attractive pricing of just 38 million VND/m2, Safabay Entertainment Bay is poised to offer investors high growth potential and immediate returns on investment in the current market. By purchasing any product at Safabay, customers benefit from both the exceptional sales policies of the developer and the opportunity to ride the rising tide of land prices in low-rise urban areas as the real estate boom spreads from Hanoi to neighboring provinces.
