Should You Invest in Real Estate During the Seventh Lunar Month?

In Vietnamese culture, the seventh month of the lunar calendar is considered inauspicious, often referred to as the “ghost month.” As a result, many people avoid major transactions such as purchasing or investing in real estate during this period.

Traditionally, the real estate market experiences a lull in activity during this month. While projects can see hundreds of successful transactions during regular months, the number of deals tends to drop significantly in the seventh lunar month.

However, in Buddhist belief, this month is considered auspicious as it is a time for people to perform good deeds and accumulate merit. The full moon of the seventh lunar month, known as Vu Lan, is a day for children to honor their parents and ancestors.

Contrary to popular belief, Nguyen Ngoc Long, a Hanoi-based real estate agent, shares that this period has been the busiest time of the year for his company. This is because many developers offer attractive promotions to stimulate demand.

“You could say that the seventh lunar month is the ‘sale season’ for real estate. During this time, real estate agents leverage these developer incentives to actively seek out customers and close deals,” Long says. “Since I started in this industry, the seventh month has always been the highest-performing month in terms of sales.”

Thanh Huyen, a real estate agent in Hanoi, shares a similar sentiment. Despite it being the “ghost month,” her clients continue to close deals as usual.

Huyen’s clients primarily invest in residential real estate in the inner districts of Hanoi. Therefore, they are solely focused on finding properties with attractive prices and prime locations, paying little attention to the time of the year. Moreover, this type of real estate rarely offers any promotions and depends mostly on the negotiation skills of the buyer and seller.

Giang Anh Tuan, director of the Tuan Anh real estate agency, acknowledges that while people used to avoid buying homes during the seventh month, this mindset has evolved.

In reality, the abundant rainfall during this period can hinder real estate transactions, especially for those who plan to renovate their new homes. Additionally, moving into a new home during rainy weather can be inconvenient.

“When it comes to investing in real estate, individuals should first determine their short-term, medium-term, or long-term goals, as well as whether the property is for residential or commercial purposes,” advises Tuan. “If you come across a good deal with significant discounts and promotions during the seventh month, and you feel it’s a suitable investment, then go for it.”

However, Tuan also emphasizes the importance of thoroughly examining the legal aspects of the property to avoid any pitfalls. He also cautions investors against taking on excessive financial leverage, recommending a maximum loan-to-value ratio of 50%.

Vu Cuong Quyet, CEO of Dat Xanh Mien Bac, concurs that with the growing scale of the real estate market, the notion of avoiding purchases during the seventh month is fading.

For many, the “ghost month” presents an opportune time to snap up bargains. Projects launched during this period often come with more attractive promotions than those offered throughout the rest of the year. Investors are primarily driven by profitability, disregarding previous superstitions. As a result, transaction volumes remain stable.

“The idea of refraining from buying a home during the ‘ghost month’ is no longer a constraint as it once was,” asserts Quyet. “The real estate market is evolving with time, and so are the beliefs and behaviors of buyers and investors.”

According to real estate experts, the crucial factors when purchasing a home are the orientation and feng shui of the property, rather than the timing of the transaction.

Completing the legal procedures and purchasing the property are separate from moving in and performing the housewarming rituals. If one still wishes to adhere to superstitions, they can opt to finalize the purchase during the seventh month and then choose an auspicious date later to move in and perform the necessary ceremonies.