When FOMO Overshadows Reason
During numerous land fever episodes, from Bac Ninh and Hoa Lac to Phu Quoc, it’s common to see crowds rushing to view properties and place deposits within hours. This reflects the FOMO (Fear of Missing Out) mindset, where investors fear losing profitable opportunities if they don’t act quickly.
Many investors admit they commit funds not due to thorough research on planning or legalities but because “everyone else is buying, and I don’t want to miss out.”
One of the most glaring manifestations of FOMO in real estate is the tendency to chase rumors. Merely mentioning a new highway, airport, or industrial zone can cause land prices to skyrocket, even if the infrastructure is only a proposal on paper.
Consequently, many investors succumb to herd mentality, making buying decisions based on others’ actions rather than a thorough analysis of the property’s intrinsic value. Numerous cases involve hasty transactions, with deposits made within hours, bypassing legal checks or planning reviews.
Additionally, FOMO often comes with unrealistic profit expectations. Many believe land prices can double or triple in a short period, despite real estate being a long-term investment requiring vision and patience.
Risks of the FOMO Frenzy
In reality, many buyers purchase at peak prices. When the market cools and liquidity stalls, they’re left with hard-to-sell assets, often incurring significant losses if they need to liquidate quickly.
Moreover, FOMO leads many investors into fraudulent projects, land with planning restrictions, or excessive financial strain due to bank leverage.
To mitigate FOMO-related risks, investors must remain rational and establish clear principles before committing funds. Primarily, investments should be based on intrinsic value—thoroughly analyzing infrastructure, actual demand, and rental potential rather than relying on rumors.
Simultaneously, legal due diligence is mandatory. Only projects with transparent documentation and official transaction approval should be considered.
Another critical factor is cash flow management. Avoid excessive borrowing beyond repayment capacity, especially in volatile markets, to prevent being caught at the peak.
Finally, investors should adopt a long-term mindset, viewing real estate as a sustainable wealth-building channel rather than pursuing short-term speculative gains.
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