Real Estate Expert: The Era of ‘Flip-and-Sell’ Investing is Over

According to experts, the era of speculative real estate waves has passed. Projects relying on rumors, lacking legal clarity, and with incomplete infrastructure now struggle to find buyers. In contrast, projects with clear legal frameworks, well-developed infrastructure, and genuine residential demand continue to attract interest.

Mr. Nguyễn Ngọc Quang, a seasoned real estate investor in Hanoi, notes that while investors once profited simply by entering the market, today’s market is highly segmented. Those with long-term vision, who choose projects with solid legal foundations and strategic locations, still have profit potential. However, those expecting quick flips are likely to face capital lock-ins.

“Today’s market clearly favors genuine buyers over speculative investors. The ‘golden age’ of flipping is over. Long-term asset retention, focusing on legal compliance, infrastructure, and amenities, is now the safer path,” shares Mr. Quang.

He explains that current property prices across all segments are high, eliminating past opportunities for doubling assets. Investors must adopt long-term strategies or shift their investment focus to new areas.

Mr. Nguyễn Văn Đính, Vice Chairman of the Vietnam Real Estate Association, identifies three key factors limiting short-term speculative investments:

First, stringent credit controls and legal regulations from the State Bank hinder quick buy-and-sell transactions.

Second, high lending rates of 9–11% annually make speculative borrowing risky.

Third, buyers now prioritize genuine residential needs and long-term liquidity, with small investors becoming more cautious after many faced capital lock-ins.

Mr. Đinh Minh Tuấn, Director of PropertyGuru Vietnam, attributes the decline in speculative investing over the past two years in the Southern region to market stabilization and increased transparency.

Additionally, banks’ tightened policies and reduced capital flow to real estate have challenged investors’ ability to recycle funds.

Government regulations on project approvals, credit controls, and anti-speculation measures have also played a role.

“The market’s recent challenges—reduced liquidity, price drops, and cautious buying behavior—have further dampened speculative activity,” notes Mr. Tuấn.

He adds that investors are shifting to long-term, stable strategies. Limited supply in recent years, coupled with steady demand from genuine buyers and rental investors, has reduced speculative opportunities.

Mr. Phạm Đức Toản (EZ Property) predicts that from 2026 onward, increased supply will balance the market. Only well-timed, well-located projects will yield sustainable returns. Investors will favor mid-term strategies, holding assets for 2–3 years until infrastructure matures.

Conversely, some buyers still exhibit FOMO (Fear of Missing Out) during large-scale launches, often overlooking their financial limits in pursuit of promotions.

Ms. Đỗ Thị Thu Hằng, Senior Director at Savills Hanoi’s Advisory and Research Department, notes that after years of price increases, expectations of doubling profits are unrealistic.

Returns are now measured in percentages, requiring investors to carefully consider investment regions, cash flow, and exit timing.

“To achieve significant profits, investors must anticipate emerging administrative centers where real housing demand will arise, such as in newly merged provinces,” advises Ms. Hằng.

High-Quality Projects Attract Investment

Experts agree that only projects with strong legal foundations, reasonable pricing, and cash flow potential can attract investors today.

Mr. Nguyễn Anh Quê, Chairman of G6 Group, outlines four critical criteria for buyers: transparent legal status, stable planning, fair pricing, and realistic cash flow potential. These serve as a guide in the market’s restructuring phase.

Overall, the market is shifting from defensive to selective reinvestment. While new capital inflows are steady rather than explosive, they focus on real value.

Mr. Nguyễn Thế Điệp, Vice Chairman of the Hanoi Real Estate Club, highlights positive effects of the shift from speculation to value investing: prices align more closely with utility, reflecting true supply-demand dynamics and reducing irrational fluctuations.

Transparency and market confidence are strengthened as clear legal frameworks and project information enable better risk assessment.

“Investors should thoroughly research legal aspects, invest only in fully permitted projects, monitor infrastructure plans, and focus on areas with upcoming transportation and public utility projects.”

“They should also carefully calculate cash flow, set clear capital recovery timelines, and diversify portfolios to avoid overconcentration in one asset type or region,” recommends Mr. Điệp.