Over time, virtual value products are quickly exposed, while real estate with strong added value on land always has a sustainable increase and "makes money" over time.
A small island nation, but with potential and economic power that many other countries admire. One of the stories worth learning in the lion island nation is how the real estate market works. As a place where land is crowded with people, the scarcity of land in Singapore is understandable. However, after a period of massively chasing sales, businesses here in recent years have gradually turned to products with high living standards and long-term value for people.
Instead of houses with only 4 walls, Singaporeans gradually enjoy the "hanging gardens", the forests in the clouds, the large infinity swimming pool system... right at the place where they live. Those who have been to Singapore will surely be surprised and delighted with the tall buildings covered with trees or large parks, through high-rise buildings.
The concept of home in Singapore is gradually changing, not only as a place to stay but also to relax and enjoy. These products are therefore not cheap, but are always strongly absorbed by the market with large demand and increasing prices over time.
From the story of Singapore, looking at the Vietnamese real estate market, we can see many similarities. If in the past, the phenomenon of businesses "holding land funds" to make profits was quite common, now the story of real estate development is much different. Today's real estate developers are more concerned with the added value on land.
“All investment values on land such as landscape, infrastructure, living facilities along with connecting space, commerce and services created by the project are considered as the real value of real estate products. That value can be up to 70% of the home's sale price. This is the core of a real estate project,” said Professor Dang Hung Vo, former deputy minister of the Ministry of Natural Resources and Environment.
Urban areas in Vietnam
The real estate development story of Phu My Hung (Ho Chi Minh City), Ciputra urban area (Hanoi), Ecopark urban area (Hung Yen) or Vinhomes urban areas and the future The Global City Urban Area right in the financial center City main. Thu Duc are good examples of the added value that real estate developers multiply on land. Before real estate developers got involved, most of these areas were unattractive, with low economic potential. But with outstanding vision and huge investments in land, the investor has gradually turned the peripheral lands into the most livable places in the city.
“If self-developed, such land with little potential will take many decades, even never have a chance to become golden land. Only real estate developers with strong vision and potential know how to make land of long-term and sustainable value, "said Professor Dang Hung Vo.
In fact, today home buyers, even real estate investors have changed their "taste". They are more interested in real estate that brings life value instead of chasing the virtual real estate fever like before. Simply because a lot of people realize, products with real value will increase by themselves over time. It is a sustainable, economic investment and does not need to wait for any virtual fever. That explains the urban areas with infrastructure, landscape, full utility system always make the market floating.
According to experts,
Looking at the current real estate market, it can be seen that, if in the early stages of Phu My Hung and Ciputra developers bring a new ground in quality of life, a different highlight in the market, now investors are create megacities with distinct added values.
Typically, investors like Vinhomes create products that not only bring high living standards but also have different and unique experiences with "urban wonders", such as "Sea lake in the middle of the capital" or "Nest" The largest wave-making marine park in the world”… These unique living experiences not only attract a large number of residents, but also connect the community with shared pride, thereby indirectly increasing the value. Real estate here is many times higher.
Reality proves that the fever of the real estate market can cause the prices of many products to skyrocket. But when the wave peaks, virtual value products are quickly exposed, while real estate with strong added value on land always keeps prices or continues to increase. Even at the same time, just one road away from each other, well-developed projects in an urban area are full of high-class utilities despite high prices but have not yet sold out, while many projects have not been sold out yet. The next project with low price is still sluggish and not finished.
“Expensive cut into pieces. The people who can afford to rush to buy real estate with real value are not splashing money, nor are they waiting for the bulls of the market, but because they see the values themselves will increase. growth of future-oriented real estate, "said Professor Dang Hung Vo.
Tập đoàn PCM ký kết thuê 23 căn nhà phố SOHO phát triển khu phức hợp Prime Complex tại The Global City
Update on The Global City Project Progress November 2023, SOHO townhouses are nearing completion for handover