HIGH INFLATION, WHICH REAL ESTATE SEGMENT IS SAFE TO INVEST IN?

Mr. Huynh Phuoc Nghia, Deputy Director of the Institute of Innovation and Creativity, University of Economics Ho Chi Minh City, said that the Russia-Ukraine war also contributed to the pressure of inflation by affecting the increase in oil prices.

For the real estate industry, the price of raw materials is also directly affected. Inflation also affects credit policies, and currently, Vietnam is tightening credit in many areas, including the real estate sector, especially corporate bonds.

However, Mr. Nghia believes that these macroeconomic factors will not decrease, hinder or delay the market: "Many people are concerned, but I think those issues are only short-term, and we will find ways to handle them."

Experts explain that to revive the economy, Vietnam is focusing on solving infrastructure issues. The better the infrastructure, the lower the cost, helping businesses to operate more effectively and produce more efficiently, especially in industrial parks.

AZB Joint Stock Company is the Design & Build of the Taekwang Can Tho factory project

In addition, industrial real estate is currently in a favorable position to attract FDI investment, benefiting from the global shift in production. In recent times, many businesses have relocated their factories from China to Vietnam.

According to Mr. Vo Van Muoi, General Director of Kim Thinh Phat Real Estate Joint Stock Company, if industrial real estate is a game for big players, then real estate near industrial parks is a high-profit investment opportunity for small investors and individuals. However, Mr. Muoi notes that investing in this market carries inherent risks and requires investors to be cautious about legal and planning issues.

Investors need to understand the three phases of the market in order to consider investment plans, timing for investing or withdrawing funds in a reasonable manner.

The General Director explained that the first phase is the sub-division phase when the planning information is just released. This phase has many risks, but high profits and low land prices, making it vulnerable to land fever. Some investors take advantage of the "wave" opportunity and make a lot of money in this phase, while others face risks and get stuck with a "peak holding" situation.

The second phase is when legal information is completed, industrial parks are shaped and planned. This is the best time for price increases, with good liquidity, making it easy to buy, sell, and generate profits.

Some factory projects have been constructed by AZB Joint Stock Company

In the third stage, when all information is clear and transparent and the industrial park is fully invested and completed, it is no longer a stage of capital gains investment but a cash flow investment. Investors can turn their real estate assets into stable and sustainable assets such as leasing properties for high-end professionals or opening restaurants and services.

Source Nhip Song Kinh Te