Amid the unpredictable fluctuations in investment channels such as securities, gold, and foreign currencies, urban real estate projects with high potential for liquidity and profits have emerged as a channel to help investors preserve capital and achieve sustainable profits.

Real estate remains a ‘safe haven’

Real estate is still an investment channel and a safe coffer whenever there is an economic turmoil or rising inflation. In China, the wealthiest 10 percent of the population allocate about 84 percent of their assets to land and real estate.

In Vietnam, real estate prices in some areas have been growing by 15-20 percent per year, with real estate projects in downtown Ho Chi Minh City constantly failing to meet the demand of investors.

Dr. Can Van Luc, member of the National Financial and Monetary Policy Advisory Council and Chief Economist of BIDV, said that investors are often afraid of risks, so they “do not put all of their eggs in one basket.”

Real estate is a promising investment channel at the moment when the stock market is only for players with financial knowledge.

When choosing which real estate to invest in, investors and homebuyers need to consider many relevant factors such as the advantages and growth potential of the project, legality, and their own financial capacity and ability to withstand potential losses.

As suggested by experts, safe products are "real products," or existing projects about to be handed over, in urban areas where utilities have been constructed and are about to be put into operation.

Some of the examples are NovaWorld Phan Thiet, NovaWorld Ho Tram, or the smart ecological urban area Aqua City.

The model of Long Thanh International Airport

Owning a finished real estate brings peace of mind to buyers, eliminating the risk of slow progress, construction legislation, or poor capability of the developer.

Owners can also easily transfer the projects, increase liquidity, and improve access to bank loans.

The second most important factor is the quality of infrastructure. Valuable projects must be situated in a strategic location with easy access to highways, airports, and major seaports.

By the end of this year, the completion of the Dau Giay - Phan Thiet Expressway will further expand the room for industrial, commercial, tourism, and entertainment development in Ho Chi Minh City and neighboring provinces.

By 2025, the beginning of the first phase of Long Thanh International Airport in Dong Nai Province will bring millions of domestic and foreign passengers to Phan Thiet, Ho Tram, and Vung Tau, increasing the value of tourist cities and satellite towns by 20-30 percent.

Unique model is an important factor deciding the value of the project.

In the past two years, Savills has noted that drive-by-destinations around Ho Chi Minh City have become increasingly popular.

In addition, the trend of relocating or investing in a second home for relaxation, rental, or service and business operations in response to rapid tourism growth is becoming more popular besides the transaction purpose.

“This is a good sign for tourist cities when investors can help reduce the pressure of making financial commitments during the operation of the project,” said Mauro Gasparotti, director of Savills Hotels Asia Pacific.

An urban tourism real estate project in Vietnam

Attractive projects in the market

Urban tourism real estate is a special segment, allowing investors to realize many creative ideas to create different products in the market, which can utilize Vietnam's available tourism resources such as beautiful beaches, majestic mountains and forests, or local cultural identity.

These resources have only been discovered in recent years along with the tourism boom, thus there is still a lot of potential for Vietnam's tourism to shine on the world map.

The current volatility cannot overshadow the potential of real estate in the long term. It even helps the market become more mature, transparent, professional, and stable.

This is also a good time for investors with suitable financial capacity to enter the market when reputable developers of projects such as NovaWorld Phan Thiet, NovaWorld Ho Tram or Aqua City are offering many attractive incentive programs to attract cash flow, namely quick payment policy and attractive interest rates.

Along with preferential policies, thousands of hectares of urban areas with modern utilities and high-class service standards offer a safe choice in the investment portfolio at this stage because the potential for an increase in asset value is almost guaranteed when the projects are fully put into operation. 

Real estate buyers will have the opportunity to reap great profits thanks to dual benefits including fast payment incentives and potential price increase when the property is handed over.

Nguyen Van Dinh, chairman of the Vietnam Association of Real Estate Brokers, said that the value of real estate in the market is increasing thanks to the properly invested infrastructure and inter-regional connections.

In addition, the scarcity of supply will also lead to higher real estate prices.