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Real estate market "real estate" because of the Covid-19 epidemic

The complicated developments of the Covid-19 pandemic have continued to push the real estate market into a quiet state.

In Van Don, after the news of the outbreak cases increased dramatically in the past 2 weeks, the number of visitors dropped sharply. Previously, on February 17, the information that the Government approved the adjustment of the general planning to build Van Don economic zone (Quang Ninh) until 2040, investors expected this area to be vibrant again soon.

(The real estate market of Van Don (Quang Ninh) quickly cooled down due to the resurgence of the Covid-19 epidemic.)

Mr. Pham Quang Tung (Director of Thanh Tung Land) said that since Van Don planning information appeared, the number of investors has increased hundreds of times compared to the previous time. However, Mr. Tung said, the market quickly cooled down because of the re-emergence of the Covid-19 epidemic.

“The fear of the crowd because of the pandemic keeps investors out of the market. Before that, some of the remaining plots of land were held by investors with falling prices. But the epidemic changed strongly, causing investors to lack interest in going to the market and losing money, "said Mr. Tung.

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(The complicated developments of the Covid-19 pandemic have continued to push the real estate market into a quiet state. Photo: Manh Thang)

Meanwhile, in Nha Trang, the impact of the epidemic also caused the real estate market here to fall into a state of "freezing". "Nha Trang is an area that has been heavily and clearly affected by the Covid-19 pandemic," emphasized Mr. Van Dung Chinh, Chairman of Nha Trang - Khanh Hoa Real Estate Club.

According to Mr. Chinh, in Nha Trang, tourists mainly come from Korea, China and Russia. However, China and South Korea are two countries that are heavily affected by the Covid-19 pandemic, so the Nha Trang market is losing this number of visitors significantly.

“The average number of Russian visitors to Nha Trang is estimated at about 30,000. This number compared to the time before the pandemic appeared, a serious decrease. Meanwhile, the average domestic visitors each year is about 4.8 million. But when translation information appeared, Nha Trang was almost absent from domestic customers. This greatly affects the resort real estate market in particular and the real estate market in general.”

Mr. Chinh said: "The freezing comes from the crowd mentality of the Vietnamese people who are easily confused and afraid. They are afraid of epidemics, so they do not appear in crowded places. They are afraid of the economic crisis, so they are afraid to put money down. That crowd mentality has been destroying the real estate market.”

(The scene is "quiet as a sheet" at a Hanoi commercial center on the weekend because people limit going out during the Covid-19 pandemic. Photo: Vu Duc Anh)

When will the real estate market recover?

The complicated developments of the Covid-19 Pandemic have severely affected the economy. Real estate is no exception to that impact.

According to Mr. Van Dung Chinh, it is difficult to forecast the recovery of the real estate market because the evolution of the Covid-19 pandemic is still complicated. Because the return to the trajectory of the real estate market depends greatly on the situation of ending the Covid-19 pandemic.

“If favorable, the Covid-19 epidemic may end in October 2020. With this time, the real estate market will not have until 2021 to show signs of a full recovery. Since the whole economy in general is shaken by the epidemic, it will take a long time for us to gradually start production and investment activities," Chinh said.

However, Mr. Chinh also said: "If the epidemic by the end of the year has not shown signs of ending, it is difficult to predict what will happen to the real estate market in particular and the economy in general. in a later period”.

(According to experts, real estate is still a safe and potential investment channel, because the market will quickly return to its normal trajectory after the epidemic ends. Pictured is Ecopark urban area.)

Meanwhile, Mr. Pham Quang Tung also said that, the real estate market will return to the normal trajectory when the epidemic ends, investors' psychology is secure.

“The real estate market is still a safe and potential investment channel. Currently, the number of investors who have money, but because of the fear of the epidemic as well as the economic crisis, the trend will be "to hoard money". However, the Vietnamese government is controlling the disease very well. It is expected that in the near future, the epidemic will stop and the market will become active."

Linh Linh