What is the most profitable real estate investment?

VCN - Affirming the potential of the land plot segment, experts said that for safe investment, real estate investors need to carefully study legal information, planning, liquidity as well as financial ability.
Tax payable of banks and real estate enterprises have reduced by trillions of VND Tax payable of banks and real estate enterprises have reduced by trillions of VND
Plenty of potential for development of the marine real estate market Plenty of potential for development of the marine real estate market
Vietnam records influx of real estate investment from Japan Vietnam records influx of real estate investment from Japan
3148-0905-con-sot-dat-nen-lich-su-lieu-co-quay-lai-trong-nam-2019
Advantages for those who have a lot of capital for long-term business

Mr. Bui Van Doanh, Director of the Institute of Real Estate Research, said that the land plot segment is still the most attractive in the future.

However, land plots are usually not for investors with limited capital or who have to borrow money to invest. Therefore, to make a safe investment, investors need to carefully study legal information, planning, liquidity as well as financial capacity.

Currently, many investors are also interested in resort land intourist cities. The Covid-19 pandemic is under control, the aviation and tourism industries will be a spearhead of demand around the world. Accordingly, the segment of coastal resort land such as QuangNinh, QuyNhon, NinhThuan, PhanThiet and Buon Me Thuot will see many opportunities.

Besides, Mr. Doanhsaid that the recovery and expansion of economic activities of domestic enterprises is also one of the main sources of demand for thedevelopment of industrial real estate in the future. However, industrial real estate is only for capital market investors with good business integration capabilities.

Along with the above two trends, the real estate market continues to record cash flows towards affordable housing products, quality and convenient apartments, residential land and private houses with legal papers and prime locations. This is also a remarkable channel for investment.

Commenting on the condotel segment, Mr. Nguyen Manh Ha, Vice Chairman of Vietnam Real Estate Association, said that the condotel market still has development potential. If investors have a small amount of capital, they should invest in following big investors such as buying condotels for lease. They hope to be able to make a rental profit and when real estate prices soar, so the value of their real estate will increase.

However, condotels are currently facing legal problems and slowing down in 2019 - 2020. The Government,ministries and agencies are completing the legal framework for this model.

High profits, high risks

Although real estate bonds are a risky investment channel, according to Dr. Can Van Luc, the corporate bond market has grown relatively quickly in the last three years, for three main reasons:

Firstly, the Government has a development orientation to this market in order to diversify medium and long-term capital sources for businesses.

Secondly, the starting point of the market is still low, currently equivalent to about 11-12% of GDP, compared with the regional average of 20-25% of GDP.

Thirdly, this is also an investment channel of both individuals and organizations with relatively attractive interest rates.

"However, in the economic rule, high profits are often associated with high risks,"said Dr. Can Van Luc.

Currently, businesses that issue real estate bonds are not unable to borrow from banks, but sometimes due to the calculation of capital structure, they can borrow a part and issue partial bonds, especially to mobilize long-term capital in the context that this source of capital from banks is still limited.

Regarding what investors should note, according to Mr. Luc, first of all, it is necessary to understand and grasp the essence of the real estate bond issuer.

After that, it is necessary to have a clear understanding of the issuance transaction, especially the conditions of interest rates, collateral, principal and interest payments, transfer conditions, transparency as well as compliance with legal regulations.

“Be careful with interest rate conditions. For example, the business promotes interest rates of up to 18% per year, it should be understood that it is not a 1-year fixed rate, but this is the maximum, actually lower. The longer a bond is, the higher the interest rate must be because of the higher risk it presents,”said Dr. Can Van Luc.

The expert hopes that the corporate bond market will continue to develop in the spirit of Decree 81, in which it is necessary to soon establish a credit rating organization for enterprises, so that investors can consult and make decisions.

By HoaiAnh/ KieuOanh

Related News

Strengthening the financial “health” of state-owned enterprises

Strengthening the financial “health” of state-owned enterprises

VCN - The state economy plays a key role in the socio-economic development process, but it is necessary to strengthen the financial health and competitiveness of state-owned enterprises (SOEs).
Electronics industry overcomes challenges to penetrate deep into global supply chain

Electronics industry overcomes challenges to penetrate deep into global supply chain

VCN - In addition to the opportunities from the investment shift in the electronics industry, Vietnamese enterprises also face many challenges in terms of capital, technology and human resources. Ms. Do Thi Thuy Huong, Executive Committee Member of the Vietnam Electronics Industry Association (VEIA), shared about the future directions for this potential industry.

Latest News

VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - As one of Vietnam's strong export industries to the UK, especially when the Vietnam - United Kingdom of Great Britain and Northern Ireland Free Trade Agreement (UKVFTA) comes into effect, with a detailed information approach strategy, it has created a great driving force to promote the export of Vietnamese seafood products to this market.
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

VCN - By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.

More News

Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

VCN - The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
What obstacles limit the market share of Vietnamese goods in the UK?

What obstacles limit the market share of Vietnamese goods in the UK?

VCN - Vietnamese goods account for only about 1% of total imports into the UK market. One of the reasons is that they have not yet built their own brands and have not focused on effective strategies and approaches to market information.
Why seafood exports to some Middle Eastern Countries are stalled

Why seafood exports to some Middle Eastern Countries are stalled

VCN - Several shipments of seafood exported to certain Middle Eastern countries have been delayed due to legal challenges related to consular legalization procedures. This has created significant bottlenecks in accessing these markets.
Storm No. 3 destroys profits of many insurance companies

Storm No. 3 destroys profits of many insurance companies

VCN - Due to the impact of storm No. 3, the business results of the third quarter and the first 9 months of 2024 of the insurance sector have been significantly affected. This requires more efforts from businesses for the results of the whole year 2024.
Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Cooperation in the Halal industry can help Vietnamese products reach nearly 2 billion Muslim consumers worldwide, representing over 24% of the global population, according to Malaysia’s Minister of Investment, Trade, and Industry Zafrul Abdul Aziz.
Tra fish sector aiming for production, processing greening for sustainable development

Tra fish sector aiming for production, processing greening for sustainable development

Greening production and processing to meet export requirements is both a trend and a necessity for many industries, including the tra fish sector.
Read More

Your care

Latest Most read
VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - Mr. Nguyen Hoai Nam, Deputy General Secretary, Vietnam Association of Seafood Exporters and Producers (VASEP), said that the advantage that UKVFTA brings is that the main products of the seafood industry enjoy 0% import tax to the UK, especially key
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN - E-commerce platforms have emerged as crucial distribution channels, enabling goods to reach consumers quickly and conveniently.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Mobile Version