Swing trading of apartments no longer attractive to investors: Experts
Investing in apartments to capture short-term gains has not been attractive to investors due to high prices caused by limited supply, according to experts.
Apartments are seemingly not attractive for swing trading at this moment (Photo: cafef.vn)
Hanoi (VNS/VNA) —💯 Investing in apartments to capture short-term gains hasnot been attractive to investors due to high prices caused by limitedsupply, according to experts.
“Apartments are not asattractive as before and careful consideration must be given to swing trading,”Dao Van Duy, general director of Vietnam Infrastructure Investment andDevelopment Joint Stock Company told local media. From the perspective ofa developer, Duy said the reason the previously profitable apartment segmentwas not attractive to investors was encapsulated in the story of prices. Nguyen Duc Huy, aninvestor, said the pandemic pushed the market into a lot of difficulties buthousing prices remained at a high level due to limited supply. He addedthat housing prices were already at high levels, making swing trading no longerattractive.
According to Nguyen Van Dinh,deputy general secretary of the Vietnam Real Estate Association, the time ofswing trading apartments to earn significant profit was over as priceswere unlikely to increase. ⛎ Dinh said swing tradingof apartments was not a good idea at this time.
Starting from last year,many secondary investors put their apartments up for sale to cut their losses. In different crises,assets like gold, foreign currency and real estate could be consideredsafe-haven investments. For real estate assets, important factors includeprice increases, liquidity and ability to use for business activities, thus,commercial land and property are more attractive than the apartment segment. According to the VietnamAssociation of Realtors, there was an absence of swing traders due to lowtransactions and profitability. Nguyen Thi Thanh Huong,general director of Dai Phuc Land said the opportunity for short-terminvestment was not huge at this moment due to low market liquidity, adding thatshort-term investment would provide gains only when the real estate market wasrobust or there were new key projects./.
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