How to help real estate overcome the Covid-19 pandemic?News
September 10, 2020
The Covid-19 pandemic is causing large-scale disruption in every sector, including real estate - one of the most important field. Transaction volume fell sharply in April and May which lead the constructing plan of many projects delayed, respectively - CafeLand.
Real estate is facing difficulties due to force majeure factors and some longtime experts found the market still hold many hidden opportunities. Here are some of the facts below that are changing the real estate market outlook.
Technology has created a huge boost to the real estate sector in the scenario of leaving home is no longer a personal option and social distance a must. Because it is not possible to actually tour the house directly, sellers are using other digital methods to reach out to the two parties to ensure sales continuity. Virtual reality (VR) tours, artificial intelligence (AI) and data analytics (DA), along with different advancements that investors in the field are effectively leveraging.
An eye-catching virtual tour is more likely to go viral. People will share it on social networks and tell their friends about it.
Buyers don't have to spend days researching what they want to buy and they don’t take much time to choose a property that matches their preferences. Instead, they can do virtual tours from within their comfortable home and still get a 360-degree view of both the interior and exterior, including décor, furniture, and furniture, the toilet, etc.
As potential buyers get used to this new application, they begin to trade even without physical contact between the buyer and the landlord. In fact, this is a good time for people with stable jobs and enough money to buy a house because the price is very affordable.
Banks are also handled online home loans on the basis that the documents are uploaded. They have turned to a digital process to offer loans based on soft copies of income and asset vouchers uploaded by borrowers.
This benefits people who borrow money from the bank to buy a house. Their loans are automatically processed online and they have to sign an agreement for the loan to be disbursed instantly. It significantly cuts the time spent on actual verification and makes the process faster, transparent, and trackable.
The importance of homeownership
Big data can supply the knowledge necessary to make an informed decision, which makes it more practical to buy and sell more properties
When people have to work remotely and realise the importance of having a home office, they start turning their house to become a new workplace. Considering all these favourable of this idea, there is no better time to buy a dream home that will suit every need during the quarantine. Tenants trying to invest in their homes, hence, the lower-cost housing segment will see an increase.
Since the world is worrying about losing their jobs and cutting wages, they cannot afford to make any venture investment. However, the growing importance of owning a house, buyers are more likely to pour money into projects where the chance of delayed construction and the risk of ownership postpone. People currently desire to buy ready-to-live homes.
Roadmap in the future
There’s no doubt that Covid-19 globally impacts every business, bring new challenges in terms of slowing sales and liquidity.
Alternatively, with the advance of real estate technologies (PropTech) and other technological application in this sector, investors feel confident to continue the business and investment among this chaos.
The growing trend towards homeownership for everyone, especially, tenants who first buy home keep driving the demand of the real estate industry as well as facilitate property developers.Many PropTech companies focus on setting up messaging services to heighten communication between landlords and tenants.
Meanwhile, builders and developers should focus on solving “ready-for-sale properties inventory” rather than investing in new projects. This helps them to avoid the risks of additional losses regarding delayed construction.
Considering all these factors and the opportunities created by the current crisis, the world economy in general and Vietnam are expected to recover and return to their post-pandemic status.
Source: CafeLand, 2020. [online]. Available at: cafeland.vn