Realizing that land still has the potential to generate profits, many investors have put down money right in the first days of the year. Some even put down deposits right before the Lunar New Year.
Realizing that land still has the potential to generate profits, many investors have put down money right in the first days of the year. Some even put down deposits right before the Lunar New Year.
 |
| Investors put money into buying land in the first days of the year. Photo: Truong Thanh |
As soon as Tet is over, investors are rushing to "put money down"
Not keeping the thought that “January is the month of fun”, on the first day back to work after Tet, Ms. Thu Huong - an office worker, went to the notary office to conduct a land transaction.
This “amateur” investor said that in the last week before Tet holiday, she deposited to buy a 90 m2 plot of land in Dong Tam commune (My Duc district, Hanoi) so that she could “close the deal” right after Tet.
“After researching the market, I found that the price of 2.1 billion VND for a plot of land on the inter-commune road is reasonable. This is a location with good business potential, so as soon as it is 'open', there will be buyers. To avoid the case of the seller changing his mind or increasing the price, I decided to put down a deposit immediately,” Ms. Thu Huong shared.
Land lots that have been divided into plots, have legal guarantees, are located in areas with complete infrastructure and are priced under 2 billion VND, continue to record good price growth rates.
According to Ms. Huong, investing in land is not as easy as before. Because the registration fee and income tax from transferring land use rights have increased significantly after Hanoi applied the new land price list. According to Ms. Huong's calculation, the total taxes and fees have increased nearly double compared to the beginning of last year.
Ms. Xuan Hoa, an investor, said that the land plot she bought in September 2024 is about to be profitable. This is a 120 m2 plot of land, located in Hoang Van Thu commune (Chuong My district, Hanoi), the purchase price was about 1.3 billion VND, but the current price the two parties are discussing has reached nearly 1.6 billion VND.
“Right before Tet, brokers kept calling to ask if I wanted to sell. Even about a month after I bought the land, there were customers who offered to pay about 100 million VND more,” Ms. Xuan Hoa excitedly said.
However, investors do not always reap sweet rewards when "surfing" the market. Ms. Hoa said that she had "buried" her capital for 7 years in a piece of land in Yen Nghia Ward (Ha Dong District, Hanoi). The pressure of paying bank loan interest always made her stressed and tired. The knot was only untied when she sold the land in early 2024.
“Although I sold it for twice the purchase price, after deducting the loan costs, the profit was not worth much. Not to mention the mental pressure that had been on me for 7 years. This was a time when I often had insomnia and headaches,” Ms. Hoa confided.
In addition, to facilitate the purchase and sale of land, especially in the suburban districts of Hanoi, investors will have to maintain a good relationship with local brokers. These people are considered “locals” in the area and will greatly determine the liquidity of the land.
“These brokers are usually people in the village. They know how to ‘hunt’ for good priced land that has not been ‘used’ by many people. However, these brokers will often hide the landowner’s contact information from their clients. They will only let the two parties meet when conducting the transaction at the notary office,” said Ms. Hoa.
Will 2025 be the year of land?
According to the Vietnam Association of Realtors (VARS), in 2025, plots of land that have been divided into plots, are legally secured, are located in areas with completed infrastructure and are priced under VND2 billion will continue to record good price growth rates. In addition, demand for purchase, including for both residential and investment purposes, will continue to increase along with the urbanization rate and economic development, on the basis of a completed legal corridor.
Sharing the same view, a representative of the Institute of Construction Economics (Ministry of Construction) also said that the land transaction situation this year will be more exciting than in 2024, with prices expected to increase by about 8-10%.
Talking to Dau Tu Newspaper reporters, Mr. Pham Duc Toan, CEO of EZ Real Estate Company, commented that most Vietnamese people still prioritize hoarding land or gold. In fact, since the 1993 Land Law was enacted, land prices in Hanoi have only had two trends, one is stagnation, the other is increase, but no decrease.
“Because of the above stability, many people consider land as a safe haven for assets to fight inflation. Therefore, many investors are still bold enough to invest if they see an area with potential, complete infrastructure, close to major cities and standard legal status,” Mr. Toan emphasized.
This CEO believes that the residential land segment can easily “fit in” with many different investment styles. Short-term buyers can make profits through local fevers in the market. Meanwhile, long-term investors can still rest assured to take profits after a few years.
However, he also noted that the suburban land segment has a rather slow liquidity rate, while the product itself does not have the ability to generate cash flow. Therefore, if investors use too much financial leverage, risks may arise.
According to Mr. Nguyen Quoc Anh, Sales Director of Batdongsan.com, from now until the beginning of the second quarter of 2025 is the time when the market enters a consolidation phase. Investors will gradually feel more confident about the development prospects of the real estate industry.
“After this period, the market will move towards a period of recovery, expected to start from the second quarter of 2025 to the fourth quarter of 2025. At that time, investors will no longer focus on selling price and legal factors like when the market was gloomy. Instead, the potential for price increase is the key to deciding to spend money. Therefore, profitable segments such as land plots are also given special attention by investors,” said Mr. Quoc Anh.
Sharing more about the potential for price increases in the land segment, Mr. Nguyen Quoc Anh cited a statistic that, in previous cycles, when the market moved to the development stage, with 100 VND invested, apartments would only earn 136 VND, but land would earn up to 300 VND. Therefore, land is still the segment that investors prioritize.
Source: https://baodautu.vn/batdongsan/cuoc-san-dat-nen-dip-dau-nam-d244586.html
Comment (0)