The real estate market is witnessing strong changes as businesses are constantly searching for and developing land funds to meet increasing demand.
The real estate market is witnessing strong changes as businesses are constantly searching for and developing land funds to meet increasing demand.
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| A project of Gamuda Land is being implemented in Thu Duc City (HCMC) Photo: Le Toan |
Multi-method
The real estate market in Ho Chi Minh City in particular and Vietnam in general has witnessed a shortage of supply in the past few years, causing great pressure on prices. Therefore, to meet customer demand, the most important thing for investors is to prepare land funds. This is a prerequisite task.
Speaking to Dau Tu Newspaper, Ms. Nguyen Thi Van Khanh, Deputy General Director of Gamuda Land Vietnam, said that Gamuda Land always prioritizes preparing clean land funds, with full legal documents, ensuring time and readiness to participate in the market when demand increases. In addition, real estate products are currently not only concentrated in central locations, but also expanding to more distant areas, taking advantage of developed infrastructure to have products with reasonable prices, but high growth potential.
To meet customer needs, the most important thing for investors is to prepare land funds.
“Our goal is to create an elite and sustainable community, rather than simply providing accommodation. This has been proven through Gamuda Land’s projects with high occupancy rates in a short time after handover,” said Ms. Khanh, adding that in the coming time, Gamuda Land will continue to negotiate with local partners to seek new investment opportunities. However, our competitive advantage does not lie in land prices, but in product quality and value brought to customers.
Similar to foreign investors participating in the Vietnamese real estate market, land fund expansion is a key factor for sustainable development, so domestic investors have also planned to expand land funds in the near future.
According to Ms. Nguyen Thanh Huong, Investment Director of Nam Long Group, this enterprise currently owns about 700 hectares of land fund, mainly concentrated in Ho Chi Minh City and satellite cities. However, to ensure long-term growth, Nam Long Group is constantly expanding its land fund.
“Nam Long is applying many different approaches to develop land funds. One of them is to buy back existing projects that already have suitable land funds. In addition, the company is considering participating in converting land use purposes from existing projects. At the same time, it is studying a new option of participating in land use rights auctions organized by the State. However, this is not simple, because the input costs through auctions are often very high. This pushes up prices and puts great pressure on real estate businesses,” said Ms. Huong.
In addition, Nam Long is also looking for development opportunities from accumulating agricultural land. According to Ms. Huong, this is a long-term strategy, helping businesses have more time to convert raw land into suitable land for future projects.
Unlike Nam Long or Gamuda Land, VinaLiving (under VinaCapital) does not have the advantage of owning a large land fund in Ho Chi Minh City, but this enterprise also has a strategic orientation towards expanding its land fund.
Mr. Tran Thanh Hai, Head of Investment Department of VinaLiving (VinaCapital) said that 7-8 years ago, after the resounding success of projects in Nha Be District (HCMC), the company actively sought opportunities to own more land funds in HCMC. However, in the next 5-6 years, this work did not achieve any significant breakthroughs.
Faced with that reality, in recent years, VinaLiving has decided to expand its vision to satellite cities and neighboring areas of Ho Chi Minh City. Specifically, VinaLiving has shifted its focus to the eastern and western areas of Ho Chi Minh City, instead of just being limited to the city center.
“This is a correct decision, because currently, infrastructure in these areas is being heavily invested in, with many key traffic routes such as the Long Thanh - Dau Giay expressway or urban railways and other infrastructure projects expected to be completed in 2025,” said Mr. Hai.
Despite expanding to the suburbs, VinaLiving still pays special attention to the central area of Ho Chi Minh City. According to Mr. Hai, central land always has high value and is sustainable over time. Therefore, the Company is focusing on researching projects to renovate old apartments in the center of Ho Chi Minh City.
“This is a potential direction, contributing to urban reconstruction while providing unique and quality products to special customers,” said Mr. Hai.
Fear of rising costs
The land fund expansion plan is like that, but when sharing with reporters, business leaders cannot help but worry about the cost factor. According to Ms. Nguyen Thanh Huong, one of the major difficulties that Nam Long and real estate businesses are facing is the increasingly high input costs.
Ms. Huong pointed out that the sharp increase in land use fees and construction material prices, combined with inflationary pressures, forces businesses to calculate very carefully to ensure reasonable selling prices that meet the needs of home buyers. If housing prices are too high, not only will people face difficulties, but businesses will also be affected in maintaining operations.
Therefore, real estate business leaders hope that the authorities will consider and adjust regulations and policies more flexibly to create conditions for real estate businesses to develop. When businesses exist and develop stably, the market will also benefit, both in terms of housing supply and project quality.
Source: https://baodautu.vn/batdongsan/doanh-nghiep-dia-oc-tich-cuc-mo-rong-quy-dat-d240595.html
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