Should you invest in apartments or land? Real estate tenants prefer the segment under 10 million VND/month, more than 700 projects in Hanoi are reviewed, inspection conclusions, checks, post-checks... are the latest real estate news.
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| Real estate: Land is still an investment channel that receives much attention when the supply of this product is not much in the coming time due to regulations restricting the subdivision and sale of land. (Photo: Duong Tam) |
Should I invest in apartments or land?
With the thought that “buying land is never a loss” – land prices always tend to increase over time, many people plan to invest in a plot of land in a province on the outskirts of Hanoi. But some people also calculate that they can buy an apartment and rent it out monthly.
Mr. Le Dinh Chung, General Director of SGO Homes Real Estate Investment and Development Joint Stock Company, analyzed that in Hanoi, if you invest in apartments for rent, the demand for rent is high and it is easy to rent. However, at this time, investing in apartments will no longer be effective in terms of capital cost.
The reason Mr. Chung gave was that apartment prices are nearing their peak, so there is little chance of capital appreciation. With apartment prices rising, rental values are no longer so attractive. In fact, apartment rental yields in Hanoi only fluctuate around 3-4%.
Therefore, according to Mr. Chung, land is still an investment channel that receives much attention when the supply of this product is not much in the coming time due to regulations limiting the subdivision and sale of land. Moreover, land is an investment segment with many levels of money, suitable for many people.
“With the rapid urbanization, the demand in localities will be high, so investing to increase capital gains by buying land is still good and safe. With 3-4 billion VND, you can invest in land around Hanoi, economic axes associated with industrial parks such as Bac Ninh, Bac Giang or Hung Yen, Hai Duong, Hai Phong, Quang Ninh... These are areas that are currently attracting many investors' attention,” Mr. Chung suggested.
However, the General Director of SGO Homes also noted that when buying land, investors need to pay attention to projects that meet legal conditions, at least signing a sales contract or having a red book. At the same time, it is necessary to consider the investor's capacity; choose locations that meet the needs and attract people to live there in the future.
Mr. Pham Duc Toan, General Director of EZ Property, noted that at present, investing in apartments or land in big cities like Hanoi or Ho Chi Minh City is not attractive or effective. The reason is that prices are "anchored" high, but liquidity is decreasing.
"Apartment prices are beyond the affordability of many people who want to buy an apartment. If in the past, you could buy an apartment for 2.5-3 billion VND, now you can buy one for 4-5 billion VND. The price of apartments for investment has doubled while the rental price has not increased much, so the investment efficiency has decreased. Land prices have also increased along with the apartments. A house in an alley of 30 square meters, built 3-4 floors high, previously cost 3 billion VND, but now costs 5-7 billion VND, depending on the location," said Mr. Toan.
He added that many investors are tending to shift capital from big cities like Hanoi and Ho Chi Minh City to other areas like Hai Phong, Binh Duong, Dong Nai, Ba Ria - Vung Tau...
Tenants choose price segment under 10 million VND/month
Regarding the profile and psychology of real estate tenants, Marketing Director of Batdongsan.com.vn Le Bao Long emphasized that the need to rent mainly comes from the reason of saving money in all income groups. According to Mr. Long, 73% of respondents want to rent for less than 10 million VND, however, the supply of this segment is also shrinking.
Specifically, 41% of respondents to Batdongsan.com.vn's survey wanted to rent a house for 5-7 million VND, but the number of real estate listings for rent in this price range on Batdongsan.com.vn (somewhat reflecting the market supply) in 2024 only reached 19%.
The figures show that real estate rental prices have increased in line with the increase in prices in the buying and selling market, especially in the Hanoi market. Notably, 52% of survey participants living in Hanoi said they were willing to spend 31-40% of their income on rent.
In addition, in the context of the average asking rent in Hanoi reaching VND19 million/month, increasing higher than Ho Chi Minh City by VND14 million/month in the fourth quarter of 2024, tenants in Hanoi are tending to compromise more on amenities and location to cut costs. They are willing to choose to rent a place with fewer amenities, choose to rent a place further from the center, choose a place with lower quality, downsize to a smaller apartment, rent with others to reduce rental costs.
Mr. Le Bao Long recommends that tenants pay attention to some things, including clearly defining their needs regarding location, area, amenities, comparing prices in the same area for negotiation, checking the contract, rental status and payment terms so that the rental process goes smoothly.
More than 700 projects in Hanoi were reviewed, concluded for inspection, examination, and post-inspection.
The Hanoi People's Committee identified 712 non-budget capital projects using land that are behind schedule and issued a plan to handle and resolve them according to Resolution No. 04/NQ-HDND dated April 8, 2022 of the Hanoi People's Council on measures to accelerate investment progress, focusing on handling non-budget capital projects using land that are behind schedule in Hanoi.
By November 2024, 706 projects (accounting for 99.2%) with a total area of 11,352 hectares of land had been reviewed, concluded with inspection, examination, post-inspection and directed for handling. This is the content reported by the City People's Committee to the City People's Council at the 20th session.
Implementing the drastic direction of the City Party Committee and Resolution No. 04/NQ-HDND dated April 8, 2022 of the City People's Council, the City Steering Committee, the Party Committee of the City People's Committee, and the Chairman of the City People's Committee have regularly monitored, urged, directed, and assigned tasks to the city's departments, branches, and People's Committees of districts, towns, and cities to focus on organizing the synchronous implementation of measures, especially the work of reviewing, inspecting, checking, and post-checking, promptly detecting cases of delay and violations of the law on land investment, analyzing and clarifying the causes, proposing measures to remove obstacles and difficulties, and appropriate handling options.
In particular, the city has created conditions for investors to have feasible solutions and time to overcome the problem, put the land into exploitation and use soon, prevent waste, and contribute to preventing violations of the law on land management and use. Many extended projects have overcome violations, used land for the right purpose, proactively completed investment procedures, focused resources, overcame difficulties, completed investment projects, put the land into use; paid land use fees and land rent to the state budget according to regulations.
Cases of deliberate procrastination and continued violations will be strictly handled in accordance with the provisions of law. The Chairman of the City People's Committee, Head of the Steering Committee, chaired with the Vice Chairmen of the City People's Committee, directors of city departments and branches, and secretaries and chairmen of district, town People's Committees to periodically meet to listen to reports on the situation, results and direct the handling of each project (listen to written reports and view specific images of the current situation); request departments, branches, district, town People's Committees to proactively and focused on guiding and removing obstacles and difficulties, helping investors overcome them; proactively review, inspect and strictly handle violations in accordance with the provisions of law.
Therefore, of the 712 non-budgetary capital projects with land use that were identified as behind schedule, the City People's Committee has directed the handling and resolution of 706 projects (accounting for 99.2%) with a total area of 11,352 hectares. The remaining 6 projects (accounting for 0.8%) with a total area of 81.6 hectares of land, which have had policy decisions but have not been allocated or leased land by the State, are being inspected by the Department of Planning and Investment, proposing specific handling plans.
Hanoi approves plan for horse racing track worth over 400 million USD
The Hanoi People's Committee has just issued Decision No. 6396 approving the urban subdivision planning of Soc Son area 3, scale 1/2000 in the communes of Phu Linh, Tien Duoc, Tan Minh, Xuan Giang, Duc Hoa, Dong Xuan, Kim Lu and Soc Son town (Soc Son district).
Accordingly, the area of the urban planning study for Soc Son Zone 3 is about 1,424 hectares. The expected population by 2030 is about 46,210 people.
The research boundary is: to the North, it borders the planned route to Soc Temple; to the South, it borders Route 18, the new planned route; to the West, it borders the protection corridor and the Hanoi - Thai Nguyen national railway; to the East, it borders the 40m wide urban planning road.
The subdivision is divided into 2 planning zones (zones III.1 and III.2) with 16 planning blocks to control development and traffic routes.
Specifically, area III.1 has an area of 246.5 hectares, including 2 planning blocks which are ecological urban development areas, increasing greenery and water surface. In which, planning block III.1-1 is identified as a regional sports and entertainment center (horse racing track).
Planning block III.1-2 is identified as a new housing development area, with a complete social infrastructure system, in addition, developing commercial and service functions, supplementing the horse racing area in particular and the whole area in general.
Zone III.2, with an area of nearly 1,170 hectares, including 14 planning blocks, is an area focused on developing concentrated medical-cultural-educational complex functions, urban public services, forming a multi-modal transportation center, developing commercial service areas, offices, hotels, etc. connecting with Da Phuc station area, developing social infrastructure systems, expanding new residential land funds around existing villages, completing independent residential groups and residential units.
Earlier this year, the People's Committee of Soc Son district organized a consultation on the detailed planning project of 1/500 scale for the Multi-purpose Entertainment Complex - Soc Son Horse Racing Track in Tan Minh, Phu Linh communes and Soc Son town. The project has an estimated investment of about 420 million USD, creating direct jobs for about 5,000 workers, attracting about 25,000 workers to work in other service business sectors.
Regarding this project, in September 2019, the Prime Minister decided to approve the investment policy.
In October 2019, the Hanoi Department of Planning and Investment issued the first investment registration certificate, and the third change certificate in March 2020.
The racetrack is expected to operate after 2021 but has encountered some difficulties so it cannot be implemented.
In mid-2022, Hanoi proposed to the Prime Minister to remove difficulties in reclaiming 125 hectares of land to implement the project.
Source: https://baoquocte.vn/bat-dong-san-khong-phai-chung-cu-day-moi-la-phan-khuc-de-ra-tien-phac-hoa-chan-dung-va-tam-ly-nguoi-thue-ha-noi-ra-soat-hon-700-du-an-297326.html
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