Investors are pouring money into buying real estate because they fear that a series of policies will push up real estate prices.

Many real home buyers and investors are speeding up their home buying decisions because they are worried that prices will increase when the market absorbs policies from real estate-related laws that come into effect.

Many real home buyers and investors are speeding up their home buying decisions because they are worried that prices will increase when the market absorbs policies from real estate-related laws that come into effect.

Assessing the recent real estate market, Ms. Do Thu Hang, Senior Director, Research and Consulting Department, Savills Hanoi, said that the Hanoi real estate market is experiencing local fevers in the apartment, alley house, villa, and townhouse segments.

According to a survey by Savills, in many areas, the selling prices of apartments and houses in alleys are constantly fluctuating. Along with that, the villa and townhouse segment is also constantly increasing. The scarcity of supply for a long time, along with the increasing fear of missing out, has been causing customers to tend to make decisions more quickly than before.

"Most people who intend to buy a house at the present time make a decision very quickly, instead of spending a long time considering, waiting for prices to drop or continuing to look for more suitable apartments," Ms. Hang commented.

Sharing the same view with Ms. Hang, experts said that a series of policy information is having a strong impact on the psychology of home buyers. Specifically, the Land Law, Real Estate Business Law, and Housing Law officially took effect from August 1, 2024 with important contents such as banning the subdivision and sale of land plots, removing the land price frame, making investors worried that real estate prices will increase. Along with that, the Ministry of Construction recently continued to propose taxing second or abandoned real estate, which also strongly affects investors' decisions to buy real estate.

Real estate in the suburbs of Hanoi is catching the wave as a series of policies will push up real estate prices.

“The continuous increase in real estate prices has caused people who own real estate to hold on to their properties and not sell them in a hurry. Currently, many people have spent a lot of money on buying and selling real estate because they think that the State is about to impose taxes and land prices will increase even more,” said Professor Dang Hung Vo, former Deputy Minister of Natural Resources and Environment.

In addition, localities are currently preparing a new land price list according to the 2024 Land Law when the land price framework is removed. Specifically, after nearly 3 months of receiving comments, explanations and appropriate adjustments, the Ho Chi Minh City People's Committee has officially issued an adjusted land price list with the highest residential land price increasing by 21%. Meanwhile, Hanoi is also urgently reviewing and developing a Land Price List according to the 2024 Land Law.

Assessing the impact of the new Land Price List on real estate prices, the Ministry of Construction affirmed in a recent report to the Prime Minister: “When applying the 2024 land price list, land use costs for real estate projects will increase compared to before. This will directly cause housing prices to increase by about 15 - 20%”.

“Specifically, land costs account for 7-20% of the total implementation cost of a high-rise apartment project. Even for villa and townhouse projects, this rate can reach 25-50%. On the other hand, compensation costs for assets on land often account for a small proportion of construction investment costs, only about 2%,” the Ministry of Construction affirmed.

Due to the impact of the policy, real estate prices are forecast to continue to increase in the coming time, even increase sharply if the scarcity of supply is not improved. This is also the reason why investors are speeding up their real estate hunting, especially low-rise real estate around the capital because according to the rule, after each policy takes effect, the low-rise segment will be the segment with the strongest price fluctuations.

In fact, liquidity in the apartment and villa segment in Hanoi has increased sharply in recent times. Specifically, a series of apartment projects in the West and East of the capital by MIK, Masterise, Capitaland, Vinhomes, etc. have all recorded strong liquidity increases, even selling out immediately after opening for sale. In the low-rise segment, Vinhomes Co Loa, which has just been launched, has also recorded nearly a thousand transactions. In the South, Him Lam Thuong Tin project has also recorded a sharp increase in transactions in recent times.

Him Lam Thuong Tin, a project attracting the attention of many investors in the southern area of the capital.

Ms. Le Thi Bich Ngoc - Deputy General Director of Truong Son Real Estate Joint Stock Company (Truong Son Land) said: "If at the beginning of the year, the purchasing power mostly came from groups with real housing needs, recently the investment group has started to return to the market. Typically, at the Him Lam Thuong Tin project, at the present time when the project has been completed and ready to hand over the red book, many investors have rushed to put down money because they are afraid of missing the opportunity to own a house at a good price."

“The real estate market is starting to show signs of warming up, economic growth is better, so there are people rushing to buy real estate. Real estate prices are also increasing in both the primary and secondary markets. It cannot be denied that the price increase comes from the real supply-demand balance, but it is also partly due to investors' fear of missing out on opportunities. If they hesitate, real estate prices will continue to increase,” Ms. Ngoc commented.

Source: https://baodautu.vn/batdongsan/nha-dau-tu-do-tien-mua-gom-bat-dong-san-vi-lo-so-hang-loat-chinh-sach-se-day-gia-bat-dong-san-tang-d229730.html