Many buyers, land prices are 'warming' again

Mr. Vu The Anh (Ba Dinh, Hanoi) said that 2 years ago, he had to leave the "frozen" land market to switch to the apartment segment. However, recently, seeing that the land market is gradually stabilizing and attracting more and more customers, he switched back to the old market.

Mr. The Anh analyzed that apartment prices are constantly increasing due to the scarcity of supply. Therefore, this is the right time for him to switch his investment to land because there are more opportunities for profit.

Ms. Nguyen Thi Nga, a real estate investor with many years of experience in Hanoi, has recently started going to some provinces on the outskirts of Hanoi to "hunt" for land for customers. According to her, the land market has not completely "defrosted" so investors can easily choose beautiful plots of land but the prices are falling sharply.

" The price of an apartment in a district on the outskirts of Hanoi is also around 2.5 - 2.9 billion VND. Meanwhile, with this amount of money, you can invest in some plots of land in urban areas of provinces with synchronous planning or a plot of land on the outskirts of the city ," said Ms. Nga.

Many buyers, land prices are getting warmer again. (Illustration photo)

Confirming that the land segment is gradually "warming up", Mr. Dinh Van Hai - Director of Hoang Hai Real Estate Office (Soc Son, Hanoi) said that in 2023, his office led 100 groups of customers to see land in the Soc Son area but could not sell a single plot.

However, after the Lunar New Year, the number of customers returning to buy has unexpectedly increased. In the past month, his office has successfully traded 10 lots worth 6 billion VND or less. The fastest and most liquid are still the 1-2 billion VND/lot line, with red books.

“ For customers who buy for a second or third home, plots of land of 1,000 - 2,000 m2 with 400 m2 of residential land, priced around 5-7 million VND/m2, are sold quite quickly. As for customers who want to keep their money from losing value, they prefer to buy small plots of 100 m2 priced at 1 billion VND. We have sold many plots priced at 1-2 billion VND ,” Mr. Hai shared.

The first quarter 2024 report of PropertyGuru Vietnam also shows that the land market tends to "thaw".

Accordingly, the level of interest in land in the last two quarters of 2023 only reached 44% of the demand in the hot period of 2021, but by the first quarter of 2024 it had increased to 48%.

In the North, the demand for buying land increased sharply in some suburban districts of Hanoi, such as Dong Anh, Long Bien, and Hoai Duc, increasing 1.7 - 2 times compared to the first quarter of 2023.

In the South, the level of interest in land has stopped decreasing. Compared to the first quarter of 2023, the current demand for land in District 9, District 12, Thu Duc, and Hoc Mon has increased by 13-25%.

Regarding the land price level in the first quarter of 2024 compared to the same period last year, the South had a 3% decrease, but the North increased by 25% and the Central region increased by 4%.

Mr. Dinh Minh Tuan, Director of PropertyGuru Vietnam Southern region, commented: “ The attractiveness of the “king investment channel” is back and the land segment under 2 billion is receiving the most attention. From the end of 2023 to the beginning of this year, the market has seen more and more “shark” investment groups hunting for large quantities of land. When demand increases more clearly, prices will increase .”

Mr. Tuan assessed that the recovery of the land market is driven by 3 driving forces.

The first is the cyclical nature of the land market. In March (after the Lunar New Year), the demand for land often increases.

Second, land prices have been adjusted in some areas, causing investors to consider entering the market. Many southern provinces such as Ba Ria Vung Tau, Long An, Lam Dong, and Dong Nai have seen current land prices decrease by 12-19% compared to early 2023.

Third is the wave of change of 3 new Laws that will take effect from 2025.

“ The tightening of regulations on land subdivision is a hot spot. It is predicted that the supply of subdivided land will decrease sharply after 2025, but the demand for land is unlikely to decrease in the long term because Vietnamese people still favor this type of land. When supply is low and demand is high, land prices will increase. Many investors want to grasp this trend and start looking for land before the new law is applied ,” Mr. Tuan shared.

Mr. Tuan also believes that now is the right time to hunt for investment land. However, investors should choose land plots with reasonable prices, under 2 billion VND, with full legal documents and ownership certificates. He predicts that this group will record increased transactions in the near future.

" When the revised laws are applied from January 1, 2025, the supply of land will be less because investors are limited in dividing and selling land. At this time, land prices may enter a new cycle of increase. In previous law adjustments, land only increased, not decreased."

Many opinions predict that the land fever may return in the period 2025 - 2026. (Illustration photo: B.L). — Many opinions predict that the land fever may return in the period 2025 - 2026. (Illustration photo: BL).

Sharing the same view, Mr. Tran Khanh Quang, General Director of Viet An Hoa Real Estate Investment Company, also said that legal problems are gradually being resolved, real estate in general and land in particular are recording positive changes in the number of transactions.

In the long run, land is still very attractive to investors, so the selling price will continue to fluctuate in the coming time. However, Mr. Quang emphasized that compared to land in big cities, provincial land will be a step slower, and there will be no sign until 2024.

Mr. Nguyen Van Dinh - Chairman of the Vietnam Real Estate Brokers Association said that investors are starting their journey of "hunting" for land in the suburban areas of big cities, localities with strong infrastructure development and high urbanization rates with prices considered quite "bargain", with much room for growth in the future.

The most interested real estate type in 2024 is suburban land, the price segment under 2 billion VND/plot attracts the most attention. The attraction of land in the long term will be difficult to decrease. This segment has always been popular with investors thanks to many factors, typically the preference for houses attached to land and the need to accumulate safe assets as well as the ability to increase profits from land remains high.

"Based on the research stream that extends the repeating cycle, the land fever may return in the period of 2025 - 2026. The current period until the first half of 2024 can be seen as the beginning of a next recovery and growth cycle of the real estate market ," Mr. Dinh emphasized.

Chau Anh

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