With 5 billion VND, should I invest in an apartment or buy land on the outskirts of Hanoi?

Currently doing business in Hanoi, Mr. Nguyen Tuan has a capital of about 5 billion VND and wants to invest in real estate.

Mr. Tuan calculated that this capital could buy a 3-bedroom luxury apartment and then rent it out monthly. Or another option is to invest in 1-2 plots of land in the suburban areas of Hanoi and wait for the price to increase.

"Which investment option should I choose to be safe, profitable and low risk?", Mr. Tuan wondered.

Sharing with VietNamNet reporter, Mr. Le Dinh Chung, General Director of SGO Homes Real Estate Investment and Development JSC, said that it is necessary to know whether investors have short-term or long-term investment needs and investment tastes to have the most effective choice.

land investment.jpg — Having money, should I invest in apartments or land at this time? (Photo: Hoang Ha)

However, when investing in any product or market, Mr. Chung noted, the key factor is still ensuring legal issues.

Returning to the options that investors are wondering about, Mr. Chung analyzed that in the Hanoi market, with the apartment segment, the price increase margin is not much. However, apartments have better liquidity.

“If the investment perspective is safe, not expecting too much profit, ensuring cash flow, then invest in apartments and then rent them out. Apartments in Hanoi are at a stable level, the expectation of price increase is relatively low, so investing in apartments will not be equal to investing in land in the provinces. Investing in apartments at this time will hardly surpass inflation expectations, the profit to reach 4-5% is not easy,” said Mr. Chung.

As for the land investment plan in the provinces on the outskirts of Hanoi, according to the leader of SGO Homes, land is no longer a "hot" segment in the past year, many places have cut losses.

But at this time, investors with money can buy land in the provinces on the outskirts of Hanoi at "loss-cutting" prices, the opportunity for price increases in the future is still very good.

However, it is necessary to determine that in the short term, 1-2 years from now, liquidity will be slow and it will take time to recover.

“Provinces are increasingly developing, if investors decide to invest in land in the province, they need to choose carefully. For example, choosing products in the central area of the province or town; near industrial parks, infrastructure that meets housing needs... will have good liquidity and price increase in the future. You should not choose products that are too far from residential areas, have unsynchronized infrastructure, and have no utilities,” Mr. Chung noted.

Regarding the question "Which province near Hanoi has potential for land investment?", Mr. Chung suggested choosing a province with industrial parks, highways or main roads passing through such as Bac Ninh, Bac Giang, Hung Yen, Hai Duong... Further away, you can invest in Quang Ninh, Hai Phong.

Besides, you can choose to invest in provinces with good economic development index and competitiveness.

Mr. Chung commented that investing in land in the provinces at this time, if determined to invest long-term or at least 2-3 years, can expect an average profit of about 10%/year.

Considering that there are two investment trends in this period, which are investing in products that target real demand and investing in products that generate cash flow, Mr. Chung added a plan to help investors with available money have more options.

That is, you can buy a shophouse for rent or you can research the resort real estate segment in big cities such as beach villas or condotels for rent. However, if you invest in these products, you need to choose a market with stable and sustainable tourism development over time. However, you also need to invest long-term, at least 3-5 years.

Foreign giants pour billions of dollars into a series of 'huge' real estate projects Despite the global economic downturn, the Vietnamese real estate market still attracts foreign investment capital. Many foreign giants have poured millions of dollars into real estate projects in recent times.

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