Land market welcomes recovery wave in last months of year

Positive signals are gradually appearing

After a difficult period, the Vietnamese real estate market began to record many positive signals from the third quarter of 2023. Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), said that the real estate market is showing signs of recovery, with investor confidence gradually increasing.

Statistics from VARS show that transactions are showing signs of increasing again, with the total number of real estate transactions in the market in the first quarter reaching nearly 3,000 transactions, the second quarter reaching nearly 4,000 transactions and the third quarter reaching about 6,000 transactions. The increasing numbers each quarter show a more positive picture of the market's recovery.

Land in areas adjacent to Industrial Parks is attracting investors' attention.

Although the transaction volume is lower than before (each quarter reaches 50,000 transactions - PV), according to Mr. Dinh, it also reflects the market's efforts to rise when each quarter increases compared to the previous quarter.

Notably, land with red books and commercial housing from 2 - 3 billion VND had a clear increase in transaction volume in the third quarter of 2023, especially in areas with infrastructure investment or areas adjacent to industrial parks with selling prices increasing by 5-7% compared to the previous quarter.

Mr. Le Bao Long, Strategy Director of Batdongsan.com.vn, informed that “Currently, land in many areas has prices that are accessible to most investors. Therefore, people with idle money who buy land at this time and price range have the opportunity to make good profits in the medium and long term”.

In addition, the land segment shows signs of bottoming out in the auctioned land type in the area around Hanoi. Specifically, the price of around 2 - 3 billion VND has an absorption rate of 70-80% with the auction price being about 5% higher than the starting price, and can be transferred immediately with a difference of 30-50 million VND/plot. This trend is most clearly seen in the provinces of Bac Giang and Hung Yen,...

In fact, information recorded by the Market Research Working Group of the Vietnam Association of Realtors (VARS) shows that many investors have started to "hunt" for land in the suburbs of big cities. These are localities with strong infrastructure development and high urbanization rates with prices that are considered quite "bargain", with much room for growth in the future. Explaining this fact, Mr. Nguyen Van Dinh said that in the context of the market gradually recovering, the land segment will be of more interest to investors, especially land in some markets with many bright spots of growth such as Bac Ninh, Hai Phong, Quang Ninh - which are localities with well-invested infrastructure and a stable economy.

Reporters' observations also show that the demand for land has begun to increase in some localities along the Ring Road 4 - Capital Region under construction such as Hung Yen, Bac Giang, Bac Ninh... Although demand has not really exploded, the return of buyers to provincial land is expected to help this segment recover sooner than expected.

In addition to the above factors, the real estate market has also seen more positive changes thanks to the determination of the Government and ministries, branches and localities in removing difficulties for businesses and projects. In particular, the promotion of public investment has been promoting the demand for land transactions along the routes.

Recently, the Government issued Decree 35/2023/ND-CP amending and supplementing a number of articles of decrees under the state management of the Ministry of Construction. Notably, Decree 35/2023 has allowed the Provincial People's Committee to decide on areas to be divided into plots and sold when in accordance with relevant legal regulations without having to consult the Ministry of Construction. Since then, a series of localities have "untied" the division of land plots for people in need.

High expectations for Hanoi's neighboring markets in the fourth quarter

Forecasting the real estate market in the coming time, VARS believes that the market recovery process will certainly continue to differentiate by segment and region due to different absorption capacities, especially in provinces and cities that hold advantages in land fund, planning, infrastructure and investment policies such as Bac Giang, Bac Ninh, Hung Yen, etc.

Land project in Dong Yen area, Bac Ninh attracts investors' attention

Experts believe that investor confidence is increasing again, and cheap cash flow in the coming time may flow into land. Quality products that meet standards and bring efficiency to investors will be selected. Investors will pay attention to finding places with developed infrastructure, stable economy, and guaranteed profit standards. In particular, land around industrial parks is considered potential, attracting investors.

In Bac Giang, Yen Dung area has recorded active auctions with 500 applications for 50 plots of land. Since the beginning of the year, there have been 18 auctions with a total of 374 plots of land, most of the auctioned products have the advantage of being in a favorable location, near Yen Lu Industrial Park, where factories have been built and completed.

For the Bac Ninh market, with its great potential in terms of transport infrastructure, industry, services, etc., and its well-planned development, real estate - especially land in areas that are being upgraded to cities - attracts investors and reaches prices of 25 - 30 million VND/m2. For example, land projects in areas such as Thuan Thanh or Dong Yen, 100m2 projects are purchased by investors at 2.5 billion VND. With the determination in implementing key projects and works, Bac Ninh province is expected to create a boost for the real estate market to recover and increase again in the near future.

According to Batdongsan.com.vn, the three markets of Bac Ninh, Bac Giang and Hung Yen are potential markets, leading the trend of the real estate market gradually warming up due to their proximity to Hanoi, well-planned and strong development and formation of industrial parks. In these three markets, land prices near industrial parks have the potential to increase from 25 million/m2 to over 30 million/m2, this trend is even more evident in land projects that are only 5-10 minutes away from industrial parks with large factories.

In a recent discussion, Dr. Can Van Luc said that the end of the year is a good time to invest, however, investors should note that they should choose projects located near industrial parks in key economic regions, consider natural conditions, the associated traffic system and the fields that the industrial park attracts investment, projects located near residential areas to increase occupancy and lead to higher potential for price increases.

Furthermore, when choosing, investors need to consider legal issues and whether the location is convenient to move to industrial parks or not, because this will help increase the liquidity of the land.

Source: https://www.congluan.vn/thi-truong-dat-nen-don-song-phuc-hoi-nhung-thang-cuoi-nam-post272345.html