The land market is bustling, be careful of the price-fixing tricks of "brokers"

Land market is bustling again

After the "hot" development of the apartment segment, the land and low-rise housing market in many areas also recorded excitement with increased demand for purchases and transactions. Many investors have returned to the real estate market in the context of other investment channels such as bank deposits, gold, and stocks slowing down.

Mr. Nguyen Duc Duy - a real estate broker in Hoa Lac area (Thach That, Hanoi) - shared that in the past two months, the demand for buying land in the suburban area has increased compared to the previous period. Land prices in some places have also started to increase again, and the situation of selling at a loss has also disappeared.

According to Mr. Duy, the suburban land market, especially in districts of Hanoi such as Ba Vi, Thach That, Son Tay town and some districts of Hoa Binh, has recorded a revival.

"Real estate offices in Hoa Lac and surrounding areas have almost reopened. The number of people who want to learn about and buy land through real estate offices is also high," Mr. Duy shared.

Information about selling land in the suburbs of Hanoi has also been bustling and dense recently (Photo: Ha Phong).

Also recording a great return of interest, many brokerage offices in the An Khanh area (Hoai Duc, Hanoi) have simultaneously opened their doors to welcome customers. Many offices have posted recruitment information as the land market shows signs of improvement.

According to statistics from the Ministry of Construction, in the first quarter, the land segment had 97,659 successful transactions, equal to 119.86% compared to the fourth quarter of 2023 and 145.18% compared to the same period in 2023. Also in the first quarter of this year, the demand for individual houses and land increased rapidly.

According to the real estate market report for the first quarter of this year by the Vietnam Association of Realtors (VARS), many areas have seen a sudden increase in land transactions, especially in areas on the outskirts of large cities or localities with strong infrastructure development and high urbanization rates.

In Hanoi, as land funds in inner-city districts are increasingly depleted, the market for low-rise houses, townhouses, individual houses, and land in suburban areas is becoming the choice of many investors.

This unit commented that the above developments are reflecting the shifting trend of the real estate market. At the beginning of the second quarter, when apartment prices showed signs of slowing down, investors turned to the safe but also potential segment of real estate.

Be careful of the price manipulation tricks of "land brokers"

According to many real estate experts, land and low-rise housing prices are on an upward trend, mainly due to limited new supply and some projects in the suburbs of Hanoi being sold out. In addition, new policies expected to come into effect soon will have a major impact on the market.

However, experts in this field also warn that for the low-rise housing segment, land plots, especially land plots that have long had declining values, suddenly increasing in value does not reflect the real market situation, and may just be tricks of "land brokers" to inflate prices. Therefore, buyers need to be careful of the risk of burying capital when pouring money into products with inflated prices, not close to their real use value.

Although the phenomenon of "fever" in land and low-rise housing has not yet occurred, the Vietnam Real Estate Brokers Association has also issued a warning about "virtual fever" that may form, causing the risk of unsafe investment, especially when the market is in the process of recovery.

Chairman of the Vietnam Real Estate Brokers Association Nguyen Van Dinh said that the high land prices in the context of the whole market not yet out of difficulties is an unusual sign. "In many areas, information about transactions is bustling but the buyers and sellers are not real. Those could just be tricks staged by brokers and investors, to push up land prices," Mr. Dinh emphasized.

Investors are advised to consider this as a long-term investment, should not prioritize the use of financial leverage, and should prioritize the location and potential of the land to make a decision.

Source: https://dantri.com.vn/bat-dong-san/thi-truong-dat-nen-soi-dong-than-trong-chieu-tro-lam-gia-cua-co-20240620100222941.htm