The truth about the real estate story that is "hot" everywhere

(Dan Tri) - Experts say that the real estate market at this stage has many potential risks, especially for new investors entering the market because real estate prices do not only depend on merger information.

Factors that increase real estate prices

According to data from a market research unit, in the first two months of the year, the selling price of land in the suburbs of Hanoi increased by 30-80% depending on the area, for example, Quoc Oai district recorded an increase of 74%. This shows that the land price level in the suburbs still has a good growth trend after a year.

However, the amount of interest in land has not increased correspondingly, even showing signs of remaining flat or decreasing slightly. This partly reflects that the number of transactions has not had many sudden changes compared to last year.

Explaining this trend, Mr. Nguyen Quoc Anh - Deputy General Director of Batdongsan.com.vn - said that land prices in the suburbs of Hanoi have increased continuously in recent years, causing many investors and buyers to wait and observe the market before making a decision.

Besides, recently, after information about the plan to merge some provinces, speculators tend to look for opportunities in provincial areas instead of focusing on land plots near the capital as before.

A real estate consulting point in the suburbs of Hanoi (Photo: Duong Tam).

According to him, right after the news of the province-city merger appeared, the demand for real estate in the related localities increased significantly. Specifically, the level of interest in real estate in areas such as Nhon Trach (Dong Nai) recorded an increase of 41%, Thuan An and Di An (Binh Duong) increased by 26% and 23% respectively.

Real estate prices in the regions also showed signs of increasing, but not evenly. Binh Duong maintained a steady growth trend. However, in Nhon Trach (Dong Nai) and Ba Ria - Vung Tau, prices increased by 20-30%, approaching the peak of 2022 - the time when many large investors sold their properties. This raises questions about the possibility that the market is being pushed up too quickly and is at risk of correction.

According to Mr. Dinh Minh Tuan - real estate expert - this period has many potential risks, especially for new investors entering the market. Real estate prices not only depend on merger information but are also influenced by many other factors such as infrastructure, location, job demand, immigration, and local economic foundation.

He recommended that buyers and investors should be aware of risks such as possible planning changes or mergers taking place more slowly than expected; the risk of buying at a price higher than the real value, especially in hot areas.

Mr. Dinh Minh Tuan emphasized: "Merger is a great opportunity, but we need to be alert to buy at the right place, at the right time, and avoid following the crowd mentality."

Expert: News-driven land fevers often have short cycles

Mr. Nguyen Van Dinh - Vietnam Association of Real Estate Brokers (VARS) - warned that investors need to be extremely careful with virtual fevers. Because land fevers caused by news often only benefit a small group of speculators, while the majority of individual investors and real buyers risk getting stuck if they buy at expected prices, which have been pushed up too high.

In fact, after each land fever, many investors who bought at the peak of the price had to bury their capital for a long time or accept losses with poor liquidity. Even many groups of confident investors with experience in "surfing" failed many times when they could not sell their goods in time.

"For real estate values ​​to increase sustainably, there must be a foundation, which means there must be synchronous development of transport, economic and social infrastructure. Land fevers based only on news without accompanying investment and development plans often have short cycles, increase rapidly but are difficult to maintain at high levels for a long time," he said.

A project consulting point in Bac Giang (Photo: Bac Giang Newspaper).

Dr. Dinh The Hien - an economic expert - said that the real estate market has received a lot of support to recover since the beginning of the year, many real estate projects have been launched, and supply has begun to appear. Some high-end real estate projects that were thought to be difficult to sell have recently sold very well. However, the secondary market has been trading worse. Therefore, to confirm whether the real estate market is really heating up or not, we need to continue observing.

According to this person, the majority of investors are still cautiously observing, they have not boldly invested in this period. "Although the market has a lot of positive information, even experienced investors in the market are stuck with products, which are mainly illiquid products such as land in the provinces - where infrastructure is not yet developed," he said.

In the face of recent rumors related to the merger of administrative units, many localities such as Thai Binh, Phu Tho, Bac Giang... have continuously warned of the risk of "virtual land fever".

Source: https://dantri.com.vn/bat-dong-san/thuc-hu-cau-chuyen-bat-dong-san-dang-nong-o-khap-noi-20250329031910989.htm