Land plots and project land have increased interest more sharply than apartments in major markets such as Hanoi and Ho Chi Minh City. HCM immediately after the Lunar New Year. Is this a signal that the “king” investment segment will “warm” again this year?
After Tet, searches for real estate increased, especially land plots
After the Lunar New Year holiday, interest in real estate suddenly increased again. According to data from batdongsan.com.vn, the number of national real estate searches began to increase from the 2nd and kept the pace up until the 10th of Tet, reaching 124% compared to a week before Tet.
Specifically, the demand for finding properties for sale across the country in January 2024 will increase by 66% compared to the same period in 2023, the number of listings for sale of real estate will also increase by 52%.
Notably, in Hanoi and Ho Chi Minh City. In HCMC, land plots and project land have increased interest more sharply than apartments. Only in January, the number of searches for land plots in Hanoi increased by 110%, project land increased by 77% over the same period last year. Meanwhile, the number of searches for Hanoi apartments increased by 71%.
Similarly, in Ho Chi Minh City. In HCMC, search demand increased from 71% – 73% for land plots and project land and only increased by 59% for apartments.
Although the market no longer has “land fever” like at the beginning of 2022, the above figures partly reflect the desire of many people to own land.
A report on the unit’s real estate consumer sentiment index also showed that up to 65% of respondents said they still plan to buy real estate in the next one year. In particular, the proportion of purchase for investment accounts for 60% and land plots are still the type that future buyers are most interested in.
Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn Southern Region, said that from the beginning of December 2023 when the draft Law on Land (amended) is receiving a lot of attention and discussion, land investors have returned to the market.
According to Mr. Tuan, more than 10 land plot business units in Dong Nai, Binh Duong, Long An provinces … all shared that earlier this year the number of land transactions increased. In particular, most focus on land plots with standard legalities, priced below VND 2 billion, located within a radius of 60km around Ho Chi Minh City.
In Hanoi, Mr. Tuan said, segments that meet real demand such as buying, selling, renting secondary apartments or inner-city retail space, many real estate brokers have also embarked on work right after the Tet holiday. Supply is scarce while demand is still present, making the transaction situation after Tet in segments This was more vibrant.
“Currently, many developers are determined to push goods early in the year because if they wait until 2025 when the Law on Real Estate Business (amended) takes effect, it will be more difficult and time-consuming to collect money. The reason, according to the new regulations, investors are only allowed to collect a deposit of not more than 5% of the selling price of houses and construction works formed in the future, after completing all obligations to sell, they can collect 25%. New supply in the real estate market will soon improve in 2024”, Mr. Tuan forecast.
Should I invest?
Talking about the phenomenon of many people interested in the land plot segment after the Lunar New Year, sharing with VietNamNet Reporter, Mr. Le Dinh Chung, General Director of SGO Homes, assessed that in 2024, the land plot segment that has dropped the most in price, will start to increase again, attracting more investors due to the appropriate value, Legal guarantee and also the best choice at this time. Therefore, the land market will have many positive factors, signs of going up more clearly.
“Being the segment with the deepest discount, buying land at this stage will be one of the advantages. When the market recovers, along with new provisions of laws that take effect from early 2025, new projects will have high prices,” Chung said.
Meanwhile, Mr. Nguyen Anh Quê, Chairman of G6 Group, said that the land plot segment gradually improved transactions from the third quarter of this year and became active again from the third quarter of 2025.
“Land plots continue to be a popular segment for investors with small total value, high capital gains, good liquidity when the market is good. The golden time to invest in real estate is 2024, 2025, the time to exit gold in 2027, 2028,” Mr. Que said.
However, leaders of G6 Group also noted that investors need to pay attention to planning issues when investing.
According to him, it is advisable to buy real estate only in places that have stabilized the planning or are ahead of the planning if they really know the information. When choosing the location, investment products should be associated with residential or resort. If real estate does not attach these factors, it is just speculation, “surfing” investment, risk for customers when they want liquidity is very difficult.
