THE LAND MARKET HAS NEW CHANGES

Although it has just gone through a period of decline, land is still a top priority for many investors. Notably, recently, some investors have started to look and buy and sell again.

The land has a new change

After the "land fever" occurred, the land market in the province and the suburbs of major cities went through a long period of gloom. However, recently, many investors with cash and experience have actively hunted for "stuck" land.

Mr. N.T.G - an investor in Hanoi said that in the past 2 months, he and his colleagues have continuously surveyed the land market in suburban areas and neighboring provinces such as Hoa Binh and Hung Yen. , Bac Ninh,...

According to Mr. G, currently, land prices in most places have dropped sharply, especially for large plots of land. The reason why the landowner had to sell the land was due to excessive debt. Up to now, he could not afford to keep it, so he had to find a transferor.

"Many plots of land on the outskirts of Hanoi, at the beginning of last year, were priced at 5 billion VND, but now some owners are willing to sell them for 2.8 - 3 billion VND. Some plots of land with an area of 300 - 400m2 will be sold at a more favorable price because buying these plots of land requires a large amount of money. Meanwhile, even though the market is not as difficult as before, few people are willing to spend huge amounts of money to buy and wait for the price to increase," Mr. G said.

According to Mr. Do Ngoc Tu, a real estate broker in Hanoi, in the past 3 months, investors have started to look and buy and sell. Accordingly, real estate liquidity has increased more than before.

“Investors mainly asked about land products in suburban areas, whose prices have dropped relatively well compared to the beginning of last year. As for products that serve real needs such as apartments and houses in alleys, prices are currently high so buyers have not spent money yet. In general, although liquidity and investor interest have increased compared to before, they are still at a low level. However, it shows that investor psychology has been somewhat relieved, less hesitant than before," Mr. Tu said.

Batdongsan.com.vns big data in August 2023 reflects that the demand for real estate nationwide increased by an average of 5% compared to July, and the number of real estate listings also increased by 2%. Thus, the market has had two consecutive months of increased search demand and the number of real estate listings. Notably, in August 2023, in the Hanoi market, land is the type with the highest increase in demand - up 12% compared to the previous month.

This units report on consumer psychology and real estate trends in the second half of 2023 previously said that of the 1,000 respondents participating in Batdongsan.com.vns survey, 61% of respondents said would continue to buy real estate for investment purposes. Among them, the type of land leads the way in attracting investors attention. For investment purposes, the land is still the segment chosen by the most investors with 46%, followed by apartments at 24%, private houses at 18%, townhouses at 8%, and villas at 4%.

Thus, it can be seen that after some time the real estate market has had many fluctuations, especially the selling price and liquidity of the land segment continuously decreased. To date, this segment has regained the attention of many investors. However, it still takes more time for buyers to completely remove their fears.

Land in areas with good infrastructure will recover quickly

Mr. Le Bao Long, Strategy Director of Batdongsan.com.vn, commented that land products near areas with strongly developed infrastructure systems are facing the opportunity to recover quickly. Because land in many areas has adjusted to very good prices in recent times, many investors now have more conditions to own. In particular, according to Mr. Long, investors with idle capital who buy land at this time will have the opportunity to earn good profits in the medium and long term.

Commenting on the current challenges of the Vietnamese real estate market, many experts believe that difficulties have gradually been reduced and the market is witnessing positive signs thanks to the Governments active support moves. government. Better signals will appear more and more from the fourth quarter of 2023 and the market will be exciting from the beginning of 2024, when the currency market is stable and interest rates return to the same level as in the 2019-2020 period.

Assessing the land market, Dr. Nguyen Van Khoi, Chairman of the Vietnam Real Estate Association (VNREA) said that, for this segment, old urban areas of big cities in the period 2023-2025 are forecast to have no major fluctuations in price. Both prices and transaction volume are due to increasingly limited land funds, fewer and fewer prime locations, and low profitable values. For neighboring areas/satellite cities of large cities or areas with new urban planning/districts (especially around Hanoi and Ho Chi Minh City), it is expected that there will still be price increases. local price and transaction volume due to conversion from agricultural land to residential land and urban land.