According to observations, Quang Nam land is showing many positive signs. In the secondary market, there is no longer a decrease in transaction prices.
Over the past two years, the prices of land plots in areas that previously experienced “land fever” in Quang Nam have all had to be adjusted downwards. Most transactions are slow or have prices that correspond to the location of the product and the infrastructure of the area. For the group of investors using financial leverage, they have to cut losses up to 20-30% of the value of the product.
However, entering the end of 2023 and beginning of 2024, the phenomenon of cutting losses in Quang Nam land plots began to decrease. The amount of information on cutting loss land plots is also decreasing. Many landowners show signs of holding on and waiting or adjusting the selling price after receiving positive signals from the market.
In addition, the market is witnessing signs of “bidding” investors, with increasing selling prices becoming more popular. One reason is the sharp reduction in interest rates of banks and some new land laws have been passed. The products that do not cut losses, adjust selling prices are plots of land that already have land use certificates, located in existing residential areas, and with an area from 100-120 square meters.
The real estate market in Quang Nam is forecasted to face a shortage of supply in the next 1 to 2 years. Evidence is that the significant land plot projects launched earlier are mostly entangled with legal corridors or lawsuits with customers; new projects do not yet meet the conditions for sales and must continue to wait for completion of procedures. This leads to a supply and demand imbalance in the real estate market in the near future, and the scarce supply makes the prices of land plots show signs of increasing.
According to observations, the land plot market in Quang Nam is undergoing a shift in both supply and demand, from central areas to extending to industrial clusters and new residential areas. Secondary products that already have land use certificates, convenient transportation, and especially with prices ranging from 1 to 1.5 billion VND are receiving the attention of customers, instead of the high-priced segment according to the preferences of the majority as before.
A local real estate broker said that the recovery of the market will follow each segment and different areas, depending on the ability to absorb according to customer demand. Areas near markets, industrial zones, and with convenient transportation will have prospects for early recovery because they are comprehensively planned and developed. Currently, land plots in many areas with prices ranging from 8 to 10 million VND/m2 are more convenient in terms of access for investors with idle money and long-term investment strategies.
According to the broker, in the industrial real estate sector, there has been a positive change in transactions in the past two months, with an increase of about 10-15%. The main transactions are land in residential areas, project land, which must have appropriate prices and beautiful locations to attract customers’ attention.
“The market has only partially overcome difficulties and still has many challenges to solve in order to fully recover. The nature of the market also only records transactions with an average price range from 800 million to 1.2 billion VND”, the broker said.
The recent positive shift in the Quang Nam land plot market, according to experts, is due to infrastructure development planning. In the past time, the province has implemented a development plan for the period 2021 – 2030 with a vision to 2050 after being approved, as well as a digital transformation program and a digital government. The locality is developing sustainable industrialization in depth; recovery and development of services – tourism. Chu Lai Airport will become an international airport in the period 2021 – 2030. This is considered an important impetus for the economic – social development of Quang Nam and Quang Ngai provinces.
Accordingly, land plots in areas with convenient transportation, near the sea, industrial clusters, and complete legal procedures are experiencing strong transactions. Customers from provinces such as Hanoi and Quang Ngai are primarily focusing on buying for investment and asset accumulation; locals mostly buy for housing. Overall, the market has transactions and is steadily increasing, partly due to the supply from clean land funds, beautiful locations which are no longer abundant.
In a recent report on the new land plot market by DKRA Group, it was revealed that in 2023, the supply of new land plots in the central provinces (Da Nang, Quang Nam, Thua Thien Hue) decreased sharply, equivalent to about 26% compared to the previous year. This is the lowest level in the past 5 years. The new supply is concentrated in Quang Nam and Da Nang, with proportions reaching 58% and 42%, respectively. Thua Thien Hue continues to have a scarcity of newly launched projects.
Transactions of the market mainly occurred in the first 6 months of 2023. In Quang Nam, transactions focus on the group of products with prices ranging from 10.6 – 11.3 million VND/m2 (Quang Nam). The average price decreased by 7% – 9% compared to the previous opening. The secondary market recorded an average decrease of 8% – 10% compared to the beginning of the year, locally in the group of products entangled with legal issues, slow implementation, slow handover of certificates to customers, … However, some investor groups are still in an observational state and waiting for the bottoming out, leading to the market liquidity being only at an average level.