According to a report by Batdongsan.com.vn, in a survey of 1,000 respondents, an astounding 65% said they plan to continue purchasing real estate in 2024.
Of this 65%, about one-third are interested in buying land, despite a significant decline in transactions. Next in line are individual houses and townhouses, with 26%; apartments with 24%; townhouses with 9%, and villas with 6%.
Among these, land lots priced below 2 billion VND attracted the most attention, accounting for 42%; the 2-4 billion VND range came in second with a 24% level of interest; the 4-6 billion VND range occupied 10%. The remaining two price ranges, 6-10 billion VND and over 15 billion VND, had 9% and 15% levels of interest, respectively.
Experts from Batdongsan.com.vn believe that a more positive psychology of buyers and sellers of real estate will present an opportunity for the market to grow in 2024 and address the remaining challenges in 2023.
In terms of land lots, the Institute of Construction Economics predicts that transactions will remain lackluster in 2024. Low liquidity in 2023 and investor caution in making investment decisions will require more time for the land lot market to recover.
However, the newly tightened regulations on land parcel subdivision and sales activities imposed by the revised Real Estate Business Law may affect the supply, buyer psychology, and prices of this segment in the near future. Demand for and transaction prices of large plots of land are expected to continue declining. Conversely, smaller plots of land will experience better liquidity, and secondary transaction prices may see a slight increase compared to 2023.
Dinh Minh Tuan, Director of Batdongsan.com.vn Southern Region, evaluates that the land lot market will continue to face difficulties in the near future. The revised Real Estate Business Law taking effect from early 2025 will tighten restrictions on land parcel subdivision and sales activities, possibly leading to further declines in interest in land lots. Land lot prices will also be adjusted downward, especially for larger plots of land.
“However, in the long term, land prices may continue to rise and transactions will bounce back. Real estate prices depend on factors such as infrastructure development, economic growth, and people’s income. Meanwhile, land lots are a type of investment that any market participant can invest in due to their diversity in terms of area, price range, and location. With regions experiencing economic growth, land plots in these areas will continue to see sustainable growth,” said Tuan.
According to Tran Khanh Quang, CEO of Viet An Hoa Real Estate Investment Corporation, the recovery of the land lot market will be slower than previously forecasted. It is only from the mid-2024 onwards that the demand for this segment will truly become clear. Investor interest in land lots remains high, but psychological barriers and profit margin risks are making them somewhat wary. According to Quang, ongoing transportation infrastructure projects will have an impact on the land lot segment in the next 2-3 years.
On the other hand, based on continuous cycle research, Vo Hong Thang, Director of Consultancy Services & Project Development at DKRA Group, believes that the land fever may return in the 2025-2026 period. “The current period until the first half of 2024 can be seen as the beginning of a recovery and the next phase of growth for the real estate market,” emphasized Thang.
