Land plots are popular among investors due to their high profitability. However, since mid-2022 when the market fell into a slump, the land plot segment has caused investors to struggle with price reductions, losses, and difficulties in finding buyers.
According to the assessment of the Vietnam Association of Realtors (VARS), recently, the land plot segment no longer has the frenzy like before, with products experiencing multiple price decreases and losses of up to 30-40%, but still difficult to liquidate. However, this reduction level is understood to be compared to the peak of the frenzy, and still has not really approached the actual value.
However, after a long period of difficulties, the real estate market has shown many positive signals, with increasing liquidity. In addition, the Land Law, the Real Estate Business Law, and the Housing Law have all been passed and taken effect from the beginning of 2025. This further consolidates the psychology of investors.
As a result, land plots are gradually regaining their position as a favored investment option. Evidence for this is the recently published Real Estate Consumer Psychology survey by Batdongsan.com.vn, in which 65% of the respondents stated that they will continue to buy real estate in the next year. Among the 65% of people planning to buy real estate in 2024, one-third, or 33% of them, expressed interest in land plots, despite the significant decline in transactions of this type. Following that, detached houses and townhouses ranked second with 26%; apartments ranked third with 24%; townhouses and villas accounted for 9% and 6%, respectively.
Among them, land plots in the price range below 2 billion VND attracted the most attention, accounting for 42%; the price range of 2-4 billion VND ranked second with 24% interest; the price range of 4-6 billion VND ranked third with 10% interest. The remaining two price ranges of 6-10 billion VND and over 15 billion VND had interest levels of 9% and 15%, respectively.
“Due to the ingrained mindset of ‘land is gold,’ the demand for owning real estate, the need for property accumulation of Vietnamese people is very high. Therefore, it is not difficult to understand why the land plot market always receives the most attention and remains the leading segment in consumer demand in 2024,” emphasized Mr. Le Bao Long, Strategy Director of Batdongsan.com.vn.
Regarding the development of the real estate market in the coming time, Prof. Nguyen Van Din, Chairman of the Vietnam Association of Realtors (VARS), believes that 2024 will be a challenging year for the real estate industry. However, these challenges also open up great opportunities for market acceleration in the near future. It can be seen that the launch of many projects for sale at the end of 2023 indicates that the real estate market is on the road to recovery.
