After nearly 2 years of a slump, the real estate market has shown positive signs of recovery since the end of last year. Many experts believe that 2024 will be the turning point for the market to gradually recover. Despite the difficulties, there are still opportunities.
Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association (VARS), believes that although the real estate industry still faces many challenges, the market always combines challenges and opportunities. Therefore, if investors know how to seize opportunities, 2024 will still be a suitable time for investment.
“Of course, to seize opportunities, investors must also choose products that are legally secure and financially viable. It is a priority to work with licensed real estate brokers, trading floors, and reputable investors. Especially, it is necessary to avoid following the crowd mentality such as being overly concerned about the market’s difficulties or expecting prices to continue to decrease, which can lead to missing out on suitable opportunities,” Mr. Dinh said.
The expert believes that 2024 is predicted to be the end of the difficult period for the real estate market. It may not boom, but it will gradually stabilize. This year is considered the beginning of a new development cycle for the next few years.
Sharing about the real estate market in the first two months of 2024, Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn in the Southern region, said that from the beginning of December last year, when the draft Land Law (amended) was actively discussed, land investors began to return to the market.
“Due to the mindset of ‘land is gold,’ the demand for land ownership and asset accumulation of the Vietnamese people is significant. Therefore, it is not surprising that land plots receive the most attention from consumers in 2024,” Mr. Tuan forecasted.
According to Mr. Dinh Minh Tuan, the land market will continue to face difficulties in the coming time, especially with large plots of land. The amended Real Estate Business Law will tighten land subdivision and lot sales activities, which may reduce the level of interest in land plots. Land prices will also be adjusted downward, especially for large plots of land.
Regarding the timing of land investment this year, according to Mr. Tuan, only in the second or third quarter of 2024 will the market truly see clear changes. Currently, it is still a stage of exploration and waiting. Investors using financial leverage should not participate in the land segment at this time. However, for large investors with strong financial resources, this is an appropriate time to seek opportunities.
“Now is the right time to search for investment land. However, investors should choose land plots with reasonable prices, under 2 billion VND, complete legal documentation, and have ownership certificates. This group is expected to see an increase in transactions in the coming time.
When the amended laws take effect from January 1, 2025, the land supply will be reduced because developers will be restricted from dividing and selling land plots. At that time, land prices may enter a new cycle of increase. In previous law amendments, land only increased in value and did not decrease. 2024 – 2025 may be the last opportunity to buy land plots for those who have genuine needs, while it is still a challenging period for developers. Therefore, investors should carefully consider before investing,” Mr. Tuan assessed.
“In the long run, the attractiveness of land plots is difficult to diminish. The preference for houses attached to land, along with the desire to accumulate safe assets and the ability to profit from land plots, are still factors that make this segment attractive to investors,” Mr. Thang analyzed.
