Mr. Nguyen Tuan Anh, a real estate broker in Hanoi, said that many customers have been messaging him since the beginning of the year to inquire about buying land. They are mainly interested in affordable plots with complete legal documentation, with the expectation of rapid price increases in the near future.
According to Mr. Tuan Anh, land prices in most areas are cooling down, but they are no longer decreasing significantly or being sold at a loss like before. Customers are not just inquiring or waiting anymore, but many of them are now ready to make a purchase.
“Many times, I have taken customers to view properties in the morning, and when the buyers are still hesitating before making a payment, the landowner calls in the afternoon to inform me that the transaction has been successfully completed with another buyer,” shared Mr. Tuan Anh.
Mr. Nguyen Minh Chien, an investor in Hanoi, also revealed that he is searching for new investment channels, including a focus on land plots under 1 billion VND. He mentioned that he is looking for investment opportunities in land plots priced between 500-700 million VND and recently spent time visiting various areas in Thanh Oai and Chuong My with a real estate agent.
“During the real estate fever, it was difficult to find land plots in this price range in these areas. However, now those who are looking to buy for personal use or investment have more options as the prices offered by landowners have significantly decreased compared to the peak period at the end of 2021 and the beginning of 2022,” said Mr. Chien.
At the beginning of the year, many investors were hunting for subdivided land plots. (Illustrative photo)
Another experienced investor, Mr. Ha Lam, who has been involved in real estate investing in Hanoi for years, also believes that bank interest rates have significantly cooled down, and the interest rates for savings accounts are no longer as attractive as before. As a result, Mr. Lam had to withdraw his deposits and look for other investment channels for long-term and safe profits.
“In reality, from the beginning of the year until now, I have been actively searching for land plots. Any piece of land with a great location and good price at this time has the potential for price increases this year or in the coming years. Since the beginning of this year, I have been continuously monitoring information on social media groups and getting help from others in finding opportunities. I have been interested in a cheap land plot in a beautiful suburban area in Hoai Duc, which is cheaper than the peak price of nearly 700 million VND,” shared Mr. Lam.
Mr. Le Van Viet, an investor in Bac Ninh, also shared that he is still searching for good real estate properties to invest in. According to him, a challenging market situation is an opportunity for investors to buy reasonably priced products.
Moreover, the main purpose of purchasing these properties is to accumulate assets for the future. If the price is favorable, they will sell; otherwise, they will lease the property.
Especially, in the near future, when subdivided land plots are restricted, existing land plots will become scarcer and have a high potential for price increases.
“Nowadays, land prices have decreased by about 20-30% compared to the peak of the fever and have not shown signs of rebounding. Therefore, I am still searching for land plots at reasonable prices for investment,” shared Mr. Viet.
Riding the wave
According to Mr. Giang Anh Tuan, director of Tuan Anh Real Estate, this year, investors are interested in buying land early because the interest rates are at their lowest point, while other investment channels such as stocks and bonds are more volatile and risky. Therefore, many investors have returned to investing in land to both invest and preserve their money and generate monthly rental income.
Many cheap land plots have been purchased by investors.
Another reason, according to Mr. Tuan, is that many investors are buying land plots to “ride the wave” of upcoming policies. Specifically, a series of new regulations under the amended Real Estate Business Law will take effect from January 1, 2025. These regulations tighten the requirements for subdividing and selling land plots compared to the current regulations, especially for speculators.
In anticipation of these new policies, many experienced land speculators have begun searching for land plots in areas where subdividing is prohibited according to the new regulations. Specifically, in this context, the land market is showing signs of stabilizing, with some areas experiencing significant price drops and selling at a loss.
Furthermore, although the land market is slowing down, it is still an attractive segment with great potential. It not only helps preserve money but also offers the possibility of capturing significant profits when the market recovers.
According to Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Real Estate Brokers (VARS), the secondary market is also showing positive signs of recovery in a wider range of segments and areas that demonstrate signs of “bottoming out”.
Mr. Dinh mentioned that interest rates have significantly decreased and are close to the levels at the beginning of 2022. Idle funds within the public are starting to shift back into real estate investments, although not yet in large amounts.
While in the past, the secondary market mainly involved land plots and houses priced below 3 billion VND, recently there have been more positive news from the market, with improved demand and more choices as the supply has diversified with additional opportunities from investors selling at a loss and real estate assets being sold by banks.
“More and more investors are starting their journey of searching for land plots in areas surrounding major cities, rapidly developing areas with good infrastructure, and high urbanization rates, where prices are considered very favorable and still have plenty of growth potential in the future. The recovery of the market will definitely continue to differentiate between segments and areas due to their different absorption capacities,” said Mr. Dinh.
“The real estate market is expected to continue its recovery trend as investors’ confidence is being consolidated, interest rates have decreased, and the market has more appropriate supply,” added Mr. Dinh.
