Real Estate Market Heating Up in the Beginning of the Year

After the Lunar New Year, investors are gearing up to return to the real estate market, especially in the search for land with clear legal documents and prime locations.

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During a conversation with an investor in the Northern market, she stated that right after the Lunar New Year holiday, her investment team started looking for land plots with clear legal status and good locations.

“Due to the low interest rates, we don’t want to deposit too much money in the bank, and we don’t want to leave our money idling either. That’s why our investment team decided to look for potential land plots to invest in. Moreover, there are not many transactions happening at this time, so it’s an opportunity for us. The previous wave of price reductions in this segment also provides an opportunity for easy negotiation with landowners,” shared this investor.

Not only in the Northern market, but also in the Southern market, the number of investors going to see land plots has been increasing.

According to the latest data from Batdongsan.com.vn, in Hanoi and Ho Chi Minh City, there has been a significant increase in interest in land plots and project land. Specifically, in January 2024, the search volume for land plots in Hanoi increased by 110%, while the search volume for project land increased by 77% compared to the same period last year. Similarly, in Ho Chi Minh City, the search demand for land plots and project land increased by 71% – 73%.

These data partly reflect the desire of many people to own land, even though the market is no longer experiencing a land fever like at the beginning of 2022. A report and the Consumer Sentiment Index (CSS) from Batdongsan.com.vn showed that in the first half of 2024, up to 65% of respondents said they still planned to buy real estate within the next year. Among them, 60% said they bought real estate for investment purposes, and land plots are still the most popular type of property among future buyers.

Land plots are the most popular type of property among future buyers.

In the context of the real estate market gradually heating up at the beginning of the year, real estate brokers, trading floors, and developers have launched early business campaigns to not miss the opportunity to reach a large number of potential customers.

Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn in the Southern region, said that since December 2023, when the draft amended Land Law received much attention and discussion, land investors have started to return to the market.

According to DKRA Group data on land plots in Ho Chi Minh City and its surrounding areas in January and February 2024, transactions have been concentrated in the product group with an average price of about 21.5 million VND/m2. The secondary market has been relatively stable compared to the end of 2023. Completed infrastructure, legal documents, and other factors have attracted the attention of investors.

Currently, land plot prices in Long An range from 17.2 million VND/m2 to 54.9 million VND/m2. In Binh Duong, the highest land price is 16 million VND/m2, and the lowest price is 14.5 million VND/m2. In Dong Nai, the highest price for project land is 13.7 million VND/m2, and the lowest price is 12.3 million VND/m2.

According to Mr. Dinh Minh Tuan’s research on over 10 land trading units in Dong Nai, Binh Duong, Long An, most transactions at the beginning of this year focused on land plots with clear legal status, prices under 2 billion VND, within a radius of 60 km around Ho Chi Minh City.

Regarding the land plot market, the Vietnam Association of Realtors (VARS) forecasted that the supply in this segment would become scarce in 2024 due to the possibility of new laws changing the playing field. The scarcity of supply could push land prices up by about 5-7% compared to 2023 in major cities. Meanwhile, in developing areas with comprehensive infrastructure, the market is expected to remain stable.

SOURCEcafef
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