According to a recent financial expert, Đinh Thế Hiển, the real estate market will experience a clear recovery starting from the third quarter of 2024. Currently, the flow of money from individual investors has returned to the market. The disbursement point of these investors will be strongest from the third and fourth quarters of 2024. Among them, the liquidity of the real estate market in Ho Chi Minh City and its neighboring areas will recover soon in the year. Land plots in neighboring provinces that are purchased for speculation will not recover in 2024. The tipping point will be in the period of 2025-2026.
He analyzed that the series of large-scale infrastructure projects being invested in, such as Ring Road 3 and expressways, are significant drivers of connectivity, helping the real estate market recover in the coming period. In particular, some areas in the West such as Ben Luc, Can Giuoc (Long An); in the East, Long Thanh, Nhon Trach (Dong Nai), Phu My, Chau Duc (Ba Ria – Vung Tau) will benefit from this infrastructure momentum.
Recently, the real estate market has shown many indicators that the declining trend is starting to slow down. Some experts believe that the land fever may return in the period of 2025-2026.
Land plots are the hottest type of investment when the real estate market experienced local fever in 2020-2022, and then became the most stagnant due to not meeting real demand. Land prices fell sharply in many places but there were no transactions. This situation has lasted from the second half of 2022 until the end of 2023.
Currently, the land registration offices in the South are crowded again. Photo: Tieu Bao
In the Southern market, land prices temporarily stopped falling in early 2024. Although the transactions have not really improved, they have not decreased further. Some experts in the industry boldly predict that the increasing price of land plots may “jump” back in mid-2025. The current time until the first half of 2024 can be seen as the beginning of a new recovery and growth cycle of the real estate market.
According to experts, the land market is cyclical. If we look at the search trends over the years, March and May will be the time when the demand for land plots increases. The land segment that has a registered certificate or belongs to projects with completed legal procedures, synchronous transport infrastructure, and a location adjacent to residential areas, industrial parks, and convenient connections to the city center has been and is owning certain bright spots, which are prioritized by investors.
Currently, land prices in some areas have been adjusted, but the market is facing issues related to capital sources and interest rates. Therefore, only markets related to infrastructure fluctuations have seen a faster recovery. Other areas, especially land plots in the provinces, still face many difficulties.
In the long run, the attraction of land plots will be hard to diminish. This segment has always been favored by investors due to many factors, typically the psychology of preferring houses attached to land and the demand for accumulating safe assets, as well as the potential for high returns from land plots.
