Compared to the end of 2023, land plots in the south have seen a 3-10% price increase in the secondary market, depending on the area. Deep discounts are less common now, except for cases where investors face financial distress and are forced to sell at 25% below their purchase price. Since the beginning of 2024, investor sentiment has stabilized due to positive market signals, fueling expectations of rising land plot prices in the coming phase.
Forecasts suggest that from now until the Real Estate Business Law of 2023 takes effect on August 1, 2024, the southern land plot segment will experience an increase in transaction volume. Both investors and end-users are seizing this opportunity to enter the market.
However, experts believe that a significant surge in land prices by the end of this year is unlikely. Prices are expected to remain stable or see only a slight increase. It will take until 2025-2026 for land prices and transactions to potentially rebound.
Mr. Vo Hong Thang, Director of Consulting and Project Development at DKRA Group, emphasized that the early enforcement of the Real Estate Business Law of 2023 will impact the real estate market, particularly the land plot segment. The tightened regulations on land subdivision could lead to a significant reduction in the supply of land plots, while demand is likely to remain robust in the long term due to the preference for this type of asset among Vietnamese investors. With limited supply and strong demand, land prices are expected to rise. Consequently, many investors are looking to capitalize on this trend and are actively seeking land plots before the new law takes effect.
However, from now until the end of the year, the land plot market is not expected to witness a surge in demand or prices. Mr. Thang predicts that the “tipping point” for this segment will occur from mid-2025 onwards. Additionally, investors entering the land plot market should prioritize medium to long-term investments with well-thought-out strategies, aiming for stable profits. The market is unlikely to deliver the exceptional returns seen in previous years.
Legal framework for condotel transactions
The condominium hotel (condotel) market, as well as the tourism real estate market in general, has not been regulated under the 2014 Real Estate Business Law. As a result, the ongoing obstacles of this type of real estate are expected to be resolved after the passing of the 2023 Real Estate Business Law. From a legal perspective, what are the positive aspects of the new law that investors need to be aware of in order to protect their rights and interests in transactions?
Real Estate Market Outlook After New Policy Implementation
Since the beginning of the new year in 2024, the good news from the Land Law (amendment) policy has spread strongly to the real estate market. The legal “gaps” are gradually being filled, bringing hope for a more positive cycle.