The 2024 Land Law and its amended provisions ensure fairness, transparency, and benefits for the people. The new land price framework calculates prices based on market principles, expediting compensation and land clearance while benefiting those affected by land retrieval.
Dr. Tran Nguyen Minh Hai, a real estate expert from Ho Chi Minh City Banking University, shared that with the introduction of area-based land price tables, land clearance work would not only be fair and transparent but also eliminate risks associated with unresolved issues from the project’s inception. As of August 1, 2024, projects launched in the market will provide peace of mind regarding legal progress, especially for future housing projects like apartments.
Additionally, the new regulations mandate that real estate investors and businesses make payments through banks and disclose project information before commencing operations. According to the Vietnam Real Estate Brokers Association (VARS), these provisions will form the foundation for building and digitizing a project database, accessible to all market participants. This will eliminate information asymmetry and reduce risks for homebuyers. The new law also clearly defines the responsibilities of investors in delivering projects on time, ensuring construction quality, and addressing buyers’ complaints.
Notably, apartment prices in central areas are predicted to continue rising due to the decreasing supply in the upcoming 3-5 years. The increasing scarcity of land for project development in major urban centers will further drive up prices. Moreover, the baseline land price has increased by several to a few dozen times compared to pre-August 1, 2024, levels, leading to higher price levels for primary projects, especially those launched after that date. As per Savills, this makes it increasingly challenging to afford condominium units as income growth lags behind the rising property prices.
Dr. Minh Hai emphasized that with the public land price table, any increases in real estate prices would depend on supply and demand dynamics. The demand for apartments, both for owner-occupiers and investors, remains robust and plays a crucial role in major cities. Buyers should consider projects launched before August 1, 2024 (late 2023 to the first half of 2024), as these offerings have softer prices compared to the new phase of the real estate market, despite limited supply.
Homebuyers are gradually shifting their focus to peripheral areas due to the scarcity of supply and high prices in the city center. An artist’s impression of the A&T Sky Garden project north of Saigon, just a 3-minute drive from District 12 via Phu Long Bridge, is offered at a price starting from VND 31.9 million/m2. The project is officially licensed for construction under the name “A&T Sky Garden.”
As the inner-city market dries up, peripheral and adjacent areas are taking center stage due to their available land banks, well-developed infrastructure, and comprehensive welfare systems. After Ho Chi Minh City, the next “star” markets are expected to be Thuan An City, Di An City, Thu Duc City, and Nha Be City. Meanwhile, housing demand remains insatiable, and investment demand has recovered by 30% compared to the beginning of 2024, according to VARS.
Mr. Nghia, a real estate investor from Go Vap District, shared that he considers the current time advantageous for investing in apartments. However, with his available capital, he needs to carefully consider the priority areas for investment.
“Thuan An City, the area adjacent to District 12, just a 3-minute drive across Phu Long Bridge to Ho Chi Minh City, is my top priority in terms of location and infrastructure,” said Mr. Nghia. “Among the projects in this area, I make my investment decisions based on price, the reputation of the investor, and legal factors.”
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