“Real Estate Companies in Vietnam Are on the Hunt for New Land Opportunities”
In recent times, numerous real estate businesses have simultaneously announced plans to expand their land funds. This move is believed to be in anticipation of investment opportunities that will arise with the enforcement of three new laws, creating expectations for the market’s recovery and growth.
Specifically, Danh Khoi Investment Joint Stock Company plans to invest VND 195 billion to purchase a portion of the Dai Nam residential area in Chon Thanh district, Binh Phuoc province, and VND 180 billion to acquire a part of the Ham Thang – Ham Lien small industry-commerce-service township project in Binh Thuan province.
Nam Long Investment Joint Stock Company also intends to gradually increase its long-term land fund for mid-range products through mergers and acquisitions and the development of raw land. At the same time, the company will continue to focus on implementing projects such as Mizuki Park, Waterpoint Phase 1, Akari City, and EHome Southgate.
Mr. Lucas Ignatius Loh Jen Yuh, CEO of Nam Long Investment Joint Stock Company, shared that his company will allocate certain capital for efficient investment in M&A deals for new projects. In addition to their 681 hectares of developable land, Nam Long is exploring agricultural land and potential acquisition opportunities to lay the groundwork for future growth.
Mr. Luong Tri Thin, Chairman of Dat Xanh Group, also revealed their goal of acquiring large tracts of land ranging from 100 to 200 hectares nationwide with complete legal documentation for project deployment in the 2024-2025 period.
An Gia Real Estate Company has repeatedly expressed its intention to expand its clean land fund through M&A. The company emphasizes its stance of not chasing the market or buying land or projects at any cost. Instead, they conduct thorough analyses of the land to ensure that their products are affordable for the majority of homebuyers when introduced to the market.
Real estate companies are on the hunt for new “clean” land. (Illustrative image: Minh Duc).
Many industry giants, such as DIC Holdings, Ha Do, Ecopark, Vinhomes, and Phu My Hung, are also actively acquiring land ranging from 50 to 150 hectares in areas like Lam Dong, Long An, Hai Phong, and Binh Thuan to support their business operations in the upcoming period.
This trend of accumulating land funds is reflected in a recent report by the Ministry of Construction. According to the report, legal status, liquidity, and land use fees are among the top criteria considered by enterprises when making investment decisions.
The report also indicates that businesses are becoming more cautious and meticulous in their calculations, conducting market research to ensure that their clean land projects are legally compliant and that land use fees are fully paid, enabling their exploitation in the coming years.
Embracing New Opportunities
Explaining the reason for their land acquisition strategy at this time, Mr. Lucas Ignatius Loh Jen Yuh, CEO of Nam Long Investment Joint Stock Company, believes that Vietnam’s real estate market will experience robust long-term growth due to its significant development potential. This assessment is based on the country’s urbanization rate, which stands at 39%, significantly lower than that of China (64%), Malaysia (78%), and Singapore (100%).
According to Mr. Lucas, the government has become much more cautious in approving new investment projects, with some even being frozen. This year, in addition to the introduction of luxury and super-luxury segments, there has been a supply increase in other segments as well. ”
Supply will continue to grow stronger as people’s demand increases
,” predicted Mr. Lucas.
Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), analyzed that with the new land price framework, land prices will increase, directly impacting the real estate market and housing prices. As land cost is one of the components of housing prices, along with other factors, it typically accounts for about 10% of the apartment price in condominium projects and 30-50% for townhouse and villa types.
With the new land price framework, individuals and households applying for land-use certificates for residential land will face higher land use fees. This will also directly affect the market as input costs, such as compensation and site clearance expenses, increase. Therefore, this is an opportune time to acquire land, as developers can select products with complete legal procedures and more reasonable prices.
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