The Great Land Rush: Unveiling the Coveted Spots for Savvy Investors.

Reflecting on the real estate market in the past year, Mr. Le Dinh Chung, CEO of SGO Homes, shared his insights. He noted that while the market has shown signs of recovery, it has not yet returned to its vibrant state. If this trend continues, there won’t be a significant price surge in the Northern market, particularly in Hanoi, in 2025 compared to 2024.

Notably, with home prices already high, people tend to opt for renting instead of rushing to buy. They may choose to invest the money intended for purchasing a house in other provinces or rural areas.

For provincial markets, urban land plots will be in high demand, especially those with complete legal documentation. Buyers will favor low-rise products near industrial zones and economic hubs such as Bac Ninh, Bac Giang, Hung Yen, Hai Duong, Hai Phong, and Quang Ninh. These provinces share a robust economy, strategic locations on vital transport routes from the capital, and a strong foundation in industry and tourism.

Additionally, in provinces bordering Hanoi, like Bac Ninh, Bac Giang, Hung Yen, and Hai Duong, there is no longer a trend of selling at a loss. Land prices have rebounded since 2024 in these areas. In contrast, the market remains weak in areas from Thanh Hoa southward, with prices still lower than previous peaks, and a turnaround is not expected immediately in 2025.

For tourist destinations like Da Nang and Nha Trang, positive signs are emerging this year due to economic recovery, boosting tourism. Investors are also seeking regions with robust tourism growth, especially in Nha Trang and Da Nang.

Overall, the CEO of SGO Homes assessed that 2025 marks a turning point, signaling the beginning of a new real estate cycle. He advised investors to focus on markets closely linked to economic and infrastructure development rather than following the crowd, market trends, or “hot” segments. Investors should seek out reputable developers with sound legal standing and choose products that align with their financial capabilities without relying heavily on leverage.

Additionally, it is crucial to understand the local demand for the chosen real estate type and target end-users, ensuring that the product serves a housing need.

Mr. Chung also observed that, along with changes in land-related laws, older projects with remaining inventory would attract significant buyer interest, especially for products priced below VND 3-4 billion. This is because these projects were developed before the new land price framework took effect, resulting in lower land costs. In contrast, projects implemented under the new land price framework will face cost increases.

While land plots will regain momentum, not all landowners will benefit equally. Customers are now more discerning, carefully considering the developer’s reputation, project legality, and product quality. “In the past, developers could sell immediately after completing the infrastructure. Now, they must also create landscapes and amenities to attract buyers,” said Mr. Chung.

Previously, the Vietnam Real Estate Brokers Association (VARS) predicted that land plots with values below VND 2 billion, with proper legal documentation, in areas with developed infrastructure and high potential, would continue to attract buyers’ investments in 2025.