With a few billion dong in hand, many investors are wondering which real estate segment to invest in in 2024.
Sharing with VietNamNet, Mr. Vu Cuong Quyet, CEO of Dat Xanh Northern Region, said that in reality, most investors buy properties for rental purposes. Three to four years ago, investors started to shift towards investing in apartments when prices in provinces were still cheap and had good price trends.
If the profit rate on investment in apartments in provinces is around 9-11%, investing in apartments for rent in Hanoi only brings about 5-6%.
“Land is a long-term investment segment, burying capital. Currently, the provinces in the North also have quite good prices, which is an opportunity for investors to pay attention to. However, it is necessary to choose the market, focusing on strongly developing industrial provinces. As for the resort real estate segment, 2024 will see a comeback signal, but it will be clearer from the end of 2024 to early 2025,” analyzed Mr. Quyet.
According to the CEO of Dat Xanh Northern Region, the real estate market in 2024 is a good opportunity for investors because prices in some investment segments have declined, only real properties maintain their value.
 Investors with available cash are wondering which real estate segment to invest in in 2024. (Photo: Hoang Ha) |
“In 2025, when the Housing Law, the Real Estate Business Law, the Land Law (amended) officially take effect, land prices, land taxes, and compensation prices based on new laws will be based on market prices, so land prices will be high, project costs and prices will be high. Therefore, 2024 is a good opportunity for investors to consider investing in land lots, adjacent houses, villas before the new laws take effect.
Markets like Hanoi or provinces that attract strong FDI are good investment areas. Meanwhile, investing in places that do not attract many people to live is very risky,” noted Mr. Quyet.
Meanwhile, Mr. Nguyen Van Hau, CEO of Asian Holding Real Estate JSC, evaluated that land plots would only slightly recover and develop like in the 2017-2019 period would be difficult. However, according to him, the apartment segment with prices around USD 2,000-2,500/m2 still absorbs well.
“Depending on the investment needs of each person, but if investors have idle money, they can consider real estate products near industrial zones because it will be easy to rent, while the demand for buying to live will definitely choose apartments.
For land plots, a 3-year investment horizon still remains stable. Meanwhile, resort real estate will still face difficulties, so investors can consider investing according to their preferences,” said Mr. Hau.
Meanwhile, Ms. Le Thu Ha, Chairwoman of the Board of Directors of Ha An Group, expected that the market would fully recover in the second quarter of this year.
With the new regulations in the amended Land Law that have been passed, Ms. Ha believed that businesses when applying for projects would follow the new regulations without having to wait for long.
“Real estate supply in the coming time will be improved, however, real estate prices from developers will be high due to land taxes, compensation prices close to market prices, and land prices will be high. For investors with available cash, this is the time to gradually buy. In 2025, the real estate market will explode,” said Ms. Ha.
According to her, urban apartments always remain the top product of interest to investors and real buyers. Next are real estate products like shophouses, industrial real estate, and land plots.
Based on the analysis of experienced leaders in the real estate field, investors have more grounds to decide on investing in the right real estate segment according to their preferences this year.
Nguyen Le
