Investors go “land hunting” right after Tet
The latest report from batdongsan.com.vn shows that after the Lunar New Year holiday, interest in the real estate market has returned. Specifically, the national real estate search volume has been increasing daily, and by the 10th day of the Lunar New Year, it reached a 124% increase compared to the week before Tet.
The real estate market at the beginning of this year has shown more positive signs in terms of the level of interest and the number of listings compared to the beginning of 2023. Specifically, in January 2024, the nationwide demand for real estate search increased by 66% compared to the same period in 2023, and the number of real estate listings also increased by 52%.
Accordingly, in January 2024, the search volume for land in Hanoi increased by 110%, and the search volume for project land increased by 77% compared to the same period last year. In Ho Chi Minh City, the demand for land increased by 71% – 73% for land and project land.
Regarding the Consumer Sentiment Index (CSS) of batdongsan.com.vn in the first half of 2024, it also indicated that up to 65% of respondents stated that they still plan to buy real estate within the next year.
Buyers and sellers of real estate are no longer as hesitant as in 2023. The real estate market sentiment index in the first half of 2024 also increased by 3 points compared to the second half of 2023. This index increased due to the improvement in consumer satisfaction with the potential price increase of real estate, interest rates for home loans, and market conditions.
Indeed, investor sentiment has become more positive after the simultaneous passage of 3 major laws related to real estate. In addition, many solutions to remove obstacles for the market have been continuously implemented. At present, interest rates have become more comfortable. As a result, since the second half of 2023, real estate liquidity has gradually recovered.
Many experts in the industry have given positive predictions for the real estate market in the 2024 – 2025 period. Dr. Nguyen Van Dinh, Chairman of the Vietnam Association of Real Estate Brokers (VARS) shared: “2024 will be the final time of the difficult period in the real estate market. Although it cannot explode, the market will gradually stabilize. This year is considered the beginning of a new development cycle for many years to come”.
The hunt for land plots
Mr. Dinh Minh Tuan, Director of batdongsan.com.vn in the Southern region said that since the beginning of December 2023, when the draft Law on Land (amended) received much attention and discussion, land investors have started to return to the market.
Mr. Tuan’s research with more than 10 land business units in Dong Nai, Binh Duong, and Long An provinces showed that all companies shared that the number of land transactions has increased since the beginning of this year. Specifically, the focus is mainly on land lots with standard legal status, prices below 2 billion dong, within a radius of 60 km around Ho Chi Minh City.
Mr. Tuan also noted that buyers and sellers of land plots during this period are those who have just terminated their savings deposits and have capital of about 1-2 billion dong. With this amount, if they only invest in gold and land plots, and gold prices are currently rising, they turn to buying land plots to accumulate assets.
Regarding the long term, Mr. Tuan believes that land prices may continue to rise and transactions will resume. The reason is that the price of real estate depends on other factors such as infrastructure development, economic growth, and people’s income. Because it is associated with the mindset of “fertile land, precious gold”, the demand for owning real estate, the need for asset accumulation of Vietnamese people is very high. Therefore, it is not difficult to understand why land plots receive the most attention from consumers in 2024.
The Chairman of the Vietnam Association of Real Estate Brokers (VARS) said that 2024 will be a challenging year for the real estate industry. However, these challenges also open up great opportunities for the market to accelerate in the coming time. It can be seen that the launch of many projects for sale at the end of 2023 shows that the real estate market is on the road to recovery.
