Mr. Ngo Quang Phuc, a real estate investor in Hanoi, said that after many unsuccessful attempts at finding land plots to invest in in the suburban areas of Hanoi, he finally decided to buy an 80m2 land plot in Hung Yen for 22 million VND/m2 at the end of March.
According to Mr. Phuc, after many days of “land hunting”, he realized that with about 1.5 billion VND, it would be very difficult to find land plots in good locations in the suburban areas of Hanoi. Meanwhile, if he bought land in Hung Yen, he would have many options in beautiful areas, with wide roads, and high potential for price increases because the land price there is still quite cheap.
However, Mr. Phuc affirmed: “
Buying land in the provinces requires a long-term investment, it is very difficult to make a quick profit like in big cities. Therefore, those who use financial leverage need to consider carefully when buying land in the provinces.
”.
Similarly, Ms. Nguyen My Hanh, an investor in Hanoi, said that the price of land in Hanoi is currently too high. To invest, a large capital is required, and one must accept the risks with low profit margins. Therefore, Ms. Hanh and her investment group decided to buy in localities with convenient infrastructure and transportation.
Investors are shifting to provinces near Hanoi to buy real estate. (Illustrative photo).
Specifically, at the beginning of April, she bought 2 land plots in Tuyen Quang, each 100 m2, priced at 12 million VND/m2.
”
Although land fevers are unlikely to occur in the provinces, investment profits are difficult to increase dramatically, but the total investment capital is small, only 1.2 billion VND/lot. This is definitely a good way to keep money at the moment because land prices in the localities are still cheap, and it is entirely possible for land prices to double in the next 5-10 years.
“, Ms. Hanh said.
Mr. Le Van Long, a broker in Hanoi, said that from the beginning of 2024 up to now, in addition to investors looking for opportunities in the suburban areas of Hanoi, there have been many people flocking to the provinces of Hung Yen, Bac Ninh, Bac Giang, Hoa Binh, Tuyen Quang, etc. to find opportunities to invest in the land segment, waiting for a new price increase.
Mr. Long said that unlike investing in big cities which require tens of billion VND or more, when investing in the provinces, the capital outlay is only a few hundred million VND to buy land, or with a slightly higher amount, investors can choose beautiful locations, convenient transportation, and densely populated residential areas.
In February and March, Mr. Long’s office closed dozens of land transactions in Hoa Binh with prices ranging from 500 – billion VND/plot.
Experts say that even though the real estate market has not yet become active again, land in the provinces is still the “favorite dish” that investors target the most. Because this segment is easy to invest in and has high profit potential.
According to a study on real estate consumer psychology (CSS) by the real estate website in the first half of 2024, out of 1,000 people surveyed, 65% said they would continue to buy real estate in 2024. Of these, about 1/3 were interested in land.
In which, land products with prices below 2 billion VND/plot attracted the most interest, accounting for 42%; the price range of 2 – 4 billion VND ranked second with 24% interest; the price range of 4 – 6 billion VND accounted for 10%. The two remaining price ranges of 6 – 10 billion VND and over 15 billion VND had interest rates of 9% and 15%, respectively.
Mr. Nguyen Tho Tuyen, Chairman of the Board of Directors of BHS Real Estate Joint Stock Company (BHS Group), said that if investors buy real estate in Hanoi at this time, they will suffer losses because the prices have continued to increase after the recent sales. Therefore, they must disburse cash flow into real estate in cheaper areas.
One of the good choices is land plots, land auctioned land in the provinces will also be very good because they are located in central locations, ensuring legal issues. Especially in the past 2 years, the provinces have almost not had any successful auctions, and according to the principle, the prices of the next auctions will decrease. Therefore, the land prices in the auction areas in the provinces are also very suitable.
”
I think that after the real estate fever in Hanoi, it will sooner or later spread to other provinces. Those could be auctioned land products or land plots located in the center of the provinces.
“, Mr. Tuyen predicted.
According to Mr. Dinh Minh Tuan, Director of PropertyGuru Vietnam for the Southern region, the attractiveness of the “king investment channel” of land has returned, and the segment under 2 billion is receiving the most attention. From the end of 2023 to the beginning of this year, the market has seen the emergence of more and more “shark” investment groups hunting for land plots in large numbers.
“
Strict regulations on land subdivision are a hot topic, and the supply of subdivided land is forecasted to decrease significantly after 2025, but the demand for land is unlikely to decline in the long term because Vietnamese people still prefer this type.
When supply is low and demand is high, land prices will increase. Many investors want to catch this trend, so they start to look for land before the new law is applied.
“, Mr. Tuan said.
