“Shark” Who Once Sank Hundreds of Millions of Dong into Southern Land, What Now?

During the period of 2015 to 2018, many investors with large capital from the North or Ho Chi Minh City ventured into areas with lower prices to purchase land. Many of these plots of land remain unsold even though their value has increased severalfold.

In a recent sharing, Mr. Ph, a broker and investor in Nhon Trach, Dong Nai, revealed that he has been investing since 2013 and has witnessed numerous “shark” land deals in the area. Currently, there are still some investment groups looking for good deals to buy in bulk, but this activity has decreased compared to previous years. His brokerage firm has had several sales rounds for well-financed investors who buy multiple plots at once. Many of them have not sold their properties despite market price increases.

Mr. Ph shared that in 2016, a group of “shark” investors spent hundreds of billions of dong to purchase more than 15 land plots and 5 townhouses and villas in Nhon Trach district. A few months later, this investor continued to engage his brokerage firm to find more residential land in Long Tho ward and several townhouses in a real estate project in District 9 (now Thu Duc City). At that time, it was not difficult for brokers to find properties to sell to investors.

“As long as there were products in attractive locations at good prices, this group of investors would immediately make a move, sometimes without even visiting the site directly. Within a month, our brokerage firm could sell dozens of land plots to this well-funded group,” shared Mr. Ph.

According to Mr. Ph, the southern real estate market was “hot” during that period, with prices rising rapidly. The “shark” investors’ property hunting activities took place quietly and continued until the end of 2019. However, even though they bought in the 2015-2016 period, very few investors sold within the next 1-2 years. They only realized their profits in early 2022 when prices had increased five to sevenfold. Nonetheless, this group of investors did not choose to sell all their assets but only sold a portion.

In the challenging market period from late 2022 to mid-2024, the “shark” investors continued to hunt for discounted or distressed properties. Currently, even though prices have increased by about 10-25%, this group has not sold their holdings.

“The characteristic of ‘shark’ investors is their long-term holding strategy. While speculators typically engage in short-term buying and selling following market trends, investors with strong financial backing have a medium to long-term vision. Despite several attempts by our brokerage firm to resell the properties to interested buyers, many investors have chosen not to sell,” said Mr. Ph.

In the Phu My market (Ba Ria – Vung Tau), from 2016 to 2018, many investment groups actively purchased land in large quantities. Land prices at that time ranged from 5-7 million VND/sqm, later increasing to 8-10 million VND/sqm, and currently reaching around 18 million VND/sqm. These price increases were significantly influenced by the involvement of “big player” investment groups.

According to local brokers, during the period of 2016-2017, when the market was still in its infancy, the investment groups were already “scooping up” properties. They were interested not only in residential land but also in garden and agricultural land. They typically invested in plots near major roads, ports, industrial parks, and upcoming infrastructure projects.

After several price increases due to planning announcements, some investors chose to sell, while others continued to hold their assets. In fact, many investors bought land in Phu My decades ago and have no plans to sell in the next few years. They have strong beliefs in the further appreciation of property values in the area.

In Ho Chi Minh City, areas such as District 9 (now Thu Duc City), Hoc Mon, and Cu Chi also witnessed the strong participation of “shark” investors. Land plots and townhouses in projects purchased during the 2013-2015 period have seen their values multiply several times. While the Hoc Mon and Cu Chi markets have slower transaction speeds, District 9 enjoys relatively good liquidity.

According to Mr. T, a long-time broker in District 9, in 2015, many cash-rich investors bought 5-6 adjacent houses in urban projects at prices ranging from 5-7 billion VND per unit. Today, some of these units have been sold at prices six to seven times higher, while others remain unsold.

The southern land market has witnessed numerous instances of “shark” investors carrying “bags of money” to hunt for real estate. These individuals possess strong financial capabilities, do not rely on bank loans, and often invest as a group. During the challenging market period of 2023-2024, this group continued to seek out land plots with red books in areas with potential.

Compared to previous years, the southern land market is no longer experiencing rapid price increases. Consequently, cash-rich investors are now focusing solely on residential real estate. Garden and agricultural land have received less attention. In the past, “shark” investors would diversify their real estate portfolios and wait for opportunities. However, after a period of market fluctuations, their investment preferences have somewhat changed.