Mr. Le Anh Tuan (38 years old), a novice investor, said that at the end of 2021, when he saw his friends constantly talking about real estate, many people won tens of billions of dong, he risked putting down money to close a deal. Chess board plot of land in Thach That, area 65m2, worth nearly 2 billion VND.
In early 2023, under financial pressure, Mr. Tuan started selling the land at the same price as the purchase price, but after nearly 12 months he could not find any customers. In early 2024, he decided to cut losses of 150 million VND. Although many people asked, he still cannot sell.
Also in a difficult situation, at this time, Mr. Nguyen Minh Giang (in Thanh Xuan district, Hanoi) is also busy taking care of debts. He couldn't raise the money, and his capital of more than 5 billion VND was "buried" in 2 plots of land in Thach That.
"When the market is hot, I don't sell the first plot of land to make a profit, but buy a second one. When the market is gloomy like last time, when I sell it, no one buys it, not to mention having to sell it cheaper than when I bought it" - Mr. Giang shared.
According to Mr. Giang, currently, both plots of land he bought are vacant. He also did not have enough finances to invest more in renting or doing any business on those plots of land.
In a deadlock situation with almost no way out, land auction fever in suburban districts such as Thanh Oai and Hoai Duc recently, with winning prices reaching up to hundreds of millions of VND/m2, is being recognized by investors. Investors hope to create a warmer effect for the land market where they invest.
It can be seen that the feverish auctions with winning land lots reaching more than 100 million VND/m2 in Thanh Oai district or more than 133 million VND/m2 in Hoai Duc district are bringing many expectations to speculators. , especially investors who are holding high-priced land lots and want to exit soon.
The fact that investors are selling land plots also opens up opportunities for investors with strong potential to hunt for land plots at good prices to get ahead of the new cycle, when the amended laws come into practice. In particular, the strict regulations on subdivision are being implemented, causing the supply of land in suburban areas to be forecast to decrease, leading to an increase in prices.
Real estate expert Nguyen The Diep - Vice President of Hanoi Real Estate Club - predicts that the land segment will escape the "bottom" and gradually return to being a popular investment channel. However, investors should only hunt for auction land, or subdivided land plots in areas with complete infrastructure and prices that are not too high.
According to Mr. Diep, the optimistic developments in the land market from the beginning of the year until now show that investors' confidence in this segment is returning. However, investors still need to be alert when investing money because at this time the State has begun to tighten, aiming to limit the division of plots for sale through new laws.
Therefore, in the future, when the real estate market recovers, land prices will have a chance to increase in price but at a moderate level. And unlike previous cycles, in this new cycle there will no longer be a "virtual land fever" or a real estate "bubble" taking place.
