Recently, the land market, especially in the suburbs of Hanoi, has recorded many positive signals after a long period of stagnation. Land prices in some suburban areas of Hanoi such as Dong Anh, Hoai Duc, Thanh Oai have increased sharply. Neighboring provinces such as Bac Ninh, Hung Yen, Vinh Phuc are also in a positive trend as interest and investment have increased again.
The market is more positive, but the sharp price increases in some areas have made many investors wonder whether this is the beginning of a new fever or just a temporary reaction to changes in policy and market psychology?
Areas on the outskirts of Hanoi have seen a sharp increase in asking prices, creating an unusually vibrant atmosphere compared to the previous quiet period. This has caused many investors, especially new ones, to start to feel afraid of missing out on opportunities.
Mr. Nguyen Van Minh - an investor in Hanoi - shared: "I have been following the land market for a long time but have not invested because I am still hesitant. However, recently I have seen many people around me buying land in Bac Giang and Dong Anh, the price has increased continuously in just a few months, so I decided to go and survey. The price may not have increased much yet, but I am afraid that if I hesitate any longer, I will lose the opportunity."
Minh's hesitant but worried mentality of missing out on opportunities is not uncommon in the current period, when the market has some signs of local improvement, although its sustainability is unclear. Ms. Le Thi Mai - an investor in Bac Ninh - admitted: "I just bought a plot of land in the area near the industrial park. Everyone says that land prices will increase sharply when the infrastructure is completed, so I don't want to be late. Although I don't have a need for long-term investment, I think this is a good opportunity to surf."
According to experts, the current heating up of the land market can hardly be considered a sign of a sustainable growth cycle. This phenomenon largely comes from the psychology of waiting for opportunities after a long period of market stagnation. Along with that, factors such as loosening real estate credit, prospects from large infrastructure projects and expectations for the application of new regulations from the revised Land Law have contributed to rekindling interest in the land segment.
Faced with the strong price increase and heat of the Hanoi land market, experts have warned of risks and advised investors to consider carefully and not follow the land price fever.
Mr. Nguyen Duc Cay - Chairman of the Board of Directors of Constrexim Housing Development Joint Stock Company - commented that the current sharp increase in real estate prices is mainly virtual prices due to speculation, distorting the market and causing great damage to people in the long run.
According to the Chairman of Constrexim, land in some areas such as the suburbs of Hanoi can be an opportunity, but also a "double-edged sword".
"To invest effectively, investors need to equip themselves with knowledge, make careful assessments and stay away from speculative psychology. Chasing price fever without a clear strategy can lead you into a spiral of debt and disappointment," Constrexim's Chairman shared.
Assessing the recent "wave" of land in the suburbs of Hanoi, Mr. Le Dinh Chung - Member of the Market Working Group of the Vietnam Real Estate Brokers Association - said that the "wave" of land is only localized in some areas on the outskirts of Hanoi, and has not spread to many areas. Investing in land at the present time requires a medium-term vision, with a capital recovery period of at least 1 to 3 years, instead of expecting a quick "wave".
