Real estate market data for the third quarter of 2024 from a market research unit shows that the land market has significantly improved in terms of interest and transactions. However, this is still only a local improvement in some areas, especially the northern provinces.
Commenting on the real estate market, Mr. Nguyen Quoc Anh - Deputy General Director of PropertyGuru Vietnam assessed that from the first quarter of 2024 to the fourth quarter of 2024, this is the time of reversal in investor psychology, the exploration movement gradually reappears. However, the highest priority of buyers still revolves around the real estate segment, with legal guarantees. With the above factors, the apartment segment is still the "king" in this period.
"Next, from the fourth quarter of 2024 to the beginning of the second quarter of 2025, this will be the time when the market enters a consolidation phase. Investors are gradually more confident in the development prospects of the real estate industry. The apartment segment will now give up its focal point to private houses and townhouses," said Mr. Quoc Anh.
After this period, the market will move towards a period of recovery, expected to start from the second quarter of 2025 to the fourth quarter of 2025. Investors in this period will no longer place too much emphasis on selling price and legal factors like when the market was gloomy. Instead, the potential for price increase is the key to deciding to spend money. Therefore, profitable segments such as land and project villas are also given special attention by investors.
Finally, from Q1/2026 to Q4/2026, this will be the time when the market enters a stable orbit. Prices and liquidity will increase in various types. This can be considered the best prospect of the market, after a long period of stagnation.
Sharing the same view, Mr. Le Dinh Chung - Member of the Market Working Group of the Vietnam Real Estate Brokers Association - said that it is not until the second quarter of 2025 that the land market can witness more even development in many places. However, 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 "surf".
"Some investors have started their journey to buy land in some areas where prices have not increased significantly in recent times. These people are tending to be proactive, because according to the current Real Estate Business Law 2023, it is not allowed to divide and sell land in 105 cities and towns across the country," said Mr. Chung.
Speaking to Lao Dong Newspaper, Mr. Vo Hong Thang - Investment Director of DKRA Group said that the new regulations on tightening land division and separation activities could cause the supply of subdivided land to decrease sharply after 2025. Meanwhile, demand is unlikely to decrease in the long term, because Vietnamese people are very fond of this type of real estate. When supply is low and demand is high, land prices will increase. Accordingly, many investors want to grasp this trend and start looking for land before the new law officially takes effect.
"In the coming time, residential land in big cities will still tend to attract investors. In particular, there may be strong price increases because the land price list announced in the provinces and cities has increased sharply, approaching the market price" - Mr. Vo Hong Thang said.
