According to Lao Dong reporters, service land (also known as commercial land) is a type of land planned by the State and allocated to citizens or households with agricultural land that has been recovered for other projects, or land auctioned in some public areas according to new urban models such as markets or bus stations.
Recently, many investors are interested in this type of property in the suburbs of Hanoi due to its advantages such as being in a prime location, convenient for business and trading, and having the potential to increase in price over time.
Mr. Nguyen Van Hieu (38 years old, living in Thanh Xuan district, Hanoi) felt very surprised when many service land lots in the suburbs of Hanoi were being sold for over 100 million VND/m2.
According to Mr. Hieu, the price of service land here is increasing by tens of millions of dong per month. To raise the floor price of the segment, some real estate brokers have posted a series of news with sky-high prices to attract attention. When buyers refer to it, if they do not research carefully, they will easily fall into the price trap.
"There is a need to buy service land for investment, but I also feel dizzy and find it hard to believe that this segment in the suburbs is anchored at such a terrible level.
Although located in a deserted location with a sparse population, many service land plots in Van Canh commune (Hoai Duc district) are being sold by owners and brokers for more than 100 million VND/m2, even beautiful land plots have different prices every month" - Mr. Hieu said.
Similarly, Ms. Nguyen Thi Ngoc (45 years old, living in Van Canh commune, Hoai Duc district) was also surprised when many service land lots with beautiful locations in the 6.9ha area of Van Canh commune were selling for around 100 - 150 million VND/m2, continuously increasing in price over time, however, successful transactions were still few and far between.
However, Lao Dong reporters' research shows that although the selling price is continuously increasing, there is still no specific data on actual transactions of service land segment in the suburban area of Hanoi.
Referring to this content, many real estate experts informed that recently investors are paying much attention to real estate products, especially land and service land in areas with planning information, implementing infrastructure investment and projects such as Hoai Duc district.
Mr. Nguyen Van Dinh - Chairman of the Vietnam Real Estate Brokers Association (Vars) - commented that the market has seen more investors hunting for land, proactively building houses on investment land plots waiting for prices to increase to rent out, earning monthly cash flow.
In addition, land auctions in some localities, especially markets in Hanoi, have recorded a sharp increase in the number of applications recently, with successful auctions being 20% to 10 times higher than the starting price.
Experts say that investors in land and service land in the suburbs of Hanoi need to determine that this is a long-term investment, should not prioritize the use of financial leverage or short-term investment, and should prioritize the favorable location as well as the potential of the land to make the right decision.
