Talking to Lao Dong, Mr. Nguyen Van Khanh (living in An Khanh commune, Hoai Duc district) said that although it is rural land, the segment of subdivided land here has continuously increased recently.
"The segment of subdivided land with a selling price of around 3 billion VND/plot in communes such as An Khanh, Song Phuong, Van Canh... is being sought by many investors. Meanwhile, the price of subdivided land in many areas has been pushed up, fluctuating around 70-100 million VND/m2, depending on the location" - Mr. Khanh said.
Mr. Tran Manh Tuong (a long-time land investor in Hanoi) commented that the segment of divided land plots in suburban districts such as Dong Anh, Hoai Duc, Thanh Oai... is attracting attention and searches as apartment prices in the inner city increase.
According to Mr. Tuong, not only the price of subdivided land has increased, many service land plots in suburban districts of Hanoi are being sold for more than 100 million VND/m2, equal to the price of apartments in the inner city.
A recent survey by the Dat Xanh Services Institute of Economics - Finance - Real Estate Research shows that the trend of buying real estate for investment purposes is increasing again in 2024, with many investors closing their purchases with the goal of "surfing" to make a profit.
According to Dat Xanh Services, the trend of real estate speculation and surfing is taking place strongly in the Northern markets, especially in Hanoi. The situation of investors buying and selling quickly within a few months, or even just 1-2 weeks to make a profit is quite common, especially in the apartment and land segment.
Mr. Nguyen Van Dinh - Chairman of the Vietnam Real Estate Brokers Association (Vars) - said that the psychology of investors in the land segment is gradually becoming more positive, but people who want to buy this segment should be cautious in choosing investment products.
Experts say that the price increase phenomenon is happening locally in the apartment segment, subdivided land plots, and residential land in some areas. However, in the context of the economy not yet out of difficulties, people's income is not stable, the real estate market's unfounded price increase may be a sign of "virtual fever, bubble".
In fact, the 2023 Law on Real Estate Business, effective from August 1, 2024, stipulates that 105 cities and towns nationwide will not be allowed to divide land into plots for sale. For the remaining areas, the provincial People's Committee will decide which areas investors can divide into plots and transfer to individuals to build their own houses.
Many real estate experts believe that investors holding large plots of land may be forced to sell at reduced prices because they have difficulty finding customers. The tightening of land subdivision and sale from August 1, 2024 will help prevent widespread land subdivision and sale, but the expected decrease in land supply will likely push up land prices.
