PropertyGuru Vietnam's Q3/2024 real estate market data 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.
Notably, in some districts on the outskirts of Hanoi, compared to the first quarter of 2023 - the current time when land prices have increased significantly, land prices in Hoai Duc district have increased by 81%, from an average price of 55 million VND/m2 to 100 million VND/m2.
Land in Dong Anh district increased by 53%, from an average price of 41 million VND/m2 to 63 million VND/m2. Land in Thanh Oai increased by 90%, from an average price of 21 million VND/m2 to 40 million VND/m2.
Mr. Nguyen Van Hung (a long-time real estate broker in Hanoi) informed that although the number of investors interested in the land segment tends to increase, the actual transaction rate is not much because investors still have a more observant and investigative mentality.
"Land auctions are under strict management by state agencies, so investors are currently very cautious. Even many plots of land in the suburbs are being offered for sale by owners for more than 100 million VND/m2, but it is very difficult to find buyers," said Mr. Hung.
Similarly, Mr. Phung Van Sam (45 years old, living in Hoai Duc district) informed that the land segment in the suburbs of Hanoi has been continuously increasing recently, attracting many people's attention, but the rate of successful transactions is still very small.
For example, although he advertised a 75m2 plot of land for sale in Lai Yen commune (Hoai Duc district) for 7.6 billion VND, equivalent to 102 million VND/m2 since June 2024, in the past few months, Mr. Sam has only received calls asking for information, and has not had any customers come to make an actual purchase.
Referring to this content, Mr. Nguyen Van Dinh - Chairman of the Vietnam Real Estate Brokers Association (Vars) - assessed that the land market in the suburbs of Hanoi is in the recovery phase, with actual transactions having little fluctuation.
Mr. Le Dinh Chung - Member of the Market Working Group of the Vietnam Real Estate Brokers Association (VARS) - also commented that from April 2024 to now, some investors have started their journey to buy land in some areas where prices have not increased sharply.
However, Mr. Chung said that currently, the positivity is only local, occurring in the suburban land market of Hanoi. It is not until the second quarter of 2025 that the land market will see clear positivity in many places.
Many real estate experts believe that land investors at this time should not follow the crowd trend, but should determine to invest to recover capital in the medium term, at least 1-3 years, instead of surfing.
Investors should look for areas and localities with synchronous infrastructure, good economic development but land prices have not increased too much in recent times.
