For over a year, Mr. Nguyen Van Vien (50 years old, Thach That district, Hanoi) has been selling a plot of land of more than 4,100 square meters in Thach Hoa commune.
According to Mr. Vien, although he asked a broker to post the sale, his family has yet to find a buyer for the land at the price of 14 billion VND, equivalent to 3.36 million VND/m2.
"Because of having idle money, 5 years ago, my family spent money to buy a plot of land with the intention of building a resort and running a farmstay business. However, due to financial difficulties, I decided to sell it quickly. The plot of land has a large area and a high price, so it is very picky about buyers," said Mr. Vien.
Also facing financial difficulties, Ms. Le Thi Tuyet (36 years old, Ba Vi district, Hanoi) is selling a plot of land to recover capital and escape debt. The plot of land has an area of 920m2, selling price 12 billion VND. Despite continuously posting ads for sale, Ms. Tuyet has not yet found a buyer even after calculating the transfer and red book transfer costs.
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.
With the new regulations, 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.
Mr. Le Dinh Chung - a member of the Market Working Group of the Vietnam Real Estate Brokers Association - analyzed that it will not be until the second quarter of 2025 that the land market can witness more even development in many places.
However, experts say that investing in land at the present time requires a medium-term vision, with a capital recovery period of at least 1-3 years, instead of expecting a quick "surf".
According to Ms. Pham Thi Mien - Deputy Head of Market Research, Consulting and Investment Promotion Department of Vietnam Real Estate Brokers Association (VARS), land prices have been adjusted recently.
The land market in planning hotspots such as Dong Anh, Gia Lam, or areas around Ring Road 4 still receives the attention of investors. Land prices in these areas are gradually stabilizing and only have slight increases.
Besides, the expert from Vars still believes that land is a segment worth investing in the future. However, residential land products with a price range of 2 - 3 billion VND/plot have very good liquidity, on the contrary, large-area, high-value land plots will be picky about buyers.
