Sharing with Lao Dong reporter, Ms. Trinh Thi Minh (36 years old, living in Thanh Xuan district, Hanoi) shared that from the beginning of 2024 until now, land in some suburban areas of Hanoi has attracted a large number of investors.
Due to having idle money, in November 2024, Ms. Minh decided to buy a 50m2 plot of land for 2.5 billion VND in Van Canh commune (Hoai Duc district) to wait for a new price increase cycle. The price of subdivided land in the suburbs is showing signs of improvement, she hopes that if she knows how to invest properly, she can still earn sustainable profits.
Similarly, Mr. Nguyen Van Cuong (a long-time real estate investor in Thanh Xuan district) shared that in September 2024, his family decided to buy a 3 billion VND plot of land, divided into 70 square meters in Thach That district, with the expectation that the price would increase rapidly over time.
According to Mr. Cuong, although located about 20-25 km away from the center of Hanoi, many plots of land here are still of interest and have received deposits and purchases.
However, according to Lao Dong reporters' research, although this segment is attracting a lot of attention, there is still no specific data on actual transactions of land plots in the suburbs of Hanoi.
Meanwhile, 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, real estate experts say 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.
According to real estate experts, it will not be until the second quarter of 2025 that the land market will be able to witness more even development in many places. People investing in land at the present time need to have a medium-term vision, with a capital recovery period of at least 1-3 years instead of expecting a quick "surf".
Ms. Trang Bui - General Director of Cushman & Wakefield - analyzed that the land segment is often very sensitive to market information, policies, and planning of new traffic routes. When this information appears, the land market in the suburbs of Hanoi is immediately increased in price, easily leading to a virtual fever.
Experts recommend that people who want to buy land at this time should be cautious, should not invest with the crowd, and should consider carefully when investing in products during price fever, lacking real use value.
