Talking to Lao Dong, Mr. Nguyen Xuan Hoai (born in 1979, living in Thach That district, Hanoi) shared that in recent years, many investors have spent a lot of money to buy land here in the hope of making a sustainable profit.
However, according to Mr. Hoai, since the beginning of 2024, many investors have been disillusioned when spending billions to buy land in the suburbs. Even many plots of land in Thach Hoa and Yen Binh communes (Thach That district, Hanoi)... are being advertised for quick sale by their owners, selling at a loss of 100-300 million VND because the land segment here has not shown any signs of recovery.
Having expected that land speculation would be a big success, Ms. Nguyen Thi Minh (born in 1980, Thanh Xuan district, Hanoi) confided that at the end of 2019, she bought a 1.5 billion VND land plot in My Duc district.
However, when the real estate market has not recovered as expected, the land that Ms. Minh bought at the present time has not increased in price and it is also difficult to find a buyer even though she is selling it at break even.
"Now I just want to sell quickly and get money back to invest and do business" - Ms. Minh shared.
According to PropertyGuru Vietnam, although the Hanoi land market is generally still sluggish, there are still bright spots, with successful land transactions taking place, concentrated in the price segment under 1 billion VND in districts such as Hoai Duc, Gia Lam, Dong Anh, Thach That (Hanoi). This price range is completely aimed at customers who buy for real estate or investors with low finances.
Referring to this content, Mr. Dinh Minh Tuan - Director of PropertyGuru Vietnam - commented that the Law on Real Estate Business 2023 officially coming into effect will tighten the subdivision and sale of land, which may cause the level of interest in land to decrease. Notably, the general land price level will also be adjusted down, especially for large plots of land.
Mr. Dinh Minh Tuan said that if investors use financial leverage to invest in land at this time, they will have to be very careful because this is a long-term investment channel. The land segment is forecasted to recover in the near future, but in a stable direction, it is very difficult for "waves" of virtual land price increases to appear like in previous years.
Previously, experts from the website Batdongsan.com.vn also noted that although the land segment has potential prices, it does not mean that investors who buy land everywhere will win, but it also depends on the area and time.
In particular, if participating in the land "surfing" playground, investors need to prepare a "safe and secure" mentality, and have a long-term idle cash flow. In case of a stable source of income, investors should only borrow a maximum of 30% of the property value.
