Recently, the agricultural land market in the Mekong Delta region has shown many positive and promising signs when the 2024 Land Law took effect, helping to resolve problems and increase investor confidence.
According to research, although the real estate market is not as vibrant and prices are skyrocketing as in Hanoi and Ho Chi Minh City, agricultural land in the Mekong Delta is currently being hunted by "sharks".
Holding 2 plots of land in the city center, Mr. Tran Van Minh (Ninh Kieu district, Can Tho city) still takes the time to look at garden and agricultural land in neighboring provinces.
"I went to survey and found a plot of land for 1.2 billion, area 1,000m2, full papers, near the main road so I quite like it, currently waiting to negotiate with the owner, if there is 1.1 billion left I will close it immediately", said Mr. Minh.
Talking about the reason for switching to investing in agricultural land, this investor said: "Regarding the price, garden land and rice fields are still quite soft, the capital outlay will be lower than other types. Moreover, if the purpose of use is successfully changed, the plots will be divided into residential land, the rate of return will be very high."
In 2023, although he had put 1,500 square meters of garden land up for sale to cut losses because his finances had plummeted, Mr. Nguyen Thanh Khuong (Phung Hiep district, Hau Giang province) is now holding the land, waiting for a chance to make a profit.
"I spent 1 billion to buy this garden plot, but after the COVID-19 pandemic, business has been bad and I have to put it up for sale. However, the land price is currently increasing by about 1 million VND/m2, so I am not selling it, and am also surveying some other plots of land," said Mr. Khuong.
This investor's move to hunt for and buy agricultural land is to anticipate planning projects, or wait for the opportunity for land prices to increase to take advantage of the difference.
Experts say that the new regulations of the 2024 Land Law create favorable conditions for farmers and are suitable for businesses investing in the agricultural sector. In particular, investing in and buying agricultural land to change its purpose and divide it into plots for sale is very difficult to do.
According to the Vietnam Real Estate Brokers Association, in the first 6 months of the year, auctioned land and subdivided land have improved somewhat. Project land and agricultural and forestry land have not shown signs of recovery, with sluggish liquidity and slow transactions.
Investing in agricultural land to anticipate projects waiting for planning, holding land for speculative investment will face many risks, with the possibility of "buried" capital.
