The land market in early 2025 is recording many positive signals as investor cash flow gradually returns. Many regions recorded a significant increase in selling prices and transaction volumes, reflecting investors' expectations for this segment. However, to optimize profits and avoid potential risks, investors need to consider carefully before putting money down.
According to experts, one of the most important factors when buying land is legality. Mr. Tran Minh Quang, a long-time land broker in Hanoi, shared: "Areas with clear legal status, within the infrastructure development roadmap and with the potential to attract residents in the future will be a worth considering choice. Many investors make mistakes when focusing only on cheap prices without carefully assessing the actual development capacity of the area, leading to difficulty in finding outlets when transferring".
However, Mr. Quang also noted that investors and land prices in some areas have increased sharply, especially in places with information on new infrastructure planning. Investors need to be cautious because when prices have been pushed up too high, the profit margin is not much. If buying at the peak price, the possibility of loss will be great when the market adjusts.
Mr. Quang emphasized that checking the planning and legality is a prerequisite before paying. "There are many cases where customers are willing to pay cheaply, buy land under suspended planning or do not meet the conditions for land division, leading to the inability to transfer or build, causing significant damage," said Mr. Quang.
Another factor that needs special attention is market sentiment. Many investors are caught up in rumors or attractive advertisements from speculative groups, leading to the decision to buy land without checking the reality. It is important to carefully survey, assess population factors, transport infrastructure and development potential of the area. For areas with sparsely populated areas and unclear infrastructure, investors need to consider carefully, because the possibility of price increases depends largely on the actual development speed of that locality.
Assessing the developments in the land market in recent times, Mr. Le Dinh Chung - Member of the Market Working Group - Vietnam Real Estate Brokers Association - commented that the positive developments of the land segment have only occurred locally in some areas on the outskirts of Hanoi, and have not spread widely.
Mr. Chung predicts that by the second quarter of 2025, the land market may witness more even development. However, investing at the present time requires a medium-term vision, with a capital recovery period of at least 1 to 3 years, instead of expecting a quick "surf".
From another perspective, Mr. Nguyen Duc Cay - Chairman of the Board of Directors of Constrexim Housing Development Joint Stock Company, said that the rapid increase in land prices in recent times is a cause for concern. According to Mr. Cay, land in the suburbs of Hanoi can bring investment opportunities, but also has many potential risks. He recommended that investors need to equip themselves with adequate knowledge, analyze carefully and avoid chasing price fevers without a clear strategy. If you are not careful, investors can fall into a spiral of debt and disappointment, he stressed.
