The survey results of the website Batdongsan.com.vn in the first 10 months of 2024 show that the demand for buying land plots nationwide recorded a recovery. In October 2024 alone, the number of searches for land plots increased by 14% compared to the previous month and increased by 29% compared to the same period in 2023.
Positive developments in the land market in the provinces are also creating momentum for many investors, especially speculators with cash flow, to return to potential areas.
For example, from the beginning of August 2024 until now, Mr. Vo Hong Quan (48 years old, in Hanoi) - a "big guy" specializing in investing in subdivided land - shared that he has started going to many provinces such as Ha Nam, Bac Ninh, Hung Yen... to see the goods.
Mr. Quan's priority is areas with beautiful locations, price range from 900 million VND to around 2.5 billion VND, clear legal status, located along inter-commune roads.
According to Mr. Quan, one of the reasons why land plots maintain their heat despite the tightening market is because of abundant supply and high demand, in contrast to apartments where supply is scarce and prices are constantly climbing.
It can be seen that investors are rushing back to the land market when they realize the potential for price increases in this segment. According to forecasts, the regulation prohibiting the subdivision and sale of land will cause a shortage of land supply in Hanoi, Ho Chi Minh City and even in the central cities of the outlying provinces.
Actual developments show that the land market has significantly improved in terms of interest and transactions. However, according to experts, this is still only a partial improvement. If investors are not careful and rush into the land "craze", the possibility of falling into the "hit the peak - cut losses" spiral is real.
Mr. Le Dinh Chung - Member of the Market Working Group of the Vietnam Association of Realtors (VARS) - said that from April 2024 to now, in addition to the suburbs of Hanoi, some surrounding provinces such as Bac Giang, Hung Yen, Bac Ninh... land prices have increased by 10-20% compared to the bottom period, actual transactions have improved much compared to 2023.
According to him, some investors have started their journey to buy land in some areas where prices have not increased sharply in recent times. These people are tending to be proactive, because according to the current Real Estate Business Law 2023, it is not allowed to divide and sell land in 105 cities and towns across the country.
Mr. Chung acknowledged that currently, the "wave" of land is only localized in some areas on the outskirts of Hanoi, and has not spread to many areas. It is forecasted that the land market will see clear positivity by the second quarter of 2025. However, investing in land at this time needs to determine a medium-term capital recovery of at least 1-3 years, instead of surfing.
"Although the three new laws on real estate have come into effect, they have only had a positive impact on investor sentiment. Therefore, it still takes time for the laws to penetrate the market before the impact can be clearly seen," said Mr. Chung.
Sharing the same view, Mr. Vu Cuong Quyet - General Director of Dat Xanh North - acknowledged that when real estate prices are pushed too high, along with investors continuing to pour money into the market to push the wave, it will lead to risks for the market because it exceeds the purchasing power of the people. After a while, investors and speculators may have to cut losses.
