The timeline of August 1, 2024 is approaching, which is the expected time when the 2023 Real Estate Business Law with regulations restricting land division and subdivision activities will officially take effect, earlier than the approved plan. past, causing many investors to pay more attention to the land segment.
Mr. NV Dung (living in District 7, Ho Chi Minh City) said that he is looking for land products and townhouses in the eastern area of Ho Chi Minh City to find "cool" products to buy for investment. However, when he actually went to the market, he discovered that the market was in chaos. He shared that in the process of researching land in the suburbs from the beginning of the year until now, he clearly saw how land prices were dancing. In the same area near Cat Lai port (Thu Duc city), at the end of last year there were landowners selling for only 3-3.5 billion VND for lots of 50-60m2. Meanwhile, the current price has increased to 4.5-6 billion VND although it is not easy to sell.
Mr. Hung Cuong, an employee specializing in land brokerage and townhouses in the Thu Duc area, also said that the land market in the suburbs of Ho Chi Minh City is showing price increases in secondary transactions. In the Phu Huu or Cat Lai ward area, the secondary source of goods sold has increased in price compared to the asking price in early 2024. For example, a plot of land with an area of more than 60 square meters in Long Binh ward was once offered for sale at a low price. approximately 2.5 billion VND, but now the landowner has offered a price difference of 500 million VND or more. Even with beautiful lots, the increase is over 1 billion VND. Similarly, a plot of land with an area of 60m2 on Tam Da street, Truong Thanh ward, at the end of 2023, the broker offered to sell for 2.9 billion VND/plot but could not sell it. To date, the landowner has increased the price to 300 million VND, which is 3.2 billion VND/plot.
In some other districts such as District 12, Binh Chanh, Go Vap, there is also a similar phenomenon. Quite a few plots of land located adjacent to the central area are being offered for sale at prices ranging from 250-400 million VND higher than at the beginning of the year, although it is unknown whether there will be actual transactions or not. In reality, the price of land for sale in suburban areas has increased, but the liquidity of subdivided land has not recovered as expected.
Mr. Nguyen Van Dung - Director of Truong Phat Real Estate Investment Company - commented that the land market still needs more time to recover. In the long term, land prices may continue to increase when good transactions return. When the laws regulating the real estate market officially take effect, the supply of land will be less because investors are limited in dividing lots and dividing plots of land. At this time, land prices may enter a new cycle of price increases. In previous law adjustments, land prices only increased, not decreased. Therefore, the period 2024-2025 may be an opportunity for people with real needs, but it is still a difficult period for investors.
