The land hunt at the beginning of the year.

Recognizing the potential for profit in land plots, many investors boldly invested their money right at the beginning of the year. Some even placed deposits right before the Lunar New Year of the Year of the Snake.

Recognizing the potential for profit in land plots, many investors boldly invested their money right at the beginning of the year. Some even placed deposits right before the Lunar New Year of the Year of the Snake.

Investors are buying land right from the first days of the year. Photo: Truong Thanh

Right after the Lunar New Year, investors rushed to "put down their money".

Disregarding the notion that "January is a month for leisure," on her first day back at work after Tet, Thu Huong, an office worker, went to a notary office to conduct a land transaction.

This amateur investor said that in the last week before the Lunar New Year holiday, she put down a deposit to buy a 90 m2 plot of land in Dong Tam commune (My Duc district, Hanoi ) so that she could finalize the deal right after the holiday.

“After researching the market, I found that 2.1 billion VND for a plot of land on the inter-communal road was reasonable. This location has good business potential, so it would be easy to find a buyer. To avoid the seller changing their mind or increasing the price, I decided to put down a deposit immediately,” Ms. Thu Huong shared.

Land plots that have been subdivided, have guaranteed legal status, are located in areas with complete infrastructure, and are priced under 2 billion VND continue to record good price increases.

According to Ms. Huong, investing in land plots is no longer as easy as before. This is because registration fees and income tax on land use rights transfers have increased significantly after Hanoi implemented the new land price list. Ms. Huong estimates that the total taxes and fees have nearly doubled compared to the beginning of last year.

Ms. Xuan Hoa, an investor, said that the plot of land she bought in September 2024 is about to yield a profit. This is a 120 m2 plot of land located in Hoang Van Thu commune (Chuong My district, Hanoi), originally purchased for around 1.3 billion VND, but the current price being negotiated between the two parties has risen to nearly 1.6 billion VND.

“Even before Tet (Lunar New Year), real estate agents kept calling to ask if I wanted to sell. In fact, about a month after I bought the land, a customer offered to pay about 100 million VND more,” Ms. Xuan Hoa said excitedly.

However, investors don't always reap the rewards when "surfing" the market. Ms. Hoa said that she had her capital tied up for 7 years in a plot of land in Yen Nghia ward (Ha Dong district, Hanoi). The pressure of paying bank loan interest kept her constantly stressed and exhausted. The problem was only solved when she sold the land in early 2024.

"Although I sold it for double the purchase price, after deducting loan costs, the profit wasn't much. Not to mention the mental stress I endured for seven long years. During that time, I frequently suffered from insomnia and headaches," Ms. Hoa confided.

Furthermore, for land transactions to proceed smoothly, especially in the suburban districts of Hanoi, investors must maintain good relationships with local real estate agents. These agents are considered "local experts" in the area and will greatly influence the liquidity of the land plot.

“These brokers are usually locals. They know how to ‘hunt’ for good-value plots of land that haven’t changed hands many times. However, these brokers often conceal the landowner’s contact information from their clients. They will only arrange for the two parties to meet when conducting the transaction at the notary office,” Ms. Hoa said.

Will 2025 be the year of land plots?

According to the Vietnam Association of Real Estate Brokers (VARS), in 2025, subdivided land plots with guaranteed legal status, located in areas with complete infrastructure and priced under 2 billion VND, will continue to experience good price increases. Furthermore, demand for purchasing, both for residential and investment purposes, will steadily increase along with urbanization and economic development, supported by a well-developed legal framework.

Sharing the same view, a representative from the Institute of Construction Economics ( Ministry of Construction ) also believes that land transactions this year will be more active than in 2024, with prices expected to increase by about 8-10%.

Speaking with a reporter from the Investment Newspaper, Mr. Pham Duc Toan, CEO of EZ Real Estate Company, commented that most Vietnamese people still prioritize hoarding land or gold. In reality, since the enactment of the 1993 Land Law, land prices in Hanoi have only followed two trends: stagnation or increase; they have never decreased.

"Because of this stability, many people consider land as a safe haven for assets against inflation. Therefore, many investors still confidently invest if they see potential in an area, with complete infrastructure, proximity to major cities, and sound legal documentation," Mr. Toan emphasized.

The CEO believes that the residential land segment can easily accommodate various investment styles. Short-term buyers can profit from localized market surges, while long-term investors can confidently lock in profits after a few years.

However, this expert also noted that the suburban land segment has a relatively slow liquidity rate, while the product itself does not have the potential to generate cash flow. Therefore, if investors use excessive financial leverage, risks may arise.

According to Mr. Nguyen Quoc Anh, Business Director of Batdongsan.com, the period from now until the beginning of the second quarter of 2025 is when the market will enter a consolidation phase. Investors will gradually feel more confident about the development prospects of the real estate industry.

“After this period, the market will move towards a recovery phase, expected to begin from Q2/2025 to Q4/2025. At that time, investors will no longer prioritize selling price and legal aspects as they did during the market downturn. Instead, the potential for price appreciation will be the key factor in deciding whether to invest. Therefore, profitable segments like land plots will receive special attention from investors,” Mr. Quoc Anh said.

Sharing more about the potential for price appreciation in the land plot segment, Mr. Nguyen Quoc Anh cited a statistic: considering previous cycles, when the market entered a development phase, for every 100 dong invested, apartments would only yield 136 dong, but land plots would yield up to 300 dong. Therefore, land plots remain the preferred investment segment for investors.

Source: https://baodautu.vn/batdongsan/cuoc-san-dat-nen-dip-dau-nam-d244586.html