Land prices begin to slow down

According to the Vietnam Association of Realtors, land transactions have increased but have not been really active. In addition, selling prices are also gradually stabilizing after a period of soaring in the first quarter of 2024.

“When the new real estate laws come into effect, the land segment will gradually return to being the ‘king of investment channels’.” This is the latest forecast of the Vietnam Association of Realtors (VARS) in the market report for the first 6 months of 2024.

The above assessment is well-founded when the transaction volume of low-rise and land segments in the second quarter of 2024 recorded an increase of 60% compared to the previous quarter. However, the current price level has not peaked as in the first quarter of 2024, but has gradually begun to stabilize again.

Land is expected to become a channel to attract investors' cash flow in the second half of this year. Photo: Dung Minh

For plots of land priced under VND2 billion in some northern provinces, the price only increased by about 5-10%. Land prices in the southern region even remained stable.

Delving deeper into the suburban land segment, VARS said that the transaction volume recorded an increase but was not really vibrant. However, the market has seen more investors "hunting" for land and proactively building houses on plots for business purposes.

“Some areas have seen localized growth in transactions and then stagnation, and the suburbs of Hanoi are no exception. Prices in these areas have increased by about 10-20% compared to the beginning of the year,” said experts from VARS.

In particular, land auctions have seen success in both the number of applications and the amount of money raised. In the first half of this year, there were lots successfully auctioned for a value 10 times higher than the starting price.

With residential real estate, the transaction volume in the city center has slowed down somewhat, after a period of "hot" growth. Currently, investors' money is tending to flow to the centers of neighboring provinces of Hanoi and Ho Chi Minh City.

“Transactions are still mainly from products priced from 3-5 billion VND in the city center and around 2 billion VND in the suburbs. Currently, prices are still stable or tending to increase slightly, about 5-10% compared to the bottom,” the report said.

Speaking to Dau Tu Newspaper reporters, Ms. Pham Thi Mien, Deputy Head of Market Research and Investment Consulting and Promotion Department of VARS, said that the slowing down of price increases is just an adjustment, after a period of "hot" increases of 20 - 40% in the first quarter of 2023.

“The land market in planning hotspots such as Dong Anh, Gia Lam, or areas around Ring Road 4 still receives attention from investors. Currently, land prices in these areas are gradually stabilizing and there are only slight increases,” Ms. Mien shared.

The expert from VARS still believes that land is a segment worth investing in the future. In particular, residential land products with a price range of 2 - 3 billion VND have very good liquidity.

Sharing the same view, Mr. Ngo Xuan Chuc, Director of a real estate transaction center in Hanoi, commented that the picture of the land market has changed compared to the beginning of the year.

“The ‘heat’ of this segment has slowed down in the second quarter of 2024. Land prices have not decreased, but have not increased too much, even in areas around Ring Road 4,” Mr. Chuc commented.

According to the Ministry of Construction , in the first 6 months of 2024, the market recorded about 253,000 successful transactions. Of which, the majority of transactions mainly focused on the land segment.

According to Batdongsan's statistics, the level of interest in land in the first half of 2024 is on the rise, after hitting rock bottom in 2023. Accordingly, Dong Anh is the area with the strongest increase in interest at 104%, followed by Quoc Oai at 101%, Gia Lam at 95%, Hoai Duc at 79%, Thach That at 48%...

Source: https://baodautu.vn/batdongsan/dat-nen-bat-dau-tang-gia-cham-lai-d220051.html