Land prices have started to slow down.

According to the Vietnam Real Estate Brokers Association, land transactions have increased but are not yet truly booming. Furthermore, selling prices are gradually stabilizing again, after a period of sharp increases in the first quarter of 2024.

"When the new real estate laws come into effect, the land plot segment will gradually become the 'king investment channel' again." This is the latest forecast from the Vietnam Association of Real Estate Brokers (VARS) in its market report for the first six months of 2024.

This assessment is well-founded, as the volume of transactions in the low-rise and land plot segments in Q2/2024 recorded a 60% increase compared to the previous quarter. However, prices are no longer at their peak as in Q1/2024, but are gradually stabilizing.

Land plots are predicted to become a major investment channel in the second half of this year. Photo: Dung Minh

For plots of land priced under 2 billion VND in some northern provinces, prices have only increased by about 5-10%. In fact, land prices in the southern region have remained stagnant.

Delving into the suburban land segment, VARS reports that while transaction volumes have increased, the market is not yet truly vibrant. Nevertheless, the market has seen a growing number of investors actively seeking land and proactively building houses on the plots for business purposes.

"Some areas are experiencing localized growth in transactions followed by a plateau, and the outskirts of Hanoi are no exception. Prices in this area have increased by approximately 10-20% compared to the beginning of the year," VARS experts commented.

In particular, land auctions have seen success both in terms of the number of applications and the amount of money raised. In the first half of this year, some lots were successfully auctioned for values ​​up to 10 times higher than the starting price.

Regarding residential real estate, transaction volumes in the city center have slowed down somewhat after a period of rapid growth. Currently, investor capital is trending towards the centers of provinces and cities surrounding Hanoi and Ho Chi Minh City.

"Transactions still mainly involve properties priced between 3-5 billion VND in the city center and around 2 billion VND in suburban areas. Currently, prices remain stable or show a slight upward trend, approximately 5-10% from their lows," the report stated.

Speaking with a reporter from Investment Newspaper, Ms. Pham Thi Mien, Deputy Head of the Market Research and Consulting and Investment Promotion Department of VARS, said that the slowdown in price increases is merely a correction after a period of rapid increases of 20-40% in the first quarter of 2023.

"The land market in planned hotspots like Dong Anh, Gia Lam, or areas surrounding Ring Road 4 continues to attract investor interest. Currently, land prices in these areas are gradually stabilizing and only experiencing slight increases," Ms. Mien shared.

The expert from VARS still believes that land plots are a worthwhile investment segment in the future. In particular, residential land plots priced between 2 and 3 billion VND possess very good liquidity.

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

"The 'heat' in this segment slowed down in the second quarter of 2024. Land prices haven't dropped, but they're no longer rising too much, even in areas around Ring Road 4," Mr. Chuc commented.

According to the Ministry of Construction , in the first six months of 2024, the market recorded approximately 253,000 successful transactions. Of these, the majority of transactions were concentrated in the land plot segment.

According to Batdongsan's statistics, interest in land plots in the first half of 2024 is on the road to recovery, after hitting a low point in 2023. Accordingly, Dong Anh is the area with the strongest increase in interest at 104%, followed by Quoc Oai with 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