Land prices in Hanoi are starting to cool down.

No longer experiencing price increases of 20-40%, the land market in Hanoi is gradually stabilizing and only recording slight increases of 3-5%.

Investor sentiment is changing.

Duc Tung (a warehouse worker) used to be willing to travel 30-40 km to the outskirts of the city to view land, but now he has given up chasing the real estate boom. The long, fruitless trips have left him exhausted both physically and mentally.

“Earlier this year, I successfully traded a plot of land and made a small profit. Seeing how lucrative real estate trading was, I continued hunting for residential land, but I still haven't been able to buy anything. The reason is that the market is very chaotic; prices vary from person to person in the same area, which makes me very confused,” Tùng shared.

As a real-life example, Mr. Tung said that two weeks ago, a real estate agent introduced him to a 135 m2 plot of land in Hop Tien commune (My Duc district, Hanoi) for 1.5 billion VND. However, after investigating, he discovered that the actual owner of the land was selling it for about 200 million VND less.

"Although it's common for brokers to receive commissions, increasing the price by more than 15% is unacceptable. Even the landowner himself didn't expect the broker to advertise it at such a large markup," Tùng recounted.

Many newspapers questioned the frenzy in the land market, questioning how it had dampened buyer enthusiasm. Buyers worried they might have jumped into the market at its peak and bought at exorbitant prices.

According to investor Nguyen Tuan Quang, the recent land fever helped many "sharks" successfully offload their holdings. The market is currently stabilizing and awaiting the next price surge. Furthermore, investors are no longer as enthusiastic about land plots compared to the first three months of this year.

"The fact that many newspapers are questioning the frenzy in the land plot segment has cooled down the enthusiasm of buyers. They worry that they might rush into the market at its peak and buy real estate at exorbitant prices. Therefore, investment intentions are being temporarily put on hold," Quang analyzed.

Statistics from Batdongsan.com show that in April 2024, the number of land plot listings remained the same as the previous month, but public interest (reflected in search volume) decreased by 5%. For the project land segment specifically, interest decreased by as much as 19%.

The above figures not only show that the land fever has subsided, but also highlight the decline of the project land segment. This is further demonstrated in the Ministry of Construction 's Q1/2024 report. Although the total volume of land plot transactions was nearly 20% higher than in Q1/2023, the inventory of project land still increased by more than 30%.

The market is entering a price correction phase.

Speaking with a reporter from Investment Newspaper, Mr. Ngo Xuan Chuc, Director of a real estate transaction center in Hanoi, commented that the current market landscape has changed compared to the beginning of the year.

"The land market has slowed down for the past two weeks. Land prices haven't dropped, but they're no longer rising as much, even in areas around Ring Road 4," Mr. Chuc said.

Regarding the reasons for the "cooling down" of land prices, Mr. Chúc believes there are three main causes.

Firstly, investors want to observe the actual impacts of the 2024 Land Law, especially since it will officially come into effect in less than two months.

Secondly, the continuous record highs in gold prices have created a FOMO (fear of missing out) mentality among the public. Many people have shifted to "following the trend" of gold, instead of investing in real estate.

Thirdly, the problem stems from the unreasonable price increases by sellers. In some suburban areas, land prices have exceeded 100 million VND/m2, whereas previously they were only 60-70 million VND/m2. This figure has discouraged many investors.

According to Ms. Pham Thi Mien, Deputy Head of the Market Research and Investment Promotion Consulting Department of the Vietnam Association of Real Estate Brokers (VARS), land plots remain a priority segment in the real estate "collection" of investors. However, this product line is currently undergoing a price adjustment phase.

“The land market in planning hotspots like Dong Anh, Gia Lam, or areas surrounding Ring Road 4 continues to attract investor interest. Currently, land prices are gradually stabilizing, only increasing slightly by 3-5%. This is in contrast to the first quarter of 2024, when land prices in many places skyrocketed by 20-40%,” Ms. Mien shared.

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

Further elaborating on the reasons why the project land segment remains sluggish, Ms. Mien stated that project land often has incomplete surrounding infrastructure. This makes it difficult for investors to visualize the potential of the land plot they intend to invest in.

Furthermore, the success or failure of a land development project depends heavily on the developer. In the context of a recovering market, many businesses are still struggling, and the ability to complete projects remains a big question mark. Therefore, buyers often tend to look for residential land to have more control over the situation.

Overall, the land market is no longer experiencing the "fever" it once did and is gradually entering a stable phase. Currently, investors in this segment are in a state of "wait and see," awaiting the impact of the 2024 Land Law.

Source: https://baodautu.vn/batdongsan/dat-nen-ha-noi-bat-dau-ha-nhiet-d215732.html