Land in some areas shows signs of "price inflation"

Vietnam Real Estate Brokers Association has just released the Vietnam Real Estate Market Report for the second quarter and first 6 months of 2024.

Land transactions in the suburbs are starting to "heat up". Illustrative photo.

Reporting on the overview of the Vietnamese real estate market, Ms. Pham Thi Mien, Deputy Director of the Vietnam Real Estate Market Research and Evaluation Institute (VARs IRE), said that the Vietnamese real estate market in the first 6 months of 2024 is still closely following the recovery process with some outstanding "phenomena".

Accordingly, many new housing projects were opened for sale, with good transaction results of over 70%; apartment prices in two special urban areas continuously established high levels.

Regarding real estate segments, the Deputy Director of VARs IRE assessed that social housing and affordable housing, which were already "hot", became even more urgent when a series of fires occurred in mini apartment buildings and boarding houses.

Meanwhile, land in some areas is "really hot", some areas show signs of "cooling off"; the attractiveness of industrial real estate is increasingly affirmed, many potential businesses appear wanting to "encroach".

Investment demand also tends to shift from apartment segments to suburban land, suburban townhouses, and centers of neighboring provinces and cities of the two special urban areas.

Accordingly, suburban land transactions have begun to "heat up" but have not really become "exciting" with prices continuing to increase by about 5-10% compared to the bottom.

The amount of demand transformed into growth demand, more investors appeared to "hunt" for land, proactively building houses on investment land plots waiting for price increase to rent out, earning monthly cash flow.

Meanwhile, land auctions in some localities have seen a sharp increase in the number of applications recently; successful bids are 20% to 10 times higher than the starting price.

Previously, according to a survey conducted by a reporter from the Lao Dong Newspaper in suburban districts of Hanoi and some neighboring provinces, the land segment is gradually becoming more active again. In particular, plots of land priced from 1-2 billion VND are favored by investors. Mr. S. - a real estate broker who is selling many plots of land under 2 billion VND in Binh Yen commune, Thach That district - said that land prices in this area have increased by about 30% in the past year.

In particular, the Land Law, Housing Law, and Real Estate Business Law are expected to take effect from August 1. Experts believe that there are two issues that need to be paid close attention to: real estate prices may increase because of regulations on calculating land prices according to market prices, which makes it more difficult for people to access real estate.

Source: https://nld.com.vn/dat-nen-mot-so-khu-vuc-co-dau-hieu-thoi-gia-196240716105302873.htm