Should you invest in apartments or land plots? Tenants prefer the segment under 10 million VND/month; over 700 projects in Hanoi undergo review, inspection, and post-audit conclusions… These are the latest real estate news.
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| Real estate: Land plots remain a popular investment channel, especially in the near future when the supply of this type of property will be limited due to regulations restricting land subdivision and sale. (Photo: Duong Tam) |
Should you invest in an apartment or a plot of land?
With the mindset that "buying land is never a loss" - land prices always tend to increase over time - many people consider investing in a plot of land in provinces surrounding Hanoi. But some also calculate that they could buy an apartment and rent it out monthly.
Mr. Le Dinh Chung, General Director of SGO Homes Investment and Real Estate Development Joint Stock Company, analyzed that in Hanoi, if you invest in apartments for rent, the demand is high and it's easy to rent them out. However, at this time, investing in apartments will no longer be profitable in terms of capital cost.
Mr. Chung's reason is that apartment prices are nearing their peak, making it difficult to appreciate in value. With apartment purchase prices rising, rental yields are no longer very attractive. In fact, the rental yield for apartments in Hanoi only fluctuates around 3-4%.
Therefore, according to Mr. Chung, land plots remain a highly sought-after investment channel, as the supply of this product will be limited in the future due to regulations restricting land subdivision and sale. Furthermore, land plots are an investment segment with a wide range of budgets, suitable for many people.
"With the rapid pace of urbanization, demand in localities will be high, so investing in land plots for capital appreciation remains a good and safe option. With 3-4 billion VND, you can invest in land plots around Hanoi, in economic hubs connected to industrial zones such as Bac Ninh, Bac Giang , Hung Yen, Hai Duong, Hai Phong, and Quang Ninh... These are areas currently attracting a lot of investor interest," Mr. Chung suggested.
However, the General Director of SGO Homes also noted that when buying land plots, investors need to pay attention to projects that meet legal requirements, at a minimum, having signed a sales contract or a land title certificate. At the same time, they need to consider the developer's capacity; and choose locations that meet demand and attract residents in the future.
Mr. Pham Duc Toan, General Director of EZ Property, noted that currently, investing in apartments or land plots in major cities like Hanoi or Ho Chi Minh City is neither attractive nor effective. The reason is that prices have remained high, but liquidity has decreased.
"Apartment prices are beyond the affordability of many people who want to buy one to live in. Previously, 2.5-3 billion VND could buy an apartment, but now it takes 4-5 billion VND. The price of apartments purchased for investment has doubled, while rental prices haven't increased much, so investment returns have decreased. Land prices have also risen along with apartments. A 30m2 house in an alley, built 3-4 stories high, that used to cost 3 billion VND now costs 5-7 billion VND, depending on the location," Mr. Toan said.
He added that many investors are tending to shift capital from major cities like Hanoi and Ho Chi Minh City to other areas such as Hai Phong, Binh Duong, Dong Nai, and Ba Ria - Vung Tau ...
Renters are choosing the price range under 10 million VND/month.
Regarding the profile and psychology of real estate renters, Marketing Director of Batdongsan.com.vn, Le Bao Long, emphasized that the demand for renting mainly stems from saving money across all income groups. According to Mr. Long, 73% of respondents want to rent for less than 10 million VND; however, the supply in this segment is also shrinking.
Specifically, 41% of respondents to Batdongsan.com.vn's survey expressed a desire to rent a house for 5-7 million VND, but the number of rental listings in this price range on Batdongsan.com.vn (partially reflecting market supply) in 2024 only reached 19%.
The figures above show that rental prices have increased in line with rising prices in the buying and selling market, especially in Hanoi. Notably, 52% of survey participants living in Hanoi said they are willing to spend 31-40% of their income on rent.
Furthermore, with the average asking rent in Hanoi reaching VND 19 million/month, higher than Ho Chi Minh City's VND 14 million/month in Q4 2024, Hanoi tenants are increasingly compromising on amenities and location to reduce costs. They are willing to choose less convenient options, rent further from the city center, opt for lower-quality accommodations, opt for smaller apartments, or share with others to lower their rent expenses.
Mr. Le Bao Long advises prospective tenants to keep in mind several points, including clearly defining their needs regarding location, size, and amenities; comparing prices in the same area to negotiate; and checking the contract, the condition of the rental property, and payment terms to ensure a smooth rental search process.
Over 700 projects in Hanoi have been reviewed, with conclusions reached through inspections, audits, and post-audits.
The Hanoi People's Committee has identified 712 projects funded by non-budgetary sources and using land that are behind schedule, and has issued a plan to address and resolve them in accordance with Resolution No. 04/NQ-HĐND dated April 8, 2022, of the Hanoi People's Council on measures to accelerate investment progress and focus on handling slow-progressing projects funded by non-budgetary sources and using land in Hanoi.
By November 2024, 706 projects (accounting for 99.2%) with a total land area of 11,352 hectares had been reviewed, inspected, audited, and subjected to post-audit procedures, with directives for handling them. This was the content reported by the City People's Committee to the City People's Council at its twentieth session.
Following the decisive direction of the City Party Committee and Resolution No. 04/NQ-HĐND dated April 8, 2022, of the City People's Council, the City Steering Committee, the Party Committee of the City People's Committee, and the Chairman of the City People's Committee have regularly supervised, urged, directed, and assigned tasks to city departments and agencies and the People's Committees of districts, counties, and towns to focus on synchronously implementing measures, especially the work of reviewing, inspecting, checking, and post-auditing, promptly detecting cases of delays and violations of land investment laws, analyzing and clarifying the causes, proposing measures to resolve obstacles and difficulties, and appropriate handling plans.
In this regard, the city has facilitated investors in developing feasible plans and timelines for rectifying issues, promptly bringing land into exploitation and use, preventing waste, and contributing to preventing violations of land management and use laws. Many projects that were granted extensions have rectified violations, used land for its intended purpose, proactively completed investment procedures, focused resources, overcome difficulties, completed investment projects, and put the land into use; paying land use fees and land lease fees into the state budget as prescribed.
Cases of deliberate procrastination and continued violations will be strictly handled in accordance with the law. The Chairman of the City People's Committee, Head of the Steering Committee, along with the Vice Chairmen of the City People's Committee, directors of city departments and agencies, and secretaries and chairmen of district and town People's Committees, regularly hold meetings to hear reports on the situation and results and direct the handling of each project (listening to written reports and viewing specific images of the current status); requiring departments, agencies, and People's Committees of districts and towns to proactively and focusedly guide and resolve obstacles and difficulties, helping investors overcome them; and proactively review, inspect, and strictly handle violations in accordance with the law.
Therefore, out of the 712 non-budgetary capital projects using land that were identified as behind schedule, the City People's Committee directed the handling and resolution of 706 projects (accounting for 99.2%) with a total area of 11,352 hectares. The remaining 6 projects (accounting for 0.8%) with a total land area of 81.6 hectares, which have received approval but have not yet been allocated or leased land by the State, are currently being inspected by the Department of Planning and Investment, which is proposing specific solutions.
Hanoi approves plan to include a horse racing track worth over $400 million.
The Hanoi People's Committee has just issued Decision No. 6396 approving the urban zoning plan for Soc Son area 3, at a scale of 1/2000, covering the communes of Phu Linh, Tien Duoc, Tan Minh, Xuan Giang, Duc Hoa, Dong Xuan, Kim Lu and Soc Son town (Soc Son district).
Accordingly, the planning study area for the Soc Son urban sub-zone 3 covers approximately 1,424 hectares. The projected population by 2030 is approximately 46,210 people.
The study area's boundaries are as follows: to the north, it borders the planned road leading to Soc Temple; to the south, it borders the newly planned Route 18; to the west, it borders the protection corridor and the Hanoi-Thai Nguyen national railway; and to the east, it borders a planned urban road 40m wide.
The area is divided into two planning zones (Zone III.1 and III.2) with 16 planning blocks to control development and transportation routes.
Specifically, Zone III.1 covers an area of 246.5 hectares and comprises two planning zones designated for ecological urban development, with increased green spaces and water bodies. Of these, planning zone III.1-1 is designated as a regional sports and recreation center (horse racing track).
Planning zone III.1-2 is designated as a new residential development area with a complete social infrastructure system. Additionally, it will develop commercial and service functions to support the horse racing track area in particular and the entire region in general.
Zone III.2, covering nearly 1,170 hectares, comprises 14 planned areas designated for the concentrated development of complex functions including healthcare, culture, education, urban public services, a multimodal transport center, commercial and service areas, offices, hotels, etc., connecting with the Da Phuc railway station area, developing social infrastructure, expanding new residential land around existing villages, and completing independent residential groups and units.
Earlier this year, the People's Committee of Soc Son District held a consultation on the detailed planning project (1/500 scale) for the multi-functional entertainment complex and horse racing track in Tan Minh and Phu Linh communes and Soc Son town. The project has an estimated investment of approximately 420 million USD, creating direct jobs for about 5,000 workers and attracting around 25,000 workers to other service sectors.
Regarding this project, in September 2019, the Prime Minister issued a decision approving the investment plan.
In October 2019, the Hanoi Department of Planning and Investment issued the initial investment registration certificate, followed by the third amendment certificate in March 2020.
The racetrack was expected to be operational after 2021 but encountered some difficulties, preventing its implementation.
In mid-2022, Hanoi petitioned the Prime Minister to resolve difficulties in reclaiming 125 hectares of land for the project.
Source: https://baoquocte.vn/bat-dong-san-khong-phai-chung-cu-day-moi-la-phan-khuc-de-ra-tien-phac-hoa-chan-dung-va-tam-ly-nguoi-thue-ha-noi-ra-soat-hon-700-du-an-297326.html
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