Since the beginning of the year, land in some areas has begun to recover. Specifically, according to data from the Ministry of Construction , in the second quarter there were 124,991 successful land transactions, an increase of 28% compared to the first quarter and an increase of 85% compared to the same period.
Although the transaction volume has recovered strongly, some land investors in the province are still having to "bear" losses. Mr. Nguyen Chuong (Nam Tu Liem, Hanoi) said that in mid-2022, he bought a plot of land in Bac Giang with an area of 98 square meters for 4.2 billion VND, equivalent to nearly 43 million VND/square meter for the purpose of "surfing".
However, the real estate market soon fell into a slump. By mid-2023, Mr. Chuong's land had dropped in price by more than 40% compared to when he bought it. Because he felt sorry for the money, he did not sell it and tried to hold on without selling at a loss.
According to him, since the beginning of the year, land prices in Bac Giang have recovered. However, the highest price that his land has received is 3.5 billion VND. Thus, if he sells his land, Mr. Chuong will still lose nearly 20% compared to the time of purchase. He predicts that if he wants to break even or make a small loss, he will have to wait for more than a year with favorable market conditions.
According to Mr. Thanh Tung - owner of a real estate trading floor in Hanoi , the land market has thawed and some investors have started their buying journey. However, the interest of investors and good transactions have only occurred locally in a few places, not in the whole market.
A subdivided land plot in the suburbs of Hanoi (Illustration: Duong Tam).
Accordingly, land prices in some places have recovered, but most landowners who want to sell still have to reduce prices compared to the peak of the "fever". Land plots in beautiful locations with potential in planning areas have prices equal to the fever period or not much lower. In particular, the land market in the suburbs of Hanoi has recovered better than in the provinces, but has not reached the "feverish" level as many rumors have said.
"In fact, recently, because the selling price of land in the suburbs has been high, some investment groups have tended to move to the provinces. This is also the reason why some land areas in the provinces have also recovered," he said.
Speaking to Dan Tri reporter, Mr. Nguyen The Diep - Vice President of Hanoi Real Estate Club - said that the land market in the suburbs of Hanoi has recovered quickly in recent times, so the phenomenon of cutting losses and reducing prices is very rare.
However, the phenomenon of cutting losses and reducing land prices in the province still occurs, mainly affecting people facing financial difficulties. The reduction has narrowed compared to a year ago. For example, previously there were cases of cutting losses of 40-50%, now it is about 20%.
In addition, there are cases where investors in the "hot" market period have bought land with "virtual" prices. Therefore, investors who want to recover their capital are forced to cut their losses to find buyers.
Forecasting the trend of land, Mr. Nguyen Quoc Anh - Deputy General Director of Batdongsan.com.vn - said that from the second quarter of 2025 onwards, land will start to enter the main trend of recovery. The current waves are only local in some areas.
According to him, there are three main factors that greatly affect the land market, including the regional economy (even more macro, the national economy), infrastructure planning and population, and connectivity with other localities.
After a difficult market period, the general psychology of real estate buyers and investors will be more cautious than before. Therefore, he recommends that buyers and investors should research the market carefully and learn about price fluctuations through objective sources of information before deciding to spend money on any product.
Source: https://dantri.com.vn/bat-dong-san/nha-dau-tu-dat-nen-o-tinh-van-dang-cat-lo-20240912160234387.htm
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