Investors "hunt" for land, which product group is dominant?

"Hunting" for land and waiting for the right time?

According to a report by the Dat Xanh Services Economic - Financial - Real Estate Research Institute (Dat Xanh Services - FERI), in the first 9 months of 2024, the number of real estate businesses returning to operation in the first 9 months increased by 39.7% over the same period in 2023.

Land in the Southern region is having many positive changes.

Along with that, the number of newly established enterprises also recorded 3,446 enterprises, an increase of 1.4% over the same period last year, demonstrating the attractiveness and development potential of the market.

In particular, the average capital size per newly established enterprise increased by 10.8% compared to the same period in 2023. This shows that newly established enterprises have more financial investment in the real estate sector, affirming optimism about the future of the market.

Another market research unit, DKRA Joint Stock Company (DKRA Vietnam), also said that the market in the third quarter of 2024 had many positive fluctuations, in which the land segment showed positive signs.

Specifically, in the land segment in the third quarter of 2024, primary supply increased by about 11% over the same period last year.

However, new supply remains scarce, accounting for only about 3% of total primary supply and increasing slightly by 2% compared to Q3/2023.

According to a survey by Nguoi Dua Tin , the land market in Ho Chi Minh City and some neighboring areas has gradually escaped the "stagnation" situation in recent months. Some areas such as Cu Chi, Hoc Mon, Binh Chinh have seen a number of customers "hunting" and trading in real estate.

For example, in Phuoc Hiep area (Cu Chi district), a plot of land of more than 130m2 is rural residential land, the form of separate use mixed with annual crop land is currently being advertised for more than 5.2 - 6 million VND/m2. Phuoc Thanh area (Cu Chi district) is being advertised for more than 2.4 million VND/m2 for land for other annual crops (area of ​​more than 500m2, price of more than 1.4 billion).

Investors visit a land area in the suburbs of Ho Chi Minh City.

In addition, in Binh Chanh district, Vinh Loc A commune, some brokers are selling land for over 15 million VND/m2 depending on the area and type of land. In Thu Duc City, the number of projects for sale has also increased. However, in Thu Duc City, land prices are high, so "hunting and buying" is also limited due to the impact of financial flows.

Sharing with Nguoi Dua Tin , Mr. Van Dung (investor) commented: "In the real estate market in recent months, the apartment segment has been targeted by many people. However, in the past 2 months, the land segment has been attracting the attention of investors, mainly land in suburban areas and land with large areas."

Large land funds are currently being "hunted" by many investors.

"Over the past years, land prices have fluctuated continuously, with some places reaching their peak. However, recently, when Ho Chi Minh City intended to issue a new land price list, many land transactions have appeared. Compared to the beginning of the year, land prices are still high. However, many people are currently not eligible to become residents, or some people need money and are forced to transfer land. This is also greatly affecting the current land market," Mr. Dung informed.

Many positive signals from the land segment

DKRA Group's Q3/2024 real estate market report also stated that, in the land segment, the transaction volume and market liquidity recorded positive signals with consumption 2.8 times higher than the same period in 2023, but still at a low level compared to the period from 2019 and earlier.

Notably, transactions are concentrated locally in the group of products with completed infrastructure and legal documents with an average price of under VND50 million/m2 in Ho Chi Minh City or under VND22 million/m2 in the surrounding areas.

The market bordering Ho Chi Minh City leads the new market with supply and consumption reaching 52% and 78% respectively. The primary price level maintained a flat trend compared to the beginning of the year and remained at a high level. Meanwhile, the secondary market recorded an increase of about 3% compared to the previous quarter.

A land project adjacent to Ho Chi Minh City is looking for buyers.

Commenting on the current land market, Mr. Nguyen Viet Hung, General Director of Westland Trading Joint Stock Company, said: "For many years, land has been an investment and speculative segment that creates high profit value.

Especially in the recent period, Ho Chi Minh City plans to issue a new land price list, this is both an opportunity for people and an opportunity for investors. "Hunting" for land funds and residential land during this time is a long-term direction, waiting for the land price list of Ho Chi Minh City to be issued, the market price will increase and many areas will fluctuate in liquidity".

By hunting for large land funds, some investors expect to make profits in the near future.

"Land prices in many areas such as Binh Duong and Long An provinces are not as prominent as in previous years. In Ho Chi Minh City, this segment is only concentrated in Binh Chanh, Hoc Mon, Cu Chi areas... and the current price is quite stable. The Land Law officially taking effect has also helped the market become clearer, no longer pushing prices too high. Investors also consider planning issues and the potential for product value increase before buying. This makes the land segment stable. Although liquidity is not booming, cash flow is still flowing into land at the right value," Mr. Hung shared.

Analyzing the market perspective in the last quarter of the year, Mr. Luu Quang Tien, Deputy Director of the Institute for Economic - Financial - Real Estate Research Dat Xanh Services shared: "The real estate market in the last 3 months of 2024 forecasts 3 growth scenarios with more positive changes, with new supply significantly improved compared to the third quarter of 2024.

The ideal scenario is that new supply increases sharply by 40% - 50%, floating interest rates are at 8% - 9%, selling prices increase by 10-15% and absorption rates reach 40-45%. This is the most optimistic scenario, expecting an early recovery of the market.

In addition, new supply increases by 25-35%, floating interest rates are at 9-11%, selling prices increase by 5-10% and absorption rates reach 35-40%. This is the most feasible scenario, reflecting a more positive improvement in market growth.

Source: https://www.nguoiduatin.vn/nha-dau-tu-san-dat-nen-nhom-san-pham-nao-chiem-uu-the-204241014225208056.htm