With over 3 billion VND to buy real estate, which segment should you choose to make your investment grow?

Land plots, auctioned land, and apartments are real estate options that many investors are interested in. However, deciding which segment to invest in to minimize risk and maximize profits is not an easy task.

Nguyen Nam, residing in Cau Giay district ( Hanoi ), has over 3 billion VND deposited in a bank and wants to withdraw it to invest in real estate. He is currently exploring options such as land plots, auctioned land, and apartments.

Mr. Nam believes that land prices tend to increase over time, making it unlikely to result in a loss. Therefore, he plans to invest in a plot of land with his available funds.

However, since the beginning of the year, many provinces near Hanoi such as Hung Yen, Bac Ninh , Nam Dinh… and some districts in Hanoi have had many land plots auctioned off, and Mr. Nam is also considering submitting an application to participate in buying a plot that fits his available finances. With over 3 billion VND, he sometimes thinks about buying an apartment in Hanoi and renting it out.

"Because I lack investment experience, I'm unsure whether to choose land plots, apartments, or auctioned land to minimize risk and maximize profits later," Nam shared.

Addressing investors' concerns, Mr. Nguyen Anh Que, Chairman of G6 Group, shared with VietNamNet reporters that auctioned land is a unique real estate segment with sound legal status, beautiful infrastructure, and reasonable prices, which has long attracted investors.

However, buying land at auction can easily lead to FOMO (fear of missing out), resulting in paying a price higher than the market rate.

Therefore, according to Mr. Que, investors participating in auctions for this type of real estate need to carefully consider market prices, use idle capital, understand the planning regulations, and be prepared for medium- and long-term investments if they assess the situation favorably. At the same time, they need to maintain a strong mindset to avoid FOMO, losing their deposit, or facing bitter consequences; even legal issues.

With over 3 billion VND in hand, investors are wondering whether to invest in apartments, land plots, or auctioned land? Photo: Thach Thao

For apartments, the average price of commercial apartments currently on sale in Hanoi is around 65-85 million VND/m2, with some projects reaching 100-200 million VND/m2. At this price, only those buying for personal use are interested, because buying for investment and rental purposes would take 30-50 years to recoup the investment, and this price is also beyond the income of most people.

Furthermore, according to the G6 Group's leadership, the supply of social housing in Hanoi from 2025 to 2030 will be substantial. Currently, there are approximately 14 large-scale projects in the process of selecting investors, 67 projects under development, and 83 cleared land plots with completed infrastructure within the 20% land allocation for social housing. Notably, Hanoi is expected to offer more than 6,000 social housing units for sale in 2025.

This will impact apartment prices in the coming period, as well as liquidity. When more people can buy homes, it will also affect the demand for rentals and rental prices.

Real estate prices in Hanoi have increased significantly recently, with apartments rising by 50-200%, and houses and land plots by 20-50%. Meanwhile, real estate in areas surrounding Hanoi such as Hung Yen, Bac Ninh, and Ha Nam has also increased by 10-50% recently, making it less attractive. Currently, capital is trending southward to Ho Chi Minh City, Phu Quoc, and Da Nang… In 2025, investors may be interested in the land plot or multi-purpose agricultural land segment,” Mr. Que said.

Meanwhile, Mr. Le Dinh Chung, General Director of SGO Homes Investment and Real Estate Development Joint Stock Company, analyzed that with the rapid urbanization, demand in localities will be high, so investing in land plots to increase capital gains is still a good and safe option.

According to him, with 3-4 billion VND, one can invest in land around Hanoi, in economic zones connected to industrial parks such as Bac Ninh, Bac Giang, Hung Yen, Hai Duong, Hai Phong, and Quang Ninh...

However, the General Director of SGO Homes 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.

Regarding land auctions, according to Mr. Chung, most auctions are currently held at high prices driven by psychological factors and the hope of reselling for a profit of several hundred million dong. From an investment perspective, this method is ineffective.

"This type of land is only suitable for short-term investment, for speculative trading during market booms; long-term investment, especially at this time, will not yield as much profit as investing in project land," Mr. Chung said.

Source: https://vietnamnet.vn/san-hon-3-ty-dong-nen-dau-tu-chung-cu-dat-nen-hay-dat-dau-gia-2376660.html