Nhon Trach real estate market: Long-term investors still 'hold' land after the fever

At the end of April, Mr. Nguyen Thanh Bach, an investor from Hanoi , spent more than 3.8 billion VND to buy two residential plots of land in Phuoc An commune (Nhon Trach). He said that at that time, the price of land in Nhon Trach had decreased by about 10% compared to March, in line with the financial plan he had prepared in advance.

Mr. Bach believes that the phenomenon of deposit abandonment mainly comes from the group of people who surf with the FOMO (fear of missing out) mentality, who do not really intend to buy land but only deposit and then transfer it. For investors who have put down money, the main expectation is still long-term potential, so there is no situation of selling off. Mr. Bach emphasizes the purpose of long-term investment, saying that this is a good time to accumulate assets in potential areas like Nhon Trach.

Similarly, Ms. Mai Huong, an investor from Ho Chi Minh City, has just invested in an apartment project in Hiep Phuoc commune. She said this is a carefully calculated investment plan to anticipate the rental demand from experts working in neighboring industrial parks. She shared that whether or not there is a merger, Nhon Trach's economic potential is still worth investing in for the long term.

According to many local brokerages, after a short fever, the market is now trading more quietly but not frozen. Buying demand still appears, mainly focusing on products with full legal documents, good locations and reasonable prices.

Mr. Pham Van Thanh, Director of Nhon Trach Real Estate Exchange, informed that more than 90% of the sell-off and exit transactions in the past month fell into the group of investors who skimmed the deposit. Meanwhile, the group of notarized sales, i.e. real transactions, remained stable. Investors were interested in residential land, private houses and apartments priced at around 2 billion VND. Only large financial products such as commercial townhouses and villas had weak purchasing power.

Batdongsan data shows that in the first four months of the year, demand for real estate in Nhon Trach increased the most in the past two years, an average of 40-50% compared to the same period last year.

In particular, the number of searches skyrocketed in March and then decreased by about 30% in April, after rumors of a provincial merger (Nhon Trach station merged with Ho Chi Minh City) cooled down. However, compared to the same period last year, the level of interest still increased by 20%. In terms of price, compared to March, Nhon Trach land prices decreased by about 15% but were still 10-12% higher than the same period in 2023.

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A report from DKRA Group also showed that in April, Nhon Trach real estate prices and transactions have stabilized, there is no longer a fever, but buying and selling activities are still active in the real demand group. Currently, the average apartment selling price is from 33-41 million VND per square meter, land is from 9-25 million VND/m2, a slight increase of 5-7% compared to the same period in 2024.

Explaining the factors that prevented Nhon Trach real estate from falling into a “frozen” scenario like other markets after the province merger fever, Mr. Dinh Minh Tuan, Director of Batdongsan, said that the real estate market here has a clear differentiation between two groups of speculative investors and long-term investors. The land fever last March mainly came from speculative investors in the form of deposit-taking - that is, depositing and then transferring, without signing an official sales contract. After the fever passed, this group abandoned their deposits and greatly affected the general psychology of the market.

On the contrary, in terms of real transactions, that is, with notarized sales contracts, most of them come from long-term investors, mainly investing for the potential of transport infrastructure. The key factor that makes this group buy real estate is not administrative rumors, but the infrastructure system that is gradually taking shape, along with the strategic location of this area in the key economic zone of the South. Mr. Tuan said that this is the real demand and accounts for the main proportion in current transactions, helping Nhon Trach real estate not fall into a frozen state.

Agreeing, Mr. Duong Minh Tien, General Director of Asia New Time Real Estate Company, said that infrastructure is the "psychological support" that helps this market attract long-term investors. According to him, Nhon Trach is only separated from Ho Chi Minh City by a river, and the ability to connect these two localities will soon be promoted through large bridge projects such as Cat Lai Bridge. Even without the merger with Ho Chi Minh City, real estate in Nhon Trach is still not a risky investment channel, thanks to the strongly developing regional traffic infrastructure along with large, effectively operating industrial parks.

Mr. Nguyen Duy Ha, Project Development Director of Thang Long Real Group, commented that the urbanization rate and population shift are clearly taking place in Nhon Trach. From an area mainly serving investment, this place has begun to record interest from real buyers, especially experts and engineers working in 10 large industrial parks operating locally. This contributes to making investors have confidence in the medium and long-term potential of the area, thereby forming real housing demand, creating a stable foundation for the Nhon Trach market.

Although the prospects are highly appreciated, Nhon Trach still has some risks, especially with projects that are in the planning but have no residents yet. Urban areas with "little light" can easily cause investors to bury their capital if they are impatient. In addition, with some projects that had their prices pushed up during previous land fevers, they are still in the process of adjusting their real prices, so investors need to consider carefully before spending money. Experts also recommend that when buying land here, investors should prioritize products with clear legal status, good locations, reputable investors and avoid following the crowd mentality.

Source: https://baonghean.vn/thi-truong-bat-dong-san-nhon-trach-nha-dau-tu-dai-han-van-om-dat-sau-con-sot-10298468.html