Real estate market is about to pick up, experts reveal 4 "launching pads" for price increases
Experts predict that from the second quarter of 2025, the market will reach a period of prosperity. Land and project villas will be the main investment products with strong potential for price increases during this period.
Four “launch pads” to increase real estate prices
Based on statistics from batdongsan.com.vn and previous fluctuation cycles to analyze the reversal path, Batdongsan.com.vn Business Director - Mr. Quoc Anh commented, "The market's reversal point will fall around the third quarter of 2024". After the reversal point, the market will enter a consolidation phase from the fourth quarter of 2024, led by the private house and townhouse segment.
After this period, the market will move towards a period of prosperity, expected to start from the second quarter of 2025, the potential for price increase will be the key factor in investors' decisions instead of selling price and legality as before. Profitable segments such as land and project villas are therefore also given special attention.
The market has officially entered a reversal point, opening up many opportunities for investors. According to experienced investment experts, in order to “get ahead of the curve”, choosing an effective investment product requires paying attention to 4 factors that “launch” prices.
The first is the change in administrative units, such as districts becoming towns, provinces becoming cities... For example, after Tu Son town ( Bac Ninh ) announced that it would become a city under the province in early 2021, real estate prices here increased by 40%. Or real estate prices in Dong Anh district and Hoai Duc district also increased sharply by 60% -80% in the past year even though they have not officially become districts.
Second is the area that benefits from infrastructure investment. Topping the list of localities with the best infrastructure index in Vietnam, it is clear that the infrastructure boost has had a positive impact on the overall economy of Quang Ninh. After the completion of the highway - airport, central areas such as Ha Long city recorded a price increase of 2-3 times; some areas with large land areas, near the airport or resettlement areas, even had prices increase 10-12 times.
The third “launching pad” factor is the project area entering the exploitation and operation phase. With investment planning, the project already has the advantage of synchronous infrastructure and utilities. Therefore, when it can be put into operation, a project product will not only bring the potential for land price increase but also add value from exploiting a steady cash flow. This can be easily observed from the success of projects such as Ecopark Hung Yen, Flamingo Dai Lai, etc.
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| The project has been exploited and operated, which is an advantage in increasing the price of real estate. |
Finally, the land price index increases according to the provisions of the 2024 Land Law, effective from August 1, 2024. Accordingly, land use fees tend to increase, leading to increased investment costs, leading to an increase in finished real estate prices, due to the transfer of costs into the price. Therefore, projects that have completed financial responsibilities will have an absolute advantage over future development projects.
“Passing through the crisis – recovery – exploration phase, investor psychology will change very quickly, leading to the excitement of the general market. Especially when the ideal supply available in the market gradually dwindles, investors who are “quick” will gain the advantage,” the investment expert shared.
Identify products that are catching the investment wave
With a location adjacent to the West of Hanoi, Legacy Hill in Luong Son, Hoa Binh with a scale of 60 hectares not only possesses the attraction of a "residence" just 45 minutes away from the capital, but also fully meets all 4 factors of "launching pad" for price increase. First, Luong Son district is ready to become a town in 2025, marking a breakthrough for the real estate market here.
Second, the project benefits from infrastructure planning, specifically: the project to upgrade National Highway 6, Ba La - Xuan Mai section, to expand it to 10 lanes, is being urgently implemented. Once completed, these routes will shorten the travel time from Hanoi to Hoa Binh to 30 minutes. At the same time, the planning of Ho Chi Minh Road adjacent to Gate 4 of the project creates outstanding advantages for the project in terms of traffic and infrastructure.
Not only that, Legacy Hill has been put into operation since June 2024 by a professional operator, and is a bright destination for the wave of weekend resort tourism of the Capital's residents. The clear proof is the multi-generational utility system invested synchronously and on a large scale by the project investor with more than 70 options for physical and mental health care, relaxation, entertainment... has attracted thousands of visitors to experience and continues to be the "top-of-mind" destination for tourists during the vibrant year-end holiday season.
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| Christmas Fair Event – Marché de Noël Legacy Hill |
From an investment perspective, Legacy Hill continues to score points with investors by bringing “double profits”. One is the immediate cash flow from exploiting accommodation at the top ideal destination for residents of the capital. The other is the price rebound from the “pair” of advantages of Luong Son being ready to become a town in 2025 and the rebound from the advantage of infrastructure being heavily invested.
Location: Legacy Hill Resort & Villas – Hoa Binh, Vietnam
Hotline: 0839 659659
Email: [email protected]
Website: legacyhillresort.vn
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