The land market is booming, but be wary of price manipulation tactics by brokers.

The land market is becoming vibrant again.

Following the "heated" period in the apartment segment, the land and low-rise housing market in many areas has also seen increased activity, with both demand and transactions rising. Many investors have returned to the real estate market amidst the stagnation of other investment channels such as bank deposits, gold, and stocks.

Nguyen Duc Duy, a real estate broker in the Hoa Lac area (Thach That, Hanoi ), shared that in the past two months, the demand for land plots in areas on the outskirts of the city center has increased compared to before. As a result, land prices in some areas have started to rise again, and the practice of selling at a loss has also subsided.

According to Duy, the land market in suburban areas, especially in districts of Hanoi such as Ba Vi, Thach That, Son Tay town, and some districts of Hoa Binh province, has seen a resurgence of activity.

"Real estate brokerage offices in the Hoa Lac area and surrounding regions have almost completely reopened. The number of people interested in learning about and buying land through these offices is also high," Duy shared.

Information about land plots for sale in the suburbs of Hanoi has also been widespread and abundant recently (Photo: Ha Phong).

Notably, there has been a resurgence of interest, with many real estate brokerage offices in the An Khanh area (Hoai Duc, Hanoi) simultaneously reopening to welcome clients. Numerous offices are also posting job advertisements due to signs of improvement in the land market.

According to statistics from the Ministry of Construction , in the first quarter, the land plot segment saw 97,659 successful transactions, equivalent to 119.86% compared to the fourth quarter of 2023 and 145.18% compared to the same period in 2023. Also in the first quarter of this year, the demand for individual houses and land plots increased rapidly.

According to the first quarter real estate market report this year by the Vietnam Association of Real Estate Brokers (VARS), many areas have seen a surge in land transactions, especially in areas on the outskirts of major cities or localities with strong infrastructure development and high urbanization rates.

In Hanoi, due to the increasingly scarce land in the inner districts, the market for low-rise houses, townhouses, detached houses, and land plots in suburban areas is becoming a popular choice for many investors.

This unit believes that these developments reflect a shifting trend in the real estate market. At the beginning of the second quarter, when apartment prices showed signs of stagnation, investors turned to the safe yet potentially lucrative segment of land and houses.

Beware of price manipulation tactics by real estate brokers.

According to many real estate experts, land and low-rise house prices are trending upwards, mainly due to limited new supply and the fact that some projects in Hanoi's suburbs have sold out. In addition, new policies expected to come into effect soon will have a significant impact on the market.

However, experts in this field also warn that, with low-rise housing and land plots, especially in areas where land prices have been declining for a long time, the sudden surge in prices does not reflect the true market reality and may simply be a price manipulation tactic by land speculators. Therefore, buyers need to be cautious about the risk of having their capital tied up when investing in products with inflated prices that do not reflect their actual value.

Although a localized "land fever" or "fever" for low-rise houses has not yet occurred, the Vietnam Real Estate Brokers Association has already issued a warning about potential "speculative bubbles" that could jeopardize investment safety, especially as the market is in the process of recovery.

According to Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, the sharp increase in land prices amidst ongoing market difficulties is an unusual sign. "In many areas, there is a flurry of transaction information, but the buyers and sellers are not real. These could simply be schemes orchestrated by brokers and investors to artificially inflate land prices," Mr. Dinh emphasized.

Investors are advised to recognize this as a long-term investment, avoid prioritizing financial leverage, and prioritize the location and potential of the land when making a decision.

Source: https://dantri.com.vn/bat-dong-san/thi-truong-dat-nen-soi-dong-than-trong-chieu-tro-lam-gia-cua-co-20240620100222941.htm