Land in some areas shows signs of "price inflation"

Vietnam Real Estate Brokers Association has just released the Vietnam Real Estate Market Report for the second quarter and first 6 months of 2024.

Suburban land transactions are starting to "heat up". Illustrative photo.

Reporting on the overview of the Vietnamese real estate market, Ms. Pham Thi Mien, Deputy Director of the Vietnam Real Estate Market Research and Evaluation Institute (VARs IRE), said that the Vietnamese real estate market in the first 6 months of 2024 is still closely following the recovery process with some outstanding "phenomena".

Accordingly, many new housing projects were opened for sale, with good transaction results of over 70%; apartment prices in two special urban areas continuously established high levels.

Regarding real estate segments, the Deputy Director of VARs IRE assessed that social housing and affordable housing, which were already "hot", became even more urgent when a series of fires occurred in mini apartment buildings and boarding houses.

Meanwhile, land prices in some areas are "really hot", while some areas show signs of "cooling off"; the attractiveness of industrial real estate is increasingly affirmed, with many potential businesses wanting to "encroach".

Investment demand also tends to shift from apartment segment to suburban land, suburban townhouses, and centers of neighboring provinces and cities of the two special urban areas.

Accordingly, suburban land transactions have begun to "heat up" but have not really become "exciting" with prices continuing to increase by about 5-10% compared to the bottom.

The amount of demand is transformed into growing demand, more investors appear to "hunt" for land, proactively build houses on investment land, wait for the price to increase to rent, and earn monthly cash flow.

Meanwhile, land auctions in some localities have seen a sharp increase in the number of applications recently; successful bids are 20% to 10 times higher than the starting price.

Previously, a survey by a reporter from the Lao Dong Newspaper in the suburban districts of Hanoi and some neighboring provinces showed that the land segment is gradually becoming more active again. In particular, plots of land priced from 1-2 billion VND are favored by investors. Mr. S. - a real estate broker who is selling many plots of land under 2 billion VND in Binh Yen commune, Thach That district - said that land prices in this area have increased by about 30% in the past year.

In particular, the Land Law, Housing Law, and Real Estate Business Law are expected to take effect from August 1. Experts believe that there are two issues that need to be paid close attention to: real estate prices may increase because of regulations on calculating land prices according to market prices, which makes it more difficult for people to access real estate.

Source: https://nld.com.vn/dat-nen-mot-so-khu-vuc-co-dau-hieu-thoi-gia-196240716105302873.htm