With 1 billion VND in cash, Ms. Thu Ha in Hanoi thinks that depositing money in the bank to earn interest is a fairly safe option. However, referring to the interest rate tables of many banks today, Ms. Ha finds it too low, if depositing for 1-2 months, the interest rate is only about 1.7-4.3%; if depositing for a term longer than 6 months, the highest is only about 5.3%.

Meanwhile, if you buy a piece of land in the suburbs and leave it there, it will have the opportunity to become a more valuable asset later. However, you have no experience buying land, so is now the time to buy? If you buy, what should you choose?

In response to Ms. Ha's concerns, sharing with PV. VietNamNet, Mr. Le Dinh Chung, General Director of SGO Homes Real Estate Investment and Development JSC, acknowledged that at this time, investors with available money can buy land in the provinces on the outskirts of Hanoi at "loss-cutting" prices, with the opportunity for price increases in the future still being very good.

Mr. Chung explained that if you buy land in the provinces at this time, if you decide to invest long-term or at least 2-3 years, you can expect an average profit of about 10%/year.

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According to experts, investing in land at this time needs to wait for the price increase to benefit in 2025-2026. (Photo: N. Le)

However, according to SGO Homes leaders, it is necessary to determine that in the short term, the next 1-2 years, liquidity will be slow and will need time to recover.

“If investors decide to invest in land in the province, they need to choose carefully. For example, choose products located in the central area of ​​the province or town; near industrial parks, infrastructure that meets housing needs... to have good liquidity and price increase in the future. Do not choose products that are too far from residential areas, have unsynchronized infrastructure, and have no utilities,” Mr. Chung noted.

Meanwhile, real estate expert Tran Khanh Quang assessed that land is the segment with the most price reduction in the real estate market.

Mr. Quang gave an example, land in Long An has decreased in price by about 20%, Dong Nai has decreased in price by over 25%; down to Ba Ria - Vung Tau has decreased in price by over 30%, in Lam Dong land has also decreased in price by 30-40%. In more remote areas such as Binh Phuoc, Dak Nong, Dak Lak, the price has decreased by up to 50%.

However, according to the expert, land prices have been “inflated” the most in recent years; in some places even up to 50%. Therefore, when the real estate market is difficult, land prices decrease very quickly and slowly return to their original value.

In response to the question, if you have 1 billion VND available, should you save or invest in land in the suburbs, Mr. Quang said that with 1 billion VND, saving in a bank like in 2022 can get an interest rate of 7-8%; but with the current interest rate, it is only 3-4%.

“If investors have money and want to buy real estate for exploitation, they should buy an apartment or a townhouse; but if they buy for investment, they should choose land. Especially when the market is falling deeply, it will be easy to buy products at the best price,” Mr. Quang analyzed.

Suggesting some areas to choose from, Mr. Quang gave the option of land in Long An, Dong Nai, Binh Duong ... In which, Long An is a good area because according to Mr. Quang's observation, in recent years, land in Long An has the lowest price reduction rate and the price is suitable for investors with 1 billion VND available. This is a stable land area, more popular than other areas.

“In Dong Nai, this area has quite good infrastructure, however, the land price here is higher than other areas. Or in Binh Duong, the population density is increasing due to the concentration of many industrial parks, but the land fund in Binh Duong is less than other areas. The land price in Binh Phuoc is very cheap but the price near Ho Chi Minh City is very expensive.

However, the price increase in each region is different. The area with many projects will have the land price increase quickly, such as in Dong Nai. Therefore, the choice of which region to invest depends on the taste of each investor," Mr. Quang analyzed.

Commenting on the future of the land segment, the expert said that land is the segment that can increase in price the fastest and also decrease in price the fastest, which makes new investors entering the market feel confused.

“In 2024, land has not recovered; the earliest will be in the fourth quarter of 2024. Therefore, investing in land now or not depends on each person's choice. In my opinion, land will recover after townhouses, apartments, commercial real estate,... Therefore, investors, if investing, need to wait.

However, compared to other real estate segments, land is the safest investment product. Therefore, when prices drop sharply, there will be good prices. Currently, it is a buyer's market, so buyers have the right to choose to invest in land products and need to wait to benefit from price increases in 2025-2026," said Mr. Quang.

According to expert Tran Khanh Quang, currently, investing in any real estate product will require waiting from 1-3 years, and cannot "surf" for a few months like before.

Importantly, when buying land, you need to pay attention to the legality, must have a "red book" or clear project approval as well as the land must have infrastructure connectivity. At the same time, investors need to understand the area where they intend to buy land, grasp the actual selling price and the price posted on real estate sites before choosing the land location.

The latest report from the Ministry of Construction shows that land transactions have had positive growth in the second half of 2023. Specifically, in the fourth quarter of 2023, the whole country had about 81,476 successful land transactions, accumulated in the last 6 months of 2023, the volume of land transactions increased by 28.4% compared to the first half of the year.

Resort real estate has just been reduced in price and has been granted a certificate, should you invest? Resort real estate is having a "loss-cutting" price of 10-40%, some places have reduced up to 50% but it is still difficult to liquidate. This segment is considered to recover more slowly, should people with money invest?