'Unusual trend' in the real estate market after Tet holiday

Land plots and project land are receiving significantly more attention than condominiums in major markets such as Hanoi and Ho Chi Minh City immediately after Tet. Could this be a signal that the "king" investment segment will "warm up" again this year?

After Tet, real estate searches increase, especially for land plots

Following the Lunar New Year holiday, interest in real estate suddenly increased. According to data from batdongsan.com.vn, the nationwide real estate search volume began to rise from the 2nd day of the Lunar New Year and continued to increase until the 10th day, reaching 124% compared to the week before Tet.

Specifically, the demand for real estate searches nationwide in January 2024 increased by 66% compared to the same period in 2023, and the number of real estate listings also increased by 52%.

Of note, in Hanoi and Ho Chi Minh City, land plots and project land are receiving much more attention than condominiums. In January alone, the search volume for land plots in Hanoi increased by 110%, while project land increased by 77% compared to the same period last year. Meanwhile, the search volume for condominiums in Hanoi increased by 71%.

Similarly, in Ho Chi Minh City, the search demand increased from 71% to 73% for land plots, project land, and only increased by 59% for condominiums.

Even though the market is no longer experiencing the land fever as it did in early 2022, these figures somewhat reflect the desire of many people to acquire land.

A report on the real estate consumer sentiment index from the unit also showed that up to 65% of those surveyed said they still plan to buy real estate in the next year. Among them, the proportion of those buying for investment accounts for 60%, and land plots remain the most sought-after type.

Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn in the Southern region, said since the beginning of December 2023 when the draft Land Law (amended) began to receive much attention and discussion, land investors have been returning to the market.

According to Mr. Tuan, more than 10 land trading companies in provinces such as Dong Nai, Binh Duong, Long An... have reported an increase in land transactions at the beginning of this year. Most of them focus on land plots with standard legal status, priced under 2 billion VND, within a radius of 60km around Ho Chi Minh City.

In Hanoi, Mr. Tuan said that segments meeting practical needs such as secondary apartment trading, or retail premises in the inner city, have also seen increased activity immediately after Tet. The scarcity of supply while demand remains existing has made transactions in these segments more vibrant after Tet.

"Now, many investors are determined to push sales early in the year because if they wait until 2025 when the amended Real Estate Business Law takes effect, it will be more difficult and time-consuming to collect funds. According to the new regulations, developers are only allowed to collect deposits not exceeding 5% of the selling price of houses, construction works formed in the future, after completing all obligations to sell, they can only collect the next 25%. New supply in the real estate market will soon be improved in 2024," Mr. Tuan predicted.

Should you invest?

Regarding the phenomenon of increased interest in land plots after Tet, sharing with PV. VietNamNet, Mr. Le Dinh Chung, General Director of SGO Homes, assessed that in 2024, the land plot segment, which experienced the deepest price declines, will begin to increase again, attracting more investors due to its suitable value, guaranteed legality, and also the optimal choice at this time. Therefore, the land plot market will have many positive factors, showing clearer signs of improvement.

"It is currently the segment with the deepest price declines, buying land plots at this stage will be one of the advantages. When the market recovers, along with the new regulations of laws effective from early 2025, new projects will have higher prices," said Mr. Chung.

Meanwhile, Mr. Nguyen Anh Que, Chairman of G6 Group, believes that the land plot segment will gradually improve transactions from the third quarter of this year and become lively again from the third quarter of 2025.

"Land plots continue to be a preferred segment for investors with small total values, high return on investment, and good liquidity when the market is good. The golden time to invest in real estate is 2024, 2025, and the time to exit the market is 2027, 2028," Mr. Que expressed his opinion.

However, the leaders of G6 Group also noted that investors need to pay attention to planning issues when investing.

According to him, one should only buy real estate in stable planning areas or be ahead of planning if they truly grasp the information. When choosing the location of investment products, it should be associated with residential or resort areas. If real estate is not associated with these factors, it is only speculation, investing in "surfing", and the risk for customers in liquidity is very difficult.

Nguyen Le