Demand for Land Surpasses Apartments
The demand for land has been growing faster than that for apartments, according to data from Batdongsan.com.vn. Over the past nine years (2015 – 2023), investing in land has seen a profit rate of 166%, which is lower than stocks (203%), gold (195%), and apartments (203%). However, land investment still offers higher profits compared to other investment channels such as savings (138%) and foreign currency (111%).
The Consumer Sentiment Index (CSS) of the real estate market, as surveyed by Batdongsan.com.vn in the first half of 2024, reveals that out of 1,000 respondents, 65% stated their intention to continue purchasing real estate during the year. Among this 65%, approximately one-third expressed interest in buying land.
Land parcels priced below 2 billion VND attracted the highest level of interest, accounting for 42% of respondents. The second-highest level of interest, at 24%, was for land priced between 2 and 4 billion VND. Land priced between 4 and 6 billion VND accounted for 10% of interest. The remaining price ranges, 6 – 10 billion VND and above 15 billion VND, were of interest to 9% and 15% of respondents, respectively.
According to Le Bao Long, the Strategic Director of Batdongsan.com.vn, the strong desire of Vietnamese people for property ownership and wealth accumulation explains the high level of interest in land. Therefore, it is not surprising that land is receiving the most attention from consumers in 2024.
Land and project land in Hanoi and Ho Chi Minh City are generating stronger interest than apartments.
However, Batdongsan.com.vn predicts that the land market will not fully recover until at least the second quarter of 2024. This segment will not experience the same intense demand as before. Transactions will mainly occur in specific areas and will not be widespread. It is expected that from 2025 onwards, the land market will enter a price increase cycle.
Meanwhile, according to data from January 2024 by Batdongsan.com.vn, searches for land in Hanoi have increased by 110%, followed by project land at 77% compared to the same period the previous year. In contrast, searches for apartments in Hanoi have only increased by 71%. Similarly, in Ho Chi Minh City, the demand for land and project land has increased by 71% to 73%, while the demand for apartments has only risen by 59%.
In the early months of the year, successful transactions for land with full legal documentation and prices below 2 billion VND have been recorded. Buyers during this period are individuals who have just withdrawn savings deposits and have a capital of around 1 to 2 billion VND.
According to Dinh Minh Tuan, the Director of Batdongsan.com.vn in the southern region, a survey of over 10 real estate brokerage firms investing in land in Dong Nai, Binh Duong, and Long An provinces shows an increase in land transactions. Most of these transactions focus on land parcels with proper legal documentation, priced below 2 billion VND, within a 60 km radius of Ho Chi Minh City.
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