Land prices in Lam Dong show new developments

In a recent report on real estate transactions through notarization, the Lam Dong Provincial Department of Justice revealed that land transactions in Lam Dong province have continued to decline by approximately 8% in the first three months of 2024, following a downward trend from last year.

According to the report, over 3,800 land lots were traded, with a total value of nearly 4.6 trillion Vietnamese Dong, resulting in an average price of around 1.2 billion Dong per lot.

Compared to the fourth quarter of 2023, the number and value of land transactions in Lam Dong decreased slightly by 8% and 3% respectively. Several previously hotspots for land transactions like Bao Loc, Di Linh, and Lam Ha also experienced a decrease in land transactions, ranging from 3% to 33% in the first quarter of 2024. However, the number and value of land transactions in Bao Lam district showed an upward trend, increasing by 16% and 53% respectively.

These areas, including Bao Loc, Di Linh, and Lam Ha, experienced a land “subdivision” fever nearly three years ago, which caused prices to skyrocket. Consequently, they are also the areas with the deepest losses, with up to a 50% decrease in prices as the market has declined over the past year.

On the other hand, Bao Lam district has shown more positive developments, with over 900 land lots traded since the beginning of the year. The Tan Phu – Bao Loc expressway, which is expected to commence construction in the third quarter of 2024 and pass through Bao Lam district, is considered a driving force. In this area, the price of residential land ranges from 8-9 million Dong per square meter, while large-scale garden lots spanning hundreds of hectares are priced at 2-2.5 million Dong per square meter.

In contrast to the decline in land transactions, the Provincial Department of Justice reported an upward trend in individual house and condominium transactions. The number of individual houses traded through notarization increased from 288 to 311, while the number of condominiums doubled from 10 to 21.

Recently, Lam Dong has taken steps to loosen restrictions on land subdivisions, but it has not been able to rescue investors who have invested in land for many years. Hundreds of investors borrowed money to buy land in Lam Dong, waiting for a new wave after the restrictions on land subdivision were lifted. However, the real estate market in this area still faces many challenges.

According to the year-end report in 2023 from the Provincial Department of Justice, Lam Dong province had a total of 4,140 land transactions with a value of 4.742 trillion Dong in the fourth quarter of 2023. Notably, there were 797 transactions in Bao Lam district, 753 in Lam Ha district, 738 in Duc Trong district, 429 in Di Linh district, and 375 in Bao Loc city. Compared to 2022, the number of land transactions in Lam Dong has decreased significantly. Although the beginning of 2024 has shown some positive signs compared to the end of 2023, the land market still faces many difficulties.

According to experts, although there are signals of increasing transaction numbers, land lot sales are still slow in Lam Dong. Customers or investors mainly focus on agricultural land with good orientation and attractive locations for building farms and plantations. On the other hand, large-scale land lots and land subdivisions, which used to be very popular, are now experiencing sluggish sales.

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