Real Estate Investors Seize Opportunities in Suburban Land
The real estate market, which was once stagnant with plummeting land prices, has experienced a resurgence in recent times. Real estate investors are now capitalizing on the growing demand for suburban land, particularly in major cities like Hanoi and Ho Chi Minh City, where infrastructure development is thriving.
According to a report by Batdongsan.com.vn, out of 1,000 participants surveyed, a staggering 65% expressed their intention to continue buying real estate by 2024. Among these potential buyers, 42% currently own two properties, 38% own one property, and 8% own more than three properties. The majority of these investors aim to expand their portfolios and prioritize long-term investment, accounting for 60% of respondents.
Le Bao Long, the Strategic Director of Batdongsan.com.vn, revealed that there are three real estate segments that have garnered significant attention this year: suburban land, detached houses and townhouses, and condominiums. In a sample group of 1,000 interviewees, approximately 33% expressed interest in suburban land, followed by 26% for detached houses and townhouses, and 24% for condominiums.
Long explained that investment preferences depend on factors such as pricing, profit potential, and stability. Currently, condominiums are attracting interest due to their combination of these factors. Residential properties, including land and houses, have seen appropriate price adjustments to match the market downturn while aiming for long-term profitability. As a result, these segments are enjoying substantial attention from consumers in 2024.
Dinh Minh Tuan, the Director of Batdongsan’s Southern Region, predicts that land prices will continue to rise in the long run, bringing about a resurgence in transactions. Real estate prices are influenced by various factors, including infrastructure development, economic growth, and individuals’ incomes.
“Suburban land is a versatile investment option due to its diverse range of sizes, prices, and locations. As economically developing areas experience growth, the value of land in these areas will continue to increase steadily,” Tuan commented.
Nguyen Van Dinh, Chairman of the Vietnam Association of Real Estate Brokers (VARS), acknowledged the challenges that the real estate industry will face in 2024. However, these challenges also present significant opportunities for market acceleration in the near future. The late 2023 launch of numerous projects indicates the market’s ongoing recovery.
Moreover, macroeconomic policies and legal frameworks are also supporting the market’s development, providing a foundation for growth. Thus, in 2024, investors can seize the opportunity to “buy low” and select the best properties at favorable prices.
According to Nguyen Van Dinh, there is a noticeable increase in the number of investors embarking on a “land hunt” in suburban areas surrounding major cities. These areas boast robust infrastructure development and rapid urbanization, offering reasonably priced properties and substantial growth potential. Additionally, the demand for land as an investment asset remains strong, making it the top choice for investors.
With the real estate market showing signs of revival, now is the time for investors to seize the opportunities available in suburban land. As the market continues to grow, those who act swiftly and wisely will reap the most significant rewards.