Land demand in southern Vietnam’s real estate market rises in early 2024

Land demand in southern Vietnam’s real estate market rises in early 2024

As the Lunar New Year holiday comes to an end, the real estate market in the southern region has witnessed significant growth in demand for land, with interest in land in particular rising.

Investors seek land investment

In a recent interview, a person in charge of a real estate agency in Ho Chi Minh City - Mr.Phương said that his company received a large number of land purchase requests from an investment team after the Lunar New Year holiday. These requests are mainly concentrated around Ring Road 3 in Ho Chi Minh City, and in the provinces of Long An, Bình Dương, Bình Phước and Tây Ninh. The team's requirements for the land are quite flexible. They only require that the land has a title certificate and is located near a road, industrial area or residential area under planning. Other conditions such as area and direction are negotiable.

“Such requests have been increasing since mid-January 2024, which shows that investors with capital are actively looking for high-quality land, especially before the tightening of urban land subdivision sales regulations in 2025. They hope to find land with clear legal documents Make an investment." He added that while such land deals were unspectacular, transaction volumes had improved significantly since the end of last year and the proportion of successful intermediaries had increased.

According to data from the Batdongsan professional platform, real estate transaction volume rebounded rapidly in the first two months of 2024. Particularly in Hanoi and Ho Chi Minh City, residential land and land for development projects have increased in interest, overtaking apartments.

In January 2024, land searches in Hanoi increased by 110%, and land for development projects increased by 77%. In comparison, searches for apartments in Hanoi increased by 71%; in Ho Chi Minh City, demand for land and developments increased by 71% to 73%, while apartments only increased by 59%.

The data reflects that demand from many people to own property is rising again, although the market is not experiencing a land rush like it was in early 2022. Batdongsan's report on real estate consumer psychology also shows that 65% of respondents plan to purchase real estate in the next year, 60% of which are for investment purposes, and land is the type that future buyers are most concerned about.

It will take time for the market to recover

According to DKRA Group's report on the real estate market in Ho Chi Minh City and surrounding areas, by the end of 2023, prices in the primary market fell by 10% to 13% compared with 2022, and prices in the secondary market fell by 13% to 17% compared with the beginning of the year, especially For the customer base using loans, large projects that have not yet completed infrastructure and legal procedures. Market liquidity remains at a medium level, projects with completed infrastructure and property rights certificates issued, located in residential areas with complete living facilities, and with prices between 120,000 and 190,000 per square meter have attracted the attention of investors.

The current average land price in Ho Chi Minh City is 747,000 per square meter, with the lowest being 375,000. In Đồng Nai, the highest land price is 564,000 per square meter and the lowest is 92,000. The highest land price in Long An is more than 600,000 per square meter, and the lowest is 164,000. The land price of the Bình Dương project is approximately 230,000 per square meter, with the lowest being 122,000. In Tây Ninh, land prices are relatively low, ranging from 57,000 to 75,000 per square meter.

“For sellers, this wave of price declines has been quite deep, but for buyers, such declines are not enough to attract most investors, coupled with the increasing number of new infrastructure projects on the market, bringing more new market and supply." He said that because land prices had been pushed up during the land boom, buyers remained cautious and worried about buying high-priced land.

According to analysis by the Economic Construction Research Institute of the Ministry of Construction, trading activities are not expected to be too active in the short term. Low liquidity in 2023 and investors' cautious attitude in investment decisions mean that the land market in 2024 will still need more time to recover.
 

For more information about real estate projects in Ho Chi Minh City and neighboring provinces, please contact FTT LAND!

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