"Holding" Land for 4 Years, Investors Just Hope to Sell at Purchase Price: The Reality of Ho Chi Minh City's Land Market

The land market in Southern Vietnam, particularly in Ho Chi Minh City, has gone through many fluctuations over the past few years. During the boom years of 2020-2022, many investors rushed to purchase land, hoping for quick profits. However, now, many investors are facing the challenge of not only being unable to sell at higher prices but also struggling to break even.

For example, Mr. X owns a residential land plot of over 50 square meters in Thu Duc, Ho Chi Minh City, and listed it for sale at 2.8 billion VND, the same price he bought it for at the end of 2021. However, after several months of trying to sell, he has yet to find a buyer. Most potential buyers have offered between 2 billion to 2.5 billion VND, which is much lower than Mr. X's asking price. The investor shared that after holding the land for 4 years, he simply hopes to sell at the purchase price to recover his invested capital.

In reality, situations like Mr. X's are not uncommon in Ho Chi Minh City and its surrounding areas. Many investors who bought land between 2020-2022 are now struggling to sell at the prices they initially hoped for. While secondary land prices in Ho Chi Minh City have increased by 5-10% since early 2024, they still haven't returned to the levels of early 2022. As a result, many investors who bought land during or after the Covid-19 pandemic are still waiting for prices to recover or hoping to sell at the price they purchased.

Liquidity Issues and Declining Land Values

Due to the overall downturn in the market, land transactions are facing significant liquidity problems. While some areas show signs of recovery, many land plots remain unsold. Investors who entered the market at high prices are finding it difficult to find suitable buyers and are having to lower prices to facilitate sales. However, despite slight price increases in secondary land markets, the prices are still far below the levels of early 2022.

Reasons Behind Difficulty in Selling Land

The unevenness of the market is one of the main reasons for the difficulty in selling land. While some areas are showing recovery signs, many other areas are still facing stagnation. Additionally, buyers are still cautious and tend to wait for prices to either stabilize or decline further. Legal issues and changes in zoning plans have also made it more challenging to sell certain plots of land.

Expectations for Market Recovery

Despite the challenges, hopes for a market recovery remain. As the economy gradually recovers post-pandemic, especially with rising demand for real estate in areas like Ho Chi Minh City, Long An, and Binh Duong, the land market could see a rebound in the coming months. However, investors who have held onto land for an extended period will need patience and to be ready for market fluctuations.

Advice for Investors

To avoid facing difficulties in selling land, investors should carefully choose plots with potential for future value appreciation. Researching market trends, focusing on areas with potential for growth, and ensuring legal compliance are essential steps. Additionally, investors should be prepared for market changes and have a solid financial plan in place to navigate the uncertainties.

The situation where investors are "holding" land for 4 years just hoping to sell at purchase price reflects the current challenges in Ho Chi Minh City's land market. While there are signs of recovery, it still faces many obstacles. Investors need to remain calm, flexible, and maintain a long-term perspective to adapt to the market's uncertainties in the future.