Apartment prices in Vietnam peak, investment funds shift to land and low-rise residential market

Apartment prices in Vietnam peak, investment funds shift to land and low-rise residential market

As apartment prices continue to climb and peak, investor money is turning to land and low-rise housing markets. In Hanoi, suburban areas such as Hoài Đức, Long Biên, Đông Anh, etc., the demand for land with a price of about VND200 million has increased significantly. Meanwhile, the villa and townhouse market in Hanoi's suburbs has also witnessed strong price growth.

It is worth mentioning that the prices of a series of projects such as Vinhomes Ocean Park 2 (Gia Lâm) and Solasta Mansion (Dương Nội) have increased by VND100-200 million in the past first quarter. Even the second-hand villa market in areas such as Nam An Khánh, Bắc An Khánh, Dương Nội has witnessed price increases of about 10% in recent months.

In addition to Hanoi, as some provinces accelerate urbanization and infrastructure investment, and their economic development stabilizes, the land and low-rise residential markets in places such as Hải Phòng, Quảng Ninh, Vĩnh Phúc and other places have also ushered in active signals again. In particular, products such as urban land, villas and shops located in city centers and with clear legal documents are particularly attractive to investors.

According to market research data, in January 2024, land searches in Hanoi increased by 110%, project sites increased by 77%, and apartments increased by 71%. In Ho Chi Minh City, demand searches for land and project sites increased between 71% and 73%, while apartments only increased by 59%.

Analysts assess that the land market has begun to thaw and enter a new cycle, and attention will increase month by month.

The current development of the land market shows the return of the “king” investment channel. The recovery of the land market is driven by three driving factors: the first is cyclicality - investment demand increases after the Spring Festival; the second is the adjustment of land prices - a decrease compared with before, prompting investors to consider appropriate entry into the market. Timing; the third is the impact of three new laws that will be implemented from 2025 - investors hope to seize the opportunity of rising land prices after the laws come into effect.

Vice Chairman of the Vietnam Real Estate Association and Chairman of the Vietnam Real Estate Brokers Association believes that as the market recovers, the appeal of land and low-rise housing has increased again. This is also because of the concept of "an inch of land, an inch of gold", people's psychology of owning real estate and the desire to accumulate wealth. The need remains widespread.

He also pointed out that land and low-rise residential buildings can maintain their "king" status in the market because this market segment can meet the needs of investors in many aspects. In addition to solid legal protection and meeting the needs of wealth accumulation, it is located in a large-scale City center products can also bring high returns in the future, provided investors invest at the right time.

Under the same financial conditions, land and low-rise residential products with good locations and transparent legal conditions are still more attractive for investment than apartment products.

According to the latest data, the average listing price of apartments in Hanoi in the first two months of this year increased by 17% compared with the same period in 2023. Prices for some items have increased by about 30% in one year. For example, the listed prices of apartments in the Royal City project increased by 33%, The Pride increased by 33%, Mỹ Đình Sông Đà - Sudico increased by 32%, Vinhomes West Point increased by 28%, and Đại Thanh Apartments increased by 27%.

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

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