Developments of the land market after land fever

The land market is slipping

According to data from the Vietnam Association of Real Estate Brokers (VARS), the land market is no longer hot” like the previous period. Land products have experienced many reductions, cutting losses by up to 30-40% but still difficult to liquidate.

According to a recent report on land market developments by the Institute of Economics. Construction Department under the Ministry of Construction, the secondary supply of land in 2023 decreased much compared to the previous year.

In which the secondary supply of land project in 2023 compared to 2022 in Hanoi, down about 460.04, Ho Chi Minh City, down 560.03, Da Nang, down 440.05, Binh Duong, down about 450.03, Hai Phong, down about 586%.

Besides, the land transaction situation in 2023 is also quiet. The number of secondary transactions of project land in Hanoi decreased by about 450.04. Ho Chi Minh City decreased by 600.01. Da Nang decreased by 490.04. Binh Duong decreased by 480.01. Hai Phong decreased by 300.03. Dong Nai decreased by 594%. Secondary land transaction prices in 2023 tend to decrease by about 10-15% compared to 2022 and decrease significantly in some localities such as Dong Nai, Khanh Hoa, Da Nang, Ho Chi Minh City.

Also according to the above report of The Institute of Construction Economics’ organization of project land auctions has resumed in many localities in the last quarter of 2023. Although the winning auction price is not much different from the starting price, this is still acceptable. Considered a positive signal for the market when purchasing power has shown signs of improvement.

A market report from a research unit said that the land market recorded a sharp decrease in search demand. in 2023. Specifically, the amount of land purchased in 2023 will decrease by 45% compared to 2022, especially project land. Compared to the peak period of “land fever” in March 2022, land plots in the southern provinces decreased by 71%.

Difficulties in accessing capital flows and trust in investors are said to be the reasons. certain barriers in customers’ decisions to own real estate. Primary price level recorded a decrease of 10-13% compared to 2022. Secondary selling price recorded a decrease of 15-30%, a decrease in the group of customers using loans for large-scale projects with incomplete infrastructure – legal Reasonable.

Need more time to recover

Despite the gloomy developments, according to the Institute of Construction Economics, the forecast transaction situation is still stable. vibrant body. Low liquidity in 2023 and investor psychology still being cautious in making investment decisions means the land market in 2024 still needs more time to recover.

Regulations intends to tighten the Law’s practice of dividing plots for sale Business New real estate can affect the supply, buyer psychology and prices of this segment in the near future. Purchase demand and transaction prices for large land plots are forecast to continue to decrease.

On the contrary, for small land plots, liquidity will improve and transaction prices will improve. secondary may increase slightly compared to 2023.

Also commenting on the land market, VARS forecasts that supply in this segment will be scarce. in 2024 when new Law policies can change the game in this market. The scarcity of supply could push land prices up by about 5-7% compared to 2023 in large cities. And areas with well-developed infrastructure tend to go sideways.

According to a survey at the end of 2023 by a Market Research Center, out of 63% of people with real estate needs in 2024, most People who have real estate needs are interested in apartments, land and residential real estate.

A psychological survey of people buying a house is researched by a research unit. Research conducted at the end of 2023 shows that land is the leader in the type of real estate that is of interest and has a high bottom-fishing rate. The above reality shows that land is still a product welcomed by the market. However, the land market is forecast to still be difficult in 2024 as investment sentiment still shows no signs of positive recovery.