The real estate market has shown many indicators that the decline of land plots is starting to slow down. Based on the research stream that extends the repeating cycle, experts believe that the land fever may return in the period of 2025-2026.
Land plots were the hottest type when the real estate market experienced a local land fever in 2020-2022 and then also the most gloomy type because they did not target real demand. Land plot prices fell sharply in many places but there were no transactions. This situation has lasted from the second half of 2022 until now.
However, according to the latest data from Property Guru Vietnam, there have been many indicators that the decline of land plots is starting to slow down. Currently, the interest in land plots is about 48 percentage points, 5-6 points higher than the lowest point in the first quarter of 2023 (42-43 percentage points).
Notably, in the first quarter of 2024, suburban land in Hanoi became active again with the same amount of interest as in the second quarter of 2022, when the market had not "plummeted", concentrated in districts: Dong Anh, Long Bien, Chuong My, Thach That, Hoai Duc. Meanwhile, land in the northern provinces such as Hai Phong, Quang Ninh, Hoa Binh, Hung Yen... is still quite quiet.
In the southern market, land also temporarily stopped falling, going sideways for quite a long time (from the first quarter of 2023), not improving but not decreasing further.
In terms of selling prices, while land prices in the North and Central regions began to increase slightly compared to 2023, land in the southern provinces had a clear adjustment in selling prices.
According to Mr. Dinh Minh Tuan - Director of Property Guru Vietnam, the land market is cyclical. Because if we look back at the search trends in recent years, March and May will be the time when the demand for land increases a lot.
According to this expert, land prices in some areas have been adjusted, but the market is facing problems related to capital and interest rates. Therefore, only markets related to infrastructure fluctuations have recorded faster recovery. Other areas, especially land in the provinces, are still facing many difficulties.
In an interview with Lao Dong Newspaper, Mr. Vo Hong Thang - Director of Consulting Services & Project Development Department of DKRA Group, commented that the land segment with certificates or belonging to projects with complete legal documents, synchronous traffic infrastructure, adjacent to residential areas, industrial parks, convenient connections to the city center has and is possessing certain bright spots, being prioritized by investors.
"In the long term, the appeal of land will be difficult to decrease. This segment has always been popular with investors thanks to many factors, typically the preference for houses attached to land and the need to accumulate safe assets as well as the ability to increase profits from land remains high.
Based on the research stream that extends the repeating cycle, the land fever may return in the period of 2025-2026. The current period until the first half of 2024 can be seen as the beginning of a cycle of recovery and next growth of the real estate market" - Mr. Thang said.