Many experts believe that the land lot segment has received significant attention from investors as evident from the increasing selling price and transaction numbers (Photo: realtimes.vn)Hanoi (VNA) - Many experts believe that the land lot segment has receivedsignificant attention from investors as evident from the increasing sellingprice and transaction numbers.
Some even expect this segment could become “hot” in the nearfuture.
Statisticsfrom the Department of Housing Management and Real Estate under the Ministry ofConstruction showed that in the first nine months of the year, total propertyinventory in the country was some 26.2 trillion VND (1.15 billion USD), ofwhich inventory of land lots of more than 3.1 million square metres accountedfor the highest value - equivalent to 12.5 trillion VND.
Expertsand commercial real estate services firms said the land segment has regainedthe attention of investors.
Thuy Lienin Hanoi’s Hoang Mai district said her family used to spend money on buyingapartments, which could later be sold for profit. However, she felt investingin apartments was no longer a safe and attractive option. Instead, she was nowbuying land lots as a new avenue to gain profit.
Sheexplained that a significant number of apartments had been sold, leading tosaturation of the segment and low liquidity. In addition, the apartments weredependent on construction progress, investors’ reputation and legal disputes,in spite of a high investment value. Investing in apartments was thereforeriskier than putting money into land lots.
Thosewith strong financial capacity bought land lot projects that were progressingslowly, and were therefore available at low prices. They then waited for theprojects to speed up to sell at higher prices.
Land lotsin new urban areas had the advantages of available infrastructure, transportconnectivity and better construction density in comparison with the olderresidential areas.
In addition, the land lot segment had attracted investors as it metboth the targets - accommodation and investment.
Most Vietnamese believed that the value of land would increasemore than the value of apartments.
In the past two years, the “fever” for land lots has beenwitnessed in the three large cities of Hanoi, Da Nang and HCM City.
For example, HCM City saw a high demand for land lots inthe city’s eastern area, while the price of land lots in Thanh Ha Cienco 5 in Hanoi’s HaDong district rose by 1.5 to two times in comparison with the initial price.
NguyenVan Dinh, vice chairman of the Vietnam Association of Estate Agents, said themarket had witnessed a fluctuation in the selling price since March, with landlots seeing the highest increase.
Thismarket segment is expected to see impressive growth rate in the near future, Dinhsaid.
He saidState management agencies should have solutions to stabilise the segment toprevent “virtual” price hike, causing negative effects on the market.
Theministry said localities should publish information on planning and progress oftransport, infrastructure and property projects to prevent a “fever” for theland lot segment.-VNA
Some even expect this segment could become “hot” in the nearfuture.
Statisticsfrom the Department of Housing Management and Real Estate under the Ministry ofConstruction showed that in the first nine months of the year, total propertyinventory in the country was some 26.2 trillion VND (1.15 billion USD), ofwhich inventory of land lots of more than 3.1 million square metres accountedfor the highest value - equivalent to 12.5 trillion VND.
Expertsand commercial real estate services firms said the land segment has regainedthe attention of investors.
Thuy Lienin Hanoi’s Hoang Mai district said her family used to spend money on buyingapartments, which could later be sold for profit. However, she felt investingin apartments was no longer a safe and attractive option. Instead, she was nowbuying land lots as a new avenue to gain profit.
Sheexplained that a significant number of apartments had been sold, leading tosaturation of the segment and low liquidity. In addition, the apartments weredependent on construction progress, investors’ reputation and legal disputes,in spite of a high investment value. Investing in apartments was thereforeriskier than putting money into land lots.
Thosewith strong financial capacity bought land lot projects that were progressingslowly, and were therefore available at low prices. They then waited for theprojects to speed up to sell at higher prices.
Land lotsin new urban areas had the advantages of available infrastructure, transportconnectivity and better construction density in comparison with the olderresidential areas.
In addition, the land lot segment had attracted investors as it metboth the targets - accommodation and investment.
Most Vietnamese believed that the value of land would increasemore than the value of apartments.
In the past two years, the “fever” for land lots has beenwitnessed in the three large cities of Hanoi, Da Nang and HCM City.
For example, HCM City saw a high demand for land lots inthe city’s eastern area, while the price of land lots in Thanh Ha Cienco 5 in Hanoi’s HaDong district rose by 1.5 to two times in comparison with the initial price.
NguyenVan Dinh, vice chairman of the Vietnam Association of Estate Agents, said themarket had witnessed a fluctuation in the selling price since March, with landlots seeing the highest increase.
Thismarket segment is expected to see impressive growth rate in the near future, Dinhsaid.
He saidState management agencies should have solutions to stabilise the segment toprevent “virtual” price hike, causing negative effects on the market.
Theministry said localities should publish information on planning and progress oftransport, infrastructure and property projects to prevent a “fever” for theland lot segment.-VNA
VNA
