Urban real estate becomes “the focal point”
Real estate prices soar
According to experts, when the land fund in big cities such as Hanoi, Ho Chi Minh City, etc. Ho Chi Minh City is increasingly scarce, urban land prices are increasing, many real estate giants have turned to suburban areas to look for opportunities. People’s preference to own land-based real estate also increases the demand for houses in suburban areas.
Choosing to live in the periphery will help homebuyers solve many of the inadequacies of today’s urban life such as traffic jams, dust, and at the same time fully satisfy all living and living needs. of several generations in the family.
According to the survey, at present, the price of land plots in many suburban areas of Hanoi such as Hoai Duc district, Dong Anh district, Me Linh, Gia Lam, Thanh Tri, … increased 10-20% compared to 2021. In which, “following” the Red River urban subdivision planning project, the land price of Dong Anh district in Xuan Canh, Uy No, Dong Hoi, Vinh Ngoc communes has set the price level from 40 to 150 million VND/m2. .
In Me Linh district, the whole district has about 50 projects concentrated in communes along Vo Van Kiet Boulevard such as: Tien Phong, Trang Viet, Thanh Lam, Dai Thinh, and Quang Minh town. After the general plan was approved, investors such as HUD Corporation, Minh Giang, and Cienco 5 simultaneously deployed as infrastructure and built many apartment projects, making the Me Linh real estate market flourish. Again, the price of land here also increased 10-20% over the same period in 2021.
As noted by the market research institute Dat Xanh Services, in early 2022, the price of land in the suburbs tends to approach the price of land in the central area after the planning information is announced. Accordingly, after planning information, projects located 10km from the central area recorded a price increase of 10-15%, projects located 20km from the central area recorded a price increase of 38 km. %, projects located 30km from the central area recorded a price increase of 35%, projects located 20km from the central area recorded a price increase of 28%.
For the provinces near Hanoi such as Hoa Binh, Bac Ninh, and Hung Yen, land prices have also escalated continuously. Mr. Nguyen Van Dinh, Vice Chairman of Vietnam Real Estate Association, Chairman of Vietnam Real Estate Brokers Association said that, in Hoa Binh alone, a year ago, land prices in Luong Son and Kim Boi districts, Da Bac has increased 3 times. Neighboring areas also recorded a significant increase.
Within 50km from Hanoi, the price of land for sale in the North recorded a sharp increase, such as Bac Ninh increasing by 61%, Hung Yen increasing by 22%. Within 100km from Hanoi, the selling price of Hoa Binh land increased by 106%.
Ms. Do Thu Hang, Senior Director of Savills Research and Consulting Department in Hanoi, commented: “In some big cities like Hanoi and Ho Chi Minh City, Ho Chi Minh City has a tendency to shift investment to neighboring areas. One of the reasons for this phenomenon comes from the fact that real estate prices in the inner city have been established at a high level.
Therefore, the expectation of profitability from this location is lower and investors often find opportunities in districts outside the center and surrounding areas such as Hung Yen, Bac Ninh, Quang Ninh, Hai Phong. As a result, the pressure to increase prices in inner-city areas is reduced, avoiding the phenomenon of pushing prices too high.”
Besides, Ms. Hang emphasized the importance of infrastructure in attracting investors and buyers. According to the plan, City. Hanoi is expected to spend more than 51,000 billion VND for public investment in 2022, of which 30% is invested in infrastructure construction. In the coming years, prioritized projects include: ring road 2.5, 3, 3.5, 4, Vinh Tuy bridge phase 2 and Thuong Cat. Accompanying that is the improvement and enhancement of the national highway and the completion of electric train projects. The convenient transportation system will shorten travel time and support connections between projects in the suburbs and in the center.
In the context of high inflation, people’s psychology will pour into “firm and durable” investment channels such as real estate. They have a need to find products that can both keep their money safe and provide the possibility of sustainable price increases in the future. With that requirement, land is a rare investment channel that meets all these standards.
End of short-term investment time?
Looking at the real estate market, Dr. Can Van Luc, an economic expert, said that this year, the market appeared many “fevers” due to a lot of planning information, even some investors, speculators, and land storks helped blow prices. . However, with the Government and localities having more experience in controlling, and making many moves to “tighten” the market, the land fever is likely to be under control.
On the other hand, Mr. Luc also assessed that investors who have experienced many land fevers have better awareness of the risks when “surfing” fails. At the same time, information about real estate is now becoming more and more public and transparent, making it difficult to take advantage of planning to create virtual prices as before.
Sharing the same opinion, Mr. Pham Anh Khoi, General Director of Real Estate Financial Services Company, said that investors in the current period must be very careful and should not participate in the market with a short mindset. term. In addition, it is important to have stable financial resources.
Because real estate is often more cyclical in the medium and long term, the profit that an investor gets in the short term is not necessarily due to the person being good, but often due to luck.
“New investors entering the market must be careful, need to know who they are, where they are in the sales chain of a real estate product, to avoid losing capital in the middle. In particular, they should be careful with information information in the industry because the actual information may be completely different from the information on paper”, Mr. Khoi warned.
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