Retail investors put money into cheap land, causing land prices to increase sharply

With an amount of 700 million VND in hand, he did not know how to invest in business in the beginning, so Mr. Nguyen Khoi, a native of Nam Dinh, now living and working in Hanoi, decided to buy land with the mentality of “eating well and wearing durable”. According to Mr. Khoi, investing in securities is a bit vague, especially recently the market has continuously plummeted, business requires experience and requires concentration of time and effort. However, because he still follows the company, he calculates that if he buys land only to ensure that he does not lose capital, he is also likely to earn high profits. So he chose to pour all his spare money into buying land.

“Land prices go up so fast, around my hometown now the price of land has increased by tens of percent after only 1-2 years. Many people have money to buy a few hundred to a thousand square meters of land, I have little money to buy tens of square meters there. It’s also not the goal of surfing to make a profit, so any plot of land with a good location, decent red book, and an affordable price should be bought and saved. In my opinion, in the long run, land prices can still increase, it is difficult to decrease,” said Mr. Khoi.

According to Mr. Khoi, the bank has now made a move to tighten credit to real estate, so cheap plots of land will be favored by investors with thin capital. “At that time, the buyer will use completely real money, without using financial leverage. Therefore, although the market may not be active, even if it goes sideways for a while, there is no need to worry about cutting losses,” said Khoi.

Sharing the same choice of land type, Ms. Nguyen Thu Huyen (Thanh Xuan, Hanoi) who is looking for land in Hai Phong said that with a budget of less than 1 billion VND, only a few provinces buy land, but it is difficult to buy. apartments and houses in the city.

She and her husband have accumulated for nearly 4 years now, only 900 million VND with the intention of buying a house, but in Hanoi, they have not found a suitable old apartment. Worried that money might depreciate, Ms. Huyen saved up to buy land and could not afford to buy in big projects but only bought residential land in small projects or in residential areas.

“Returning to An Lao, An Duong worked hard to find a lot of land of 60 – 80m2, has a decent red book, but the price is around 800 – 900 million VND. These lots are not located in the center but are still within the existing residential area, inhabited by people, have roads, electricity, water and a crowded market, I bought them to save in the long run,” Huyen shared. .

Unlike experienced, capital-intensive investors, small investors are not afraid to explore new markets. Side-by-side investors have moderate capital to save, have not oriented business investment path, fear that inflation will cause money to depreciate and choose to deposit money into land, especially cheap land in the region. with the expectation of securing assets and being able to profit from the land.

According to research, many small investors from Hanoi to Nam Dinh, Ha Nam, Hai Phong, Thai Nguyen, … are looking to buy land. The financial range most asked to buy is land products with a value of less than 1 billion VND. In these areas, there are still a lot of land plots with a selling price of 6-9 million VND/m2, so small investors with limited capital tend to come here to buy.

According to Batdongsan.com.vn’s first quarter report of 2022, land plots are searched more than before the COVID-19 epidemic, but decreased compared to the same period in 2021. This is also a type of real estate that recovers quickly. after each outbreak of disease.

The project’s land type and land plots are of increasing interest in many provinces. The number of searches for land plots in the first quarter still increased by 4% compared to the period in 2019, but decreased by 7% compared to the same period last year.

In which, in the North, the level of interest in residential land in some areas such as Bac Giang, Bac Ninh, Hai Phong,… has decreased, but the asking price still increased by 35%, 16%, respectively. and 29% compared to the average price for the whole year of 2021. Residential land sale prices also increased simultaneously in the suburban districts of Hanoi such as Chuong My (74%), Quoc Oai (26%), Gia Lam (21%) ), Dong Anh (20%),…

In contrast, land plots in the Central region recorded a 14% increase in interest, while some localities such as Dak Lak, Khanh Hoa, and Binh Thuan recorded a sharp increase of 58%, 48%, and 44%, respectively. The price of land for sale also recorded an increase compared to last year, in which, Thanh Hoa increased by 35%, Khanh Hoa increased by 26% and Binh Thuan increased by 13%.

In the South, interest in land plots decreased compared to the same period last year in many places such as Ho Chi Minh City (15%), Can Tho (40%), Binh Duong (13%), Dong Nai (13%). %), Ba Ria – Vung Tau (16%),… However, the asking price still increased by 27% in Binh Duong, 23% in Binh Phuoc, 13% in Long An, 7% in Dong Nai, .. .

According to Mr. Nguyen Van Dinh – Vice Chairman of Vietnam Real Estate Association, Chairman of Vietnam Real Estate Brokers Association, Vietnam’s real estate market is in a state of quite serious imbalance of supply and demand. The proof is that in 2021, despite the complicated situation of the Covid-19 epidemic in Vietnam and around the world, as long as the epidemic subsides, the real estate market will flare up again. Even at times of stressful epidemics, technology in the real estate sector thrived, helping to stimulate the market.

From 2021, a lot of capital flows will be withdrawn from other economic sectors to switch to finding effective investment channels such as real estate. Therefore, the market has more and more F0 investors, also known as side-by-side investors.

Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, said that the overview information about the macroeconomic situation and Vietnam’s real estate market in the first quarter of 2022. Accordingly, the economy developed stably in the quarter with GDP growth better than the same period in 2020 and 2021, reaching 5.03%. Notably, while registered FDI in the whole industry decreased by 12% over the same period last year, FDI inflows into real estate increased by 213%. The number of newly established real estate businesses also increased by 47% over the same period in 2021.

Mr. Quoc Anh also cited data comparing with 2010 to show that the economy in 2022 is forecasted to have stable and sustainable growth when investment capital is managed closely and with focus; interest rates were stable and the economy started to recover well after more than 2 years of the epidemic.

With the real estate market, the Government is gradually making business activities transparent, helping the market develop healthy and sustainable. Meanwhile, according to a survey conducted by Batdongsan.com.vn, home buyers continue to have a positive assessment of the real estate market after the Lunar New Year. Real estate is chosen as the preferred investment channel compared to the rest such as gold, securities, savings, etc.

According to Economic Life