The real estate market is witnessing a boom in land plots for sale in many provinces as new projects are rolled out in large numbers.
In Nghe An province, Hoang Son urban project has been put up for sale. Covering an area of nearly 115,232 square metres, the project is located in Dien Chau District in two zones, Thach Nien Tung Zone and Sala Zone, offering 409 land plots with a price of around VND20 million (US$878.35) per metre.
Era Central City is also a notable urban project on offer in Thai Binh Province. Situated in Thai Thuy District, the project has been jointly invested by Phu Hung Import-Export Production Company and Lam Son Thai Binh Join Stock Company. It encompasses an area of 227,500 square metres and offers 616 land plots with VND25 million ($1099) per square metre price tag.
Recently, Hoa Binh Province has been witnessing new housing developments mushroom in suburban areas, notably the NTR Stars Cao Phong project in Cao Phong District. With a total area of 99,000 square metres, the project has 343 land plots available for purchase, of which 327 are adjacent plots and 16 are villa plots. Each plot is priced at around VND13 million ($570.8) per metre.
In Hai Duong Province, Thanh Ha New City is a 93,000-square-metre project open to buyers in the last days of the year. This project consists of 279 adjacent plots with an area of 72-157 square metres apiece and 52 villa plots, 172-253 square metres apiece. The price of each land plot stands at VND20 million per metre or higher.
More than 1,000 land plots in Thanh Hoa Province have also been put on the market recently thanks to the year-end roll-out of NRT Star Bim Son. The project put up for sale a variety of land plots, from shophouses to villa plots. Under the construction plan, shophouses will be built four-storey with an area of 65-150 square metres a plot, whereas villas 3.5-storey and 200-350 square metres a plot.
Experts say the pick-up of the real estate market can be attributed largely to the reopening of the economy after mid-September.
Previously, land plots had to experience a sharp drop in both supply and demand due to the negative impacts of the pandemic.
A report from Viet Nam Association of Realtors (VAR) showed land plots were in short supply in Q3/2021, equivalent to just about 4 per cent of the previous quarter. Almost no new land was put up for sale during that period.
At the same time, land plots demand also fell to a new low in Q3, notably in southern provinces, due to strict lockdown measures. A drop in land prices could be seen in several localities.
After mid-September, the economy began to recover and pick up steam thanks to the easing of lockdown measures. Investors began to divert their money into real estate following the reopening, leading to a year-end upturn in the market.
“Money diverted away from securities, foreign exchanges and some other ailing sectors are pumping into the real estate market," said Nguyen Van Dinh, chairman of VAR.
"Undoubtedly, real estate is still a lucrative investment channel as well as a safe haven for cash flow.”
For investors, suburban land plots, notably those with land use rights certificates, were a real money-spinner in real estate market in 2021, Dinh added.
The chairman of VAR recommended investors put money only into land projects with good planning and adequate legal documents. They are advised not to buy land plots on grounds of rumours or prevailing sentiments.
Investors are also recommended not to take out too many bank loans for land purchase as over-leveraging would reduce invesment efficiency. — VNS