The era of real estate with real value: Standard project land is still 'healthy'

There is no concept of "slowing down" with project land

In the first quarter of 2022, the market report of the Ministry of Construction showed a contrast in the transaction situation between segments.real estate. In particular, the apartment segment has decreased with the total transaction volume nationwide only about 45.5% compared to the fourth quarter of 2021 and about 80% compared to the same period in 2021.

Meanwhile, the segmentlandThere was a sudden increase in transaction volume. Specifically, the number of land transactions in the quarter reached 153,537 successful transactions. The total transaction volume was about 242% compared to the fourth quarter of 2021.

Project land always retains its appeal regardless of the general market situation.

Not only was there a good transaction volume, in general, land prices in the last quarter also had a high increase, an average increase of about 5 - 10% compared to the previous quarter. By the end of March 2022, in some localities such as the suburbs of Hanoi, Ho Chi Minh City, Thai Binh, Lam Dong, Khanh Hoa, Da Nang, Dong Nai provinces... there was a phenomenon of land prices increasing by 15 - 20% compared to the end of 2021.

A representative of Dat Xanh Bac Trung Bo - the leading project distributor in the North Central region said: "Project land in Nghe An, Ha Tinh, Thanh Hoa currently dominates both demand and transactions, however, the current supply is still not enough. Some projects implementing new phases also attract the attention of buyers, helping the project land segment always maintain a steady growth rate. Good projects, convenient connection locations, legal standards, "real" value will still attract customers in the coming time".

“Recently, there has been negative information about some projects, some review policies of the authorities have reflected the market picture. And that adjustment is necessary, the overall picture will be good for the market in the medium and long term.”

Customers buy land in Thien Loc Legend project at Dat Xanh Bac Trung Bo.

Regarding the prospects of the real estate market in the coming time, Mr. Nguyen Manh Ha - Vice President of the Vietnam Real Estate Association said that the demand for real estate in Vietnam is still very high. Currently, the urbanization rate of Vietnam is around 40%, but in developed countries it is 70%, even more, people living in urban areas account for 70-80% of the population. By 2050, if Vietnam develops to 60-70%, we will have about 60-70 million people living in urban areas, the demand for housing is very large.

"Safe and sound" investment psychology with real value

Originating from the traditional concept of “every inch of land is worth an inch of gold”, land has long been considered the leading channel for accumulating assets. Especially, in the context of inflation, the stock market is going down or the gold price is anchored high, difficult to predict, “buying land is never a loss” because land is always limited while the population is increasing every day. In particular, real estate, besides the goal of profitable investment, also brings many real values ​​such as living, business, renting or leaving assets for children and grandchildren…

Mr. Tran Hung, an investment expert with 10 years of experience, shared: “In the current time of information chaos, most people become more cautious when investing to avoid unnecessary risks. In my personal opinion, I advise investors to consider investing in truly quality products that bring real value and have a medium and long-term vision instead of short-term “surfing”. For me, project land is always a product that must be in the “shopping cart” regardless of market conditions.”

Real estate products are gradually changing and developing in line with the concept of "home is a place to live, not just a place to stay" of most buyers today. Photo of Koi pond utility at Hoang Son Urban Area project (Nghe An).

Accordingly, this investor also gave three biggest advantages to explain the potential and safety when investing in project land.

Firstly, the project land is often in a "golden" location, close to key traffic works, quickly connecting to external facilities such as cultural centers, entertainment, administration, office headquarters, etc. This creates a "leverage" to increase the price as well as the liquidity of the product because in real estate, location is always the top factor favored by buyers.

Second, the projects will have diverse infrastructure and utility systems such as parks, entertainment areas, schools, etc. right on the premises, meeting the maximum needs of living and entertainment. Meeting the dual goals of business and living, this segment not only conquers home buyers but is also favored by the business community, being the "diamond egg laying goose" for investors.

Third, the legal factor is one of the key factors that motivate investors to decide to invest. The legality of the project land is always 100% guaranteed before being planned and sold on the market, because this is a mandatory condition for the project to pass the inspection of state agencies. In addition, most projects are supported with bank loans, helping investors feel secure in owning beautiful products with the lowest initial capital.

From that, the potential for price increase of project land is even more outstanding with higher competitiveness than apartments, residential land, and auctioned land.

According to experts, in the second half of 2022, the market will continue to be screened and adjusted, and investors' cash flow will also be carefully calculated and allocated more reasonably. In particular, "real" project land will still be the top choice to help cash flow maintain value and grow best.