First, although this segment was hit by the recession in many provinces and there were few transactions, prices remained stable.Thank you for reading this post, don't forget to subscribe!
This situation continued until 2023 when investors started selling their assets to liquidate their assets.
The first quarter saw prices decline 15-20% year-on-year and the second saw a dramatic 30-50% decline.
The declining trend slowed in the second half of the year, except in the case of agricultural land and large plots, whose prices continued to decline.
The average land listing price in the first three quarters of 2023 was 26% lower than the beginning of the year, according to data from real estate trading platform Butdongsan.
Prices were 30-40% lower in Binh Long district of Dong Nai province, Chon Thanh district of Binh Phuoc province, Ben Luc district of Long An province and Bau Bang and Ben Cat districts of Binh Duong province.
Additionally, according to property consultancy DKRA Group, developers often offer 20-30% discount on three- and four-year loans with lower interest rates.
The firm also said demand in both the primary and secondary land markets in the south is at an all-time low.
By December the market had seen an 80-98% year-on-year decline in the number of transactions.
In the first quarter, 385 land plots entered the primary market but only 78 were sold.
The figures increased to 867 and 378 in the second quarter, but dropped to 271 and 68 in the third quarter.
Only 694 plots were sold in the first 11 months, down 85% year-on-year.
Batdongsan recorded 45% fewer searches for all types of land on its site compared to 2022.
Referring to the market’s difficulties in 2023, Hoang Anh Tuan, CEO of real estate firm Maxreal, said only a few new projects could attract buyers during the year, which is not enough to revive the market that has reached a nadir. .
He said land is still very expensive from a buyers’ perspective, as evidenced by the lack of activity in the market despite the steep decline in prices.
Vo Hong Thang, head of market research at property consultancy DKRA Group, said the land segment saw few transactions in both the southern and northern regions due to high interest rates at the beginning of the year and the wait-and-see attitude of hopeful investors. Prices will fall by the end of the year
Thang said: “This [land] It is a speculative asset with no immediate use. So it’s no surprise that it suffers the most damage when [real estate] The market becomes inactive,”
Batdongsan’s southern regional director, Dinh Minh Tuan, said the land segment was much more inactive during the year than forecast.
“Based on our survey about home buyers’ sentiments conducted late last year, the land segment had the highest interest among investors. But in reality, this segment faced a shortage of buyers and transactions because people “Preferred to observe rather than invest.”
Experts expect the struggle to continue in 2024 as sentiment remains cautious.
Tuan said loan distribution for real estate will remain slow until 2025, while land law amendments are only expected to be passed by the end of 2024, which will take some time to take effect and the market to improve.
“The land segment will probably be the slowest to recover. It may only start to recover by late 2024 or early 2025,” he said.