The land market plummeted
According to data from the Vietnam Association of Real Estate Brokers (VARS), the land market is no longer “hot” like in the previous period. Land products have experienced many price reductions, cutting losses by up to 30-40% but still difficult to liquidate.
According to a recent report on land market developments by the Institute of Construction Economics under the Ministry of Construction, the secondary supply of land in 2023 will decrease significantly compared to the previous year.
In particular, the secondary supply of project land in 2023 compared to 2022 in Hanoi will decrease by about 46.4%, Ho Chi Minh City will decrease by 56.3%, Da Nang will decrease by 44.5%, and Binh Duong will decrease by about 45.3%. , Hai Phong decreased by about 58.6%.
Land prices in many localities have recently decreased in price (Illustration: Ha Phong).
Besides, the land transaction situation in 2023 is also quiet. The number of secondary transactions of project land in Hanoi decreased by about 45.4%, Ho Chi Minh City decreased by 60.1%, Da Nang decreased by 49.4%, Binh Duong decreased by 48.1%, Hai Phong decreased by 30.3%. Dong Nai decreased by 59.4%. Secondary land transaction prices in 2023 tend to decrease by about 10-15% compared to 2022 and decrease significantly in some localities such as Dong Nai, Khanh Hoa, Da Nang, and Ho Chi Minh City.
Also according to the above report of the Institute of Construction Economics, the organization of project land auctions has resumed in many localities in the last quarter of 2023. Although the winning auction price is not much different from at the starting price, but this is also considered a positive signal for the market as purchasing power has shown signs of improvement.
A market report from a research unit said that the land market recorded a sharp decrease in search demand in 2023. Specifically, the number of land purchases in 2023 decreased by 45% compared to 2022, especially in project land. Compared to the peak period of “land fever” in March 2022, land plots in the southern provinces decreased by 71%.
