Vu Cuong Quyet, CEO of Dat Xanh Mien Bac, said in the housing market segment, most investors buy real estate for lease. Three or four years ago, investors began pouring money into apartments in provinces (except large cities like Hanoi, HCM City) which are still affordable.

While the return on invested capital for leased apartments in Hanoi is just 5-6 percent, the figure could be up to 9-11 percent in provinces.

“Land is a market segment which requires huge and long-term capital. Land prices in northern provinces are relatively good, which is an option for investors. Higher attention should be paid to the provinces with strong development in industries,” he commented.

As for resort real estate, there have been signs of recovery, but clear recovery will only be seen from late 2024 or early 2025, according to Quyet.

He said that when the three amended laws take effect, slated for 2025, the land prices, land taxes and costs for site clearance will be higher because the compensation will be calculated based on market prices. And if so, real estate project development costs will be high. Therefore, it would be better to buy now, before development costs increase which will lead to higher selling prices.

Hanoi, HCM City and the provinces attracting FDI are the markets that investors should bank on, while it is not advisable to invest in areas where the population density is thin.

Nguyen Van Hau, CEO of Asian Holding, noted that land prices have recovered, but very slightly. Meanwhile, apartments, priced at $2,000-2,500 per sq m are selling well.

“If investors have idle money now, they can consider injecting money into real estate near industrial zones, because real estate products in the areas can be easily leased. Meanwhile, if they want housing products for accommodations, they should choose apartments,” he said.

Investors also can consider pouring money into land, with the medium-term vision of three years. Meanwhile, the resort real estate segment will still be in difficulty.

Meanwhile, Le Thu Ha, president of Ha An Group, believes that the real estate market will fully recover by the second quarter this year. The supply would be abundant because realtors won’t have to wait too long to fulfill administrative procedures, which have been simplified under the new laws.

Hong Khanh