16/05/2024
For individuals considering purchasing an apartment or land to build a house to meet their living needs, experts recommend that the decision to buy should be made after January 1, 2025. The reason is that after this point, the Land Law and Real Estate Business Law will officially come into effect following their amendments, which may bring more benefits and protection for buyers during real estate transactions.
Why should you buy a house after the land law amendment?
According to the latest report from Savills Vietnam, over the past four years, the condominium market has witnessed undeniable price fluctuations, with an impressive increase of 77%. Especially in the fourth quarter of 2023, the average selling price of condominiums reached 54 million dong/m2, continuously increasing for 19 consecutive quarters, with a growth rate exceeding 77% compared to the first quarter of 2019, demonstrating a strong recovery of the real estate market after the COVID-19 pandemic.
According to the Ministry of Construction, in 2023, the condominium market continued to record a price increase trend in Hanoi and Ho Chi Minh City, especially in central areas. In Ho Chi Minh City, apartment prices mainly increased in the mid-range and high-end segments, especially in projects located near the city center such as Binh Thanh District and emerging projects in District 2. The price of primary apartments exceeded 60 million dong/m2, reflecting the hot market and strong growth in developing areas.
With the continuous increase in apartment prices, many people are questioning whether they should buy a house now or wait until after 2025 when the Land Law takes effect.
Sharing his perspective on this issue, a real estate expert emphasized, "It's important to note that after January 1, 2025, three important laws related to the real estate market, including the Housing Law, the Real Estate Business Law, and the Land Law, will all come into effect simultaneously. It is expected that these laws will have a profound impact and be relevant to many stakeholders in the real estate market."
So who benefits the most after the land law amendment?
The Land Law reform has brought significant changes in real estate management and development, especially for the following groups:
Home and apartment buyers: New adjustments to protect buyers' rights include requirements to prove financial capability and complete legal procedures from developers. This helps prevent speculation and minimize risks from developers raising capital before completing necessary legal procedures, creating a safer and more transparent real estate transaction environment.
So should you invest in real estate before or after the land law amendment?
When asking whether to invest in real estate before or after the Land Law amendment, Mr. Nguyen Anh Que, Chairman of G6 Group, provided an accurate and grounded assessment. Mr. Que believes that from mid-2026, there will be a significant improvement in the number of real estate projects, especially in social housing projects, which may start from late 2025. It is expected that from mid-2025 onwards, the real estate transaction market will recover.
Mr. Que also shared that due to signs of scarce land supply, condominium prices are expected to continue to increase slightly until the end of 2025 and may stabilize and decrease slightly from 2026 onwards due to the improvement in supply, especially in the social housing sector. This demonstrates reliability and foundation in making decisions to invest in the real estate market.
According to Mr. Dinh Minh Tuan, for those who want to invest in real estate, waiting until after January 1, 2025 may offer significant opportunities as the market may enter a new price increase cycle. Therefore, at present, when the market has not undergone many fluctuations and real estate is facing difficulties, it is still an attractive time to accumulate assets and make long-term investments.
The Chairman of G6 Group also shares this view and predicts that the land segment will gradually improve in transactions from the third quarter of 2024 and will become lively again from the third quarter of 2025. Land plots are still the preferred choice of investors with small total value, high profits, and good liquidity in a good market.
"Therefore, the golden time to invest in real estate is in 2024, 2025, while the time to exit investments is in 2027, 2028. The proposed products for investment during this period are land plots with good geographical location and planning, low prices, and high usability; as well as agricultural land...", he emphasized.
For those planning to buy a home for living and simultaneously wanting to invest in real estate with hopes of increasing future value, condominiums are emerging as a noteworthy option. Although after the Land Law amendment, buyers' rights are prioritized, the current supply may also be restricted due to the "cleaning process" and tightened financial regulations from developers. Along with that, condominium prices are forecasted to increase significantly after the law changes. This means that while risks may decrease, owning a home will become more challenging for some.
Therefore, in the current period of 2024, when the market has not experienced many fluctuations and new policy measures are just beginning or being prepared for implementation, the average selling price of condominiums is still low. This is an ideal opportunity for buyers to purchase homes at reasonable prices and simultaneously invest in real estate, hoping for future price increases.
Achieve Realty VN is currently distributing real estate projects in the new Thu Thiem urban area. If you need more information, please get in touch with the address:
Hotline: +8486 888 2539
Email: sales@achievereal.com
