Land ‘fever’ starts to break, prices expected to move sideways

Land prices are showing signs of cooling down in both the south and north following months of intense speculation.

According to a recent survey by VnExpress, land prices in five districts of Binh Chanh, Nha Be, Hoc Mon, Cu Chi, and Can Gio in HCMC, have been moving sideways for the last four weeks or so after increasing by 3-20 percent in the first quarter.

In mid-April, a few transactions took place in Can Gio, Nha Be and Binh Chanh at prices higher than in late March, and otherwise they remained unchanged.

In the southern provinces of Long An, Binh Duong and Dong Nai, prices have remained the same since March-end. In Dong Nai the transactions mainly involved townhouses.

The three also saw a few deals at prices 2-3 percent lower than in late 2020.

In Binh Phuoc, the "fever" in late February and early March also cooled down within two weeks. In April, many real estate agents offered lands at 30-40 percent lower than during the peak period.

The market for lands and land-related assets in the coastal tourist destinations of Ba Ria - Vung Tau, Phan Thiet, Khanh Hoa, and Da Nang too did not change much in April.

In the north, land prices around Hanoi and its neighboring provinces remain flat as people become cautious.

Hoc, a property broker, said the number of phone inquiries about lands has reduced from dozens a day to just a few now. "Many people even took back their deposits."

Nguyen Quoc Anh, deputy director of real estate site Batdongsan, said land prices are leveling off after the sharp rise in the first quarter caused by the shifting of cash flows from the stock market and the spread of rumors about development plans or status upgrade to town or city.

A "fever" like that only lasts one or two months usually, he added.

Nguyen Van Dinh, general secretary of the Vietnam Association of Realtors, said the market has stabilized again thanks to the government’s efforts.

"As the government monitored and issued warnings, investors started to calm down, causing the market to cool down," he said.

The State Bank of Vietnam is tightening lending to the property sector.

The government is developing social housing to provide people with places to live, especially for workers in industrial zones.

The Ministry of Natural Resources and Environment has ordered the administration to examine land administration procedures in 26 provinces and cities.

The ministry has urged local governments to publicize information about the progress of housing and infrastructure projects to prevent rumors.

But experts said there would be no sell-off.

Anh pointed out: "Buying land is a long-term investment." He was certain the market would continue to move sideways for the next two quarters.

News Related


TECNO reveals how the highly anticipated TECNO CAMON 17 Pro measure against its competitors

HONG KONG SAR – Media OutReach – 14 May 2021 – Consumers nowadays are more than spoilt for choice, in fact, many people are affected by ‘information paralysis’, that is, having too much information to effectively… Read more »

Marco Polo Marine 1HFY2021 EBITDA More Than Triples to S$3.9 Million

First Half EBITDA surges 255% YoY to S$3.9m on the back of higher revenue and margin expansion Positive signs have emerged recently, indicating the sector downturn may be bottoming-out SINGAPORE – Media OutReach – 14… Read more »

Companies diversify to survive Covid-19 storm

Hanoi-based tourism company AZA Travel is planning to import beer from Europe to Vietnam in the coming months to earn revenues and pay staff salaries. The company’s CEO, Nguyen Tien Dat, said that… Read more »

Credit institutions struggle to sell high-priced collateral

The state-owned BIDV has been trying to sell the Crystal Palace wedding center in District 7, Ho Chi Minh City since 2019. The 2,675-quare-meter complex, including land and an eight-storied building, is being… Read more »

Vietnam textile firms struggle to collect dues from US buyers

May Song Hong saw its dues outstanding from American companies rise by 19.5 percent in the first quarter to VND654 billion ($24.2 million). It has had to increase its provision for bad debt… Read more »

Vietnamese fashion companies trail international rivals at home

The top three names in the fashion market last year were all foreign — Germany’s Adidas, Spain’s Inditex and Sweden’s H&M — market research firm Vietnam Industry Research and Consultancy (VIRAC) reported. Around… Read more »

Seafood exporters call for delaying HCMC port fee collection until year end

The Vietnam Association of Seafood Exporters and Producers (VASEP) petitioned for this in a communication to the Ministry of Justice. The city plans to start collecting the port fees from July 1, but… Read more »

Central bank advocates caution in lending against real estate

They need to ensure that collateral reflects true value, especially in places where land prices have skyrocketed. Prices have risen by an average of 10 percent in the last two months, though in… Read more »

Big cities face paucity of affordable housing

No such project was developed in the central districts of both cities in the first quarter of this year, according to the Ministry of Construction. The majority of new apartment projects in Hanoi… Read more »

Medical cotton maker revival continues

After making losses for eight years in a row, the company turned the corner and has been profitable for the last seven years. It plans to start exporting its products this year. The… Read more »

Vietnamese lychee to be sold online for first time

It would be the first time that the fruits are sold online, and the agency said the biggest hurdle to this is farmers’ lack of knowledge of e-commerce, online marketing, selling and customer… Read more »

South Korean TVs dominate Vietnam market as Japanese rivals wither away

Since 2015 they have held a 50-60 percent share. Samsung, the world’s leading TV manufacturer, and LG, both saw their market share rise by 2 percentage points in 2020 to 41 percent and… Read more »

Major Japanese TV brands bow out of Vietnam market

Duc Minh, a Hanoi resident, wants to buy a Japanese brand TV for his relatives, but finds no choice apart from Sony. “I found an electronics store that sells Toshiba TVs, but it… Read more »

iPhone falls out of top five in Vietnam

Its sell-in market share was under 9 percent and was topped by Korea’s Samsung, China’s Oppo, Xiaomi and Vivo and Vietnam’s VinSmart. Sell-in refers to the numbers of units a manufacturer sells to… Read more »

Vietnam synthetic fiber exports escape India anti-dumping duties

The trade remedies authority of Vietnam received a notice to the effect from the Indian Ministry of Finance Thursday. India also decided not to impose anti-dumping duties on synthetic staple fiber originating or… Read more »

Rice exports cross $1 bln on higher prices

The volume of rice exports during the period dropped 11 percent year-on-year to 1.9 million tons, according to the Ministry of Industry and Trade. However, as the average export price rose 13.4 percent… Read more »

VN-Index slips after five gaining sessions

The index fluctuated in the morning and stayed in the red in the afternoon before closing nearly 6 points down. Trading value on the Ho Chi Minh Stock Exchange (HoSE), on which the… Read more »

No cartel pushing up steel prices: ministry

Steel prices have risen by 40-50 percent since the end of 2020, according to the Vietnam Steel Association (VSA), troubling construction companies. The Vietnam Association of Construction Contractors asked the Government Office to… Read more »

HCMC new apartment prices rise, secondary market treads water

Real estate consulting firm CBRE said that the average price of new apartments was $2,219 per square meter. Colliers International, another consultancy, said in the eastern part prices have risen 7-9 percent year-on-year… Read more »

Predominance of luxury housing sparks doubts about sustainability

The luxury segment accounted for 39 percent of total apartment supply in HCMC in the first quarter, and the high-end segment for 20 percent, according to data from real estate consultancy CBRE. Even… Read more »

Techcombank, Vietcombank give VN-Index a boost

The index was in the green throughout the day, peaking at 1,265 points in the afternoon before closing with a 14-point gain. Trading value on the Ho Chi Minh Stock Exchange (HoSE), on… Read more »

Disputes keep pace with e-commerce growth

The e-commerce market grew by 16 percent to $14 billion in 2020, and is expected to be worth $52 billion by 2025, according to a report by Google. The number of disputes is… Read more »

Vietnam replaces China as largest furniture exporter to US

Vietnam exported $7.4 billion worth of furniture to the U.S. last year, compared to China’s $7.33 billion, according to data from U.S. magazine Furniture Today. This marked a 31 percent year-on-year surge for… Read more »

Resort real estate sees recovery

The uptake was 25 percent (196 villas sold), almost twice the number from the previous quarter, real estate firm DKRA Vietnam said. The supply increased mainly due to a few large projects in… Read more »

China cryptocurrency craze drives hard drive shortage in Vietnam

Customers and market observers say local people have been buying large capacity hard drives in bulk and reselling them to the Chinese amidst a new mining craze for the Chia cryptocurrency in China.… Read more »

Minister vows to prioritize affordable housing

Speaking at a recent meeting, he said he would change regulations to promote investment in this segment, especially in social housing. The affordable segment, defined as costing less than VND25 million ($1,092) per… Read more »

HCMC luxury apartment developers race to claim record high prices

An artist’s impression of a luxury apartment project in District 1, Ho Chi Minh City. Photo courtesy of Keenland. The initial price of a luxury apartment project in District 1’s Da Kao Ward,… Read more »

High costs a drag on domestic logistics industry

Dao Trong Khoa, vice president of the Vietnam Logistics Business Association (VLBA), said the cost of logistics in Vietnam is equivalent to 20 percent of GDP while the global average is around 11… Read more »

Railroad popularity a thing of the past

Some 10.4 million people traveled by trains in 1990, accounting for 3 percent of the total number of commuters using all modes of transport. Thirty years later, the number plummeted to 4.7 million… Read more »

Construction contractors seek investigation into steel price rise

Prices have risen by 30-40 percent since the end of 2020, according to the Vietnam Steel Association (VSA). Chairman of the contractors association Nguyen Quoc Hiep said: “Contractors are facing difficulties because most… Read more »

Construction contractors association seeks investigation into steel price rise

Prices have risen by 30-40 percent since the end of 2020, according to the Vietnam Steel Association (VSA). Chairman of the contractors association Nguyen Quoc Hiep said: “Contractors are facing difficulties because most… Read more »

Vietnam can become renewable energy superpower

Solar power panels at the BIM Solar Power Complex in Ninh Thuan Province, central Vietnam. Photo by VnExpress/Quynh Tran. Weert Börner, deputy ambassador of the Federal Republic of Germany to Vietnam, said Friday… Read more »

IT, finance companies hire managers in droves

Employees work at KSM Solution, a technology company in Tan Binh District, Ho Chi Minh City. Photo courtesy of KSM Solution. Recruitment company Navigos Group said in a note that demand for managers… Read more »

Revival of textile, footwear industries hampered by worker shortage

Many employees have also quit their jobs and turned to other vocations like online selling, industry insiders say. Workers in a textile factory in Tan Do Industrial Park in the southern province of… Read more »

Global firms dominate Vietnam electronics exports

A worker inspects a printer circuit board at a factory in Bac Ninh Province. Photo by Reuters. In the first quarter this year, exports of phones and components were worth $14.1 billion, 99… Read more »

Stock brokerage profits skyrocket

Leading brokerage SSI Securities Corporation saw its profit increase 28 times year-on-year to VND426.9 billion ($18.5 million). Its revenues rose 57 percent to VND1.47 trillion ($63.8 million). VNDirect recorded an eight-fold jump in… Read more »

​Industrial rents rise as manufacturing shifts from China

The average rent rose to US$111 per square meter, real estate consultancy Jones Lang LaSalle reported. Ho Chi Minh City rents, the highest in the country, rose to $165, according to another real… Read more »

Authorities give ​social housing the cold shoulder

Another 263 projects with 215,800 houses are currently under development. The government had set a target of 12.5 million square meters of social housing in 2016-20, but only managed 5.2 million square meters… Read more »

HCMC landed properties find few takers

Low supply was another factor, with only 470 landed properties placed on sale, the lowest in the last five years and representing a 50 percent fall from the previous quarter and 59 percent… Read more »

Pandemic grounds 39 Vietnam aircraft

Eighteen of the grounded aircraft belonged to national flag carrier Vietnam Airlines, 14 to budget carrier Vietjet, four to Pacific Airlines and three to Bamboo Airways, according to the Civil Aviation Authority of… Read more »

Land prices rise, but fewer transactions

The Ministry of Construction said the number of land purchase transactions was nearly 36,000 in the fourth quarter of 2020, and it fell to around 25,000 last quarter. Deputy Minister of Construction Nguyen… Read more »

Used automobile import quotas fail to attract interest

Under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a certain number of used cars can be imported annually, and the Ministry of Industry and Trade auctions the right to import them. This… Read more »

Pall of gloom remains over HCMC hospitality industry

Five-star hotels in Dong Khoi Street in HCMC, June 2020. Photo by VnExpress/Nguyen Nam. The average room rate was $62 per night, down 20 percent year-on-year, according to a recent report by real… Read more »

Upscale HCMC apartment project scales a new pricing high

The price tag is 2.6 times the luxury segment average in the city at $6,900 per square meter, according to data from real estate consultancy CBRE. Most real estate consultancies define a luxury… Read more »

Petrovietnam Power to build $1.5 bln LNG plant

The 1,500-megawatt Ca Mau Power Plant 3 is set to begin operation in 2026 when it will produce nine billion kilowatt-hours of electricity a year and employs 2,000 locals. PV Power will require… Read more »

Contractors suffer as steel prices surge

Hai, an engineer with a construction company in Hanoi, has changed his cost estimates for a project three times in the past week after steel prices began skyrocketing since earlier this month. “Our… Read more »

Vietnam Railways pleads for government funding as staff remain unpaid

It reminded the government that it was supposed to receive VND2.8 trillion ($121.3 million) at the beginning of this year, but has not, forcing it to pay minimum compensation to staff. Vu Anh… Read more »

​Vietnam eyes $4 bln in shrimp exports

It also targets output of 930,000 tons and having 740,000 hectares of shrimp farms, said Tran Dinh Luan, director of the Directorate of Fisheries, said at the VietShrimp Aquaculture International Fair in Can… Read more »

​Hanoi apartment prices up 7 pct

A view of Cau Giay District in Hanoi. Photo by Shutterstock/TuananhVu. With new projects coming up in prime locations during the quarter, prices in the high-end and affordable segments rose by 9 percent… Read more »

​Experts fear HCMC luxury apartment market building into bubble

The high-end segment accounted for another 20 percent, real estate consultancy CBRE Vietnam said in a note. The mid-priced segment, which used to account for 55-60 percent of supply in the past, accounted… Read more »