Businesses hunt for land funds, welcome investment opportunities after 3 new laws on real estate

Recently, many real estate companies have simultaneously announced plans to expand their land funds. This move is believed to be aimed at seizing investment opportunities after three new laws take effect, creating expectations for the recovery and development of the market.

Specifically, Danh Khoi Group Joint Stock Company plans to spend 195 billion VND to buy part of Dai Nam residential area in Chon Thanh district, Binh Phuoc province; spend 180 billion VND to buy part of the project in Ham Thang - Ham Liem residential area, small-scale industry, trade and service, Binh Thuan province.

Nam Long Investment Corporation also plans to gradually increase its long-term land fund for mid-range products through mergers and acquisitions and raw land development. At the same time, this enterprise continues to focus on implementing a number of projects such as Mizuki Park, Waterpoint phase 1, Akari City, EHome Southgate, etc.

Mr. Lucas Ignatius Loh Jen Yuh, General Director of Nam Long Investment Corporation, shared that in the coming time, his company will allocate certain capital sources to effectively invest in new M&A projects. Nam Long aims to study agricultural land funds, explore investment opportunities to acquire suitable companies to create a premise for growth, in addition to 681 hectares of land ready for deployment.

Or Mr. Luong Tri Thin, Chairman of Dat Xanh Group, also shared about the goal of hunting for 100 - 200 ha of land nationwide with full legal documents to implement projects in the period of 2024 - 2025.

An Gia Real Estate Company has repeatedly said that it is looking for opportunities to conduct M&A and expand its clean land fund. This company emphasizes its viewpoint of not following the market, not buying land funds or projects at all costs. The company will have a thorough analysis of the land so that when it is put on the market, the product price will be suitable for the majority of buyers.

Many real estate giants such as DIC Holdings, Ha Do, Ecopark, Vinhomes, Phu My Hung... are also actively "acquiring" land from 50 - 150 hectares in some areas of Lam Dong, Long An, Hai Phong, Binh Thuan to serve business activities in the coming period.

This trend of land acquisition is also reflected in a recent report by the Ministry of Construction. According to the Ministry of Construction, legality, liquidity, land use fees, etc. are the top criteria that businesses choose to invest in.

The report also said that businesses tend to be more serious and calculate more carefully about their plans, research the market so that clean land projects are legally complete, fully pay land use fees and can be put into operation in the coming years.

Seize new opportunities

Sharing the reason for "hunting" for land at this time, Mr. Lucas Ignatius Loh Jen Yuh said that in the long term, the Vietnamese real estate market will grow strongly because there is still a lot of room for development. This assessment is based on the fact that Vietnam's urbanization rate has only reached 39%, much lower than China (64%), Malaysia (78%), and Singapore (100%).

According to Mr. Lucas, the Government has become much more cautious in approving new investment projects, some of which have been frozen. This year, in addition to the high-end and super high-end product segments launched on the market, supply has appeared in a number of other segments. "Supply will increase even more strongly in the coming time, as people's demand increases," Mr. Lucas predicted.

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA) analyzed: When the new land price list is approved, land prices will increase, immediately affecting the real estate market and housing prices will increase accordingly. Because housing prices are made up of many factors, including land prices, land use fees are also a basis for investors to determine selling prices. Normally, this cost accounts for about 10% of the cost of apartments in apartment projects and from 30 - 50% for townhouses and villas.

With the new land price list, the obligation to pay land use fees for individuals and households to apply for certificates for residential land will increase. At the same time, it will directly impact the market when input costs such as compensation and site clearance increase. Therefore, this is a good time to "collect" land because investors will have the opportunity to choose products that are legally completed and have more suitable prices.