Should we invest in real estate now or wait for the Land Law to take effect?

According to Mr. Dinh Minh Tuan, Director of PropertyGuru Vietnam in the Southern region, when three major laws related to the real estate market, namely the Housing Law, the Real Estate Business Law and the Land Law, come into effect at the same time, it will have a huge impact on the market and involve many market participants.

The 2024 Land Law has removed the "land price framework" and stipulated that the "land price list" is built annually to approach the market price. This move will make it possible for real estate prices of all types to increase because the current actual land price is much lower than the market price. This will lead to an increase in land-related costs (including taxes and transfer transaction fees), pushing up real estate prices.

"Investors can take advantage of the current time when the market is not volatile and facing difficulties, so prices are still quite attractive to consider accumulating assets, investing in real estate for the long term, waiting for prices to increase in the future.", Mr. Tuan commented.

Sharing the same view, Mr. Nguyen The Diep, Vice President of Hanoi Real Estate Club, also said that investors can take advantage of buying real estate at this time because when the 3 laws are implemented, it will be the basic foundation for the market to enter a new phase because in the recent period, many problems with policies and mechanisms have appeared, causing projects to be stalled, especially social housing projects.

According to Mr. Diep, real estate prices will not decrease. If good policies are created, the market will have the motivation to develop and potentially enter a new price increase cycle.

Mr. Nguyen Anh Que, Chairman of G6 Group, also said that this is a favorable time for investment. The products to invest in at this stage are land with good locations, good planning, low prices, and high usability. The number of real estate projects will gradually improve from mid-2026, especially social housing will be earlier, from the end of 2025.

"Due to the scarcity of supply, apartment prices will continue to increase slightly until the end of 2025, then stabilize and may decrease slightly from 2026 due to improved supply, especially social housing.", Mr. Que predicted.

Mr. Nguyen Quang Huy, CEO of the Faculty of Finance and Banking (Nguyen Trai University), said that from August 1, the Land Law, Housing Law, and Real Estate Business Law will take effect. However, for the law to be put into practice, there still need to be specific and detailed decrees and circulars, so there will be a certain delay. Therefore, deciding when to invest depends on each person's risk appetite and finances.

"Investors should only invest when the equity capital is 40-50% of the total purchase price, not borrowing more than 50%. Currently, the interest rate for real estate loans is quite low, and it is difficult to reduce further. This interest rate level can remain stable until the end of the year, so buyers should take advantage of low interest rates to choose suitable products for home loans with a loan term of 15-30 years, taking advantage of packages that extend the principal and interest in the first period of borrowing for 6-18 months, and fix the interest rate for 12-36 months. But note that you should choose a bank with a floating interest rate with a suitable margin, usually 3-4%/year.", Mr. Huy emphasized.

For young people with limited finances, they should consider investing in small-scale apartments first, and then when their income increases, they can sell them to buy larger apartments. Currently, the traffic infrastructure and public transportation are quite developed, so they can consider buying apartments in the suburbs or provinces bordering Hanoi to have a reasonable price and a greener, more airy living space.

Mr. Huy forecasted that supply will improve in the end of the third and fourth quarters, with Hanoi having about 9,000 new apartments for sale and Ho Chi Minh City having about 8,000 new apartments for sale in the last 6 months of the year.

From 2025, supply will increase more strongly. In the product structure, more than 70% will be high-end products, with prices ranging from 50-60 million VND/m2. Products priced under 3 billion VND will only account for less than 10%.

Regarding supply and demand, Mr. Huy said that when supply gradually improves, prices will increase more slowly and when supply increases sharply, prices will decrease.