Have money, should I invest in apartment or land at the end of the year?

Instead of saving money in the bank, Mr. Quoc Dung (Dong Da, Hanoi) wants to invest in real estate at the end of the year. Land and apartments are the two segments he is aiming for.

With the thought that “buying land never loses” - land prices always tend to increase over time, Mr. Dung planned to invest in a plot of land in a province on the outskirts of Hanoi. But with the available 4 billion, he calculated that he could also buy an apartment and rent it out monthly.

“I don’t know whether to invest in land or buy an apartment? Which option is safe, profitable and has little risk?”, Mr. Dung wondered.

Mr. Le Dinh Chung, General Director of SGO Homes Real Estate Investment and Development Joint Stock Company, analyzed that in Hanoi, if you invest in apartments for rent, the demand for rent is high and it is easy to rent. However, at this time, investing in apartments will no longer be effective in terms of capital cost.

The reason given by Mr. Chung is that apartment prices are nearing their peak, so there is little chance of capital appreciation. With apartment prices rising, rental values ​​are no longer so attractive. In fact, apartment rental yields in Hanoi only fluctuate around 3-4%.

Therefore, according to Mr. Chung, land is still an investment channel that receives much attention when the supply of this product is not much in the coming time due to regulations limiting the subdivision and sale of land. Moreover, land is an investment segment with many levels of money, suitable for many people.

“With the rapid urbanization, the demand in localities will be high, so investing to increase capital gains by buying land is still good and safe. With 3-4 billion VND, you can invest in land around Hanoi, economic axes associated with industrial parks such as Bac Ninh, Bac Giang or Hung Yen, Hai Duong, Hai Phong, Quang Ninh... These are areas that are currently attracting many investors' attention,” Mr. Chung suggested.

However, the General Director of SGO Homes also noted that when buying land, investors need to pay attention to projects that meet legal conditions, at least signing a sales contract or having a red book. At the same time, it is necessary to consider the investor's capacity; choose locations that meet the needs and attract people to live there in the future.

Mr. Pham Duc Toan, General Director of EZ Property, noted that at present, investing in apartments or land in big cities like Hanoi or Ho Chi Minh City is not attractive or effective. The reason is that prices are "anchored" high, but liquidity is decreasing.

"Apartment prices are beyond the affordability of many people who want to buy an apartment. If in the past, you could buy an apartment for 2.5-3 billion VND, now you can buy one for 4-5 billion VND. The price of apartments for investment has doubled while the rental price has not increased much, so the investment efficiency has decreased. Land prices have also increased along with the apartments. A house in an alley of 30 square meters, built 3-4 floors high, previously cost 3 billion VND, but now costs 5-7 billion VND, depending on the location," said Mr. Toan.

He added that many investors are tending to shift capital from big cities like Hanoi and Ho Chi Minh City to other areas like Hai Phong, Binh Duong, Dong Nai, Ba Ria - Vung Tau...