Experts advise acquiring land assets before pricing list introduction

Experts discussed the upcoming changes at a conference on investment opportunities hosted by VIR last week.

Under the new Land Law, a land price list will be published on an annual basis from 2026. Analysts forecast that having such a list will make land prices increase, thus they advise people to buy real estate assets.

According to the draft adjustment on the land price list in Ho Chi Minh City, the land prices calculated based on the list have increased as much as 40 times compared to current prices.

For example, in parts of Hoc Mon district, the land price in the current price range is only about $25 per square metre. However, if calculated according to the land price list, the number can increase to more than $1,000 per sq.m.

"Many businesses and individuals are waiting for the new land price mechanism, to be compensated for site clearance according to market principles. The compensated land price is much lower than the price on the market, which makes difficult for many localities such as Hung Yen, Bac Ninh, and Haiphong to implement land clearance, although these localities succeed in disbursing public investment capital,” said Le Xuan Nghia, a member of the National Monetary and Financial Policy Advisory Council.

Tran Tuan Tai, investment director of SonKim Retail added, “Many investors have anticipated price fluctuations in the real estate market. Many sharks have been actively looking for opportunities in distressed assets.”

Since the beginning of the year, many real estate businesses have seen opportunities from merger and acquisition deals to increase their land size. For the retail sector, the recent wave of premises returns has been seen as an opportunity for potential investors to take advantage.

"Retail real estate must have enough potential to serve chains. If the exploitation value is to be optimised, the company will have to own 350 stores or more, which is an advantage for businesses to negotiate with suppliers to have incentives on discounts, and simultaneously to optimise logistics costs,” said Tai.

From a broader perspective, a big group’s acquisition of real estate assets also helps create liquidity for the market. If projects are used for business activities, generating cash flow and creating jobs, it will be an extremely positive thing for society, added Tai.

“Meanwhile, individual investors tend to be interested in product lines in the residential segment and have mid-range prices. This is also the type of investment that many market research units recommend at present,” he said.

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