The third quarter report of the Vietnam Association of Realtors (VARS) showed a boom in idle-land plot purchases as the pickleball sport has become increasingly popular in Vietnam.

VARS said the number of property transactions has improved with the most successful transactions land plots worth less than VND2 billion with full legal status.

Property demand, including both demand for accommodations and investment, has continued to increase, mostly in cities and provinces near the two special urban areas (Hanoi and HCM City) and in the secondary market, with many choices at reasonable prices.

Meanwhile, investors are hunting for large land plots to open pickleball courts in Hanoi and HCM City. With these transactions, analysts believe that abandoned land plots will all be put into use.

In the land market, analysts can also feel the heat from auctions in Hanoi. According to VARS, starting land prices are determined by multiplying the coefficient ‘K’ by the prices in the land price lists. However, most localities are still using the old land prices lists, resulting in low starting prices, and leaving loopholes for speculators’ profiteering.

The government, aware of the problem, has made timely interventions. Many land auctions have been postponed while the examination of the auctions are carried out in accordance with the new Land Law. So, successful transaction prices have come closer to market prices, or just 10 percent higher than market prices, 

VARS said there have been no sharp price increases in suburban areas of Hanoi. The prices continue to be flat with medium liquidity.

In some localities, land plots worth less than VND2 billion with full legal status and located in areas with developed infrastructure are seeing a price increase of 3-5 percent.

Meanwhile, residential real estate under 4 billion is sought after. As selling prices at commercial apartment projects are increasing, the prices of houses built on residential land have been staying high, though purchasing power has decreased. In some localities, prices have increased slightly, by 5-10 percent.

Housing built on residential land in most demand are worth less than VND4 billion in Hanoi and HCM City. Street-front housing in neighboring areas, valued less than VND3 billion, are also in demand.

Hong Khanh