Why developers are scrambling to acquire more land banks in Vietnam

Land supply is tight and prices are rising.

According to JLL, development capacity and future land banks are two of the most important factors that determine the fate of a property business. A developer’s total projects and their sales performances indicate how the business is growing, while a considerable land bank is a non-negotiable element for a real estate business to survive. 

Given the context that developable land banks have become increasingly limited over the past few years, even before Covid, JLL examined how the current race for extending land banks will change the residential market landscape over the next five years.

Vietnam’s real estate market still had sizable land transactions amidst the uncertainties brought about by the pandemic. In fact, JLL says the scale of transactions measured by land area (ha) increased remarkably during the 2020 – 1H21 period.

“The development land in big cities like HCMC and Hanoi is becoming increasingly scarce while the land prices are rising. Considering the trend, many developers have turned to new potential destinations, such as satellite provinces of HCMC and Hanoi, regions along the Central Coast of Vietnam, or even the Central Highlands,” says JLL.

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