$200,000 investment: inner city apartment or suburban land?

Recently, I read an opinion where the author provided a fairly accurate analysis of why people should invest in an apartment or a townhouse in the city center over suburban land if they have VND5 billion (US$202,511).

The advantage of a central townhouse is that you can still make a profit by selling it after you have lived in it for years.

Meanwhile, a VND5 billion apartment is somewhere in the mid-priced segment and usually comes with two bedrooms.

This property has a limited lifespan and its value will decrease significantly near the end of its lifespan.

Apartments experience strong price growth right after their completion, followed by gradual increases until they are around 20 years old.

After that point, no matter how high-end the apartment is, it will be considered an old apartment and its price will continuously decrease.

Generally, it is advisable to live in an apartment until it is 10 years old, then sell it and switch to a newer apartment to both preserve and grow your investment.

However, investing in land in the city’s outskirts, such as in HCMC's Binh Tan and Nha Be districts and Long An Province, with VND5 billion can yield VND10-20 billion, or even up to VND50 billion, in 5-10 years.

I have seen some people investing VND1.2 billion in two hectares of land in central highlands Lam Dong province in 2017 and by 2021, they were able to sell it for VND11.5 billion, nearly 10 times the initial investment.

People who buy land far away do so with the expectation that the property value will increase significantly in the future when infrastructure is completed and many amenities are added.

These people typically do not buy apartments.

On the other hand, those who value convenience, living space, a relatively consistent neighborhood, and a high quality of life will choose apartments in the inner city districts such as HCMC's District 5 and District 10 if they have VND5 billion.

This way, their children can access the best quality education as well as many premium amenities.

Additionally, many people will seek out small apartments under 30 square meters in the city center as these provide both the living spaces and the amenities that the inner city area offers.

Overall, I think the choice depends on the needs of each individual.

So what is your viewpoint on this matter?

Reader Anh Hai

*This opinion was translated into English by AI. Readers’ views are personal and do not necessarily match VnExpress’ viewpoints.