High-speed railway not yet built, land prices in Hanoi have increased sharply

The North-South high-speed railway is expected to have 23 stations, spanning 20 provinces and cities across the country. According to the plan, the Ngoc Hoi station complex, the main station of the North-South high-speed railway, will be built on an area of about 1.5 square kilometers on a total area of 1.7 square kilometers.

The above information has quickly made the real estate market in Thanh Tri district ( Hanoi ), especially in Ngoc Hoi commune, where the station is located.

Mr. Tran Van Tam, a real estate broker in Thanh Tri district, said that since the beginning of the year, land prices in many places in Thanh Tri district have increased sharply because land prices in Hanoi are getting "hotter". And recently, after information about Ngoc Hoi station, land prices in this area have increased even more.

If at the beginning of 2024, the price of land in the car alley was about 60 - 70 million VND/m2, now the price has increased to about 80 - 90 million VND/m2. Many lots on large roads, in good locations, the price has increased to about 130 - 140 million VND/m2.

According to this broker, with a budget of less than 4 billion VND, it will be very difficult to buy a plot of land around Ngoc Hoi station with a car parking space. If there is any, it will be a plot of land with too small an area or limited feng shui.

Land prices in Thanh Tri district have increased sharply following the high-speed railway. (Illustration: VNN).

" In just over the past month, real estate in Ngoc Hoi area has had a big change, land lots have increased by about 5%. Land lots on the main road and in large alleys have increased in price by about 10 - 15%. Notably, although prices have increased, the supply in this area is quite scarce, " said Mr. Tam.

According to data from PropertyGuru Vietnam, the most popular real estate price in Ngoc Hoi commune (Thanh Tri district) in October was VND124 million/m2, an increase of 69.9% over the past year. This is also the highest price in the past 5 years.

Not only Ngoc Hoi, land prices in many other areas in Thanh Tri district also tend to increase. For example, land prices in Thanh Liet and Ngu Hiep fluctuate from 30 to 40 million VND/m2 and can reach more than 50 million VND/m2 in beautiful locations near the road.

In Tu Hiep, land prices in wide alleys usually fluctuate between 70 and 80 million VND/m2. Some plots of land in Huynh Cung village, Yen Nguu (Tam Hiep) can reach 70 and 90 million VND/m2, even exceeding 100 million VND/m2 in special locations. Land in areas bordering Thanh Oai district costs from 11 to 52 million VND/m2 depending on location.

Land prices in Ngoc Hoi commune increased sharply. (Screenshot).

According to CBRE, properties near metro stations will have an average price premium of 10-20% compared to other areas. In case of a real estate market crisis, housing projects with good connections to metro lines will also be able to recover faster.

Commenting on the impact of the North-South high-speed railway on the real estate market, many experts said that from the start of the project, the value of land funds will increase sharply along the highway, even concentrated around the stations and surrounding areas. The rapid increase in real estate prices can attract speculators, pushing prices up, even risking creating a real estate "bubble".

For example, the Cat Linh - Yen Nghia elevated railway line in Hanoi, which came into operation in November 2021, has seen the segments within a 500m radius of the stations increase by over 40% within 1 year. At the same time, the prices of surrounding apartments are also 5 - 15% higher than the general price increase of the market.

Mr. Nguyen Huu Cuong, Chairman of Hanoi Real Estate Club (HNREA) analyzed: It is common for real estate prices to increase along with the development of transport infrastructure. Previously, when there was information about the construction of Ring Road 4, investors competed to buy plots of land around the road to get ahead of the planning.

“ It is normal for land prices to increase in response to official planning information from government agencies, especially in the case of the North-South high-speed railway system. This is a key project, so not only real estate investors, but everyone is excited about the information surrounding this great project ,” said Mr. Cuong.

However, according to Mr. Cuong, buyers should be very careful when investing in real estate ahead of planning. Because, without accurate planning information, buyers will easily mistakenly buy land in the planning area, which is subject to site clearance.

Besides, investors need to determine their financial health, the land lots "following" the planning will be suitable for medium and long-term investors and not depend too much on financial leverage.

Chau Anh

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