Land prices in the suburbs of Hanoi skyrocket but "buying everywhere doesn't guarantee success"

Mixed developments of suburban and local land

PropertyGuru Vietnam’s third quarter real estate market data shows that the land market has significantly improved in terms of interest and transactions. However, this is still only a local improvement in some areas, especially the northern provinces.

In some districts on the outskirts of Hanoi, compared to the first quarter of 2023, land prices have increased significantly. Specifically, land prices in Hoai Duc district have increased by 81%, from an average price of 55 million VND/m2 to 100 million VND/m2. Land prices in Dong Anh district have increased by 53%, from an average price of 41 million VND/m2 to 63 million VND/m2. Land prices in Thanh Oai have increased by 90%, from an average price of 21 million VND/m2 to 40 million VND/m2.

Notably, in the third quarter alone, land auctions on the outskirts of Hanoi with winning prices dozens of times higher than the starting price showed signs of abnormality.

Regarding this abnormality, survey data of more than 500 real estate brokers showed that 38% of brokers said that the unusually high auction prices were due to Fomo and speculation. In addition, 29% said that changes in the law had pushed up prices, and 21% said that interest groups were inflating land prices in the suburbs.

Contrary to the recent sharp increase in land prices in the suburbs of Hanoi, Mr. Nguyen The Diep - Vice President of the Hanoi Real Estate Club - said that the phenomenon of cutting losses and reducing land prices in the province is still happening, mainly affecting people facing financial difficulties.

However, the discount has narrowed compared to a year ago. For example, there were cases of cutting losses of 40-50% before, now it is around 20%.

Expert: Not all land purchases are successful

Talking to Dan Tri reporter, Mr. Le Dinh Chung, member of the Market Working Group of the Vietnam Association of Real Estate Brokers (VARS) - said that since April, some investors have started their journey to buy land in some areas where prices have not increased sharply in recent times.

Some investors have started buying land to get ahead (Illustration: Duong Tam).

These people are tending to be ahead of the curve, because currently, according to the 2023 Real Estate Business Law, subdivision and sale of land is not allowed in 105 cities and towns across the country.

However, Mr. Chung said that currently, the positivity is only local, occurring in the suburban land market of Hanoi and has not spread to other provinces and localities. It is not until the second quarter of 2025 that the land market will see clear positivity in many places. However, investing in land at this time needs to determine a medium-term capital recovery of at least 1-3 years, instead of surfing.

He acknowledged that the current land prices in the suburbs of Hanoi are high, and risks may occur. Therefore, if investors want to invest in land at this time, they should look for areas and localities with synchronous infrastructure, good economic development, but land prices have not increased too much in recent times.

At the same time, this person believes that investors should not "put all their eggs in one basket", buy in bulk at this time, but should choose projects with legal status, products with good prices or locations with adequate amenities.

"The three new laws on real estate have been in effect for about two months but have only had a positive impact on investor sentiment. Therefore, it still takes time for the laws to penetrate the market before we can see the impact clearly," said Mr. Chung.

Real estate expert Nguyen Quoc Anh assesses the potential of the land segment but that does not mean "buying anywhere will win" but depends on each area and each time. In the coming period, investors need to be more careful, before spending money, they must rely on data and analyze accurate planning information.

"There have been many investors who "jumped the peak" of land plots and were left with a bad face because they bought them but found it difficult to sell or had to cut losses if they needed money urgently. Land plots have increased, but according to surveys, there are still some areas that are very quiet and transactions have decreased," he shared.

According to him, it will not be until the second quarter of 2025, when investors are confident in the economy and yields, that land plots can receive much attention.

The expert assessed that after the 2024 Land Law took effect, the land market had many major changes from supply to transaction activities. The land segment developed in a more positive direction, reducing the situation of land fever, virtual prices, and creating market waves.

Source: https://dantri.com.vn/bat-dong-san/gia-dat-nen-ven-ha-noi-tang-vot-nhung-khong-phai-mua-dau-cung-thang-20241011015106728.htm