Suburban land prices increase unbelievably, farmers instantly become 'landlords'

(CLO) Over the past 20 years, land prices in suburban districts of Hanoi , such as Hoai Duc, Dan Phuong, Dong Anh, Gia Lam have increased rapidly. Thanks to that, former farmers suddenly became billionaires.

From farmland to residential land, farmers suddenly become billionaires

In the process of urbanization, the suburban districts of Hanoi have rapidly "changed their skin", from the former rice fields, now they have become houses, with dozens, hundreds of high-rise projects springing up close together.

Mr. VNH (Kim Chung commune, Hoai Duc, Hanoi) said: About 20 years ago, this area was mostly rice fields of farmers. However, up to now, it has been converted into residential land, mostly becoming high-rise apartment projects, or expensive urban areas.

According to Mr. H., land prices in Hoai Duc increase day by day, month by month. If 20 years ago, land prices in Hoai Duc were quite cheap, farmland was only a few hundred thousand dong per square meter, the highest was a few million dong, near National Highway 32 it was 8 - 9 million dong/m2. However, up to now, land prices here have increased rapidly, ranging from 80 - 200 million dong/m2, depending on location. Even in plots of land located near major roads, corner plots, land prices can reach 300 - 350 million dong/m2.

Over the past 20 years, land prices in suburban districts of Hanoi, such as Hoai Duc, Dan Phuong, Dong Anh, and Gia Lam, have increased rapidly. (Photo: ST)

Therefore, the "original" Kim Chung villagers who previously had several hundred, even thousands of square meters of cheap rice fields, are now holding a fortune.

Mr. H. said: In 2024 alone, the price at the beginning of the year is one, but at the end of the year it is another. For example, a 35m2 plot of land in a deep alley, located in Lai Xa village, at the beginning of the year cost 2.4 billion VND, equivalent to 68 million VND/m2, but at the end of the year it increased by 500 million VND, which is 2.9 billion VND, about 82.8 million VND/m2.

“Most of the villagers sell a lot when they have a lot, and sell a little when they have a little when they have a little. First, they renovate their houses, then they buy cars and send their children to study abroad,” Mr. H. said.

Currently, Mr. H.'s family owns nearly 1,000 square meters of land that has been converted to residential land. Almost every day, land brokers come to ask to buy large quantities, but Mr. H. refuses because the land price is still going up, selling now would be a loss.

Meanwhile, Ms. Thu Ngoc (Hai Boi commune, Dong Anh district) said: 30 years ago, her dream was to have a house in the inner city of Hanoi, even a small house would be convenient for her children to study.

At that time, even if she sold all her houses and land, she still could not buy a house in the inner city. However, the price of land in Dong Anh has increased rapidly in recent years, changing her family's life.

“Before, I always dreamed of having a house in the inner city, but now it is not necessary. From Hai Boi to the city is also close, the land and houses are airy and do not have to suffer from the crowded scene like in the city,” Ms. Ngoc shared.

Suburban land prices are equal to inner city prices, an unimaginable story

In just one year, land prices in many suburban districts of Hanoi have increased sharply, in many places up to 90%. According to a report by batdongsan.com.vn, compared to the first quarter of 2023, land prices in Hoai Duc have recorded an impressive increase of 81%, from an average of 55 million VND/m2 to 100 million VND/m2. In Hoai Duc alone, land prices are equivalent to many inner-city districts of Hanoi, which would have been unthinkable 20 years ago.

In just one year, land prices in many suburban districts of Hanoi have increased sharply, in some places up to 90%. (Photo: ST)

In Dong Anh, land prices increased by 53%, from 41 million VND/m2 to 63 million VND/m2. Thanh Oai also witnessed a strong increase of 90%, from 21 million VND/m2 to 40 million VND/m2.

In general, land prices across the North have increased significantly, from an average of VND27 million/m2 to VND46 million/m2.

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

In addition to land, in the North, private house prices also have remarkable changes. Specifically, private house prices have increased from 95 million VND/m2 in the first quarter of 2021 to 173 million VND/m2 in the third quarter of 2024. Meanwhile, in the same period, land prices in the North increased from 27 million VND/m2 to 46 million VND/m2.

Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn - assessed that in the long term, land prices in the suburbs of Hanoi may continue to increase and transactions will become active again. Real estate prices depend on other factors such as infrastructure development, economic growth, and people's income. Therefore, in localities with rapid economic growth, land in these areas will still grow sustainably.

Source: https://www.congluan.vn/gia-dat-ven-do-tang-khong-tuong-nguoi-nong-dan-trong-nhay-mat-tro-thanh-ty-phu-post322862.html