In 2024, Hanoi real estate will become the focus of the whole country, in which apartments and land are the two most interested segments.
For the land segment, from the third quarter of 2024 to present, the market has witnessed land auctions in the suburbs of Hanoi with thousands of applications participating each session and winning prices dozens of times higher than the starting price. Experts have repeatedly warned about signs of "price inflation", creating a "virtual fever" when the situation of deposit abandonment after auction continuously occurs.
However, it is undeniable that interest in this type has increased, creating heat for the market. In Hanoi, land plots recorded stability last year and began to heat up since the beginning of this year, especially in the last months of the year when recent suburban land auctions "heated up" the market.
Mr. Dinh Minh Tuan - Business Director of PropertyGuru Vietnam - said that the average selling price of land in Hanoi in November 2024 was 70 million VND/m2, an increase of 32% compared to the beginning of 2023. New supply mostly has high prices, the absorption rate in Hanoi is still quite positive.
PropertyGuru Vietnam experts said that the land market is currently showing impressive growth. Compared to the first quarter of 2023, land prices in the third quarter of 2024 in Dong Anh district increased from 41 million VND/m2 to 63 million VND/m2 (up 53%), land prices in Hoai Duc district increased on average from 55 million VND/m2 to 100 million VND/m2 (up 81%), the strongest increase was in Thanh Oai district, from 21 million VND/m2 to 40 million VND/m2 (up 90%).
Faced with the strong price increase and heat of the Hanoi land market, experts have warned of risks and advised investors to consider carefully and not follow the land price fever.
Mr. Nguyen Duc Cay, Chairman of the Board of Directors of Constrexim Housing Development Joint Stock Company, shared: "I have been working in the real estate sector for 40 years but have never witnessed such a sudden increase in prices as now. This is a very worrying issue, because it is completely virtual prices, inflated by some speculators. This distorts the market and in the long run, will cause great damage to the people.
According to the Chairman of the Board of Directors of Constrexim, land in the suburbs of Hanoi can be an opportunity, but it is also a "double-edged sword". "To invest effectively, investors need to equip themselves with knowledge, evaluate carefully, and stay away from speculative psychology. Chasing price fever without a clear strategy can lead you into a spiral of debt and disappointment", said Mr. Nguyen Duc Cay.
Assessing the recent "wave" of land in the suburbs of Hanoi, Mr. Le Dinh Chung - Member of the Market Working Group of the Vietnam Real Estate Brokers Association - said that the "wave" of land is only localized in some areas on the outskirts of Hanoi and has not spread to many areas.
By the second quarter of 2025, the land market may witness more even development in many places. However, investing in land at the present time requires a medium-term vision, with a capital recovery period of at least 1 to 3 years, instead of expecting a quick "surf".
