In the last months of 2024, the land market recorded many positive developments, especially after land auctions in the suburbs of Hanoi pushed prices up continuously. In some "hot spots" in Thanh Oai, Hoai Duc, Dong Anh districts... the selling price of many plots of land exceeded 120-160 million VND/m2.
Mr. Hoang Tung - a real estate broker in Hanoi - shared: "The auctions have a strong impact on the Hoai Duc land market, the level of interest has increased dramatically. The market even has a "follow the rain" effect, when the land auctions increase, the selling prices of plots of land in the same area and neighboring areas also increase sharply.
In the context of high land prices in Hanoi, averaging 70 million VND/m2, investors are tending to "hunt" for land further away and plots of land priced at 1-2 billion VND in provinces neighboring Hanoi are becoming popular.
According to Mr. Hoang Tung: “The taste of experienced investors is often areas with low prices and potential for future development. They are willing to put down money and wait for a few years when they find a suitable plot of land. Recently, the most popular type is rural land, primitive areas with prices of about 1-2 billion VND/plot of land.
As a long-time investor, Ms. Le Nhung (Tay Ho, Hanoi) said: “I want to divide my investments into smaller amounts. If I buy in Hanoi, with the current price level, it will be very difficult to buy a satisfactory plot of land for 1-2 billion VND. So I went to neighboring provinces and decided on a plot of land for more than 1 billion VND in Bac Giang. I am still researching areas in Bac Ninh and Hung Yen in the 2 billion VND price range. If there is a good product, I will decide.”
Ms. Nhung added that because she divides her investments into small amounts, each time she invests, the investment is not too large, so she rarely loses money. “Partly because I choose places where the price level is still low, most of my investments are medium and long-term investments, willing to wait 1-3 years, even longer to achieve the expected profit level.”
Commenting on the current real estate market, Mr. Le Dinh Chung - General Director of SGO Homes Real Estate Investment and Development Joint Stock Company - said that the cash flow at the end of the year will tend to shift, looking for new segments and markets.
Recent market developments show that this shifting trend is gradually taking shape and is quite clear. The group of customers with 5-10 billion VND in finance have begun to shift to looking for new lands because they have almost no opportunity to invest in the Hanoi market when the prices of apartments, villas, and townhouses are all too high.
Mr. Chung also said that since May, satellite cities and suburban areas such as Hung Yen, Bac Ninh, Bac Giang, Hai Duong, Phu Tho, Hoa Binh, etc. have been sought after by many investors. With suburban land products in the above provinces, the market is recording signs of recovery in the segment under 10 billion VND/product.
