According to Lao Dong reporters, the land market in Dong Anh and Hoai Duc districts (Hanoi) has recently witnessed the interest of many investors despite the continuous increase in selling prices.
However, according to real estate experts, there has been a local fever in many places, and land prices have been pushed up by speculative groups.
Ms. Hoang Yen (36 years old, a long-time investor in Hoai Duc district) informed that she has witnessed the story of many investors buying land following the plan, finalizing the purchase when the price is "at the peak".
According to Ms. Yen, many plots of land in Van Canh commune (Hoai Duc district) have an area of only 50m2 but are being advertised for 100-150 million VND/m2.
Similarly, Mr. Tran Hoang (a real estate broker in Hanoi) said that buying a suburban land segment at this time must be very alert, avoiding following trends and the crowd effect.
Despite the potential for long-term investment, the land segment in Dong Anh and Hoai Duc districts in many areas is being pushed up in price, valuing it at too high a price compared to the actual situation. Current buyers need to clearly define their investment goals of buying land for living, or holding assets or "surfing".
According to a report by the Vietnam Real Estate Brokers Association (Vars), in the last quarter, information about the merger of provinces and cities, congs with the announcement of new land price lists by many localities and the Fomo mentality (fear of missing opportunities) of real estate investors, causing land plots to increase in price.
Notably, many localities recorded prices increasing by 5 - 30% such as Ninh Binh, Ha Nam, Hai Phong, Bac Giang, Hai Duong, suburban areas of Hanoi...
However, in reality, transactions only recorded an increase in provinces and cities that are predicted to be merged centers, with developed transport infrastructure, economy, and society, and real estate prices are not too high.
Mr. Dinh Minh Tuan - Southern Regional Director of Batdongsan.com.vn - said that there are 3 factors that determine sustainable real estate price increases in a locality: public investment, local economic foundation and export and immigration rate.
If the increase is only based on information about merging into a locality, urban planning in a short time, it is not ruled out that it is a virtual increase. Experts say that the risk of risk is very high when investing in rumors, especially for investors who are new to the market or use financial leverage.
