The land market in the suburbs of Hanoi and neighboring provinces has recorded a significant price increase in the past year. Although investment cash flow has begun to return, strong price increases in some areas have also caused risks from local land fever to appear, especially for Jungle investors.
In Hanoi, land prices in many suburban areas are on the rise. Dong Anh area recorded an average price of 60-90 million VND/m2, especially some beautiful lots near major roads reaching 120 million VND/m2, even many areas exceeding 150 million VND/m2.
Me Linh land prices have also increased sharply, many locations previously only fluctuated from 20-30 million VND/m2, now approaching 40-50 million VND/m2. Hoai Duc, especially around the access routes to large metropolises, especially in some areas such as An Khanh, Kim Chung, Song Phuong, Van Canh, is commonly traded at 70-110 million VND/m2, about 50% higher than the same period last year. Thanh Oai and Chuong My, which have the advantage of large and low-cost land funds, also increased by an average of 30-40%, to 25-40 million VND/m2.
The trend of increasing land prices has spread to neighboring provinces of Hanoi, land prices have recorded a significant increase. Bac Ninh, especially Tu Son and Que Vo, have an average price of 40-75 million VND/m2, an increase of about 35% compared to the beginning of 2024. Hung Yen, with the strong development of industrial parks, also witnessed a significant price increase in Van Giang and My Hao, with an increase of 25-50%. Even in some areas bordering Hanoi such as Yen My or Khoai Chau, land prices have increased by 20-30% in less than a year.
This price increase comes from many reasons. First of all, promoting infrastructure, especially the Ring Road 4 project, has created great momentum for areas on the planned route. Along with that, the supply of apartments is increasingly scarce, pushing cash flow to the land segment as an alternative investment choice. Investor sentiment has also changed, as they return to the real estate market after a long wait and wait.
However, the rapid increase in land prices also carries many risks, especially for those who intend to short-term surfing. Mr. Tran Manh Hung - an investor in Hanoi - said: "I see that many areas are pushed up in price but the actual liquidity is not much. Many people expect surfing to make quick profits but in reality it is quite difficult to sell. If you do not understand the market and buy according to the trend, it will be easy to take risks".
Many experts also warn that the local warming of land does not reflect the comprehensive "health" of the real estate market.
Mr. Nguyen Van Dinh - Chairman of the Vietnam Real Estate Brokers Association - commented that land transactions in the suburbs have increased in recent months but have not been really vibrant. In particular, in the northern area, some suburban areas of Hanoi have signs of local fever, some areas have the phenomenon of growth in transactions and then stagnation. The market has seen more investors "hunting" for land.
In this context, experts and people with many years of experience in the real estate sector recommend that investors stay alert and avoid following temporary trends.
Mr. Vu Quang Linh - a land broker in Me Linh - shared: "The transaction volume has increased, but mainly focused on areas with clear planning and real potential. As for areas with inflated prices, if there are no supporting factors from infrastructure or actual residents, it will be very difficult to have liquidity".
