Residential buyers are hesitant about rapid land prices
Land prices in the suburbs of big cities are recording an upward trend in the first months of 2025. In some suburban areas of Hanoi such as Dong Anh, Soc Son, Hoai Duc or Me Linh, prices have increased by 10-15% compared to the end of 2024. Meanwhile, people with real housing needs are still hesitant, worried that prices have been pushed up too high.
Ms. Nguyen Thi Huong (35 years old, office worker in Hanoi) shared that her family plans to buy a piece of land in Dong Anh to build a house. Since mid-2024, she has started searching, but due to high prices, she has not decided. At that time, a 60m2 plot of land was advertised for sale at 38 million VND/m2. But after only a few months, the land price in this area has increased to more than 42 million VND/m2. At first, I thought prices could fall or at least stay stable for a while. But unexpectedly, in just a short time, prices have increased sharply. I am wondering whether to buy at the current price or wait for a decrease. The current price is too high, I find it unreal, I wait for it for fear that the price will continue to increase," Ms. Huong wondered.
Similarly, Mr. Pham Van Thanh (40 years old, Bac Ninh) is also considering buying land in the Me Linh area. "My wife and I wanted to buy land to live on but the price increased sharply in a short time. Many people recommend waiting longer to stabilize the market. I am worried that if prices continue to increase, the opportunity to own a house will be even more remote" - Mr. Thanh expressed.
According to the survey, suburban areas of Hanoi and some border areas recorded a significant increase in land prices. In Hung Yen, many districts bordering Hanoi such as Van Giang, Yen My, Khoai Chau are becoming the focus with a strong increase in interest, pushing up selling prices.
In Van Giang district, land prices on main roads and roundabout areas - where many restaurants, banks, and hotels are concentrated - have increased from 55-60 million VND/m2 in 2020 to 125-150 million VND/m2 today. Many plots of land located deeper also recorded a significant increase, from about 28-35 million VND/m2 to 50-60 million VND/m2.
Similarly, in Hoai Duc (Hanoi), land prices in many areas currently fluctuate from 40-60 million VND/m2, some locations near large urban areas such as Vinhomes Smart City, An Khanh - An Thuong have exceeded 70 million VND/m2. In Chuong My, the price has also increased significantly, commonly around 25-45 million VND/m2, a sharp increase compared to the level a few years ago. In some areas near the center of Chuc Son town, National Highway 6, land prices are showing a rapid increase due to the sharp increase in transaction volume.
Concerns about increased virtual fever
Commenting on the current land market, many real estate brokers believe that the market has increased prices but not in all areas. Mr. Tran Van Nam, a broker in Dong Anh, said: "Land prices have increased mainly in places with synchronous infrastructure planning or large projects about to be implemented. However, many investors take advantage of information to inflate prices, creating a virtual fever mentality. Most of the land buyers at this time are speculative investors, while real buyers are very cautious because they are afraid that prices will be pushed up," Mr. Nam added.
In the face of local heating up of the land market, the Vietnam Association of Realtors (VARS) also warned that, in addition to real demand, the market is showing signs of being affected by speculative groups taking advantage of crowd psychology, spreading rumors to inflate prices, creating a virtual land fever.
VARS recommends that investors need to be especially cautious with areas where prices increase following the "rumor wave", not knowing the planning progress or legal documents are not transparent. Cash flow should only be directed to areas with complete connectivity infrastructure, clear planning, real population and good exploitation and use capability to ensure liquidity and long-term value.
