According to information from the Vietnam Association of Realtors (Vars), recently, more investors have been hunting for land in suburban areas of big cities, localities with strong infrastructure development, and places with high urbanization rates.
Currently, market prices have stabilized, with no signs of price reduction, but successful transaction prices are 20-30% lower than at the peak of the land fever.
However, the market in the suburbs of Hanoi and the industrial zones recorded an increase of 10-20%. Notably, the market also recorded some areas with unfounded price increases.
PropertyGuru Vietnam's real estate market data for the third quarter of 2024 shows that in some suburban districts of Hanoi, compared to the first quarter of 2023, land prices have increased significantly.
Accordingly, land prices in Hoai Duc district increased by 81%, from an average price of 55 million VND/m2 to 100 million VND/m2; land prices in Dong Anh district increased by 53%, from an average price of 41 million VND/m2 to 63 million VND/m2; land prices in Thanh Oai district increased by 90%, from an average price of 21 million VND/m2 to 40 million VND/m2.
Particularly in the third quarter of 2024, land auctions in the suburbs of Hanoi with winning prices dozens of times higher than the starting price showed signs of abnormality.
Many real estate experts believe that local land fever and unreasonable apartment prices are the problems of the real estate market in Hanoi in recent times. If these problems are not resolved, they will lead to many consequences for the real estate market and the whole society.
Real estate expert Nguyen Quoc Anh assessed that the land segment in the suburbs of Hanoi is showing signs of increasing in price, receiving the attention of many investors, but according to the survey, there are still some areas that are very quiet, with transactions decreasing.
According to Mr. Nguyen Quoc Anh, it is forecasted that by the second quarter of 2025, when investors are confident in the economy and yields, the land segment will receive much attention.
In particular, after the 2024 Land Law comes into effect, the land market will have many major changes from supply to transaction activities. The land segment will develop in a more positive direction, reducing land fever, virtual prices, and creating market waves.
Ms. Do Thu Hang - Deputy Director of Market Research Department of Savills Hanoi - said that Hoai Duc district received planning information a long time ago and this place has gone through a period of hot development in the direction of anticipating planning.
However, this area has not changed much recently due to the lack of large-scale projects to be able to break through.
Commenting on the future, Ms. Hang said that Hoai Duc district has a good foundation in infrastructure such as major roads, so in the future, the market here still has many opportunities to break through.
