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.
Although prices have stabilized and there are no signs of a decrease, successful transaction prices are 20-30% lower than at the peak of the land fever. Particularly, the market on the outskirts of Hanoi and associated with industrial zones recorded an increase of 10-20%. Notably, the market also recorded some areas with unfounded price increases.
PropertyGuru Vietnam's Q3/2024 real estate market data also shows that the land market is showing significant improvements in terms of interest and transactions. However, this is still only a local improvement in some areas, especially the northern provinces.
In some districts on the outskirts of Hanoi, compared to the first quarter of 2023, land prices have increased significantly. Accordingly, land prices in Hoai Duc district have increased by 81%, from an average price of VND 55 million/m2 to VND 100 million/m2; Land prices in Dong Anh district have increased by 53%, from an average price of VND 41 million/m2 to VND 63 million/m2; Land prices in Thanh Oai have increased by 90%, from an average price of VND 21 million/m2 to VND 40 million/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 prices, 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.
