According to market data, in some districts on the outskirts of Hanoi, compared to the first quarter of 2023, land prices have increased significantly. Land prices in Hoai Duc district have increased by 81%, from an average price of 55 million VND/m2 to 100 million VND/m2.
Land in Dong Anh district increased by 53%, from an average price of 41 million VND/m2 to 63 million VND/m2. Land in Thanh Oai increased by 90%, from an average price of 21 million VND/m2 to 40 million VND/m2.
PropertyGuru Vietnam’s recent Q3/2024 real estate market data also shows that the land market has significantly improved in terms of interest and transactions. However, this is still only a local improvement in some areas, especially the northern provinces.
Referring to this content, Dr. Nguyen Van Dinh - Chairman of the Vietnam Real Estate Brokers Association (Vars) - informed that recently, there have been more investors "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. In particular, the market on the outskirts of Hanoi and associated with industrial parks recorded an increase of 10-20%.
Notably, the market also recorded some areas with unfounded price increases. Experts said that buyers need to be very careful to avoid forming virtual fevers, causing unsafe risks, when the market is still in the process of recovery.
Ms. Trang Bui - General Director of Cushman & Wakefield - also analyzed that the land segment is often very sensitive to market information, planning of new traffic routes, large real estate projects, and planning of industrial parks.
According to experts, when this information appeared, the land market in the suburbs of Hanoi was immediately "inflated", creating a virtual fever. Investors in land in the suburbs of Hanoi need to be extremely careful about the risk of burying capital when investing in products in a price fever, lacking real use value.
Also assessing the situation of land investment in the suburbs, Mr. Le Dinh Chung - a member of the Market Working Group of the Vietnam Real Estate Brokers Association - commented that it is not until the second quarter of 2025 that the land market can witness more even development in many places.
According to analysts, land prices in the suburbs of Hanoi are currently high and pose many risks. People who want to invest in this segment should choose areas with synchronous infrastructure, good economic development, but land prices have not increased too much in recent times.
In particular, before deciding to invest in a real estate product, people and investors need to make smart choices, prioritizing location factors, which determines the potential for price increase as well as the liquidity of the product in the future.
