Vietnam’s real estate market is witnessing a clear differentiation between the two largest markets, Hanoi and Ho Chi Minh City. In the context of continuously rising real estate prices in Hanoi, price fluctuations in many segments have shown many unexpected developments.
In particular, the hottest segments on the market such as apartments, land, and private houses in Hanoi all surpass, with prices much higher than in Ho Chi Minh City.
Particularly for the land segment, if in the past 2 years, the land market in Hanoi increased in price by more than 30%, Ho Chi Minh City showed the opposite trend when land prices here turned to decrease.
Accordingly, in Hanoi, land prices recorded stability last year and began to heat up from the beginning of this year, especially in the last months of the year when recent suburban land auctions "heated up" the market.
Assessing the recent developments in the land market, Mr. Dinh Minh Tuan - Business Director of PropertyGuru Vietnam - said that the average selling price of land in Hanoi in November 2024 was 70 million VND/m2, an increase of 32%; in Ho Chi Minh City it was 57 million VND/m2, a decrease of 5% compared to January 2023. Although most of the new supply has a high price level, the absorption rate in Hanoi is still quite positive.
PropertyGuru Vietnam experts said that the land market is currently showing impressive growth. Compared to the first quarter of 2023, land prices in the third quarter of 2024 in Dong Anh district increased from 41 million VND/m2 to 63 million VND/m2 (up 53%), land prices in Hoai Duc district increased on average from 55 million VND/m2 to 100 million VND/m2 (up 81%), the strongest increase was in Thanh Oai district, from 21 million VND/m2 to 40 million VND/m2 (up 90%).
According to a survey by Lao Dong Newspaper reporters, in Dong Anh district, many plots of land in communes such as Hai Boi, Vinh Ngoc... have recently been advertised by owners at prices exceeding 100-150 million VND/m2. These communes were also the focus of previous land "fever" thanks to the benefits from large real estate projects that are about to be built and infrastructure completed.
In Hoai Duc district, the price of houses and land in alleys in Duc Thuong, Duong Lieu, and Tien Yen areas reached 50-60 million VND/m2, an increase of 20-30% compared to the beginning of the year. In Dan Phuong district, the price of land on Tan Lap street also increased from 48-55 million VND/m2 to 54-65 million VND/m2; the price of land on Tan Hoi street in Dan Phuong is currently at 55-66 million VND/m2, an increase of 2-5 million VND/m2 compared to 5 months ago.
In the last months of the year, the market also recorded a sharp increase in land prices in some suburban districts, where the Ring Road 4 project runs through. Compared to half a year ago, the Me Linh land area in some urban areas such as Ha Phong, Cienco 5... increased from 45 - 55 million VND/m2 to 55 - 64 million VND/m2.
The psychology of "following" the Ring Road 4 route, the high land prices in some suburban districts of Hanoi such as Thanh Oai and Hoai Duc are also assessed to be due to the impact of record high land auctions.
In contrast, the real estate market in Ho Chi Minh City throughout 2023 has seen almost no growth in any type. This year, apartments have grown first, followed by private houses, and interest in these two segments has gradually increased again. Notably, the remaining real estate segments have almost all decreased, with land plots decreasing by 5% at the end of November 2024 compared to the beginning of 2023.
With prices still quite low compared to market potential, according to Mr. Dinh Minh Tuan, when the Southern market has not increased in price, the expert predicts that future real estate investment opportunities will focus on this area.
