Hanoi's new land price list, which will officially take effect from the beginning of 2025, has become a hot topic in the real estate industry. By removing the land price framework and adjusting the land price list according to the market mechanism, the impacts will not only affect real estate prices but also directly affect those participating in the market, from land owners to investors and project developers.
According to Hanoi's adjusted land price list, which will be applied until the end of 2025, residential land prices in districts will generally increase by 190-270% compared to the old level. The increase in districts and communes in the town is about 150-190%. Commercial service land in the central area is 50-100% more expensive, in the suburbs 30-50%. Meanwhile, agricultural land prices will increase by about 15%.
In particular, the land price list on many streets in Hoan Kiem district, including Ba Trieu (from Hang Khay to Tran Hung Dao), Dinh Tien Hoang, Hai Ba Trung (from Le Thanh Tong to Quan Su), Hang Dao, Hang Khay, Hang Ngang, Le Thai To, Ly Thuong Kiet, Nha Tho, Tran Hung Dao (from Tran Thanh Tong to Le Duan) has the highest price of more than 695.3 million VND/m2.
Regarding the subjects affected by this land price adjustment, Ms. Nguyen Thi Hong Van - Deputy Director, Valuation and Financial Consulting Department, Savills Hanoi said that the policy of removing the land price framework and adjusting the land price list according to the market has been announced since the beginning of the year. Regarding the impact on real estate prices, this policy will contribute to price stabilization.
According to Ms. Van, real estate prices in Hanoi still grow mechanically due to natural factors such as demand, improved income, population growth, and urbanization speed.
However, according to Ms. Van, a sudden increase in the near future is unlikely. And the reason for the previous price increase is mainly due to speculative buying and selling activities.
"The adjustment of land price list will have a positive impact on the parties involved in real estate development projects. For people with land in the planning project, they will receive appropriate compensation for site clearance, close to market value, minimizing social disputes.
On the investor side, negotiations and site clearance will be carried out more smoothly and quickly. In return, businesses will have to have good financial potential, research and calculate investment problems carefully to build optimal development plans.
From there, we will bring to the market projects of large enough scale with synchronous infrastructure and outstanding utilities to attract customers and achieve the expected selling price" - Ms. Nguyen Thi Hong Van said.
Ms. Nguyen Hoai An - Director of CBRE Hanoi branch - assessed that the adjusted land price list of the capital is closer to market price and will have certain impacts on real estate types.
The expert said that because the increase in the new land price list is quite sudden compared to the old price list, it will affect costs related to land use fees, site clearance costs, and transfer transaction fees, which all use the land price list as the basis for calculation (or reference).
"The impact may vary between types, but may all have an impact in the direction of increasing costs for entities using, exploiting and trading real estate," the expert said.
