The real estate market is witnessing a strong shift in investment cash flow as apartment prices continue to break new heights, while land plots are gradually regaining their position as the "king" investment channel in the real estate market.
Apartment prices are constantly increasing and staying at a high level, causing many investors to consider the profitability, while land prices have the potential to increase more strongly, especially in areas with low prices and much room for development.
In 2024, the market started with an average price of about VND65 million/m2. However, after only two quarters, the price exceeded VND68 million/m2 and continued to climb in the last months of the year. New projects launched during the year focused on the high-end segment in areas such as Nam Tu Liem, Cau Giay and Gia Lam, Dong Anh with prices regularly exceeding VND70 million/m2.
By the end of 2024, the average price of apartments in Hanoi reached 72 million VND/m2, the highest price recorded in the market to date. Notably, some high-end apartment projects in suburban districts such as Dong Anh have exceeded the threshold of 100 million VND/m2. Typically, Masteri Grand Avenue (Masteri Co Loa Dong Anh) is being offered for sale at prices ranging from 90-120 million VND/m2; or Imperia Co Loa has prices ranging from 90-110 million VND/m2.
The continuously increasing price of apartments has made many investors begin to worry about the profitability and liquidity of this segment.
Mr. Nguyen Minh Hung, an individual investor, shared: “In 2022-2023, I can still invest in apartments and resell them with good profit margins. But by the end of 2024, apartment prices have increased too high, from 72-80 million VND/m2 in the center, even some suburban projects such as Dong Anh have reached 100 million VND/m2. This price has made the profit margin in the secondary market no longer attractive."
Not only Mr. Hung, many other investors also tend to shift cash flow to the land segment.
Ms. Tran Thi Lan, a long-time investor in Hanoi, said: “With a capital of more than 3 billion VND, I could have bought a mid-range apartment in Hanoi before, but now I can’t. The price is high but the potential for price increase is not much, while land in developing areas such as Hoai Duc, Gia Lam or Bac Ninh still has more room. I decided to withdraw capital from apartments to invest in land."
While apartments are losing their appeal, land plots are showing a clear increase in price. Areas on the outskirts of Hanoi such as Hoai Duc, Dong Anh, Gia Lam, Thanh Tri are witnessing significant price increases.
According to a survey by Lao Dong Newspaper reporters, in Dong Anh district, the average price of land is 40-60 million VND/m2, some areas near major roads have higher prices. In Hoai Duc district, the price of houses and land in alleys in Duc Thuong, Duong Lieu, Tien Yen areas is 50-60 million VND/m2, an increase of 20-30% compared to the beginning of the year. Many plots of land in Dong Anh, especially in communes such as Hai Boi, Vinh Ngoc, have reached 100-150 million VND/m2, an increase of about 25% compared to the beginning of the year.
Not only in Hanoi, neighboring provinces such as Bac Ninh, Hung Yen, Hai Duong also witnessed a strong increase in land investment, especially in areas with synchronous infrastructure planning.
Forecasting the real estate market in the coming time, Mr. Nguyen Quoc Anh - Deputy General Director of PropertyGuru Vietnam - commented that starting from the second quarter of 2025, when the real estate market enters a period of recovery, the land and project villa segments with good price increase potential will receive special attention from investors. This segment will even replace apartments, holding the "throne" position in the real estate market.
