Land plot prices fall sharply, cautious investment cash flow

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Land plot prices in many areas have decreased sharply, liquidity is under a lot of pressure in the context of increasingly cautious investment cash flow.

After a period of strong increase, the land plot market is showing remarkable developments. Surveys from the market show that the price level in some areas has decreased sharply compared to the peak level previously set, many places recorded a decrease of 50-70%.

Typically, the common asking price for land plots in Muong Dong commune, Phu Tho province decreased by 75% compared to the peak; Kim Boi commune, Phu Tho province decreased by 61.5%. In Hanoi, Minh Giang Dam Va urban area, Me Linh area recorded a decrease of 50%; Cienco 5 Me Linh urban area decreased by 31.1%, while Uy No commune area, old Dong Anh district decreased by 23.1% compared to the peak.

On real estate platforms, many advertisements for "price reductions", "urgent liquidity", even cutting losses of billions of VND per plot have also begun to appear.

A recent market report by Batdongsan. com. vn shows that land plots are under great price reduction pressure. Land plot asking prices in the third quarter of 2026 decreased by 14% compared to the first quarter of 2026. The level of interest and the amount of news posted also decreased, showing that the liquidity of this segment is under pressure.

According to the Vietnam Real Estate Market Assessment Research Institute (VARS IRE), land plots continue to be a segment under great liquidity pressure in the market restructuring process. Products that are heavily dependent on planning information or expectations of future price increases face more difficulties. Although many investors have lowered profit expectations, even reduced prices to recover capital, purchasing power has not yet improved significantly.

Discussing the current developments of the land plot market, Mr. Nguyen Anh Que, Chairman of the Board of Directors of G6 Investment and Development Group JSC, said that it is necessary to distinguish between land plots in the central area with real housing needs and land plots in areas far from the center.

According to Mr. Que, for central locations, land plots are still more associated with actual housing needs. Meanwhile, land plots in suburban areas or far from the center are more of an investment and speculative nature. Therefore, when investment sentiment changes, this product group is also more easily affected.

Mr. Que said that recently, information and discussions related to real estate market management have also made investors cautious. Among them are issues mentioned such as tax policies for transfer activities, taxes based on real estate value or taxes on second and subsequent real estate.

“That makes investors and speculators more cautious” - Mr. Que assessed.

According to him, in the face of possible policy changes in the coming years, a part of the cash flow tends to turn to products in urban areas such as apartments, land and townhouses in the center. These are products that investors assess as being safer in terms of cash flow than land plots in areas far from the center.

Changes in investors' psychology and choices are directly affecting the demand of the land plot segment, especially in areas where transactions previously heavily depended on price increase expectations.

This reduces buying demand and lowers land plot prices" - Mr. Que said. According to his analysis, the current price decline is therefore not only due to the price level after a period of strong increase but also related to the change in the appetite of cash flow. When investors and speculators are more cautious, land plot areas far from the center, where investment demand accounts for a large proportion, will be under clearer pressure on liquidity and prices.

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