In periods of vibrant market development, the land segment plays an important role and is always the focus of investment with growth in many provinces and cities across the country, especially in areas with potential for economic development and convenient traffic infrastructure.
Recently, as the real estate market has gradually changed positively, the land segment in the suburbs of Hanoi has also gradually heated up with prices increasing sharply in many areas. Meanwhile, other areas are still quite quiet, especially in Ho Chi Minh City, the land market has not grown, and prices even tend to decrease.
Mr. Dinh Minh Tuan - Business Director of PropertyGuru Vietnam - commented that the real estate market in Hanoi and Ho Chi Minh City has clearly differentiated in the past two years.
Particularly for the land segment, in Hanoi, land recorded stability last year and started to become active from the beginning of this year, typically the recent suburban land auctions. The level of interest recorded up to now has increased by 75%.
The average selling price of land in Hanoi in November 2024 was VND70 million/m2, an increase of 32%; in Ho Chi Minh City it was VND57 million/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.
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 land and houses 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, land on Tan Lap street has also increased in price from 48 - 55 million VND/m2 to 54 - 65 million VND/m2; land on Tan Hoi street in Dan Phuong is currently priced at 55 - 66 million VND/m2, an increase of 2 - 5 million VND/m2 compared to 5 months ago.
Notably, in the last months of the year, land prices in some suburban districts, where the Ring Road 4 project runs through, increased sharply. Compared to half a year ago, land prices in Me Linh 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.
Regarding the increase in land prices, 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%).
In contrast, the real estate market in Ho Chi Minh City throughout 2023 almost did not grow in any type. This year, apartments grew first and then private houses, the level of interest also gradually increased again for these two segments. Meanwhile, the remaining segments almost all decreased, of which land decreased by 5%.
With prices still quite low compared to market potential, according to Mr. Dinh Minh Tuan, when the Southern market has not increased in price, real estate investment opportunities in the near future will focus on this area. However, the expert also noted that legal issues are still a major obstacle, investors and buyers need to consider carefully before deciding to "put down money".
