Recorded a sharp increase
Land prices in many suburban areas of Hanoi and neighboring provinces are recording a strong increase even though the market is not really vibrant.
A survey of the land market in early February 2025 shows that not only familiar hot spots such as Dong Anh, Gia Lam, Thanh Tri, but many other areas such as Thach That, Quoc Oai, Chuong My, or further, some districts in Hoa Binh and Ha Nam provinces are also witnessing significant price increases.
Land prices in Thach That district appear to range from 25-35 million VND/m2, an increase of about 20% compared to the beginning of 2024. Some areas near the Hoa Lac satellite urban project have higher prices, from 35-45 million VND/m2. In Quoc Oai, land prices are currently commonly at 20-30 million VND/m2, also increasing by about 15-20% compared to a few months ago.
In Hoa Binh province, land is also in an upward trend. In some suburban areas such as Luong Son district, land prices currently range from 8-15 million VND/m2, an increase of 10-15% compared to the end of last year.
Similarly, in Ha Nam, areas bordering Phu Xuyen district (Hanoi) such as Duy Tien town, land prices have increased from 12-18 million VND/m2 in mid-2024 to 15-22 million VND/m2, an average increase of about 15%.
It is worth noting that although land prices are climbing, the market has not shown the same excitement.
According to Mr. Le Van Tuan - a long-time real estate broker in Gia Lam, since the Lunar New Year 2025, customers have asked if buying land has increased, but there are not many successful transactions.
"The increase in land prices is mainly due to investors offering high prices, expecting a new price increase, not due to too many actual transactions" - Mr. Tuan shared.
Mr. Tuan also commented that many plots of land with high selling prices have not yet found real buyers, mainly due to small investors pushing up prices according to market effects.
Ms. Nguyen Thi Hoai - a long-time investor in Dong Anh - said that land prices are being pushed up too quickly compared to reality. Although this phenomenon is no longer new, each time it appears, it causes many people to make mistakes.
"Many small investors see prices increase rapidly, afraid of missing opportunities, so they rush to buy, not carefully considering factors such as real demand or planning. That is the FOMO trap (fear of missing out)" - Ms. Hoai emphasized.
The market is lacking sustainability
Faced with the phenomenon of rapid increase in land prices while the actual transaction volume is not commensurate, experts say that this is a sign that the market is lacking sustainability, investors need to be alert to avoid following the crowd and easily fall into the FOMO trap.
Economic expert Dinh The Hien analyzed: Recently, there has been a lot of information that the real estate market is lacking in supply, so real estate prices are constantly increasing, making it difficult for people with real needs to access. This information creates a price fever, making many people believe that land prices will only increase. That mentality leads to the phenomenon of FOMO, that is, people who have not really intended to buy real estate, are observing the market, suddenly feel that if they do not buy immediately, the price will increase even higher, and finally decide to rush to spend money".
According to the expert: "We need to calmly look back: Is the market really so scarce in supply and is land prices really increasing as the information is spreading?". In fact, the real estate market is still quite quiet, even banks that are handling mortgaged real estate assets are having many difficulties in finding buyers. Therefore, investors need to be alert and avoid following the crowd psychology.
