Engaging in cheap land, entangled in legal spiral
The land market in the first months of 2025 is having positive changes, attracting great attention from investors. Many suburban areas of Hanoi and neighboring provinces have recorded a sharp increase in land prices, and transaction volume has improved after a long period of stagnation. Districts such as Dong Anh, Hoai Duc, Me Linh and many hot spots in Bac Ninh and Hung Yen all witnessed a price increase of 20-50% compared to the beginning of 2024.
While many people expect the increase in land prices, many investors are stuck in the situation of rushing to buy cheap land without carefully considering legal factors.
Mr. Le Van Hung (42 years old - Dong Anh, Hanoi) shared that at the end of 2023, he was introduced by a broker to a plot of land of 80m2 in Van Noi commune for only 1.5 billion VND, nearly 400 million VND cheaper than the general plot. Seeing the good price, Mr. Hung decided to pay without carefully checking the legal documents. It was not until he wanted to resell at the beginning of this year that he "failed" because the land plot was in the suspended planning area and was arising a dispute with the adjacent landowner. Although the land price in this area has increased to 2-2.2 billion VND, his plot of land is not crowded with anyone, making it difficult to liquidate.
Similarly, Ms. Nguyen Thi Mai (36 years old - Hoai Duc, Hanoi) is also having difficulty buying land that is not eligible for land division. At the end of 2022, she spent 1.8 billion VND to buy a 100m2 plot of land in Duc Thuong commune through an introduction from an acquaintance. Although she knew that the land did not have a separate red book and was part of converted agricultural land, she still accepted to pay because she was confident that the seller would soon complete the procedures.
By early 2025, when the land price in this area increased sharply, she wanted to sell, but all the procedures for dividing the plot had not been completed. Land that did not meet the legal conditions for transferring ownership made it difficult for her to sell even though the market price in the area had increased.
Be careful when buying cheap land
In reality, many land plots in the suburbs of Hanoi are having impressive price increases. According to the survey, land prices in Dong Anh, Hoai Duc, and Me Linh districts have increased by an average of 20-50% compared to the beginning of 2024. In Dong Anh, the average price ranges from 60-100 million VND/m2, of which, beautiful plots of land near major roads have prices exceeding 130-150 million VND/m2. Me Linh, an area that used to have a price of 20-30 million VND/m2, has now increased to 40-55 million VND/m2.
In Hoai Duc alone, land prices have increased the most in areas near Ring Road 4. Locations where this route runs through such as Duc Thuong, Duong Lieu, Tien Yen have recorded an increase of 20-50% compared to the beginning of 2024, up to 50-70 million VND/m2. Locations near key intersections of the route, especially Lai Yen, Van Canh, An Khanh, are having prices ranging from 90-130 million VND/m2, even exceeding 150 million VND/m2.
Mr. Nguyen Minh Ha, a long-time real estate broker in Hanoi, said that from the end of 2024 until now, the number of investors returning to the land segment has increased significantly. However, Mr. Ha noted: Many people, because they are afraid of missing out on opportunities, rush to pay without carefully checking legal documents, and are likely to face risks with unusually cheap plots of land with unclear legal status. Currently, land prices are on a strong upward trend, but investors need to be careful with plots of land without red books, planning problems or plots that have not been divided. If not carefully considered, the transfer will be very difficult when the market fluctuates".
Giving advice to land investors, Mr. Nguyen Duc Cay - Chairman of the Board of Directors of Constrexim Housing Development Joint Stock Company - said that land in the suburbs of Hanoi can bring investment opportunities, but also has many potential risks. Investors need to be fully equipped with knowledge, analyze carefully and avoid chasing price fevers without a clear strategy.
