The land market in 2025 recorded remarkable developments as prices in many areas continuously increased. However, behind this increase are signs of instability that make experienced investors wary. When the price level is pushed up too quickly, the risk of "peaking" is also increasingly present, especially in areas where prices increase according to rumors and lack control.
According to a survey at some hot spots in the suburbs of Hanoi such as Dong Anh, Hoai Duc, Gia Lam, Dan Phuong, the price of land for small plots has increased by 30-50% compared to the beginning of 2024.
In particular, in places near major infrastructure projects such as Ring Road 4, the price increase is even more obvious. In Song Phuong commune (Hoai Duc), the price of land for subdivision from 40-60 million VND/m2 at the beginning of last year has skyrocketed to 60-75 million VND/m2 at the beginning of this year. In Dong Anh, the average price is recorded at about 60-90 million VND/m2, beautiful locations near major roads even up to 120-150 million VND/m2, some places exceed 200 million VND/m2.
However, while prices have increased sharply, trading activities have not increased accordingly and investor sentiment is still quite cautious. Mr. Nguyen Minh Tri - a broker in the Dong Anh area - said that although the number of customers coming to see the land has increased, most of them are just surveying and have not decided to buy. Investors, especially those with extensive experience, are quite cautious, many customers are worried that prices are being inflated too quickly, while the infrastructure in many places is still not complete and the legality is not clear. There is a feeling that the market is hot about prices but cold about transactions," said Mr. Tri.
As an experienced investor, Mr. Nguyen Van Huy (38 years old, Nam Tu Liem district, Hanoi) - said that he has been following the land market in the suburbs of Hanoi for a long time and has noticed that land prices in many areas have increased quite rapidly in just a few months. "There are plots of land divided into plots in Dong Anh and Hoai Duc that were about 50 million VND/m2 at the beginning of last year, now they have increased to 70-80 million VND/m2, and the beautiful plots are even higher. Such a price increase is too fast, while the infrastructure has not changed much. I have been to see the land in many places but have not been able to close any plots, because I was afraid of going low," said Mr. Huy.
According to Mr. Huy, the phenomenon of many people rushing to see the land but few people paying shows that the reluctance mentality is still dominant. The market is heating up with a lot of information, especially related to the merger of administrative units and provincial mergers - factors that can create a positive effect on real estate. However, actual transactions were not really vibrant. seasoned investors often observe carefully and only disburse when ensuring legal, infrastructure and liquidity factors, he commented.
From a professional perspective, Mr. Nguyen Van Dinh - Chairman of the Vietnam Association of Real Estate Brokers (VARS) said that investors need to be especially alert to unusual price increases. According to him, in many suburban areas, land prices are being pushed up too quickly based on expectations for infrastructure, while the actual implementation progress is still slow and there are still many legal problems. "If not carefully appraised, investors can easily get stuck with capital in plots of land that are difficult to liquidate or face legal risks," Mr. Dinh warned.
VARS representative commented that for real estate prices to increase sustainably, there needs to be synchronization in infrastructure, transportation, economic development and practical exploitation capabilities.
VARS recommends that, to limit risks, investors should proactively carefully research the price level, planning and infrastructure progress in the area where they plan to invest. Areas with transparent planning, infrastructure under implementation and existing residents will be a safer choice than areas with only rumored price increases.
