Land prices increase sharply in many areas
The land market is witnessing a paradox: Advertising prices are increasing rapidly in many areas but liquidity is still low. Investors want to make a profit but find it difficult to find buyers, while the mentality of waiting still dominates most of the market.
Market research shows that land prices in suburban districts of Hanoi have increased significantly compared to the beginning of 2024. In Dong Anh, the average price currently ranges from 60-100 million VND/m2, of which many beautiful plots of land located close to major roads have skyrocketed to 130-150 million VND/m2. In Me Linh - which used to cost only 20-30 million VND/m2 - now it has recorded 40-55 million VND/m2.
Hoai Duc is one of the hottest spots, especially in areas near Ring Road 4 such as Duc Thuong, Duong Lieu, Tien Yen, land prices have increased by 20-50%, ranging from 50-70 million VND/m2. Strategic locations such as Lai Yen, Van Canh, An Khanh recorded common prices from 90-130 million VND/m2, with some places exceeding 150 million VND/m2.
Not only Hanoi, border provinces such as Hung Yen, Bac Ninh, Vinh Phuc, Thai Nguyen also recorded a clear increase. In Van Giang (Hung Yen), the area bordering Gia Lam, land prices in many places range from 30-60 million VND/m2, an increase of about 20% compared to the end of 2024. Areas near industrial parks and major roads in Bac Ninh, Vinh Phuc, Thai Nguyen also recorded an average increase of 10-30%.
Prices increase but it is difficult to make a profit, investors are stuck
Although prices have increased rapidly, liquidity has not kept up. The market currently records a low actual trading volume. Many investors said that they have been selling since the beginning of the second quarter at prices different from the time of purchase, but so far, there have been no successful transactions.
Mr. Nguyen Hung (39 years old) - a personal investor in Hanoi) - said that he had advertised for sale a plot of land in Dong Anh at a price about 15% higher than at the time of purchase, but after nearly 3 months, no one really asked to buy. "I don't want to reduce prices because I'm afraid of losing money, but if I keep the price, I won't be able to sell it. This situation is prolonged, causing capital to be held up and unable to be turned around, he shared.
The "buy-through" situation not only happens to previous buyers but also to the group of new F0 investors entering the market. Ms. Le Hoa - an investor in Van Giang, Hung Yen - shared: "Hearing the news of the plan, many people have put in money quite quickly. But in reality, when information is unclear or legal issues are not yet complete, the market immediately stagnates. Now it is not easy to sell".
Commenting on the current land market, Mr. Nguyen Van Truong - a long-time real estate broker in Hung Yen - commented that the current price increase is largely driven by psychology. "The price was pushed up quite quickly in a short time, but buyers were more cautious than before. Many plots of land have increased following rumors, while real investors are almost out, not very interested," he said.
Forecasting the market for land in the coming time, many experts expect the market to improve, cash flow will spread to more areas in the second quarter of 2025.
Forecasting the land market in the coming time, Mr. Le Dinh Chung - member of the Market Working Group, Vietnam Real Estate Brokers Association - commented that by the second quarter of 2025, the land market can improve. However, investing at the present time requires a medium-term vision, with a capital recovery period of at least 1 to 3 years, instead of expecting quick surfing.
