In the first months of 2025, land auctions are bringing in a large source of revenue for suburban districts of Hanoi. Most recently, on April 19, Chuong My district successfully organized an auction of the right to use 19 plots of land in Dong Tia area, Xa 1 hamlet (now Dong Son residential group), Chuc Son town, Chuong My district, Hanoi city.
The auction attracted nearly 175 customers with 550 applications. The plot of land with the highest winning price was 115,495,000 VND/m2; the lowest winning price was 89,496,000 VND/m2. The total winning price was 153.8 billion VND.
In Thanh Oai district alone, in March 2025 alone, the locality organized 3 land auctions and collected 1,384 billion VND.
Land prices through auctions in Quoc Oai district have recently had many notable fluctuations. In March 2025, the market had a leap forward when the winning bid increased to 104 million VND/m2. In early April 2025, a new record price was set at 119.3 million VND/m2 in an auction.
Not only through auctions, recently, land prices in suburban areas of Hanoi have recorded a strong increase. According to data from a market research unit, in the first months of 2025, land asking prices in many suburban districts have increased by 30% to 80%, depending on location. In Quoc Oai district alone, the increase is up to 74%, showing the significant rebound of this area.
Although prices have increased sharply, the level of interest of investors and buyers has not increased accordingly. The actual search and trading volume recorded a slowing or slight decrease, reflecting that the market was still cautious and there was no clear liquidity boom.
Mr. Nguyen Duc Lam - a real estate broker in Hanoi - shared that, throughout 2024, land prices in suburban areas have increased sharply due to the influence of many successful auctions.
Entering early 2025, many landowners continue to expect the market to increase, so they have pushed up the selling price. However, recently, buying and selling has become more difficult when prices have exceeded the affordability of most buyers.
Ms. Pham Thi Mien - Deputy Director of the Vietnam Institute for Real Estate Market Research and Evaluation - said that in reality, the transaction volume and transaction prices have only increased in plots of land with reasonable investment value, usually below VND2 billion, with legal guarantees in areas with infrastructure under implementation or in low-rise products in large urban projects around the area that have been invested in infrastructure, and have full utility services.
Accordingly, information about the merger of provinces and cities, congs with the announcement of new land price lists by many localities, many times higher than the current price list, and the FOMO (fear of missing opportunities) mentality of real estate investors, causing land to "fever".
Mr. Dinh Minh Tuan - Southern Regional Director of Batdongsan.com.vn - said that there are 3 factors that determine sustainable real estate price increases in a locality: public investment, local economic foundation and export and immigration rate. If the increase is only based on the news of merging into a locality or urban area in a short time, it is not ruled out that it is a virtual increase. If investing in the rumor wave, the risk is very high, especially for investors who are new to the market or use financial leverage.
