Residential land is always considered a segment that is strongly competitive with apartments when the demand for housing among Hanoians increases.
Especially in the context of increasingly scarce real estate supply, this leads to a gap between supply and demand in the market, causing real estate prices to increase rapidly every year.
From the beginning of 2023 to now, housing prices in all segments in Hanoi have increased by 30%, even in places far from the center, prices have increased by tens of millions of VND per square meter.
For example, according to Lao Dong reporter's research in Minh Khai area (Hai Ba Trung district), a house with an area of 30m2, built with 5 floors, located in a deep alley a few minutes walk from a car stop, at the end of 2023, the price was about 4.1 - 4.5 billion VND, but now it is being sold for nearly 6 billion VND.
Housing prices in alleys and alleys in Dong Da district have also increased sharply. Ms. Nguyen Thi Thanh (34 years old in Thanh Xuan district, Hanoi) - an investor specializing in alley houses - said that house prices in the city are on the rise, so she is planning to move to buy land in the suburbs.
"Since the Lunar New Year, I have often gone to suburban districts such as Hoai Duc, Phuc Tho, Dan Phuong... even provinces such as Bac Ninh, Bac Giang, Hung Yen to learn about the market for investment" - Ms. Thanh said.
According to the Vietnam Association of Realtors (VARS), the trend of shifting to the non-central area not only reflects the need to seek real estate investment opportunities but is also affected by objective factors such as planning policies, transport infrastructure and changes in buyer demand.
In fact, for investors, the high price increase also makes the large market in the center of Hanoi less attractive.
Not only is it difficult to meet capital needs and maintain cash flow in the long term, but the expectation of growth is also not high because the price is at its "peak".
In that context, not only Ms. Thanh but many investors have gone to the suburbs of the capital to seek opportunities.
Sharing with Lao Dong reporter, Dr. Tran Xuan Luong - Lecturer specializing in real estate at the National Economics University - commented that the shift of real estate investment from the center of Hanoi to suburban areas is an inevitable trend.
According to Dr. Luong, the suburban areas of Hanoi with abundant land funds, reasonable prices and increasingly complete infrastructure, many room for development and the ability to connect directly from the core area are attracting strong attention from investors and real buyers.
Meanwhile, Mr. Nguyen The Diep - Vice President of Hanoi Real Estate Club - said that many investors have started hunting for land in the suburbs of big cities in Hanoi and Ho Chi Minh City, which are localities with strong infrastructure development and high urbanization rates.
However, Mr. Diep also warned that the land market in some areas is experiencing unfounded price increases.
Therefore, investors who want to buy this segment need to pay attention to avoid getting caught up in "virtual fever", especially when the real estate market is in the recovery phase.
