There is a decrease in the attractiveness of investment projects
The Hanoi Department of Agriculture and Environment is seeking opinions on the draft submission on the development of the first land price list to be announced and applied from January 1, 2026.
Notably, this department proposed the highest land price in Hanoi for residential land on the roads of the old Hoan Kiem district at more than 702 million VND per square meter. The highest increase proposal is for suburban areas, with an increase of 16% to 26%.
In the document recommending the Hanoi People's Committee on the draft land price list for 2026, the Vietnam Real Estate Association (VNREA) said that the land price list has increased, and the cost of real estate investment in suburban areas has also increased. This reduces the attractiveness of investment projects and affects the housing development plan in suburban areas to expand people.
From there, the housing supply in the market may continue to decrease. At the same time, commercial housing prices have also increased, reducing the ability to access housing for people with real needs.
In fact, the housing supply, especially the apartment segment in the capital in recent times, has mostly come from suburban areas because the land fund in the center has gradually exhausted. In the first 9 months of this year, Hanoi had more than 24,500 apartments eligible for sale, but nearly 75% came from large projects in Nam Tu Liem district and Dong Anh and Gia Lam districts before the merger.
According to the Vietnam Real Estate Association, the real estate market is in the recovery phase, many businesses have to restructure. Therefore, increasing land prices at this time can become a double burden, slowing down the recovery process.
" Increasing land prices will lead to greater financial obligations for businesses and people. At the same time, the budget burden also increases when implementing compensation, support, and resettlement," VNREA stated in the petition.
With public investment, the association also warned that key projects in Hanoi are at risk of overcharging capital and exceeding estimates, making it difficult to balance the budget when the land price list increases. At the same time, the negotiation and compensation process is prolonged, affecting investment progress and efficiency.
According to the report of the consulting unit for the development of Hanoi's land price list, the trend of investing in suburban land in suburban areas, land in areas with planning to become districts (previously), land near belt routes... shows signs of heating up again, due to planning information, upgrading administrative units and the trend of population shifting, creating strong differentiation between areas.
The land price list is used as a basis for calculating compensation, determining land prices for resettled people and people compensated for residential land; calculating land use tax, personal income tax from land use rights transfer. This is also the basis for collecting fees and charges related to land use, transfer or when carrying out administrative procedures on land...
New land price list makes land prices approach the market
Commenting on this issue, in an interview with Lao Dong, Associate Professor, Dr. Bui Thi An - Member of the 13th National Assembly, Director of the Institute of Natural Resources, Environment and Community Development - said that this draft land price list has been carefully considered by the Hanoi City's professional agency, built on the basis of reality over the years.
Previously, the issued land prices did not accurately reflect market value, leading to inadequacies in site clearance, tax calculation and many other arising problems.
"This land price increase is considered a suitable step forward, initially reflecting more closely the actual market value," said Associate Professor, Dr. Bui Thi An. However, she noted that market prices are always fluctuating, so the land price list will need to continue to be reviewed and adjusted periodically to ensure compliance with the new situation.
"This is a reasonable start, both ensuring the rights of people when they are compensated at a closer price and creating a fair basis in tax collection and land management," the expert commented.
When asked whether increasing land prices will become a "double burden" for real estate businesses in the context of a recovering market, Ms. An commented that most businesses in this field have had a period of good growth and profit accumulation. The current land price adjustment shows the harmonious orientation of interests that Hanoi City is pursuing.
"In the previous period, the city created maximum conditions for businesses to develop. Currently, when adjusting land prices, Hanoi still calculates carefully to ensure that all three parties: businesses, the State and the people benefit, said Associate Professor, Dr. Bui Thi An.
Accordingly, businesses facing difficulties will be supported by the city in many forms such as tax exemption, reduction or extension, adjustment of financial obligations... to help them maintain operations, while still ensuring common benefits and sustainable development of the market.
Experts emphasized that the adjustment of the land price list this time is not only a financial issue but also related to the policy of sustainable urban development. When land prices are closer to market value, people are compensated appropriately, businesses have clear mechanisms and the city has more resources to invest in infrastructure.
"Hanoi is aiming for sustainable development, taking the people as the center, taking the happiness and rights of the people as a measure. Only when the benefits of the three parties are balanced can the real estate market develop stably and long-term, the expert affirmed.
