Land prices increase slightly
In the past few years, the land subdivision market in some areas of Hanoi such as Thach Thang, Son Tay, and Quoc Oai has been constantly on the rise.
By early 2023, the overall market situation had slowed down, despite some plots being reduced by 30-50% compared to the peak of the fever, but there were no buyers.
It was not until mid-2024 that the real estate market showed a certain improvement. In particular, with the early implementation of three laws on real estate, the psychology of investors has become more positive. As a result, recently, the prices of land subdivisions in Thach Thang, Son Tay, and Quoc Oai districts have also increased slightly.
According to the investigation of PV Lao Dong in the middle of August, the price of land subdivisions in Tiem Xuan Commune (Thach Thang District) with a frontage on the main road increased from 25-27 million VND/m2 to 27-30 million VND/m2, an increase of about 10% compared to the end of last year. Meanwhile, the price of land in alleys also increased from 15 million VND/m2 to 17 million VND/m2.
In the area of Binh Yen, Tan Xa (Thach Thang District), land subdivisions also have a price range of 25-30 million VND/m2, an increase of about 10-15% compared to the end of last year.
Meanwhile, the price of land subdivisions in Phu Cat, Phu Man (Quoc Oai District) was around 27-31 million VND/m2 during the peak of the land fever, an increase of about 10% in 6 months.
Ms. Nguyen Thi Lai, a real estate agent in Thach Thang District, said that since the beginning of the year, many investors have come here to buy land, due to increased demand, land prices have increased accordingly. In addition, the restriction on land subdivision has also caused the price of land that has been subdivided to increase.
After 2025, there will be many strong fluctuations
Regarding this issue, Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Association, said that the demand for land is always very high, while the market is lacking in supply from legitimate projects.
According to Mr. Dinh, in the past, many speculators have taken advantage of the opportunity to accumulate land and then subdivide and sell it, even giving it a commercial name similar to legitimate projects to lure buyers.
At the same time, speculators have competed to inflate prices, driving up land prices, causing chaos in the market. Therefore, tightening land subdivision is necessary.
Regarding the regulation of tightening land subdivision, many experts in the real estate field believe that in the next year and a half, the land subdivision market will have many strong fluctuations. The tightening of land subdivision will make the supply scarce and the price may rise.
Sharing with PV, Mr. Nguyen The Diep, a member of the Vietnam Real Estate Association, said that the new regulation on land subdivision will make some investors face difficulties in the initial implementation period. However, in the long term, this is a necessary trend that will be applied uniformly in many countries, improving the transparency of the market.
He added that the tightening of land subdivision will not only affect small investors. Because in type II and III cities, the number of investors participating in land subdivision investment is very large. Since this type of investment has good liquidity and high demand, some investors "hoard" land and sell it at high prices.
