(Dan Tri) - The new land price list of Hanoi has just been issued, besides opinions that it will help projects to be cleared, ensure tax transparency... experts are concerned that speculators will take advantage to push up prices.
Land price list in Hanoi is highest at 695 million VND/m2
The Hanoi People's Committee has just issued an adjusted land price list effective from December 20 to December 31, 2025. Compared to the old land price list, the adjusted residential land price list is 2-6 times higher.
Notably, land prices on many streets in Hoan Kiem district including Ba Trieu (from Hang Khay to Tran Hung Dao), Dinh Tien Hoang, Hai Ba Trung (from Le Thanh Tong to Quan Su), Hang Dao, Hang Khay, Hang Ngang, Le Thai To, Ly Thuong Kiet, Nha Tho, Tran Hung Dao (from Tran Thanh Tong to Le Duan) have the highest price of more than 695.3 million VND/m2.
According to the pre-adjusted land price list, the highest urban land price in Hanoi's inner city is 188 million VND/m2 on three streets: Hang Ngang, Hang Dao, and Le Thai To. Thus, the highest adjusted land price is nearly 3.7 times higher than before the adjustment.
The highest land price in the adjusted land price list in Hanoi is higher than the adjusted land price list in Ho Chi Minh City announced last October, with the highest price of more than 687 million VND/m2 on Dong Khoi, Le Loi, Nguyen Hue streets (District 1).
In another central district, Ba Dinh, the street with the highest land price is Phan Dinh Phung with over 450 million VND/m2. This price is 3.4 times higher than the old land price frame. Some other streets also have prices over 400 million VND/m2 such as Tran Phu and Doc Lap.
In Hai Ba Trung district, the highest adjusted land price is on Nguyen Du street (Quang Trung to Tran Binh Trong section), Hue street (Nguyen Du to Nguyen Cong Tru section) with over 368 million VND/m2. This price is also nearly 3.5 times higher than the old price list.
In Tay Ho district, Van Cao street has the most expensive price at over 256 million VND/m2. This price is nearly 3.3 times higher than the current price.
A real estate project in Hoang Mai district, Hanoi (Photo: Tran Khang).
Besides, after adjustment, 5 districts Thanh Tri, Gia Lam, Dong Anh, Hoai Duc and Dan Phuong are oriented to become districts of Hanoi with the highest price of nearly 117 million VND/m2.
Regarding the adjusted land price list, the Hanoi Department of Natural Resources and Environment said that the new price list helps reduce the difference, bringing land prices in the capital closer to the market. This helps establish a synchronous policy in land management and harmonize the interests of the State, users and those who need to use land to implement projects. Thanks to that, budget revenue increases through the implementation of financial obligations on land of people and businesses.
In cases where land taxes and fees are high and not suitable to people's income, the management agency believes that it is necessary to study reducing the tax and fee rates, not reducing land prices.
The Department affirmed that the adjusted price list does not affect compensation and support for site clearance when the State reclaims land. On the contrary, it contributes positively to site clearance, attracting investment and developing the capital.
"The rights of people whose land is recovered are also better guaranteed, encouraging people to comply with land clearance policies," the Department said.
Experts worry that real estate prices will continue to be "inflated"
Speaking to Dan Tri reporter, Ms. Pham Mien - Deputy Head of Market Research and Consulting, Investment Promotion Department of Vietnam Real Estate Brokers Association - said that the issuance of the new land price list shows that the regulations of the 2024 Land Law have gradually entered into life.
The market has many real estate projects stalled due to problems in determining land use fees. The issuance of a new land price list helps projects have a legal basis to continue construction, implementation and provide new supply to the real estate market.
Besides, a positive point of determining land prices close to the market will help the State collect correct and sufficient taxes on real estate transfer transactions.
However, according to her, there is a limitation that in recent times, the price of real estate in Hanoi has increased very high, is virtual and far beyond the affordability of the people. This price increase shows signs of impact from investment and speculation groups when the supply to the market is low and concentrated in the hands of only a group of investors.
"Thus, the land price list is based on the current high market price, which invisibly legalizes that high price," Ms. Mien emphasized.
According to her, the current high land price list will increase the cost of implementing the project, and investors will continue to raise the selling price even higher. Meanwhile, the current price is difficult for those with real demand to buy.
Experts are concerned that speculators are taking advantage of rising land prices to push up prices (Illustration: Duong Tam).
On the investor side, Ms. Mien said, there will also be difficulties in the process of site clearance and land acquisition to implement the project. For large projects, the State may participate in the land acquisition process. On the contrary, for small and medium projects, the investor will have to negotiate the land acquisition price with the people.
"Determining a land price list close to the market will help harmonize the interests of the three parties: the State, investors and people. However, the current land price list increases input costs, forcing investors to increase selling prices, making it more difficult for end consumers than before," she said.
According to Ms. Mien, to accurately determine the price close to the market, the State needs to have a tool to measure the index over many years based on sales data in each area. From there, localities will be able to provide data on land prices that are reasonable to the market.
Mr. Tran Khanh Quang - real estate expert - said that the recently issued land price list has a very large increase, in suburban areas of Ho Chi Minh City it increased about 10 times, and in Hanoi it increased about 4-6 times.
Projects are implemented, currently land use accounts for about 15-20% of the total project investment capital. The sudden increase in land price will increase project investment costs. Accordingly, investors are forced to increase real estate prices.
"The first 6 months of applying the new land price list will not have a clear impact because most of the transactions at this time have completed legal procedures. However, after that, the products calculated according to the new land price list will cause a local price increase of about 30%. In fact, Ho Chi Minh City applied the new land price list before Hanoi and the price increase has also occurred in some areas," he said.
Mr. Quang said that besides the positive aspects of the new land price list such as transparency in real estate transfer tax, fairness towards people whose land is recovered... there will be other limitations.
Specifically, businesses will have more difficulty in clearing land, because people will expect a higher price when their land is reclaimed. In addition, speculators who have been one step ahead to collect that real estate will take advantage of the new land price list to push prices very high.
Even large investors with existing real estate products are taking advantage to inflate prices. From there, real home buyers will continue to face difficulties.
Source: https://dantri.com.vn/bat-dong-san/bang-gia-dat-moi-ha-noi-tang-nhieu-lan-chuyen-gia-neu-y-kien-20241225021603781.htm
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