The further away from the center, the more the land price list is different from reality.

In some suburban areas of Hanoi, market prices are 300-600% higher than the regulations in the new land price list. Meanwhile, in core districts, the difference is only 30% or less.

Comparison of regulated land prices and market prices in districts. Graphics: Thanh Vu

Price difference up to 600%

According to the investigation of the Investment Newspaper reporter, the new land price list has more closely reflected the market price of the central area of Hanoi such as Hoan Kiem, Hai Ba Trung, Dong Da districts. However, in Ha Dong, Thanh Xuan, Long Bien districts, or Dong Anh, Hoai Duc, Chuong My districts, the gap between the regulated price and the actual price is still large.

For example, on Hang Dao Street (Hoan Kiem District), the land price is regulated at 695.3 million VND/m2 - this is also the highest number recorded in the new land price list. Compared to reality, the price is not too different, fluctuating between 700 million VND and 1 billion VND/m2, only 1 - 30% higher than the regulated price.

Similarly, the land price on Phan Dinh Phung Street (Ba Dinh District) after being updated is 450.84 million VND/m2. Currently, houses here are offered for sale at 480 - 650 million VND/m2, 5 - 30% higher than the regulated price.

In Dong Da district, Cat Linh street recorded a new price of VND264.13 million/m2. This figure is only 2 - 28% lower than the market price, when some houses here are being offered for sale at VND270 - 370 million/m2.

The current land price list will be an important “piece” in the transition period, before the City builds an annual land price list. The 2024 Land Law grants the authority to issue land price lists to the district level, which will help land prices be closer to reality.

It can be seen that in the 4 old central districts of Hanoi, the land price list does not differ much from the market price, but this does not happen in the expanded districts. For example, on Vu Tong Phan Street (Thanh Xuan District), the regulated land price only stops at 85.96 million VND/m2, but the households here said that there is no house for sale below 120 million VND/m2, nearly 40% higher than the land price list.

Ha Dong District is also a place with large land prices. Ms. Thu Hoai, an investor, said that the land price here is only half the market price. She recently sold a piece of land with a car-parking alley in Yen Nghia Ward for 48 million VND/m2. According to the price list, land in location 2 (alley from 3.5 m or more) here is 23.2 million VND/m2, less than half of the actual price.

This continues to repeat with plots of land located on Tu Dinh Street (Long Bien District). Accordingly, the land price in the table is 38.8 million VND/m2, but when we asked the brokers to find plots of land with such a price, they all shook their heads, "giving up". Because the price of land on the street is above 110 million VND/m2, 183% higher than the regulated price.

In suburban areas, the difference is even higher. According to Mr. Duc Tung (Hoang Van Thu commune, Chuong My district), recently someone was willing to pay a deposit and buy his land plot here for 15 million VND/m2. But in the land price list, this rural residential area only has a price of about 2.3 million VND/m2, 300 - 500% lower than the transaction price.

In Dong Anh district - a locality preparing to become a district, land prices on "paper" and on the market are "heaven and earth" different. According to the land price list, land on the road in Xuan Canh commune costs 13.39 million VND/m2 - this figure is about 640% lower than the actual price. Being the location of a super real estate project, land prices here have increased "skyrocketingly" in recent times. Currently, land lots on the road here have exceeded 100 million VND/m2. Plots in alleys also cost up to 70 million VND/m2.

As for Hoai Duc district - where billion-dollar land auctions took place, the land price list is significantly lower than the price of residential land and auctioned land. Accordingly, the land on Tien Le Street (Tien Yen Commune) was determined by the Hanoi People's Committee at 12.66 million VND/m2. However, local people said that since Ring Road 4 passed through this area, land prices have increased rapidly. Currently, houses and land in the alley in this area are traded at 50 - 60 million VND/m2. For real estate on the street, the price is up to 70 - 90 million VND/m2.

For auctioned land, the highest winning price recorded in Tien Yen commune was 133 million VND/m2, other lots also had an average winning price of up to 80 - 90 million VND/m2. Compared with the land prices specified in the new table, the market price is 480 - 730% higher.

Land prices will be more realistic

Talking to reporters from Dau Tu Newspaper, the director of a real estate company said that the data collected by the company also showed similar results, the further away from the core districts, the more the land price list differed from the market price.

“This price list does not accurately reflect the overall picture of the Hanoi real estate market. Personally, I think the regulated land prices are only close to the actual level for central districts. The further out into the suburbs, the more the prices deviate,” he commented.

Mr. Tran Dat Khanh, CEO of Biggee - a real estate information analysis platform, said that there is a large gap between the regulated price and the market price. The reason comes from the fact that the current price list is determined by the People's Committees of provinces/cities. This invisibly makes land prices lack flexibility and do not reflect the true market value.

“The 2024 Land Law grants the authority to issue land price lists to the district level, which will help land prices stay closer to reality. This becomes even more meaningful, as actual land transaction prices are far exceeding the ceiling of the current urban land price framework,” Mr. Khanh shared.

According to the Hanoi People's Committee, the current land price list will be an important "piece" in the transition period, before the City builds the annual land price list. Adjustments and supplements will be updated to ensure stability, suitability with the actual situation, and at the same time meet the requirements of socio-economic development.

Source: https://baodautu.vn/batdongsan/cang-xa-trung-tam-bang-gia-dat-cang-khac-xa-thuc-te-d239593.html