Land brokers 'revive', land prices tend to increase 'hotly'

Since the COVID-19 pandemic, suburban land has almost stagnated, the number of transactions has decreased compared to before the pandemic, and the price level has not fluctuated much.

One of the reasons for this phenomenon is that land prices have increased "shockingly" before, especially in the period of 2020 - 2021. In some places, there is also a phenomenon of virtual increases, with selling prices too high compared to reality, causing many investors to turn their backs on this segment.

In addition, the Land Law 2024 and the Real Estate Business Law 2023, which will take effect early from August 1, 2024, have tightened regulations on land subdivision and sale, especially applying land prices according to market prices, which has also made this segment less popular.

An area in Phu Tho is having information about virtual land fever, the Department of Construction of this province has to warn investors to be careful. (Photo: NN)

However, from the beginning of 2025 until now, land plots have suddenly become "hot" again. According to a survey by batdongsan.com.vn, Hoa Lac land plots in Thach That area have increased slightly in price, about 10% compared to half a year ago.

Specifically, land in Tien Xuan commune with street frontage has increased from 27-30 million VND/m2 to 29-32 million VND/m2. Land in Binh Yen has also increased from 20-22 million VND/m2 to 22-24 million VND/m2.

Land in Thach Hoa commune, located on a double-track road, increased from 35-36 million VND/m2 to 38-40 million VND/m2. Similarly, land in Tan Xa, located on a business street frontage, increased from 34-36 million VND/m2 to 37-40 million VND/m2. Land in Tan Xa, on a double-track road, also increased from 22-25 million VND/m2 to 24-27 million VND/m2.

For the Quoc Oai land market, a new price level has also been established. Specifically, for Hoa Thach land, in plots where cars can enter, the price has also increased from 21-23 million VND/m2 to 23-25 ​​million VND/m2.

At the location on Provincial Road 412B, Dong Yen land prices also increased from 37-41 million VND/m2 to 40-43.5 million VND/m2. For locations deep in the village, the increase was also significant, from 9-11 million VND/m2 to 10.5-12 million VND/m2.

Land in Phu Man increased slightly from 12-13 million VND/m2 to 13-14 million VND/m2. Land in Phu Cat also increased from 10-13 million VND/m2 to 11.5-14 million VND/m2.

Son Tay land, with plots near the high-tech park, is also a hot spot in the Hoa Lac land market. Land on Dong Trang Street (Son Tay) located on the 18m wide main road, near the planned Metro Line 05 station, has increased in price from 29-30 million VND/m2 to 30-31 million VND/m2.

Co Dong land located on a main road, where cars can pass each other, has increased in price from 26-29 million VND/m2 to 28-30.5 million VND/m2. Locations located in villages, which are not suitable for business and are less beautiful, have also increased in price from 12-14 million VND/m2 to 15-18 million VND/m2.

Talking to reporters of the Journalist and Public Opinion Newspaper, Mr. Nguyen Trung Tuan, a real estate expert, explained that there are many reasons why suburban land in Hanoi suddenly became "hot" again, but there are 3 main reasons, which are that the suburban districts of Hanoi have recently continuously organized land auctions, causing the price level in the area to start to increase again.

Second, the news of merging provinces and cities and abolishing district-level agencies has also caused many investors to “put their heads in the sand” to catch the planning wave. Not to mention, a number of large real estate projects have recently begun construction, causing land prices to increase.

Third, Mr. Tuan warned that land brokers have become more active again, with many areas experiencing virtual price increases. For example, in Phu Tho in early March, this situation occurred. Therefore, Mr. Tuan suggested that investors be cautious when investing.

Similarly, the Vietnam Association of Real Estate Brokers (VARs) also reported that just a few weeks after the proposal to merge provinces and cities was announced, land prices in some localities were pushed up, up to 20% in some places.

VARS believes that the merger of provinces and cities will have a positive impact on the real estate market. Accordingly, the merger may help reduce some legal procedures for project implementation, helping the market have more supply, especially in the affordable housing segment, people will have more options to buy houses at more reasonable prices.

However, for real estate values ​​to increase sustainably, there must be a foundation, which means there must be synchronous development of transport, economic and social infrastructure, such as the opening of more major roads, metro, schools or the ability to generate cash flow from leasing. Land fevers based solely on “news” without accompanying investment and development plans often have short cycles, increase rapidly but are difficult to maintain at high levels for a long time.

Therefore, investors need to be extremely careful when facing virtual fevers. Because land fevers based on news often only benefit a small group of speculators, while the majority of individual investors and real buyers risk getting stuck if they buy at “expected” prices, which have been pushed up too high.

Dinh Tran

Source: https://www.congluan.vn/co-dat-song-lai-dat-nen-co-xu-huong-tang-nong-post339786.html