Hanoi real estate prices are constantly climbing, especially in the suburbs. Many investors have temporarily suspended transactions to observe the market because they see increasing risks.
Hanoi real estate prices are constantly climbing, especially in the suburbs. Many investors have temporarily suspended transactions to observe the market because they see increasing risks.
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| Many plots of land in the suburbs, dozens of kilometers away from the center, cost up to hundreds of millions of VND/m2 (Photo: TV) |
Unbelievable price
Standing nervously at the gate of a land auction hall in Hoai Duc district, Mr. Thanh Luong - a broker, kept sighing when he heard that the winning bid price had reached 90 million VND/m2. He said that plots of land with such high prices would be very difficult to liquidate. In order to find customers, teams even lowered the selling price, from hundreds of millions of VND to a few tens of millions of VND per plot.
“The auctioned land is all bought and sold by investors. With each transaction, the price increases a little bit. Investors F0, F1, F2 still have the opportunity to make a profit, but for investors F3, F4, I don’t understand how they will sell at a higher price, when the total value of the land is already very high, around 10 billion VND,” Mr. Luong shared.
Appearing in most of the land auctions in Hanoi, an investor named Mr. TN also shared the same opinion. This year, many groups from other localities "snaked" to land auctions in the outskirts of the capital and paid very high prices, exceeding the market's acceptance.
Land prices in Hanoi are currently at a very high level, so investors who tend to "surf" will be very adventurous. If they invest money at this stage, the risk is very high.
“In Hanoi, the auctioned land segment in particular and the real estate market in general are all anchored at very high prices. I have to use the word ‘terribly high’ to describe the current situation. Many groups that I know shook their heads and left the auction when they saw the number 90-100 million VND/m2 appear on the price list,” said Mr. TN.
Not inferior to Hoai Duc, land prices in Dong Anh are also setting new milestones. Mr. Hai Trieu, an investor with many years of "real-life" experience in the locality, said that plots of land near Tu Lien Bridge have been bought by many people since the end of last year at a transaction price of about 90 million VND/m2. They are currently reselling them at a price of up to 180 million VND/m2. It is expected that when the bridge is under construction, the price will likely jump to 200 - 250 million VND/m2.
“Most of the land for sale in Dong Anh district is owned by investors. Almost no land or house is traded for residential purposes. Every time a new owner changes the name of the land, the land price increases by billions of dong and this increase shows no signs of stopping,” Mr. Trieu informed.
The heat of the real estate market has even spread to the agricultural land segment. Ms. Thuy Quynh (investor) is still surprised by the spending of "competitors" in the industry. At the end of November 2024, she was invited by an investor, who is also the owner of the land, to buy back more than 800 m2 of rice land in Hien Ninh commune (Soc Son district), for about 500 million VND.
“I quite like the land because the price is lower than the average. In addition, the 2024 Land Law expanding the subjects allowed to buy rice fields is also a factor that makes this segment more attractive. I have chosen a day to go and put down the deposit, but because of family matters, I had to postpone the purchase,” Ms. Thuy Quynh regretfully said.
Just over a week after Ms. Quynh withdrew from the transaction, the owner of the land lot found a new customer. This person even bought it back at a higher price, up to 580 million VND. Ms. Quynh herself felt very surprised by the liquidity of this segment. This is a sign that the market's excitement is being pushed to a high level.
Review the market to avoid "peak hunting"
According to Mr. Hai Trieu, the fourth quarter of 2024 can be considered the peak price of residential real estate in suburban areas. The probability of a sudden price increase is almost impossible. Therefore, investors who tend to "surf" will be very risky if they put money into this period. Most people who are "holding" land in the suburbs are determined to invest in the medium and long term, at least about 3 - 5 years.
Although he started from suburban real estate, Mr. TN admitted that he feels uneasy about the current "galloping" price increase. Along with negative information about auctioned land and the increase in bank interest rates, this investor believes that the market is about to reach a stage where it no longer has the strength to bounce back and will move sideways. It is also possible that the cash flow will leave the Hanoi market and shift to neighboring provinces, or even enter Ho Chi Minh City.
Speaking to reporters from Dau Tu Newspaper, Mr. KN, director of a company specializing in land trading, said that real estate prices in Hanoi have climbed to a new “level”. Part of the reason is that the supply of small plots of land is no longer available.
“According to the provisions of the 2024 Land Law, the minimum area for land subdivision in wards and towns is no less than 50 square meters. In communes in the delta region, it is from 80 square meters or more. The area of land plots is larger, making the total value that investors spend more than before. For example, in Soc Son district, it is currently very difficult for investors with a financial level of less than 1 billion VND to find a plot of land in a good location,” Mr. KN analyzed.
This director recommends that during the “price storm” of the real estate market, investors should limit the use of financial leverage with high ratios. Safety should be given even more priority when interest rates start to rise again. This is the time for “surfing” investors to re-evaluate their investment strategy.
Source: https://baodautu.vn/batdongsan/gia-bat-dong-san-cao-ngat-nha-dau-tu-chun-tay-d232505.html
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