Land prices are rising in line with the North-South high-speed railway.

Following news of the planned Ngoc Hoi station, the main hub for the North-South high-speed railway line, land prices in the area have skyrocketed. With a budget of 3-4 billion VND, investors are finding it difficult to purchase a plot of land with parking space right in front.

Following news of the planned Ngoc Hoi station, the main hub for the North-South high-speed railway line, land prices in the area have skyrocketed. With a budget of 3-4 billion VND, investors are finding it difficult to purchase a plot of land with parking space right in front.

The planning for Ngoc Hoi railway station has caused land prices in the area to skyrocket. In the photo: Overall perspective of the Ngoc Hoi complex.

Exceeding the 100 million VND/m2 mark.

Since 2004, the investment plan for the Ngoc Hoi - Yen Vien section of the Hanoi Metro Line 1 project has been approved by the Prime Minister . However, after about two decades, the area remains stagnant, with land clearance still at a standstill. The gloomy atmosphere was only dispelled when the Ministry of Transport identified Ngoc Hoi station as a component of the North-South high-speed railway system.

This information has boosted the real estate market in Thanh Tri district ( Hanoi ), especially in Ngoc Hoi commune, where the station is located. According to local residents, the area witnessed a sharp price increase at the beginning of the year due to the land speculation frenzy in the outskirts of Hanoi in general. Subsequently, with the new information about the North-South high-speed railway, the price of residential land around the station construction site has been pushed up to a new level.

While at the end of the first quarter of 2024, buyers could still find plots of land with car access at around 60 million VND/m2, the price has now increased to nearly 80 million VND/m2. For plots located on main roads, the price has even exceeded 110 million VND/m2.

For key national projects, construction timelines can extend for many years. Therefore, if investors have to borrow money, they face the risk of incurring losses.

"In the area around Ngoc Hoi train station, with a budget of 3-4 billion VND, it's very difficult for investors to buy plots of land with parking space right in front. If they do find any, they are usually small plots or have feng shui flaws," said Xuan Thanh, a real estate agent.

The supply of residential land available on the market is relatively limited. For plots in prime locations with wide access roads, the liquidity rate is measured in weeks. In the hands of experienced "speculators," these plots can yield profits of several hundred million dong in a short period.

“Ngoc Hoi commune, along with neighboring communes such as Dai Ang, Lien Ninh, Nhi Khe, and Khanh Ha, is currently the most important area in Thanh Tri district. In particular, Dai Ang and Lien Ninh communes will experience the strongest development in the coming years, with the addition of two urban areas in 2028 and 2029,” Mr. Thanh said.

According to CBRE, properties near subway stations tend to have average prices 10-20% higher than those in other areas. In the event of a real estate market crisis, housing projects with good connectivity to subway lines are likely to recover more quickly.

Be careful when buying land that is affected by zoning regulations.

Speaking with a reporter from the Investment Newspaper, Mr. Nguyen Huu Cuong, Chairman of the Hanoi Real Estate Club (HNREA), said that the increase in real estate prices due to the development of transportation infrastructure is a natural phenomenon. This trend has occurred before with the case of Ring Road 4, when investors rushed to "hunt" for land around the road to capitalize on the planning.

"It's normal for land prices to rise before official planning information is released by government agencies, especially in the case of the North-South high-speed railway system. This is a key project, so not only real estate investors, but everyone is eager for information surrounding this major project," Mr. Cuong commented.

However, the Chairman of HNREA also emphasized that buyers need to clearly identify the planning scope of the project to avoid falling into areas subject to land clearance. This will be one of the decisive factors in determining the "profit or loss" of the land plot. In addition, investors must also find out whether the land benefits from the technical infrastructure system or social welfare facilities of the State.

"This can be determined through detailed planning, regional planning, 1/2,000 scale planning, 1/500 scale planning... If the investor is certain that the land plot is not affected by any planning regulations, then they have already won a part of the battle. However, if they are not clear about this, the potential risks are very high. There have even been cases where sellers have falsified planning markers to commit fraud," Mr. Cuong warned.

Besides planning factors, the expert from HNREA also noted that investors need to determine their financial health, the purpose of using the land plot, and their own financial courage. According to Mr. Cuong, land plots that benefit from development projects are suitable for medium- and long-term investors who are not overly dependent on financial leverage.

"Buyers must balance their affordability and not be swayed by emotions. For key national projects, construction progress may take many years. Therefore, if investors have to borrow money and are not confident in short-term speculation, they will face the risk of losses," Mr. Cuong warned.

Similarly, Mr. Ngo Xuan Chuc, an investor and director of a real estate brokerage firm in Hanoi, pointed out that the market initially reacts positively to planning information, causing real estate prices to skyrocket. After that price surge, market sentiment stabilizes, causing prices to gradually level off, or even adjust downwards in some areas with unusually high prices.

“Ngoc Hoi Station is the largest railway station in the North, and the planning area may still be adjusted and expanded. If investors unfortunately buy land within the planned area, they will have already suffered a loss. Even with the application of the new land price list, the compensation will never equal the market price. Considering the current land price framework, the compensation is less than one-third of the actual value,” Mr. Chuc stated frankly.

According to this investor, the project is so large that land clearance cannot be completed overnight. Therefore, the construction time may be longer than expected. Consequently, investors with small capital who need to borrow from banks should think carefully and avoid being swayed by FOMO (fear of missing out) and investing based on rumors.

Source: https://baodautu.vn/batdongsan/gia-dat-an-theo-duong-sat-cao-toc-bac---nam-d229040.html