Dong Anh district has 5,100 m2 more land for auction, will the winning price hit a peak?

Currently, many residential land plots in Xuan Canh commune (Dong Anh district, Hanoi), a locality that has just been allocated land for auction, have reached the mark of 180 million VND/m2. Many investors have come here to "hunt" for land to anticipate infrastructure planning.

Currently, many residential land plots in Xuan Canh commune (Dong Anh district, Hanoi), a locality that has just been allocated land for auction, have reached the mark of 180 million VND/m2. Many investors have come here to "hunt" for land to anticipate infrastructure planning.

The Hanoi People's Committee has just issued Decision No. 594 on the allocation of more than 11,340 m2 of land in Xuan Canh commune to the Dong Anh District People's Committee to implement the project of building technical infrastructure for the land use rights auction area in Van Loc 2 village.

Of which, more than 5,100 m2 of residential land is used for land use rights auction. The remaining more than 6,200 m2 is land for traffic, trees and connecting technical infrastructure.

Dong Anh district is gradually changing thanks to a series of large projects and constructions. Photo: Thanh Vu

According to the investigation of the reporter of the Investment Electronic Newspaper - Baodautu.vn , the land price in Xuan Canh commune has increased sharply, thanks to the emergence of a large urban area. Through actual surveys, residential land lots on the street and with a direct view of the project are being offered for sale at a price of about 160 - 180 million VND/m2.

For plots of land in alleys with entrances wide enough for cars to park in front of the door, the price is up to 90 million VND/m2. Even plots of land with alleys in front of the house only about 2 - 2.5 m wide are offered for sale at about 70 million VND/m2.

Many brokers also admit that the land price level in Dong Anh is high and has doubled compared to the end of 2023. This comes from the fact that most landowners are basing on real estate prices in projects as a reference measure.

“On average, residential land plots are priced at one-third of the price of townhouses in the project. If calculated this way, the land price can hardly be lower than VND100 million/m2. Because the price of a townhouse in the urban area is already nearly VND300 million/m2,” said the broker.

Revealing more to reporters, brokers in Dong Anh district said that 70% of the residential real estate in the area being advertised online are owned by F1 and F2 investors. Very few plots of land are purchased for real residential purposes. Every time a new owner changes the name of the land, the land price increases by billions of dong.

Speaking to reporters, Mr. Nguyen The Diep, Vice President of the Hanoi Real Estate Club, said that Dong Anh district has many opportunities to become the new center of the capital's real estate market. Starting with the information about becoming a district, followed by the presence of a series of large projects and works such as Tu Lien bridge, the national exhibition center, the 108-storey financial tower, etc.

“Technical infrastructure factors are ready for Dong Anh district to ‘take off’. In addition, money is tending to flow into investment channels, instead of ‘staying’ in banks. I believe that the real estate market here will soon become vibrant in the near future,” Mr. Diep shared.

According to the expert, the “skyrocketing” price increase of residential land in Dong Anh is not difficult to understand, when surrounding projects have prices up to hundreds of millions of VND per square meter. However, the real issue that investors need to pay attention to is the liquidity and characteristics of the segment.

“Dong Anh land is suitable for those who have a taste for long-term investment in the direction of ‘selling at a high price and leaving it at a low price’. As for those who use financial leverage, this will be a very dangerous deal. Because the liquidity of this area is limited and the land itself does not have the ability to generate cash flow,” Mr. Diep commented.

Source: https://baodautu.vn/batdongsan/huyen-dong-anh-co-them-5100-m2-dat-dau-gia-lieu-gia-trung-co-lap-dinh-d244370.html