Over the past year, residential land prices in several suburban districts such as Long Bien and Gia Lam have increased by more than 30% year-on-year, according to a report from OneHousing.
OneHousing, a market research unit backed by Techcombank and Masterise, noted that both land prices and transaction volumes in Hanoi saw significant growth last year.
In 2024, the total number of transactions reached approximately 42,000. Liquidity in this segment peaked in the second quarter before gradually declining toward the end of the year. In the fourth quarter alone, the western area (Cau Giay, Bac Tu Liem, Nam Tu Liem, Ha Dong) led with 3,500 transactions, while the eastern area (Long Bien, Gia Lam) recorded about 2,900 deals.
Land prices in other areas also experienced strong growth, ranging between 17-33% over the past year. Specifically, in the east, the average land price in Long Bien was around 130-150 million VND per square meter, while in Gia Lam, it ranged from 40-60 million VND, marking a 33% increase compared to the end of 2023.
In the western districts, where land prices were already high, the increase was more moderate. For instance, Ha Dong saw a rise of about 17%, while Nam Tu Liem and Cau Giay recorded a 28-29% increase from the end of 2023.
According to Batdongsan, residential land prices in Hanoi surged last year, following the same upward trend as apartment prices. As of Q4 2024, the average price in this segment had risen 37% compared to Q1 2023, reaching approximately 70 million VND per square meter. Meanwhile, in Ho Chi Minh City, residential land prices remained stable, increasing by only about 3% over nearly two years.
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Market Observations: Significant Price Increases
A survey by VnExpress revealed that land prices in Long Bien district ranged from 100-135 million VND per square meter, reflecting a 30-40% increase within a year. A 41-square-meter house in an alley accessible by car was listed for 5 billion VND, equivalent to 123 million VND per square meter.
Even houses in small alleys in districts such as Nam Tu Liem and Ha Dong, where cars cannot reach, were being offered at 200-250 million VND per square meter, depending on size, location, and condition. Compared to early 2023, this represented a rise of more than 30%, bringing the total value of a 40-60 square meter house to around 9-15 billion VND, equivalent to some street-front houses in the same areas.
For example, a 35-square-meter house in Van Phuc ward, Ha Dong district, located in an alley less than 2 meters wide, was listed at nearly 8 billion VND (approximately 228 million VND per square meter) by the end of last year but has yet to find a buyer. This price has increased by 2.5 billion VND compared to its asking price at the beginning of the year. A real estate agent noted that the homeowner raised the price after renovating and upgrading the interior.
Infrastructure and Market Sentiment Driving Price Growth
Tran Quang Trung, Business Development Director at OneHousing, stated that infrastructure development has significantly reshaped suburban areas such as Long Bien, Nam Tu Liem, and Gia Lam. These areas also host many urban projects, leading to rising apartment prices, which in turn have driven up residential land prices.
Nguyen Chi Thanh, CEO of West Lake International Towers, pointed out that rising land prices in central Hanoi were partly influenced by the psychological impact of record-breaking land auctions in suburban districts late last year. Some auctioned plots in Hoai Duc and Ha Dong reached 15-16 billion VND, further fueling market sentiment and pushing up land prices in central districts.
However, following a series of record-breaking auctions, the market saw a widespread occurrence of buyers backing out of deals. Despite this, land prices remained elevated due to psychological factors affecting the market.
Thanh warned that when prices exceed actual value, it becomes a major barrier to transactions. "Many investors are now adopting a cautious and wait-and-see approach, and the FOMO (fear of missing out) sentiment in the real estate market has significantly declined," he noted.