Land prices, specifically, have witnessed a slight growth spurt, with estimates ranging from a 3-10% increase compared to previous periods. As evidence of this, according to batdongsan.com.vn, in Phuc Tho district, asking prices for land lots have been adjusted upwards by 3-5%. Meanwhile, in Thanh Oai, an increase of 5-7% has been recorded for land lots.
After the auctions, land prices in Thanh Oai tended to increase by 5-7%, but the number of actual transactions was low as many investors remained cautious, preferring to observe and grasp the market situation. Lots that were previously priced from VND 25-30 million/sqm have now increased to approximately VND 26-32 million/sqm. Similarly, subdivided lots have also been adjusted from VND 35-40 million/sqm to VND 37-45 million/sqm.
“Only a few lots in attractive locations have drawn interest from investors, while the majority of other land products have not seen significant transactions. Buyers are still cautious and observing the market,” said Dung, a land broker in Thanh Oai district.
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Earlier, in Thanh Oai district, during the auction of 68 land lots in Ngõ Ba, Thanh Than village, Thanh Cao commune, the winning bid price was extremely high, reaching VND 100.5 million/sqm, but 55 out of 68 lots were forfeited. The forfeited lots had winning bid prices of VND 80 million/sqm or higher, including the highest lot at VND 100.5 million/sqm. Only 13 lots with winning bid prices from VND 51.6 million to over VND 55 million/sqm were fully paid for.
Most recently, in Phuc Tho district, during the auctions on September 16, the highest winning bid price reached VND 75 million/sqm, more than three times the starting price. Previously, winning bid prices in previous auctions had also gradually increased, from about VND 60 million/sqm to VND 69.8 million/sqm.
Prospecting in Phuc Tho also revealed that the market did not fluctuate much after the auctions. Land prices in Trach My Loc commune increased from VND 8-27 million/sqm to VND 10-28 million/sqm, with lots along major roads priced above VND 15 million/sqm. In other communes such as Xuan Dinh, Phuc Hoa, and Tich Giang, prices ranged from VND 12-16 million/sqm.
The current reality reflects a shortage in the supply of land due to the new Real Estate Business Law prohibiting land subdivision and sale in 105 cities and towns, forcing enterprises to build houses on land for sale. Meanwhile, the demand for real estate, including both residential and investment needs, remains strong and continues to grow.
Experts from the Vietnam Real Estate Brokers Association also opined that land transactions in the outskirts are heating up but not bustling. The amount of demand converted into growing demand has increased, with more investors going “land hunting.” Some areas have seen localized transaction growth, followed by stagnation. Land prices in the outskirts of Hanoi show signs of “fever,” with prices increasing by 10-20% compared to the beginning of the year.
The land auctions in the outskirts of Hanoi, such as in Thanh Oai, Hoai Duc, and Phuc Tho districts, have created a widespread land fever. The high winning bid prices, often many times the starting price, have stirred up the land market in the outskirts. Experts also warn that pushing up land auction prices could be the result of speculative schemes, causing the actual value not to reflect genuine demand. The intention is to create land fevers. Individuals take advantage of auction deposits to manipulate the prices of related land areas. They even disregard the risks and legalize the prices by fully paying the winning bid amounts, using these prices as a basis to drive up land prices in the outlying districts, causing land prices to soar artificially in many places.
Duy Minh
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