The New Price Cycle for Land: Which Areas are Seeing the Biggest Increases and Why Investors are Taking Notice

In the first two months of 2025, asking prices for land on the outskirts of Hanoi increased by 30% to 80% depending on the area, with Quốc Oai recording a 74% increase, according to data from Batdongsan.com.vn. This indicates that land prices in the outskirts continue to show positive growth after a year. However, the number of people interested in land did not increase proportionally and even showed signs of stagnation or slight decrease. This somewhat reflects that the number of transactions has not seen much change compared to the previous year.

Mr. Nguyễn Quốc Anh, Deputy General Director of Batdongsan.com.vn, gave some reasons for this trend: “First, land prices in the outskirts of Hanoi have been continuously increasing in recent years, causing many investors and buyers to have a wait-and-see attitude towards the market. Moreover, after the news about the planned merger of some provinces, speculators tend to look for opportunities in provincial areas instead of focusing on land near the capital as before.”

Immediately after the news of the merger came out, the demand for real estate in the related localities increased significantly, reflecting investors’ interest. Big data from Batdongsan.com.vn shows that the level of interest in areas such as Nhon Trach increased by 41%, Thuân An (Bình Dương) and Di An (Bình Dương) increased by 26% and 23%, respectively.

Real estate prices in these areas also showed signs of increasing, but not evenly. Binh Duong maintained a stable growth trend, indicating sustainable development. However, in Nhon Trach and Ba Ria Vung Tau, prices had increased by 20-30%, approaching the peak of 2022 – when many large investors exited. This raises the question of whether the market is being pushed up too quickly and whether there is a potential risk of adjustment.

According to Mr. Đinh Minh Tuấn, Southern Regional Director of Batdongsan.com.vn, this period entails many risks, especially for new market entrants. Real estate prices are not only dependent on merger information but also influenced by many other factors such as infrastructure, location, employment needs, immigration, and the local economic foundation. He advised buyers and investors to be aware of the risks: planning may change or the merger may take longer than expected; the risk of buying at a price higher than the actual value, especially in hot spots.

Mr. Đinh Minh Tuấn emphasized: “The merger is a great opportunity, but it is necessary to be mindful of buying in the right place at the right time, avoiding following the crowd.”