The Newest Trend in Real Estate: Exploring the Surging Land Prices in Hanoi’s Outskirts

Quoc Oai district sees the highest increase in land asking prices at the beginning of the year

According to data from the Batdongsan.com.vn technology platform, in the first two months of 2025, land asking prices in the outskirts of Hanoi increased by 30-80%, with Quoc Oai district witnessing a notable 74% surge.

A survey in Hung Dao ward (formed by the merger of Tan Phu and Dai Thanh wards) – the area with the highest land price increase, revealed that land prices on the main road ranged from VND 70-80 million/sqm, while land in the alleyways fetched VND 40-60 million/sqm. Moreover, several auction plots in Hung Dao ward achieved impressive prices, with the highest at VND 104 million/sqm and the lowest starting from VND 62 million/sqm, benefiting from the Ring Road 4 infrastructure project.

In Dong Quang ward, land prices also increased by 25%. Specifically, land on the main road that was priced at around VND 40 million/sqm last year has now increased to VND 50 million/sqm, while land in the alleyways has risen from VND 25 million/sqm to VND 30-33 million/sqm.

Ngoc My ward, which is home to the Central Pediatric Hospital’s second branch, has also seen an increase in land prices.

In the Hoa Thach area, land prices for car-accessible plots have increased from VND 21-23 million/sqm to VND 23-25 million/sqm. Along the provincial road 412B, land prices in Dong Yen have also risen from VND 37-41 million/sqm to VND 40-43.5 million/sqm.

Even plots located deep in the villages have experienced significant price increases, climbing from VND 9-11 million/sqm to VND 10.5-12 million/sqm. Land prices in Phu Man and Phu Cat wards have also seen modest increases, with Phu Man rising from VND 12-13 million/sqm to VND 13-14 million/sqm, and Phu Cat increasing from VND 10-13 million/sqm to VND 11.5-14 million/sqm.

Not only have asking prices increased, but land auction prices in Quoc Oai district in the first three months of 2025 have also been on an upward trajectory, continuously setting new records. Starting from VND 4.7-8.3 million/sqm, auction prices have climbed to VND 76 million/sqm, then to VND 104 million/sqm, and currently stand at VND 119.3 million/sqm.

Despite riding the wave of land auctions, Quoc Oai district unexpectedly postponed two auctions scheduled for April at the request of the district’s Land Development Center. These auctions were supposed to take place in Sai Son and Yen Son wards, but the new dates have not been announced yet.

Distressed land sales emerge

After a few months of surging land prices, Quoc Oai is showing signs of cooling down. Notably, difficult transactions have prompted many landowners to rush to sell their land at a loss.

Ms. Nguyen Tuyen, from Ha Dong district, Hanoi, shared that she bought a 100 sqm plot with a 5-meter frontage in Phu Cat ward, Quoc Oai district, for VND 28 million/sqm last year, intending to flip it for a quick profit. Initially, Ms. Tuyen listed the land for VND 3.2 billion, but after more than a month, she still couldn’t find a buyer. Now, as she needs money to send her child abroad for studies, she is willing to accept a loss of VND 300 million compared to the market price to sell quickly.

Similarly, Mr. Pham Dong is also selling his 300 sqm plot in Vai Reo resettlement area, Quoc Oai district, at a loss of VND 350 million. Mr. Dong mentioned that the plot has been divided into three red books, and the price is lower than the market rate.

Mr. Vu Tuan Anh, a real estate broker in Quoc Oai, said that many customers have asked him to sell their land, including distressed sales. For example, he is currently listing a 243 sqm plot with 200 sqm of residential land in Dong Yen ward at a distressed price of VND 27 million/sqm, while the price of similar plots in the surrounding areas is VND 31 million/sqm.

According to a survey of real estate trading groups in Quoc Oai, many land plots are being offered for distressed sale, with losses ranging from VND 100-300 million.

Mr. Ba Linh, a Hanoi real estate broker, said that the Quoc Oai area has not seen any significant urban development projects, so the recent land price increases in some wards are mainly due to the Ring Road 4 infrastructure and the Central Pediatric Hospital’s second branch.

Meanwhile, Mr. Linh added that land prices in Quoc Oai town have remained stable, ranging from VND 80-100 million/sqm, but there are no sellers. He believes that many of those currently offering distressed sales might have bought the land when prices were at their peak.

A representative from the Hanoi Land Registration Office, Quoc Oai branch, stated that while the local real estate market has attracted a lot of attention lately, the number of transactions has not increased proportionally. Overall, the market has not witnessed any significant fluctuations or explosive liquidity.

The leader of a Hanoi-based real estate enterprise observed that the land market has cooled down, and liquidity has decreased. Additionally, some land investors in the outskirts are looking for ways to offload their investments.

“Since the beginning of March, the news about the merger of provinces and cities has prompted investors to focus on areas predicted to become administrative centers. However, prices in these areas have quickly escalated, while infrastructure remains unchanged, and transactions are mostly speculative rather than driven by actual demand,” the leader commented.

Currently, some investors are adopting a wait-and-see approach and are not rushing to invest in land, while others are exploring alternative investment channels. As a result, land transactions in outlying areas that previously experienced surging prices have now slowed down, the leader added.