Investors Ready to Speculate on Land Prices Near the Hanoi-Hoa Lac Metro Line
Ever since the announcement of the 38km-long Hanoi – Hoa Lac urban railway project connecting Van Cao and Hoa Lac, set to begin construction by the end of this year, the real estate market in areas near the stations – especially the terminus in Yen Bai and Tien Xuan in Thach That districts – has unexpectedly become a hot spot for property investors.
Among these areas, the resettlement area of Dong Doi (Yen Bai) and Bai Dai (Tien Xuan) have witnessed a rapid increase in land prices within just a few weeks.
In Dong Doi, land prices have skyrocketed from 22-25 million VND per square meter to 32-35 million VND per square meter within just a month.
In Bai Dai, located near the terminus, land prices currently range from 30-35 million VND per square meter, reflecting a more than 30% increase compared to mid-March. These figures indicate an unprecedented speculative wave heading towards this region, which was once considered distant from the city center.
Mr. Nguyen Van Phu, an experienced real estate broker in Tien Xuan, shared: “I have never seen such a vibrant market in this area. From mid-March until now, there have been investors coming to survey and purchase land every day. Many people only need to glance at the red book (land use right certificate) and the location before deciding to put down a deposit. There was a case where a piece of land was sold to another buyer on Friday, just a few days after the initial deposit was made on Monday, earning a profit of over 300 million VND.”
The terminus of the Hanoi-Hoa Lac Metro line attracts investors. Photo: Ngoc Cuong |
According to Mr. Phu, the main reason for the sudden surge in land prices is the “wave-surfing” phenomenon, where investors buy and sell properties quickly to profit from price differences.
“I know some investors who made a profit of several hundred million VND within just a few days,” he said. “This has created a gold-rush mentality among investors. However, such rapid increases are usually unsustainable.”
Ms. Le Thanh Hoa, a broker in the Dong Doi area, shared a similar sentiment: “The rapid increase in prices has led to a change of heart not only among investors but also among landowners.
There have been cases where the seller accepted a deposit but, seeing the market price jump by 3-5 million VND per square meter within a few days, decided to break the contract and return the deposit. Some landowners are even willing to pay double the deposit amount to keep the land and wait for higher prices.”
Missing the Wave
However, not everyone managed to ride the wave successfully. Mr. Nguyen Hai Dang, a broker in the terminus area, observed that the market is showing signs of stagnation.
“The price increase is artificial and unsustainable. Many people thought that buying now would guarantee a profit since the land price increased by 10 million VND per square meter in just a month. But now, no one is buying anymore. The current price of 35 million VND per square meter in Tien Xuan is too high compared to the actual infrastructure,” he commented.
Mr. Hai Dang further noted that many investors are now stuck with their properties, unable to sell even after investing billions of dong. “Quite a few people unintentionally became long-term landowners, hoping to turn over their investments within a month,” he added.
Mr. Tran Tuan Vu, an investor from Cau Giay, Hanoi, shared his experience of having to forfeit a deposit of 100 million VND for a piece of land in Bai Dai after the price surge peaked and the market showed signs of slowing down.
“While waiting for the land use certificate, I tried to find buyers to make a profit, but most investors who came to inquire left because the price was too high. Realizing the risk, I decided to cut my losses and give up the deposit,” Mr. Vu said.
On the other hand, Ms. Bach Thi Huong, a novice investor from Bac Ninh, was unable to offload her investments when the market started to cool down.
“I bought two plots of land in Tien Xuan, hoping to quickly flip them within two weeks. But in the third week, the market suddenly cooled down, and there were hardly any inquiries. Now, I can only wait and hope for the market to heat up again,” she shared.
The allure of improved transportation infrastructure, especially the Hanoi-Hoa Lac Metro line, has turned the suburban areas into a speculative hotspot. However, this short-term land fever has also exposed investors to various risks, including broken contracts, failed speculation attempts, and a stagnant market due to prices being pushed too high, too fast.
Ngoc Cuong
– 05:30 12/05/2025
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