Why is Real Estate in Bac Giang Still ‘Red Hot’?

Soaring Prices: A Northern Vietnam Real Estate Boom

Since the beginning of the year, land prices in many areas of Bac Giang province have been on a remarkable upward trajectory. According to Ms. Nguyen Thi Hoa, a real estate consultant in Bac Giang city, land prices in the southern part of the city have surged, with some lots appreciating by VND 2-3 billion per lot within just three months. In the outskirts, land prices in Tan My ward have increased by about 30%, while Dinh Tri ward has seen a 15-20% hike compared to January.

Notably, some land prices have skyrocketed in a short period. For instance, a lot near GO! Bac Giang supermarket, measuring 84 square meters, is now valued at nearly VND 8 billion, having witnessed a staggering increase of almost VND 2 billion in just one week.

Another lot, measuring 133 square meters, is priced at approximately VND 17 billion, VND 3 billion higher than a week ago. A different lot, spanning 75 square meters, is valued at about VND 7 billion, reflecting an increase of VND 1.7 billion. Despite these soaring prices, landowners are holding off on selling, anticipating further price hikes.

In the former Viet Yen town and Yen Dung district, land prices near the Quang Chau and Song Khe – Noi Hoang industrial parks range from VND 40-70 million per square meter, marking a 30-40% increase compared to the end of last year. Some lots in prime locations, adjacent to major roads, command slightly higher prices, reaching VND 70-80 million per square meter.

” Prices in some areas have reached the peak of 2022 and even surpassed it by about 30% ,” said Ms. Hoa.

A recent survey by PropertyGuru Vietnam, in collaboration with local brokers, revealed a price escalation of 10-15% in Bac Giang’s land prices compared to the end of last year. Certain areas witnessed even better performance, with increases of around 20%. Depending on the area, transaction volumes have also risen by 20-40% compared to six months ago.

Specifically, in Bac Giang city, land prices in the Ton Duc Thang area, near Big C supermarket, have climbed from VND 73-77 million per square meter to VND 84-90 million. In Tan My, near Cho Mia market, land prices have risen by 15% to VND 65-70 million per square meter since December 2024.

In less desirable locations like Dong Son, land prices have increased from VND 27-30 million per square meter to VND 31-36 million in less than six months. Similarly, land prices along Than Nhan Trung street in My Do ward have risen from VND 65-68 million to VND 72-78 million per square meter.

In Viet Yen district, land near the Van Chau industrial park, with a frontage along the main road, has experienced a price hike from VND 40-43 million to VND 45-52 million per square meter. Land in Quang Chau has also appreciated, with prices rising from VND 30 million to VND 34-37 million per square meter. Ninh Khanh land, adjacent to National Highway 1A in Nen town, Viet Yen, has seen a 15% increase since November 2024, now ranging from VND 55-58 million per square meter.

In Hiep Hoa district, land along the main road in Thang town has witnessed a price surge from VND 70-75 million to VND 80-84 million per square meter. Land along National Highway 37, also in this area, has increased by 10% since the Lunar New Year holiday, now ranging from VND 28-35 million per square meter. Meanwhile, land in the Bac Ly residential area has risen from VND 38-40 million to VND 42-44 million per square meter.

Explaining the reasons behind the significant land price increases in Bac Giang since the beginning of the year, many investors and brokers attribute it to the province’s proximity to Hanoi and its long-standing appeal as a satellite market. Additionally, the ongoing development of infrastructure and industrialization continues to fuel demand for housing, services, and land. This combination of factors is particularly attractive to long-term investors with a strategic vision.

In the near future, the province is expected to commence work on several major infrastructure projects, including the Ring Road 4, the expanded Bac Giang – Lang Son expressway, and planned connections to neighboring provinces like Hai Duong and Quang Ninh.

Furthermore, industrial parks such as Quang Chau, Van Trung, and Hoa Phu continue to attract FDI, further boosting the demand for housing, services, and land. This dynamic is particularly appealing to investors with a long-term outlook, who often consider reshuffling their portfolios to ride the wave of infrastructure and industrialization in this promising region.

Expert Advice and Cautions

Mr. Vu Cuong Quyet, CEO of Dat Xanh Northern, pointed out that land prices in many localities, including Bac Giang, have been significantly impacted by the news of provincial mergers.

However, he cautioned against a common misconception among Vietnamese investors, which is the belief that ” being close to administrative headquarters equals higher land prices .”

Mr. Quyet explained, ” Many people assume that being close to administrative headquarters means higher land prices. In reality, such areas primarily cater to civil servants and require tranquility and solemnity, thus not attracting a significant population or economic activity. Property prices only soar in areas with robust economic development and convenient transportation .”

He referenced the case of Ha Tay and Me Linh being merged into Hanoi in 2008. At that time, there were high expectations that land prices in Ha Dong, Son Tay, and Me Linh would surge immediately after the merger. However, it took a decade or more for prices to eventually rise due to infrastructure and economic development.

Therefore, Mr. Quyet advised investors not to have overly high expectations and rush into land hoarding, as property prices are influenced by economic factors and infrastructure development rather than solely by administrative centers.

Sharing a similar viewpoint, Mr. Nguyen Quoc Anh, Deputy General Director of PropertyGuru Vietnam, emphasized that while land remains a promising segment, it doesn’t guarantee success everywhere. Investment outcomes depend on specific areas and timing.

In reality, many investors who entered the land market during the peak of the fever have since faced liquidity challenges and even incurred losses when in urgent need of cash. Without thorough research, investors are vulnerable to significant risks.

Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association (VARS), warned that some individuals and organizations have been exploiting the news of provincial mergers to create artificial frenzies, playing on the fear of missing out among consumers and investors.

He advised investors to exercise caution and thoroughly research land prices and upcoming changes in the area’s master plan to assess risks and growth potential before making any investment decisions.