“The Perimeter of Hanoi: Why Outskirts Land Prices Surged by 74% in Just 2 Months”

Infrastructure Boost Fuels Interest in Land Lots

Since the beginning of the year, there has been a notable improvement in the land lot segment. According to data from Batdongsan.com.vn, there has been a significant increase in both interest and land prices in Hanoi. Specifically, the Hanoi land market in March 2025 saw a 52% increase compared to February 2025. Compared to January 2023, Hanoi land prices had risen by 42% by March 2025. Notably, Hanoi consumers are particularly interested in peripheral land lots.

According to Batdongsan.com.vn data, in the first two months of 2025, depending on the area, the asking prices for peripheral land lots in Hanoi increased by 30-80%. The area with the most significant data fluctuation was Quoc Oai district, with a 74% increase.

The attention and price increase in Quoc Oai land lots can be attributed to significant investments in transportation infrastructure. Specifically, major routes such as the Thang Long Boulevard, the Lang – Hoa Lac Highway, National Highway 21, and Provincial Road 412B are reducing travel time between Quoc Oai and the city center. In addition to improving center and inter-regional connectivity, trade between Quoc Oai and other areas is also being enhanced.

Furthermore, information about the Metro Line 5 (Van Cao – Hoa Lac) project and the planned construction of the Central Obstetrics Hospital’s second facility and the Central Pediatric Hospital’s second facility have stimulated investor psychology.

Additionally, at the end of 2024, Quoc Oai simultaneously commenced the construction of three industrial clusters: the Ngoc My-Thach Than handicraft industrial cluster, the Liep Nghia handicraft village industrial cluster, and the expanded Ngoc Liep industrial cluster.

All these factors have created a significant boost for the real estate market in this Hanoi suburb. This has resulted in a price surge in the Quoc Oai land market over the past period.

Market Exhibits Unusual Behavior

The Quoc Oai land market has witnessed high interest, from auctioned land to land owned by individuals. In terms of auctioned land, the most recent auction in Ngoc My in early April involved 35 land lots ranging from 75 to 142.9 sq m, with a starting price of VND 8.3 million per sq m. The auction concluded with a record-breaking highest price of VND 119.3 million per sq m, while the lowest price was VND 35.3 million per sq m.

Previously, in March 2025, an auction of 26 land lots in Yen Quan village, Hung Dao commune, with a starting price of over VND 5 million per sq m, saw the highest price reached VND 104 million per sq m, while the lowest was VND 62 million per sq m.

Not only auctioned land but also land owned by individuals has seen significant price increases. According to Batdongsan.com.vn’s survey, land lots near the Thang Long Boulevard in Ngoc My have increased from VND 40-45 million per sq m to VND 52-60 million per sq m. In Ngoc Liep, adjacent to Ngoc My, land lots near the Thang Long Boulevard have risen from VND 40-43 million per sq m to VND 45-52 million per sq m.

Land along Provincial Road 421B, about 1 km from the two hospitals (the Central Obstetrics Hospital’s second facility and the Central Pediatric Hospital’s second facility) and 1.5 km from Quoc Oai town center, has increased in price from VND 60-70 million per sq m to VND 68-85 million per sq m. Land in Ngoc My village, near the two hospitals, is also being offered for sale at prices ranging from VND 25-30 million per sq m, compared to the previous year’s range of VND 20-24 million per sq m.

However, the level of interest in peripheral land lots in Hanoi, including Quoc Oai, has not increased proportionally and even shows signs of stagnation or slight decline. This partly reflects that the number of transactions has not seen much change compared to the previous year.

Brokers in the area say that while prices have risen, the number of transactions in the market is not very high. In reality, the actual market demand is concentrated on lots below VND 1.5 billion, and this segment attracts the most local buyers.

Compared to land lots in other areas, such as those in the east, north, and some areas benefiting from mega-projects and large transportation infrastructure projects in Hanoi, including Dan Phuong, Hoai Duc, and Dong Anh, Quoc Oai land lots have not attracted many investors from Hanoi’s city center.

Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, attributed this small-volume transaction trend to several reasons: “First, land prices in Hanoi’s suburbs have been continuously increasing over the years, causing many investors and buyers to adopt a wait-and-see approach. Additionally, after the announcement of the planned merger of some provinces, speculators tend to seek opportunities in provincial areas rather than focusing on land adjacent to the capital as they did before.”