The New Real Estate Wave: Suburban Land on the Outskirts of Hanoi

Mr. Nguyen Tuan Tu, a real estate investor in Hanoi, shared that he purchased a piece of land in a three-meter-wide alley in Tien Yen commune, Hoai Duc district, at the beginning of 2024 for VND 40 million per square meter. Today, similar plots in the same location are being advertised for VND 60-70 million per square meter, almost double the original price.

“The presence of the Belt Road 4 in Tien Yen commune might be a factor in the land price increase,” said Mr. Tu.

Mr. Tu also noted that other communes along the Belt Road 4, such as Duc Thuong and Duong Lieu, have witnessed similar price hikes.

Market surveys reveal that the surge in land prices is not limited to Hoai Duc district but has also occurred in other districts through which the Belt Road 4 passes, including Soc Son, Thuong Tin, and Me Linh. The prices of land plots in these areas have risen sharply in recent times.

In Hoang Kim commune, Me Linh district, a land plot near the planned Belt Road 4 that was priced at just over VND 20 million per square meter a year ago now costs nearly VND 30 million. Some locations close to the main road can even reach VND 35-40 million per square meter, representing a 50-70% increase.

In Song Phuong commune, Hoai Duc district, a 60-square-meter plot of land originally purchased for VND 1.6 billion is now being resold for approximately VND 2.3-2.5 billion.

In Tan Hoi, land plots on the main road are being advertised at record-breaking prices of VND 150-250 million per square meter, a significant jump from the VND 110-160 million per square meter asked for in the fourth quarter of 2024.

For instance, a 73-square-meter plot on the main Phan Xich road is being offered for nearly VND 15.5 billion, equivalent to VND 212 million per square meter. The seller believes that the price could even reach VND 350 million per square meter.

Another plot in a more favorable location on Nguyen Thai Hoc Street (the old Highway 32, in Phuong Town) is advertised at over VND 200 million per square meter. These plots have appreciated by about 50% compared to a year ago.

According to numerous brokers in Hoai Duc, Me Linh, Thuong Tin, and Thanh Oai, the number of inquiries about land plots along the Belt Road 4 hot spots has doubled or tripled compared to the same period last year. However, many callers are just inquiring about prices, and some are deterred by the high asking prices, fearing a market bubble.

Not a Short-Term Investment

Mr. Tran Duc Vinh, a land broker in Ha Dong, has observed continuous price increases for land plots along the Belt Road 4 since the project’s inauguration in June 2023. However, based on his experience, Mr. Vinh believes that investing in land along the Belt Road 4 is a long-term play, suitable for investors with substantial capital and a time horizon of at least five years. He emphasizes that infrastructure is just one aspect, and economic development is equally crucial.

Following the completion of the Belt Road 4, it will take time for the economy to catch up with the improved transportation infrastructure. These two factors combined will drive sustainable growth in the real estate market. Therefore, investors need to be patient and not expect to make quick profits through short-term speculation.

Mr. Nguyen The Diep, Vice President of the Hanoi Real Estate Club, notes that several real estate projects are already being planned along the Belt Road 4. As these projects progress, they will drive up property prices, and areas with desirable locations will become “hot spots.” However, investors must exercise caution before committing capital, as history has shown that infrastructure development does not always guarantee rising real estate prices.

Mr. Le Dinh Chung, a real estate expert, predicts that land prices along the Belt Road 4 have already risen too high. In the future, when the road is completed and operational, land prices may continue to increase, but this growth will occur over the long term. In the short term, investors may struggle to turn a profit, so a long-term investment mindset is essential.

Sharing this view, Dr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association (VARS), emphasizes that new or expanded transportation infrastructure significantly enhances the value of adjacent real estate. However, he cautions that such infrastructure projects are long-term endeavors.

“The information about surging prices and ‘land fever’ is often a tactic employed by speculator groups to create market waves. Investors need to thoroughly research the market, understand the planning and liquidity, to avoid the risk of capital entrapment,” warned Dr. Dinh.

The VARS Chairman also advises investors to consider two critical factors when deciding to invest: the potential for price increases and the progress of infrastructure development. More than a year ago, some areas along the Belt Road 4 witnessed land hoarding and price manipulation, driving up real estate prices.