Brian Jeffrey
The recent land price assessments are in line with values seen in surrounding regions, making them expected rather than surprising.
For instance, the 40-kilometer Van Cao – Tran Duy Hung – Thang Long Boulevard route, which connects to Ba Vi, provides a benchmark. Properties along Van Cao street near West Lake are trading for between VND500-900 million per square meter, while those on Tran Duy Hung are valued at VND400-600 million per square meter. Further, villas in the nearby Vinhomes area by Big C Supermarket reach prices of VND1 billion per square meter.
In contrast, land costs are significantly lower in adjacent districts, where the Song Phuong embankment area sees prices of VND120 million per square meter, and land just 3 kilometers away priced at VND200 million per square meter.
Given these comparisons, an awarded price of VND133 million per square meter for land in Hoai Duc is justifiable, especially considering its proximity to the under-construction Belt Road No 4, Thang Long Boulevard, and its location just 11 kilometers from Big C.
Hanoi’s apartment market exhibits even steeper price hikes, with VND40 million per square meter no longer a reality. Current listings show prices have soared 2-3 times since previous years, with many properties going for between VND80 million and VND100 million per square meter.
Nguyen Van Dinh, deputy chair of the Vietnam Real Estate Association, remarked, “Price increases have been drastic.”
This rise in prices raises concerns given the ongoing challenges in the national economy and the real estate sector. According to Dinh, “The persistent price growth in Hanoi stems from a limited supply.”
There have been few approved real estate projects in Hanoi over the last few years, attributed to regulatory hesitance in granting licenses. From early 2024 to September, only nine projects met the criteria for market launch. Following 2025, it’s anticipated that 26 projects will yield 9,900 apartments, alongside 36 additional projects with a prospective supply of 49,000 apartments currently winding through administrative processes in several districts.
The city’s population is projected to grow by 200,000 annually, matching the size of a large district. A 2019 report indicated that from 2014 to 2019, Hanoi added 1.3 million residents, with 1.2 million settling in inner districts.
Though Hanoi has expanded its geography over the last 16 years and updated its zoning plans, execution has lagged. Population density continues to escalate, particularly in the city’s center, where the average is 2,398 people per square kilometer—8.2 times higher than the national average—and reaches 39,830 per square kilometer in the Old Quarter, a staggering 138 times more.
This discrepancy between rapidly rising population figures and housing supply incapacity has exacerbated demand; many seek to purchase land and apartments for themselves and future generations, while new offerings remain limited. The resulting price increases in real estate seem unavoidable.
Experts indicate that Vietnam’s land market remains in its infancy, suffering from insufficient regulations that lead to ‘distortion’ in the market.
To foster urban development as per approved plans, it is vital to advance the growth of the two independent urban regions: one to the north of the Red River (Me Linh, Soc Son, and Dong Anh) and another to the west (Hoa Lac – Xuan Mai).
Moreover, constructing urban railways to facilitate travel between these areas is essential.
Land set aside for urban rail on the Thang Long Boulevard route is ready, eliminating the need for lengthy clearance processes. As a result, engaging private investors for project implementation is advisable.
Additionally, expediting approvals for new projects will significantly boost housing supply.
