Bac Giang real estate is still "hot", why?

After the news of merging the two provinces of Bac Giang and Bac Ninh into the new Bac Ninh province, the political-administrative center located in Bac Giang province has calmed down, real estate in many localities has cooled down, but land prices in Bac Giang have continued to increase since the beginning of the year.

Rapid increase

Since the beginning of the year, land prices in many areas in Bac Giang have tended to increase sharply. According to Ms. Nguyen Thi Hoa, an employee of a real estate consulting office in Bac Giang city, the prices of many plots of land in the southern part of the city have increased by 2-3 billion VND/plot in just the past 3 months. In the suburbs, land prices in Tan My ward increased by about 30%, and in Dinh Tri ward increased by 15-20% compared to January.

Illustration photo.

In particular, there are plots of land that have increased in price sharply in a short period of time. For example, a plot of land in a project near GO! Bac Giang Supermarket with an area of 84 square meters is currently priced at about 8 billion VND, and at one point it increased by nearly 2 billion VND in just 1 week.

Or another plot of land with an area of 133m² costs about 17 billion VND, about 3 billion VND higher than last week. Another plot of land with an area of 75m² costs about 7 billion VND, 1.7 billion VND higher. Even though the price is high, the landowner has not sold it yet because he is waiting for it to increase further.

In Viet Yen town and the old Yen Dung district, land prices in the area near Quang Chau Industrial Park and Song Khe - Noi Hoang Industrial Park are currently fluctuating between 40 - 70 million/m2, an increase of 30 - 40% compared to the end of last year. Some plots of land with beautiful locations, adjacent to major roads, have slightly higher prices, at 70 - 80 million/m2. "Some places have reached the peak price of 2022, even exceeding the old peak by about 30%," said Ms. Hoa.

A recent survey by PropertyGuru Vietnam with local brokers also recorded that the price increase of land in Bac Giang reached about 10-15% compared to the end of last year. Some places had better increases, reaching about 20%. Depending on the area, the number of transactions also increased from 20-40% compared to half a year ago.

Specifically, in Bac Giang city, land in Tan My, near Mia market, is offered for sale at 65-70 million VND/m², an increase of 15% compared to December 2024.

In less desirable locations such as Dong Son, land prices increased from VND27-30 million/m² to VND31-36 million/m² in less than half a year. Land on Than Nhan Trung Street in My Do Ward also increased from VND65-68 million/m² to VND72-78 million/m².

In Viet Yen town, land near Quang Chau Industrial Park, located on the frontage of the business street, has also increased from 40-43 million VND/m² to 45-52 million VND/m². Land in Quang Chau has also increased in price from about 30 million VND/m² to 34-37 million VND/m². Land in Ninh Khanh area, next to National Highway 1A in Nenh town, increased in price by 15% compared to November 2024, reaching 55-58 million VND/m².

In Hiep Hoa, the price of commercial frontage land in Thang town increased from 70-75 million VND/m2 to 80-84 million VND/m2. Land on National Highway 37 in this area also increased by 10% compared to before Tet, reaching 28-35 million VND/m2. Meanwhile, land in Bac Ly residential area increased from 38-40 million VND/m2 to 42-44 million VND/m2.

Explaining the reason why Bac Giang land has increased sharply since the beginning of the year, many investors and brokers said that Bac Giang is a satellite market bordering Hanoi , has been bustling for many years and up to now, the attraction is still very large due to the driving force of infrastructure and industrial development.

In the near future, the province will deploy the 4th ring road, the expanded Bac Giang - Lang Son expressway, and plan connecting routes to Hai Duong, Quang Ninh...

In addition, industrial parks such as Quang Chau, Van Trung, Hoa Phu continue to attract FDI, leading to an increase in demand for housing, services and land. This creates an attraction for investors with a long-term vision. Most of them will consider restructuring their portfolios and catching the wave of infrastructure - industrialization in this land of great potential.

What do experts recommend?

Mr. Vu Cuong Quyet - General Director of Dat Xanh Mien Bac Company said that recently, land prices in many localities, including Bac Giang, have fluctuated greatly due to information about the merger of provinces and cities. However, according to him, a common mistake that Vietnamese investors are currently making is the view that "land prices increase when they are close to administrative headquarters".

Mr. Quyet explained: “Many people think that land prices are high near administrative headquarters. In fact, this area only serves civil servants and requires quietness and solemnity, so it does not create a great attraction in terms of population or economic activities. Real estate prices only break out strongly in places with developed economy and convenient transportation."

Mr. Quyet mentioned the case of merging Ha Tay province and Me Linh district into Hanoi in 2008. At that time, many people expected land prices in Ha Dong, Son Tay or Me Linh to “take off” immediately after the merger. However, in reality, it took 10-15 years for land prices to increase thanks to infrastructure and economic development.

Therefore, Mr. Quyet also advised that investors should not have too high expectations to rush to buy land and then get stuck. Real estate prices depend on the economy and infrastructure, not the administrative center.

Sharing the same view, Mr. Nguyen Quoc Anh - Deputy General Director of PropertyGuru Vietnam also commented that land is still a potential segment but that does not mean that "buying anywhere will win". Investment efficiency depends on each specific area and time.

In fact, many investors rushed into land at the peak of the fever but then encountered difficulties in liquidity, even having to cut losses when they urgently needed money. If they do not research carefully, investors can easily face risks.

Mr. Nguyen Van Dinh - Chairman of the Vietnam Association of Realtors (VARS) said that recently, taking advantage of information about the merger of some localities, many individuals and organizations have grasped the psychology of consumers and investors, played on the crowd psychology, created FOMO syndrome (fear of missing out on opportunities) and stimulated the demand for real estate purchases.

Mr. Dinh warned investors to be cautious of “virtual fevers”. They need to carefully study the land price level in the area they plan to invest in and understand the progress of planning changes to assess risks and growth potential.

According to VTC News

Source: https://baobacgiang.vn/bat-dong-san-bac-giang-van-sot-nong-vi-sao--postid418199.bbg