Real estate around Ring Road 4 is experiencing another surge in demand.

Mr. Tran Van Minh, an investor in Hanoi, said that in early 2024, he bought a plot of land in an alley about 3 meters wide in Tien Yen commune (Hoai Duc district) for 40 million VND/m2.

To date, the price of land in the same location he bought has increased to 50-60 million VND/m2, a 20-30% increase compared to the beginning of the year.

" Tien Yen commune is one of the areas where Ring Road 4 passes through, so it's normal for land prices to increase 'following' the infrastructure ," Minh shared.

According to Mr. Minh, not only Tien Yen commune, but also many other communes with Ring Road 4 passing through them have seen good price increases, such as Duc Thuong and Duong Lieu.

Not only in Hoai Duc district, but also in many other districts through which Ring Road 4 passes, such as Soc Son, Thuong Tin, and Me Linh districts, land prices have increased sharply since the beginning of the year.

For example, in the Dai Thinh, Thanh Lam, and Kim Hoa areas (Me Linh district), where Ring Road 4 runs through, land prices on main roads range from 40-55 million VND/m2, an increase of about 20% compared to the beginning of the year. Land plots in alleys accessible by car are priced at 22-25 million VND/m2, an increase of nearly 20% compared to the beginning of the year.

Real estate prices around the Ring Road 4 have increased by 30% in many areas since the beginning of the year. (Illustrative image).

A recent survey by PropertyGuru Vietnam also shows that land prices along the Ring Road 4 are clearly trending upwards.

Compared to six months ago, land prices in Me Linh district, particularly in urban areas like Ha Phong and Cienco 5, have increased from 45-55 million VND/m2 to 55-64 million VND/m2. In Dan Phuong district, land plots along Tan Lap road have also seen price increases from 48-55 million VND/m2 to 54-65 million VND/m2; land plots along Tan Hoi road in Dan Phuong are currently being offered at 55-66 million VND/m2, an increase of 2-5 million VND/m2 compared to five months ago.

Similarly, land prices in Ha Dong and Yen Nghia areas, where Ring Road 4 passes through, have increased from 58-64 million VND/m2 to 63-72 million VND/m2.

In the Bac Vong and Bac Phu areas of Soc Son district, where the Ring Road 4 passes through, land prices have increased from 11-17 million VND/m2 to 15-24 million VND/m2.

Land prices in Thanh Oai, particularly in areas near Ring Road 4, have also increased from an average of 55-60 million VND/m2 to 58-65 million VND/m2 compared to May 2024.

In addition to price increases, a survey by PropertyGuru Vietnam also noted that the number of investors inquiring about land plots along the Ring Road 4 in Q4 2024 tended to increase by about 30% compared to previous quarters.

In areas traversed by Ring Road 4, such as Soc Son, Me Linh, Thanh Oai, and Dan Phuong, the volume of transactions increased by 10-20% compared to the months of Q3 2024, depending on the specific area.

In fact, investment capital tends to be more abundant towards the end of the year. Investors with idle funds are starting their acquisition plans, so the land market along the Ring Road 4 is becoming more vibrant.

According to real estate agent Tran Duc Vinh, who deals in land plots in the Ha Dong area, purchasing power is trending strongly upward along with an influx of capital into the market.

" It is expected that the upward trend in purchasing power and selling prices will continue until before the Lunar New Year 2025. Land plots along the Ring Road 4 will be a vibrant market at the end of the year ," Mr. Vinh said.

Mr. Vinh also emphasized that land plots along the Ring Road 4 represent a longer-term market, suitable for investors with substantial capital, with a timeframe of 5 years or more. Infrastructure is only one aspect; economic development plays a crucial role alongside infrastructure.

After the completion of Ring Road 4, it will take time for economic development to go hand in hand with transportation infrastructure. These two factors combined will drive sustainable growth in the real estate market. Therefore, investors need to be patient and shouldn't expect immediate profits through speculative trading.

According to Mr. Nguyen The Diep, Vice Chairman of the Hanoi Real Estate Club, many real estate projects have begun to be planned around the Ring Road 4 area. As these projects are accelerated, real estate prices will increase, and areas with prime locations will become "hot spots".

Mr. Le Dinh Chung, a real estate expert, also believes that land prices along the Ring Road 4 have increased too much recently. In the future, when this road is completed and put into use, land prices may continue to rise, but this increase will be in the long term. In the short term, investors may make immediate profits, but they must be prepared for long-term investment.

Sharing the same view, Dr. Nguyen Van Dinh - Chairman of the Vietnam Association of Real Estate Brokers (VARS) - believes that newly built and expanded transportation infrastructure truly brings significant value to nearby real estate. However, the implementation of these infrastructure projects must be long-term.

" Information about price surges and 'land fever' is just a tactic used by market manipulators to create market volatility. Investors need to be extremely cautious, thoroughly research the market, understand planning regulations, and assess liquidity to avoid the risk of having their capital tied up, " Mr. Dinh warned.

The VARS chairman also stated that when deciding to invest, investors must understand two factors: the potential for price appreciation and the progress of infrastructure development. About a year ago, some areas around the Ring Road 4 experienced a phenomenon of hoarding, driving up real estate prices.

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