The Ministry of Construction speaks frankly about the land price surge in Hung Yen and Bac Ninh.

TPO - The Ministry of Construction stated that at the end of the first quarter, there was a localized land price surge in some localities such as Bac Ninh, Hung Yen, and Hai Phong, causing land prices to rise rapidly, but transactions during this period were mainly speculative.

Báo Tiền Phong•30/07/2025

Land prices surge due to speculation anticipating merger news.

According to the Ministry of Construction's report on housing and the real estate market in the second quarter of this year, the land plot segment saw more than 122,500 successful transactions in the second quarter (an increase of 21.3% compared to the first quarter and equal to 98% compared to the same period in 2024).

Notably, at the end of the first quarter, there was a localized land price surge in several provinces such as Bac Ninh , Phu Tho, Ninh Binh, Hung Yen, Hai Phong, and Dong Nai... Land prices in these localities increased rapidly following information about the merger of provinces and cities and the reorganization of new administrative units.

However, according to the Ministry of Construction, transactions during this period were primarily speculative in nature.

Land prices in some localities are soaring ahead of merger announcements.

In response to this situation, local authorities issued warnings to the public and implemented control measures, strengthening the management of the real estate market in their areas. As a result, land transfer prices have been brought under control by local authorities.

A report by the Vietnam Association of Real Estate Brokers (VARS) also indicated that, in the first half of the year, information about the merger of provinces and cities caused land prices in many localities to increase rapidly.

The sharpest price surge in the market began from the second half of March to the beginning of April. At the peak, some properties saw price increases of up to 40%. However, the "fever" quickly cooled down after a very short time.

In some localities, the asking price for land plots has increased slightly by 3-5% compared to the previous quarter.

In Hanoi , surveys of asking prices for resale at the Minh Giang Dam Va project (Me Linh) show a common range of around 40 million VND/m2, Cienco 5 Me Linh (Me Linh) around 60 million VND/m2, and Tan Lap Cienco 5 (Dan Phuong) around 165 million VND/m2...

In Ho Chi Minh City, the Phu My Cho Lon project (District 7) has a common resale price of around 115 million VND/m2, Phu Xuan Cang Saigon (Nha Be) around 62 million VND/m2, Park Riverside Tan Cang (District 9) around 128 million VND/m2...

Meanwhile, in Hai Phong, the Vuon Hong project (Hai An District) is priced at approximately 67 million VND/m2, and the Anh Dung II - Sao Do I project (Duong Kinh District) is priced at approximately 40 million VND/m2...

The land market has shifted to a "wait-and-see" mode.

Mr. Dinh Minh Tuan - Director of the Southern region of Batdongsan.com.vn - said that the land market is beginning to show a cautious sentiment because this segment has more than 80% of buyers who are mainly investors and speculators. When investors feel that the global and macroeconomic situation is unstable, they will withdraw their investment capital immediately.

The Hanoi market has seen a much faster decline in interest in land plots compared to Ho Chi Minh City, and even the sharpest decline compared to other localities after the merger.

In the North, interest is widely distributed, with searchers focusing on provinces and cities with strong economic potential such as Hai Phong, Bac Ninh, Bac Giang, and Hung Yen.

In terms of price, the average land price in Hanoi is much higher than in Ho Chi Minh City, with a difference of about 25%, and prices are increasing in most northern provinces.

According to representatives from Batdongsan.com.vn, the first six months of this year marked a clear adjustment period for the land market, especially after the initial surge at the beginning of the year. The trend of regional differentiation is becoming increasingly evident, with the North leading price increases, while the South has become a destination for cautious investors.

Currently, the land market has shifted to a "wait-and-see" mode, with investors no longer actively searching for properties as they did at the beginning of the year.

To ensure stable development of the real estate market, the Ministry of Construction proposes that localities strengthen inspections to promptly rectify, prevent, and strictly handle violations within their jurisdiction regarding the activities of businesses, investors, real estate exchanges, real estate brokerage service businesses, and land use right auctions in their areas; focusing on the legality, conditions, and transparency of information for real estate projects experiencing abnormal price increases; and preventing profiteering and market disruption.