Ministry of Construction speaks out about land fever in Hung Yen and Bac Ninh

Land fever due to speculation awaiting merger news

According to the report on housing and real estate market in the second quarter of this year, the Ministry of Construction said that in the second quarter, the land segment had more than 122,500 successful transactions (up 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 local land fever in some provinces such as Bac Ninh , Phu Tho, Ninh Binh, Hung Yen, Hai Phong, Dong Nai... Land prices in these localities increased rapidly due to information about merging provinces and cities and rearranging new administrative units.

However, according to the Ministry of Construction, transactions during this time were mainly speculative.

Land prices in some localities have increased rapidly due to merger news.

Faced with this situation, local authorities have issued warnings to the public and implemented control measures to strengthen the management of the local real estate market. As a result, land transfer prices have been controlled by local authorities.

A report by the Vietnam Association of Realtors (VARS) also pointed out that in the first half of the year, information about merging provinces and cities caused land prices in many localities to increase rapidly.

The strongest price increase in the market started from the second half of March to the beginning of April. At the peak, some real estate properties achieved price increases of up to 40%. However, the "fever" quickly cooled down after a very short time.

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

In Hanoi , the survey of transfer prices at Minh Giang Dam Va project (Me Linh) is commonly around 40 million VND/m2, Cienco 5 Me Linh (Me Linh) is around 60 million VND/m2, Tan Lap Cienco 5 (Dan Phuong) is around 165 million VND/m2...

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

In Hai Phong, the Vuon Hong project (Hai An District) is about 67 million VND/m2, the Anh Dung II - Sao Do I project (Duong Kinh District) is about 40 million VND/m2...

Land market turns to "wait and see"

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

The Hanoi market recorded a very rapid decrease in interest in land compared to Ho Chi Minh City, even the sharpest decrease compared to the general level in 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 increase in most northern provinces.

According to a representative of Batdongsan.com.vn, the first 6 months of this year marked a clear adjustment period for the land market, especially after the hot increase at the beginning of the year. The trend of regional differentiation is increasingly clear, with the North leading the price increase, while the South has become the destination of cautious money flow.

Currently, the land market has switched to a "wait and see" state, investors are no longer actively hunting for goods like at the beginning of the year.

To develop a stable real estate market, the Ministry of Construction recommends that localities strengthen inspections to promptly rectify, prevent and strictly handle violations within their authority regarding the activities of enterprises, investors, real estate trading floors, real estate brokerage service businesses, and land use rights auctions in the area; pay attention to the legality, conditions, and public disclosure of information on real estate put into business with abnormal price increases; and prevent profiteering and market disruption.