Beware of "buying at the peak" prices for residential land in Dong Anh.

Plots of land with direct views of the Vinhomes Co Loa project are priced at over 180 million VND/m2, double the price compared to the end of last year.

Dong Anh District is gradually undergoing a transformation thanks to a series of large-scale projects and constructions. Photo: Thanh Vu

Land in alleyways can also reach 90 million VND/m2.

When the Vinhomes Co Loa project was built in Dong Anh district, the northern area of ​​Hanoi suddenly became a new focal point for investors. This new large-scale project by Vinhomes is located in the communes of Dong Hoi, Xuan Trach, Xuan Canh, and Mai Lam in Dong Anh district. The project covers a total area of ​​approximately 387 hectares and has an investment capital of over 42,000 billion VND.

Besides Vinhomes Co Loa, Dong Anh district also boasts another "mega-project" in Hai Boi and Vinh Ngoc communes called the smart city, with BRG and Sumitomo as the investors. The total land area of ​​this "city" is 272 hectares and the investment capital amounts to 4.2 billion USD.

With the emergence of these two projects, residential land plots in the surrounding areas are becoming increasingly sought after. According to real estate agent Phan Thai, in Xuan Canh commune, land plots facing the main road and with a direct view of Vinhomes Co Loa are being offered for sale at around 160-180 million VND/m2.

For plots of land in alleys where cars can just park at the door, the price reaches 90 million VND/m2. Even for plots with alleys only about 2-2.5 meters wide, the selling price still reaches 70 million VND/m2. “As for residential land near BRG’s Smart City Project, the price for plots on the main road is 120 million VND/m2. Plots in alleys have also reached 90 million VND/m2,” Mr. Thai said.

Besides benefiting from real estate projects, land prices in Dong Anh district also appreciate from the bridges crossing the Red River, especially the Tu Lien Bridge. This project will connect the west bank of the Red River along the Au Co - Nghi Tam road in Tay Ho district with the east bank of the Red River in Dong Anh district.

According to Mr. Thai, in the area where the Tu Lien bridge is planned to be built, the price of residential land plots is currently climbing to 185 million VND/m2. When the project officially begins construction, land prices are likely to skyrocket to 200-250 million VND/m2.

Real estate brokers acknowledge that land prices in Dong Anh are currently very high and have doubled compared to the end of last year. This is due to the fact that most landowners are using property prices within development projects as a benchmark.

"On average, residential land plots are priced at only one-third the price of townhouses in the project. If calculated this way, the land price is unlikely to fall below 100 million VND/m2, because the price of a townhouse is already nearly 300 million VND/m2," Mr. Thai said.

According to our investigation, even plots of land far from the center of Dong Anh district are priced at up to 30 million VND/m2. With a budget of 2 billion VND or less, investors can hardly "hunt" for plots of land with good frontage and wide roads.

Local brokers revealed further details to reporters, stating that 70% of the residential properties for sale in the area are owned by first- and second-tier investors (F1 and F2). Almost none of the land plots are purchased for actual residential purposes. Each time a plot changes ownership, its price increases by billions of dong, and this upward trend shows no sign of stopping.

A strategy is needed when buying land in Dong Anh.

Hai Trieu, an investor with many years of "real-world" experience in Dong Anh district, said that the success of a real estate deal is determined at the moment the investor starts investing. "I try to find land plots being resold by local people. The prices they advertise are usually much lower than those offered by investors. If I can buy these plots, the profit margin will be higher," Trieu shared.

Citing a real-world example, this investor said that late last year, a plot of land near Tu Lien Bridge was offered for sale by locals at around 90 million VND/m2. Very quickly afterward, this plot was bought by an investor and resold at double the price, around 180 million VND/m2. “They are selling at a price of the future. With such a large sum of money, the land is very difficult to liquidate in the short term. Currently, most investors intend to ‘hold’ this land for 3-5 years,” Mr. Trieu commented.

When the Vinhomes Ocean Park project series was implemented in Gia Lam district ( Hanoi ) and Hung Yen province, the real estate market in eastern Hanoi became vibrant. When the Vinhomes Smart City urban area brought more than 56 apartment buildings to Nam Tu Liem district, the real estate market in the west also experienced a surge of activity.

According to this investor's prediction, land prices in Dong Anh district are unlikely to increase significantly from now until the end of the year. The current price level can be considered peak. Therefore, investors who tend to "speculate" would be taking a great risk if they invested at this stage.

Mr. Nguyen The Diep, Vice Chairman of the Hanoi Real Estate Club, believes that Dong Anh district possesses many opportunities to become a new focal point of the capital's real estate market. This begins with the announcement of its upgrade to a district, followed by the presence of numerous large-scale projects such as the Tu Lien Bridge, the National Exhibition Center, and the 108-story Financial Tower…

“The technical infrastructure is ready for Dong Anh district to ‘take off’. Besides that, money is trending towards investment channels, instead of being ‘tied up’ in banks. I believe that the real estate market here will soon become vibrant,” Mr. Diep shared.

According to the expert, the skyrocketing price of residential land in Dong Anh is not surprising, given that surrounding projects have already reached prices of hundreds of millions of VND per square meter. However, the real issue that investors need to consider is liquidity and the characteristics of this segment.

“Land in Dong Anh is suitable for those with a long-term investment mindset, following the ‘sell when it's expensive, hold on when it's cheap’ approach. However, for those using financial leverage, this would be a very risky deal. This is because the liquidity of this area is limited, and land itself does not have the potential to generate cash flow,” Mr. Diep commented.

Source: https://baodautu.vn/batdongsan/can-than-du-dinh-dat-tho-cu-dong-anh-d226127.html