ANTD.VN - Since the information regarding the merger of provinces and cities is being developed by the authorities, a "land fever" has occurred in many localities. Land prices have been skyrocketing, causing concern among many people.
They're all raising prices.
Land prices in localities surrounding Hanoi, such as Bac Ninh, Hoa Binh, and Ha Nam , are fluctuating wildly. Within Hanoi itself, land in suburban districts is being artificially inflated by real estate brokers, creating "real estate hotspots," even though recent land auctions organized by local authorities have shown a downward trend and sharp price drops. Many localities have repeatedly issued warnings and even requested police investigations and corrective measures if violations related to land price manipulation are found.
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Real estate brokers are busy working at a project in Dan Phuong district, Hanoi. |
Mr. Vu Cong Khoa, residing in Dong Thap commune, Dan Phuong district (Hanoi), stated that since the beginning of 2025, the activity of introducing and disseminating information about land transactions in Dan Phuong district has become significantly more active, especially since the implementation of several large real estate projects. “Land prices in Dan Phuong are being inflated daily by real estate brokers, causing us considerable anxiety. In some areas, prices have even reached unimaginable levels of 300 million VND/m2. We earnestly hope that the authorities will investigate and strictly punish brokers who spread rumors and inflate prices, causing instability among the people,” Mr. Khoa expressed.
Similarly, land prices in many areas such as Hung Yen City, Van Giang District (Hung Yen), Viet Tri City, Ninh Binh City, Bac Giang City... have started to increase by 5-15% compared to the end of last year. Many landowners are even advertising prices that are more than 20% higher to benefit from the merger "wave". Mr. Tran Dinh Toan, a real estate agent at Dong Do Real Estate Company (Hung Yen), said that land prices here have increased many times compared to a year ago. Land prices are very volatile, with prices increasing daily in hotspots even though the infrastructure is nothing special.
Similarly, in Viet Tri City (Phu Tho province), land prices have increased by 20-30%, and in some areas even up to 50%. Among these, the land prices in the Thanh Mieu ward resettlement area are noteworthy. Before the Lunar New Year 2025, the general price ranged from 25-30 million VND/m2, but now the lowest price offered is 36 million VND/m2 (a 20% increase).
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Land prices in many areas have skyrocketed following news of provincial and city mergers. |
Warning about the "virtual fever"
According to the Bac Giang Provincial Electronic Information Portal, recently in some areas of the province, there has been a phenomenon of "virtual" real estate "fever" where many people frequently gather to inquire about, provide information, and conduct transactions to buy and sell houses and land in a short period of time.
Some investors and real estate brokers are exploiting information related to the division and merger of administrative units to spread rumors and deliberately inflate real estate prices beyond their true market value, luring people into entering into illegal capital contribution and purchase agreements. There are even instances of staged buy-and-sell transactions with large price differences to deceive buyers, creating the illusion of quick and easy profits. Some developers are showing signs of illegally raising capital and using various methods to sell real estate products before meeting the necessary conditions... These actions disrupt and distort the real estate market, posing many risks to buyers with genuine needs, potentially leading to disputes and lawsuits, and causing instability in local security and social order.
In response to this situation, the Chairman of the People's Committee of Bac Giang province has requested the Department of Construction to immediately establish a hotline to receive complaints and launch a high-intensity inspection and enforcement campaign against violations in real estate business. Simultaneously, the Bac Giang Department of Construction must conduct timely inspections and strictly handle violations within its authority. If there are signs of legal violations, the case must be immediately transferred to the police for investigation as prescribed. In addition, the Department of Finance, in coordination with the Department of Construction and the Regional Tax Office VI, will review and cross-check information to verify compliance with state laws on business registration in Bac Giang province for investors and real estate trading floors; and promptly and strictly handle violations in accordance with the law.
Not only Bac Giang but many other provinces and cities have repeatedly issued warnings about the risk of a speculative land bubble, especially in areas predicted to become new administrative centers. The police in Thai Binh province also recently advised investors to remain calm and not believe rumors. If they detect any fraudulent activity or market manipulation, they should report it to the nearest police station as soon as possible.
Similarly, the Department of Construction of Phu Tho province warned about the risk of a speculative land bubble in the area. The department stated that the volume of transactions at real estate exchanges remains limited. The inflated land prices are merely a tactic used by land brokers to manipulate prices; people looking to buy land should carefully research the information to avoid falling into their traps.
The provinces of Ninh Binh and Tuyen Quang have also issued warnings about the sudden surge in land prices based on rumors. The Ninh Binh Provincial People's Committee has instructed the Provincial Police to investigate real estate transactions, especially in Hoa Lu City, to verify the unusual price increases. The Tuyen Quang Department of Agriculture and Environment also advised against rushing to buy land in areas targeted by "brokers," as this only disrupts the market.
Many risks
According to the Vietnam Association of Real Estate Brokers (VARS), a few weeks after the announcement of the proposed merger of provinces and cities, land prices in some localities have been pushed up, mainly in areas predicted to be the merger centers. VARS stated that this localized land "fever" is not new. Market history shows that whenever information about new planning emerges, land prices in the relevant area usually increase sharply in the short term. The main reason stems from the "FOMO" (fear of being left behind) mentality of investors. This leads them to be more urgent and hasty in their land purchase decisions, believing that the changes will inevitably lead to economic and social development, and consequently, an increase in real estate prices. Currently, this decision is further fueled and amplified by the prediction that adjustments to land price tables in the near future in localities will indirectly push land prices up.
In reality, most of these price increases are speculative in nature. Even with administrative changes related to merger decisions, it's not guaranteed that these will lead to significant growth in the areas, at least in the short term, especially given the current high real estate prices relative to the income of the majority of the population. VARS also warns that hasty decisions made based on news of provincial and city mergers without thorough research and assessment will expose investors to significant risks. As a result, many investors have their capital tied up and lack the financial capacity to withstand the real estate price increase.
Source: https://www.anninhthudo.vn/can-trong-voi-con-sot-dat-an-theo-thong-tin-sap-nhap-tinh-thanh-pho-post607451.antd
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