Despite low interest rates, buyers still 'hesitate' before escalating residential land prices

Residential land prices continue to increase sharply

According to a report by the Center for Market Research and Customer Insight, One Mount Group, in the third quarter of 2025, residential land transactions decreased sharply compared to the previous quarter, reaching about 6,100 transactions, down 35% compared to the previous quarter and down 39% compared to the same period last year.

The main reason for the sluggish market is that residential land prices continue to increase sharply, averaging 28% over the same period, making this type of property increasingly difficult to access for real buyers. This causes the average quarterly transaction volume in 2025 to return to the same level as in 2023.

Residential land prices continue to increase sharply. (Photo: Dung Minh/DTCK)

The Central and Inner City areas recorded around 1,200 transactions, a slight decrease of 29% compared to last year, thanks to stable demand and high real demand. The decrease was recorded in all areas as the average selling price continued to increase by 22% to 37% in 2025.

In terms of regions, the West maintained its leading position with 34% market share, reaching about 2,100 transactions, down 36% compared to the previous quarter and 44% compared to last year. The East ranked second, accounting for 26% of total transactions, with 1,600 transactions, down 38% compared to the previous quarter and 49% compared to last year.

The report also shows that in the quarter, the top 12 wards with the highest transaction volume accounted for about 50% of the total transactions in Hanoi . Specifically, in the East, there were Bo De ward with 400 transactions and Long Bien ward with 360 transactions, benefiting from newly started infrastructure projects and developed living facilities.

Next is the West, Yen Nghia and Ha Dong wards recorded many transactions thanks to reasonable prices and improved traffic infrastructure. The central and inner city areas, including the core urban wards, continue to have good purchasing power thanks to the psychology of owning prime land and high real demand.

Macroeconomics are supportive, but prices remain a major hurdle

The Center for Market Research and Customer Insights commented: The economy is expected to grow by 8-10% in 2025, while interest rates remain low, creating favorable conditions for buyers to borrow capital. However, the continuous increase in residential land prices along with risks from global economic fluctuations are causing investment cash flow to shift to more liquid types.

According to this unit, customers increasingly prioritize high-rise products, especially apartments, because they are more suitable for their finances in the context of continuously escalating land prices.

In the third quarter of 2025, secondary apartment transactions continued to increase strongly, reaching the highest level in the past two years. The West remained the area with the largest transaction volume, while the East recorded the fastest growth rate.

This unit forecasts that in 2026, the residential housing market will recover slightly compared to 2025, thanks to more stable prices and improved credit. However, the high-rise segment will still be a bright spot in the market, especially in the East of Hanoi, where infrastructure continues to be completed and prices still have a lot of room for growth.

Source: https://congluan.vn/du-lai-suat-thap-nguoi-mua-van-chun-buoc-truoc-gia-dat-tho-cu-leo-thang-10316386.html