Land prices in suburban areas have skyrocketed, turning farmers into 'landlords' in the blink of an eye.

(CLO) Over the past 20 years, land prices in Hanoi's suburban districts, such as Hoai Duc, Dan Phuong, Dong Anh, and Gia Lam, have skyrocketed. As a result, former farmers have suddenly become millionaires.

From farmland to residential land, farmers suddenly become millionaires.

During the urbanization process, Hanoi's suburban districts have rapidly transformed, from former rice paddies to houses, with dozens, even hundreds, of high-rise projects springing up side by side.

Mr. VNH (Kim Chung commune, Hoai Duc district, Hanoi) said: About 20 years ago, this area was mostly rice paddies belonging to farmers. However, it has now been converted into residential land, with many becoming high-rise apartment projects or expensive urban areas.

According to Mr. H., land prices in Hoai Duc are increasing day by day, month by month. Twenty years ago, land prices in Hoai Duc were quite cheap; rice paddies cost only a few hundred thousand dong per square meter, at most a few million dong, and near National Highway 32, it was 8-9 million dong/m2. However, today, land prices here have skyrocketed, ranging from 80 to 200 million dong/m2, depending on the location. Even plots of land near major roads or corner plots can reach 300-350 million dong/m2.

Over the past 20 years, land prices in Hanoi's suburban districts, such as Hoai Duc, Dan Phuong, Dong Anh, and Gia Lam, have skyrocketed. (Photo: ST)

Therefore, those "original" villagers of Kim Chung who previously owned a few hundred, or even thousands, of square meters of cheap rice fields now possess an entire fortune.

Mr. H. said: "In 2024 alone, the price was one thing at the beginning of the year, but completely different at the end. For example, a 35m2 plot of land in a deep alley in Lai Xa village was priced at 2.4 billion VND at the beginning of the year, equivalent to 68 million VND/m2, but by the end of the year it had increased by 500 million VND, to 2.9 billion VND, or about 82.8 million VND/m2."

"Most people in the village sell what they have, whether it's a lot or a little. First, they renovate their houses, then they buy cars, and send their children to study abroad," Mr. H. said.

Currently, Mr. H.'s family owns nearly 1,000 square meters of land that has been converted to residential land. Almost every day, land brokers come to inquire about buying large quantities, but Mr. H. refuses because he believes land prices are still rising, and selling now would be a loss.

Meanwhile, Ms. Thu Ngoc (Hai Boi commune, Dong Anh district) said: 30 years ago, her dream was to have a house in the inner city of Hanoi, even a small house would be fine so that her children could study conveniently.

At that time, even selling all their houses and land wouldn't guarantee they could buy a house in the city center. However, land prices in Dong Anh have skyrocketed in recent years, transforming her family's life.

"I used to dream of owning a house in the city center, but now it's not necessary. It's close to the city from Hai Boi, and the land and houses are spacious and airy, without the congestion of the city," Ms. Ngoc shared.

Land prices in suburban areas are on par with those in the city center – an impossible dream.

In just one year, land prices in many suburban districts of Hanoi have surged dramatically, with some areas seeing increases of up to 90%. According to a report by batdongsan.com.vn, compared to the first quarter of 2023, land prices in Hoai Duc recorded an impressive 81% increase, from an average of 55 million VND/m2 to 100 million VND/m2. In Hoai Duc alone, land prices are now comparable to many inner-city districts of Hanoi, a situation unimaginable 20 years ago.

In just one year, land prices in many suburban districts of Hanoi have surged dramatically, with some areas seeing increases of up to 90%. (Photo: ST)

In Dong Anh, land prices increased by 53%, from 41 million VND/m2 to 63 million VND/m2. Thanh Oai also witnessed a sharp increase of 90%, from 21 million VND/m2 to 40 million VND/m2.

Overall, land prices across Northern Vietnam have increased significantly, from an average of 27 million VND/m2 to 46 million VND/m2.

Regarding this anomaly, survey data from over 500 real estate brokers conducted by Batdongsan.com.vn shows that 38% of brokers believe the unusually high land auction prices are due to FOMO (fear of missing out) and speculation. 29% believe that changes in the law have driven up prices, and 21% believe that interest groups are inflating land prices in suburban areas.

Besides land prices, the price of detached houses in the North has also seen notable changes. Specifically, the price of detached houses increased from 95 million VND/m2 in Q1/2021 to 173 million VND/m2 in Q3/2024. Meanwhile, during the same period, the price of land in the Northern region increased from 27 million VND/m2 to 46 million VND/m2.

Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn, assessed that in the long term, land prices in the suburbs of Hanoi may continue to rise and transactions will become more active again. Real estate prices depend on other factors such as infrastructure development, economic growth, and people's income. Therefore, in localities with a high rate of economic development, land prices in these areas will continue to grow sustainably.

Source: https://www.congluan.vn/gia-dat-ven-do-tang-khong-tuong-nguoi-nong-dan-trong-nhay-mat-tro-thanh-ty-phu-post322862.html