Dong Anh district has an additional 5,100 m2 of land up for auction; will the winning bids reach a new peak?

Currently, many residential land plots in Xuan Canh commune (Dong Anh district, Hanoi ), a locality where land was recently allocated through auction, have reached 180 million VND/m2. Numerous investors have flocked here to "hunt" for land in anticipation of infrastructure development plans.

Currently, many residential land plots in Xuan Canh commune (Dong Anh district, Hanoi), where land was recently allocated through auction, have reached 180 million VND/m2. Numerous investors have flocked here to "hunt" for land in anticipation of future infrastructure development.

The Hanoi People's Committee has just issued Decision No. 594 assigning over 11,340 m2 of land in Xuan Canh commune to the Dong Anh District People's Committee to implement the project of building technical infrastructure for the land use rights auction area in Van Loc 2 village.

Of that, over 5,100 m2 of residential land will be used for auctioning land use rights. The remaining over 6,200 m2 will be allocated for transportation, green spaces, and connecting technical infrastructure.

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

According to an investigation by reporters from Baodautu.vn , land prices in Xuan Canh commune have increased sharply, thanks to the emergence of a large urban area. A field survey revealed that residential land plots facing the main road and with direct views of the project are being offered for sale at approximately 160-180 million VND/m2.

For plots of land located in alleys with wide enough access for cars to park in front, prices can reach up to 90 million VND/m2. Even plots with alleys in front of the house only about 2-2.5 meters wide are being offered at around 70 million VND/m2.

Many real estate agents also acknowledge that land prices in Dong Anh are currently high and have doubled compared to the end of 2023. This stems from the fact that most landowners are using real estate 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. This is because the price of a townhouse in the urban area is already nearly 300 million VND/m2," the real estate agent explained.

Further details revealed to reporters by real estate brokers in Dong Anh district indicate that 70% of residential properties being advertised online are owned by first- and second-tier investors. Very few plots of land are purchased for actual residential purposes. Each time a plot changes ownership, its price increases by billions of dong.

Speaking to reporters, Mr. Nguyen The Diep, Vice Chairman of the Hanoi Real Estate Club, said 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.

Currently, many residential land plots in Xuan Canh commune (Dong Anh district, Hanoi ), a locality where land was recently allocated through auction, have reached 180 million VND/m2. Numerous investors have flocked here to "hunt" for land in anticipation of infrastructure development plans.

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