Smart city construction started in Hanoi, how is the land price in Dong Anh district?

The North Hanoi smart city project, covering nearly 300 hectares with the highlight being the 108-storey financial tower, the tallest in Vietnam, located in Hai Boi, Vinh Ngoc, and Kim No communes (Dong Anh district), with a total investment of 4.2 billion USD, was just started on the morning of November 11.

According to VTC News reporters, although land prices around this area have not changed much, they have begun to become more active. Every day, many customers and brokers come to check prices and look to buy real estate.

Vinh Ngoc, Hai Boi and Kim No communes (Dong Anh) - the three areas closest to the project - are having land prices as high as hundreds of millions of VND at road frontage. For example, Vinh Ngoc land in prime locations costs 230 - 270 million VND/m2.

Mr. Dao Van Hai, a real estate broker in Dong Anh district, said that since the news of the smart city's construction started, many beautiful plots of land in some communes such as Hai Boi, Xuan Canh, Van Noi, Vinh Ngoc, Uy No... have increased slightly from 3 - 5 million VND/m2 (ranging from 60 - 90 million VND/m2).

Some plots of land in Phuong Trach village (Vinh Ngoc commune), adjacent to this project, are being sold by many people at prices ranging from 100 to 250 million VND/m2.

Land prices in Vinh Ngoc commune, near the smart city project, are currently quite high. (Photo: Ngoc Vy).

Similarly, the average land price in Vinh Ngoc is also quite high. The plots on the 3m alley are priced at 45 - 50 million VND/m2. The plots on the 5m road are priced at 60 - 75 million VND/m2. Notably, the plots on the main road, near the 108-storey tower are priced at 120 - 150 million VND/m2.

“ For example, a 90m2 plot of land in Phuong Trach village is being sold for 13.44 billion VND, equivalent to 148 million VND/m2 ,” Mr. Hai informed.

In Kim No commune, land prices on 3-3.5m alleys range from 40-50 million VND/m2. On 5-6m alleys, land prices range from 60-70 million VND/m2.

Similarly, in Hai Boi commune, land prices in 3m alleys currently range from 35 - 45 million VND/m2. Land prices in 5m alleys range from 52 - 65 million VND/m2. Meanwhile, land prices on the main road frontage range from 70 - 100 million VND/m2, but not many people are selling.

“ In fact, land prices in Dong Anh have increased too much in recent years due to continuous good news such as Dong Anh becoming a district, many super real estate projects appearing and infrastructure being heavily invested. Therefore, when the smart city project started, land prices did not increase sharply anymore but only increased slightly, or even did not increase in many areas. However, investors flocked to Dong Anh to see and buy land much more than at the beginning of the year ,” Mr. Hai commented.

Ms. Nguyen Thi Bich - a long-time resident of Phuong Trach village (Vinh Ngoc commune, Dong Anh district) said that in recent days, many brokers and investors have come to the village to inquire about buying real estate. A few days ago, a 160m2 frontage plot of land, close to the smart city project, was sold by the owner for 105 million VND/m2.

A plot of land for sale in Vinh Ngoc commune. (Photo: Ngoc Vy).

According to Ms. Bich, land in Phuong Trach has increased rapidly in recent years, especially in 2021-2022. Many people in the village have become rich by selling land and having money in the bank.

“ Currently, my family still has a 270m2 plot of land located on a beautiful street frontage and right next to a project that is being offered for nearly 20 billion VND, but we still don't want to sell it because we expect the price to be higher ,” said Ms. Bich.

In fact, recently, a series of land auctions in Dong Anh have attracted investors. In mid-October, 43 plots of land in the Northwest auction area, Le Phap village, Tien Duong commune (phase 3) all found owners, the highest winning price was 83.5 million VND/m2, the lowest price was 55 million VND/m2.

At the end of September, 33 plots of land in Le Phap village were also auctioned. Notably, the highest winning price was up to 100 million VND/m2, the lowest winning price was 52.5 million VND/m2.

Commenting on the Dong Anh real estate market in the coming time, a representative of Hoa An Phat real estate trading floor said that the groundbreaking of the smart city project and the establishment of Dong Anh district are making land prices here "heat up". Therefore, investors can participate in the market at this time.

However, according to experts, due to prices being pushed up too high in recent years, land prices in Dong Anh will be difficult to increase and absorb.

Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), said that if Dong Anh land prices remain at the current high level, absorption cannot lead. At that time, the leadership will shift to places with low prices, strong investment and reasonable prices such as Me Linh, Thanh Tri, etc.

Furthermore, Mr. Dinh said that the information about Dong Anh district becoming a district has been around for a long time and has affected real estate prices since 2018 - 2021. However, the current market is not booming like before because the government has intervened and had stronger policies to control it.

Not to mention, the market is still difficult, liquidity is slow, and with investors' waiting mentality, land prices are still on a downward trend. Therefore, when investing, investors need to carefully research and consider liquidity risks, and avoid following the crowd.

Sharing the same view, Mr. Nguyen The Diep, Vice President of Hanoi Real Estate Club, commented that real estate in Dong Anh district had attracted much attention from investors before the information about the planning to become a district and the commencement of the smart city project.

“ Therefore, investors who intend to invest and buy land in Dong Anh district need to consider this as a long-term investment and should not prioritize the use of financial leverage. Currently, major planning and projects here are still in the process of implementation, and the connecting traffic infrastructure is not yet complete ,” Mr. Diep advised.

Ngoc Vy

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