Land lot prices hike in adjacent provinces of Hanoi

Land lots in the northern provinces began to attract investors in late 2016. By early 2018, this market has grown strong.

According to the 2018 report on Vietnam’s real estate market in the first six months by the Vietnam Association of Realtors (VARs), land fevers have heated up in some Northern provinces such as Thai Nguyen, Bac Giang, Bac Ninh, Hung Yen, Vinh Phuc, Quang Ninh.

Land lot prices in these provinces are remarkably changing compared to the previous years. Particularly, in Thai Nguyen, it is recorded that nearly 3,000 flats, 2,000 land lots and 400 villas are on sale.

The absorption rate is quite high. In the first six months, 778 flats, 912 land lots and 466 villas - townhouses were traded in Thai Nguyen. The traded products mainly belonged to TBCO Riverside projects, Tecco Thai Nguyen, or Cozy Gia Sang urban area. The selling price ranged from $350 to $600 per square metre.

Notably, since the trade promotion conference on July 1, 2018, Thai Nguyen has attracted nearly $2 trillion of investment, much of which have been poured into real estate projects, especially resorts.

In Quang Ninh, as the tourist season starts, the market in the second quarter has got better than the first one.

The transactions, as usual, are mainly found in three main areas: Ha Long city, Mong Cai city, and Van Don. Besides, in “new” cities such as Cam Pha and Uong Bi, the number of land transactions is also increasing. Land lot prices in Ha Long increased slightly by about 3 per cent among potential projects.

According to reports by real estate exchanges in the province, the total number of successful transactions in the quarter has reached more than 1,000. About 300 flats and 200 land lots were successfully traded, the rest are shophouses and villas.

In Bac Ninh province, more than 10,000 townhouses have been developed in the areas that have decent infrastructure, industrial parks, and new administrative areas like Bac Ninh city, Tu Son, Thuan Thanh, Tien Du, Que Vo, Yen Phong. The absorption rate is quite good, usually reaching over 60 per cent of the total on sale.

According to VARs, apart from the three mentioned provinces, some more like Thanh Hoa, Hung Yen, Vinh Phuc, Nghe An also have many housing development projects with active transactions.

Explaining the case, VARs said that land price hikes in Hanoi had encouraged enterprises and investors to move to the neighbouring provinces.

Besides, PhD. Nguyen Van Dinh, Vice President of VARs, said that population increase also created real demands for real estate products in that area. Along with that, the improved transport infrastructure and the low price of land lots here strongly attracted investors. However, due to the participation of secondary investors, it would be very easy to trigger land fevers and price hikes.