The auctioned land plots in Tien Yen commune (Hoai Duc district, Hanoi). Photo: D.Khang

A new land price list in Hanoi will be in force immediately and last until December 31, 2025.

Positive signals

Regulations pertaining to the principles of determining land location, land price according to land plot depth, and discount according to distance have been updated and reinforced by the Hanoi People's Committee in the new land price list. Profitability, the state of the infrastructure, and the accessibility of the roads and streets specified in the land price list are thus taken into consideration when determining the location of the land.

In comparison to the previous land price list, the new one will climb by two to six times. With VND 695.3 million/m2, the Hoan Kiem district has the highest land price in the city. This is especially true for streets like Le Thai To, Hang Ngang, Hang Dao, Ba Trieu (which runs from Hang Khay to Tran Hung Dao), Dinh Tien Hoang, and Hai Ba Trung (which runs from Le Thanh Tong to Quan Su). The highest land price in the Ba Dinh district is VND 450.8 million/m2 on Phan Dinh Phung street.

The land price list is broken down by commune and area for both residential and commercial properties in rural areas. Plots of land outside the 200-meter distance from the streets on the land price list will be discounted in accordance with the distance restrictions.

The discount is based on the distance from roads and streets: 200–300m receives a 5% discount; 300–400m receives a 10% discount; 400–500m receives a 15% discount; and 500m or more receives a 20% discount.

The price of agricultural land in residential areas may be greater than that of agricultural land outside of residential areas, but it cannot be more than 50% of the price of agricultural land in other places. This is true not only for residential land.

Unleashing the real estate market

Analysts say that the Hanoi People's Committee's release of the new land price list is a good sign for the city's real estate market, as it will aid with better market monitoring and management and expedite upcoming projects.

The vice president of the Vietnam Real Estate Brokers Association, Mr. Nguyen Chi Thanh, made the assessment that bringing the land price list closer to the market price would encourage more open and honest transactions while reducing the "land price inflation" phenomenon. Theoretically, the real estate worth is still less than the actual market price even though the new land price list is higher than the previous one.

Nguyen Van Thanh, an economist, claims that the revised Hanoi land pricing list will hasten the completion of incomplete projects. Because site clearance for technical building projects like transportation and infrastructure would cost more when land prices are raised, investors will be forced to concentrate on finishing projects on time. In actuality, a number of earlier transportation projects faced challenges and setbacks due to inadequate compensation pricing, which resulted in protracted legal proceedings.

The beginning price of land auction projects in Hanoi's cities and districts will also rise in tandem with the deposit level due to the city's rising land prices. This will stop certain investors from manipulating land auctions and speculating on the market.

The vice president of the Hanoi Real Estate Club, Mr. Nguyen The Diep, had a similar opinion, stating that the new land price list in Hanoi will result in numerous beneficial adjustments to land management. In the past, land valuation was frequently far from the actual land worth, which made it difficult to negotiate compensation and meet financial responsibilities. These issues will be fixed once the updated land pricing list is accessible.

According to Mr. Nguyen Van Dinh, Vice President of the Vietnam Real Estate Association, the Vietnam real estate market is expected to "heat up" in 2025 if elements like financing, legal regulations, and public investment keep getting better.

In order to guarantee stability and appropriate growth for the Vietnamese real estate industry, the government will keep stepping up oversight and regulation. As a result, a number of real estate markets will continue to recover; luxury apartments will remain the most popular; villas and townhomes will boost in value; legal land will draw in investors; and new regulations will give social housing projects more chances to flourish once more. In addition, the certification of condotels will boost resort real estate and industrial real estate.