Dong Anh district is gradually changing thanks to a series of large projects and constructions. Photo: Thanh Vu

Land in the alley is also up to 90 million VND/m2

When the Vinhomes Co Loa Project was built in Dong Anh District, the Northern market of the Capital suddenly became the new focus of investors. Vinhomes' new mega project is located in Dong Hoi, Xuan Trach, Xuan Canh and Mai Lam communes of Dong Anh District. The project has a total area of ​​about 387 hectares and an investment capital of more than 42,000 billion VND.

In addition to Vinhomes Co Loa, Dong Anh district also owns another “super project” in Hai Boi and Vinh Ngoc communes called the smart city, with investors being BRG and Sumitomo. The total land use area of ​​this “city” is 272 hectares and the investment capital is up to 4.2 billion USD.

With the appearance of the two projects above, the surrounding residential land plots are becoming "hotter" every day. According to broker Phan Thai, in Xuan Canh commune, plots of land on the street and with a direct view of Vinhomes Co Loa are being offered for sale at prices of about 160 - 180 million VND/m2.

For plots of land in alleys, where cars can just park at the door, the price is up to 90 million VND/m2. For plots of land with an alley in front of the house only about 2 - 2.5 m wide, the selling price still reaches 70 million VND/m2. "As for residential plots near BRG's Smart City Project, the price of plots on the street is 120 million VND/m2. Plots in alleys have also reached 90 million VND/m2," said Mr. Thai.

In addition to “following” real estate projects, land prices in Dong Anh district also benefit from bridges across the Red River, especially Tu Lien Bridge. This project will connect the West bank of the Red River along Au Co – Nghi Tam route, Tay Ho district with the East bank of the Red River in Dong Anh district.

According to Mr. Thai, in the area where Tu Lien Bridge is expected to be built, the price of residential land plots is currently climbing to 185 million VND/m2. When this project is officially under construction, the land price will likely jump to 200 - 250 million VND/m2.

Brokers admit that land prices in Dong Anh are at a very high level and have doubled compared to the end of last year. This is because most landowners are basing their prices on real estate in projects as a reference measure.

“On average, residential land plots are priced at 1/3 of the price of townhouses in the project. If calculated this way, the land price can hardly be lower than 100 million VND/m2, because the price of a townhouse is already nearly 300 million VND/m2,” said Mr. Thai.

According to the reporter’s research, even plots of land far from the center of Dong Anh district cost up to 30 million VND/m2. With a financial capacity of 2 billion VND or less, investors are almost unable to “hunt” for plots of land with beautiful frontage and wide roads.

Local brokers further revealed to reporters that 70% of the residential real estate for sale in the area is owned by F1 and F2 investors. Almost no plots of land are purchased for real residential purposes. Every time a new owner changes the name of the land, the land price increases by billions of dong and this increase shows no signs of stopping.

Need a strategy when buying land in Dong Anh

Mr. Hai Trieu, an investor with many years of “real-life” experience in Dong Anh district, said that the success of a real estate deal is decided right at the moment the investor starts to put down money. “I try to find land plots that are resold by local people. The land prices they offer are often much lower than those of investors. If I can buy these plots of land, the profit margin will be higher,” Mr. Trieu shared.

Citing a fact, this investor said that at the end of last year, a piece of land near Tu Lien bridge was offered for sale by local people at a price of about 90 million VND/m2. Very quickly after that, this land was bought by an investor and offered for sale at a price twice as high, about 180 million VND/m2. “They are selling at the price of the future. With such a large amount of money, the land is very difficult to liquidate in the short term. Currently, most investors are determined to ‘hold’ this land for 3-5 years,” Mr. Trieu commented.

When the Vinhomes Ocean Park project chain was deployed in Gia Lam district (Hanoi) and Hung Yen province, the real estate market in the East of Hanoi became bustling. When Vinhomes Smart City urban area brought more than 56 apartment buildings to Nam Tu Liem district, the real estate market in the West also "made waves".

According to this investor’s prediction, from now until the end of the year, residential land in Dong Anh district will hardly increase sharply. The current time can be considered the peak price. Therefore, investors who tend to “surf” will be very risky if they put money in at this stage.

Mr. Nguyen The Diep, Vice President of Hanoi Real Estate Club, said that Dong Anh district has many opportunities to become the new center of the capital's real estate market. Starting with the information about the district, followed by the presence of a series of large projects such as Tu Lien bridge, national exhibition center, 108-storey financial tower, etc.

“Technical infrastructure factors are ready for Dong Anh district to ‘take off’. In addition, money is tending to flow into investment channels, instead of ‘staying’ in banks. I believe that the real estate market here will soon become vibrant in the near future,” Mr. Diep shared.

According to the expert, the “skyrocketing” price increase of residential land in Dong Anh is not difficult to understand, when surrounding projects have prices up to hundreds of millions of VND per square meter. However, the real issue that investors need to pay attention to is the liquidity and characteristics of the segment.

“Dong Anh land is suitable for those who have a taste for long-term investment in the direction of ‘selling at a high price and leaving it at a low price’. As for those who use financial leverage, this will be a very dangerous deal. Because the liquidity of this area is limited and the land itself does not have the ability to generate cash flow,” Mr. Diep commented.