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Recently, the land market near the Ring Road 4 project has recorded remarkable growth, in many places increasing by 30% compared to the beginning of 2024.
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Mr. Tran Van Minh - an investor in Hanoi said that in early 2024, he bought a plot of land in an alley about 3 meters wide in Tien Yen commune (Hoai Duc district) for 40 million VND/m2.
Up to now, the land price in the same location he bought has increased to 50 - 60 million VND/m2, an increase of 20 - 30% compared to the beginning of the year.
"Tien Yen Commune is one of the areas where Ring Road 4 passes through, so it is normal for land prices to increase "following" the infrastructure," said Mr. Minh.
According to Mr. Minh, not only Tien Yen commune, many other communes with Ring Road 4 passing through also have good price increases such as Duc Thuong and Duong Lieu.
Not only in Hoai Duc district, many other districts with Ring Road 4 passing through such as Soc Son district, Thuong Tin district, Me Linh district,... land prices have also increased sharply since the beginning of the year.
For example, in Dai Thinh, Thanh Lam, Kim Hoa areas (Me Linh district) where Ring Road 4 runs through, land prices on main roads range from 40-55 million VND/m2, an increase of about 20% compared to the beginning of the year. Land in alleys where cars can pass through costs from 22-25 million VND/m2, an increase of nearly 20% compared to the beginning of the year.
A recent survey by PropertyGuru Vietnam also shows that land in Ring Road 4 is showing a clear upward trend.
Compared to half a year ago, the land area in Me Linh in some urban areas such as Ha Phong, Cienco 5... has increased from 45-55 million VND/m2 to 55-64 million VND/m2. For land in Dan Phuong, land on Tan Lap street, the price has also increased from 48-55 million VND/m2 to 54-65 million VND/m2; land on Tan Hoi street in Dan Phuong, the asking price is at 55-66 million VND/m2, an increase of 2-5 million VND/m2 compared to 5 months ago.
Similarly, the land price in Ha Dong area and Yen Nghia area where Ring Road 4 passes through has increased from 58-64 million VND/m2 to 63-72 million VND/m2.
In the Bac Vong and Bac Phu areas of Soc Son, where Ring Road 4 passes through, the selling price has increased from 11-17 million VND/m2 to 15-24 million VND/m2.
Thanh Oai land plots, near Ring Road 4, also increased in price from an average of 55-60 million VND/m2 to 58-65 million VND/m2 compared to May 2024.
Not only increasing prices, a survey by PropertyGuru Vietnam also recorded that the number of investors looking into land in Ring Road 4 in the fourth quarter of 2024 tended to increase by about 30% compared to previous quarters.
In areas with Ring Road 4 passing through such as Soc Son, Me Linh, Thanh Oai, Dan Phuong, depending on the area, the transaction volume also increased by 10-20% compared to the months of the third quarter of 2024.
In fact, investment cash flow tends to be more abundant at the end of the year. Investors with idle finances are starting to plan to hunt for goods, so the land market in Ring Road 4 is also becoming more exciting.
According to broker Tran Duc Vinh, a land broker in Ha Dong area, purchasing power is increasing strongly with the flow of money into the market.
"It is expected that the increase in purchasing power and selling prices will continue until before Lunar New Year 2025. Land in Ring Road 4 will be a bustling market at the end of the year," said Mr. Vinh.
Mr. Vinh also emphasized that land in Ring Road 4 is a longer-term market, suitable for investors with long-term capital, with a period of 5 years or more. Infrastructure is only a part, along with infrastructure is also the economy.
After the completion of Ring Road 4, it will take time for economic development to go hand in hand with transport infrastructure. These two factors combined will promote sustainable growth of the real estate market. Therefore, investors need time to wait, it is not easy to surf for immediate profits.
According to Mr. Nguyen The Diep, Vice President of Hanoi Real Estate Club, many real estate projects have begun to be planned around the Ring Road 4 area. When the projects are promoted, real estate prices will increase, and areas with beautiful locations will become "hot spots".
Mr. Le Dinh Chung - real estate expert also said that the land price along the beltway 4 has increased too high in the past time, in the future when this route is completed and put into use, the land price may still increase but this increase is in the long term. In the short term, investors will be able to make immediate profits, if they invest, they must determine to invest for the long term.
Sharing the same view, Dr. Nguyen Van Dinh - Chairman of the Vietnam Association of Realtors (VARS) said that newly built and expanded transport infrastructure really brings great value to neighboring real estate. However, the implementation of these infrastructure projects must be long-term.
"Information about the overheating and "land fever" is just a trick of the "drivers" to create market waves. Investors need to be very careful, learn carefully about the market, understand the planning and liquidity to avoid the risk of burying capital," Mr. Dinh warned.
The Chairman of VARS also said that when deciding to invest, investors must clearly understand two factors: price increase potential and infrastructure progress. About a year ago, some areas around Ring Road 4 experienced a phenomenon of hoarding goods, pushing up real estate prices.
At the end of June 2023, Ring Road 4 - a vital route, playing an important role in the socio-economic development of the capital and neighboring areas, was officially started. It is known that Ring Road 4 has a total length of 112.8 km, of which the section passing through Hanoi is 56.5 km.
