A real estate "fever" has spread to Pho Yen City in Thai Nguyen as of March 31, 2025, with investors flocking to search for land and prices increasing. The real estate market in Pho Yen City has started to "warm up" in recent weeks, driven by a wave of investment and rising demand.
According to reports, the largest construction project in Vietnam recently received an investment adjustment decision amounting to 109,717 billion VND, further igniting interest in the region. As of March 30, 2025, a district of Hanoi added nearly 83 hectares of land to its land use plan for 2025, which has also influenced surrounding areas.
Dr. Dinh The Hien, a noted economist, highlighted that while the market is bustling, many investors are still "stuck with goods." This sentiment reflects the cautious approach many are taking amid rising prices. Since the beginning of 2025, land prices have been increasing sharply in several regions, including Bac Ninh, Bac Giang, Phu Tho, Hung Yen, Ninh Binh, and the suburbs of Hanoi like Soc Son, Hoa Lac, and Dan Phuong.
Investors are focusing on areas with synchronous, modern projects, infrastructure, and development planning. In some localities with plans to merge into larger provinces or cities, or those expected to become new administrative centers, land prices are constantly increasing, even setting new "peaks" compared to the 2022 land fever.
In Viet Tri City (Phu Tho), for example, land prices have surged by 30-40% compared to the same period last year, with prime locations seeing increases of up to 50% since early 2024. Similarly, in Gia Binh, Luong Tai, and Thuan Thanh (Bac Ninh), prices have risen by 20-30% since late 2024.
As the current "fever" spreads to Pho Yen City, local real estate agent Nam noted that interest in land purchases has surged, with transactions warming up and developers beginning to raise prices. However, unlike previous localized spikes, land prices in Pho Yen are still considered to have significant room for growth due to their current low levels.
According to a senior executive from a major real estate agency in Pho Yen, the investment wave into land plots has been ongoing since 2024, with many projects achieving high transaction rates and steadily increasing selling prices. Previously, a land plot in Pho Yen was priced from about 2.5 billion VND, but now prime projects are selling for 3 billion VND or more, with central areas reaching 5-6 billion VND depending on location.
The real estate market in Pho Yen is in the early stages of development and is expected to become a hot investment spot in 2025 and 2026, with selling prices already up 10% compared to the end of 2024. Investors are drawn to Pho Yen due to its growth potential, as prices remain lower than in neighboring provinces like Bac Giang, Bac Ninh, and Vinh Phuc, where land funds are gradually depleting.
Despite the growing interest, the number of new projects in Pho Yen is relatively limited, with most being launched in previous phases. Current projects are primarily located in the Vanh Dai 4 area and the new Phu Yen Square, which are emerging residential neighborhoods. The old center of Pho Yen, within a 3km radius of the Ba Hang intersection, has nearly no new supply, even though it is densely populated and boasts many amenities.
Looking ahead, the City Rise project, covering nearly 10 hectares with 381 products, is set to launch. Located on National Highway 3 in Ba Hang ward, it is adjacent to major industrial parks in Thai Nguyen, anticipating an influx of around 100,000 experts and workers. This project is notable for being the first in Pho Yen to integrate comprehensive amenities, featuring high-end facilities such as a million-dollar clubhouse, resort-style swimming pool, pickleball courts, golf practice areas, children's talent centers, gyms and spas, and recreational parks.
The increasing demand for these projects indicates a trend among buyers seeking areas with lower price points and the potential for substantial investment returns. As some regions have reached peak prices, savvy investors are looking for "price troughs" like Pho Yen.
Additionally, Pho Yen's industrial export value ranks in the top four in Vietnam, and the city is planning to establish over 1,800 industrial parks—2.5 times the current number. The Samsung factory in Pho Yen, which generated a revenue of 22.9 billion USD in 2024, surpasses the factory in Bac Ninh by 54%.
However, amid this land fever, Nguyen Van Dinh, President of the Vietnam Real Estate Brokers Association (VARS), cautioned investors to thoroughly research land prices and understand planning changes to assess risks and growth potential. He emphasized that liquidity and cash flow generation from real estate should be prioritized. Areas with specific and ongoing infrastructure development plans will be safer investments compared to those driven solely by speculation.
Investors need to ask critical questions: Who will buy? Who will rent? Who will live there? As the market evolves, understanding these dynamics is crucial to making informed investment decisions. The current landscape is complex, with rising prices in some areas contrasted by sluggish transaction volumes, indicating that the market is still grappling with significant challenges.
In summary, the real estate market in Pho Yen City is heating up, driven by rising prices and increasing investor interest. As the region develops further, it remains to be seen how sustainable this growth will be and what impact it will have on the broader market.
