The real estate market in many localities across Vietnam is currently experiencing a resurgence of land fever, particularly in areas where rumors of provincial mergers are circulating. Although Thanh Hoa is not slated for any merger, the effects of this speculative land frenzy have begun to impact the local market significantly. Prices for land in various regions of Thanh Hoa are soaring, especially in the land plot segment, leading to waves of speculation that show unusual signs.
Reports indicate that land prices in Thanh Hoa have sharply increased, particularly in Thanh Hoa City and its surrounding districts. In recent months, prices for land plots have surged by 20-30%. This trend is not limited to legally certified properties; even plots without land use right certificates or those within planning areas are being heavily sought after.
Tran Bui L., a resident of Quang Hung Ward in Thanh Hoa City, shared his experience of purchasing an adjacent plot in a housing and green park project in the Nam Thanh Hoa urban area at a price of 31 million VND per square meter at the end of 2024. Recently, brokers contacted him with offers to buy back the land at a price nearly 7 million VND higher per square meter. This kind of rapid price increase has raised concerns about the possibility of a real estate bubble.
Since the beginning of 2025, numerous land use right auctions held across the province have attracted a large number of applications. Many winning bids have seen prices soar to two or three times the starting price. Some plots in prime locations have been bid up to three or four times their initial price. For example, in an auction for 132 land plots in the residential area of Hoang Kim commune, some plots that started at 1.2 billion VND had winning bids that reached between 3.6 and 3.9 billion VND.
Nguyen Van Huy, another investor, expressed his bewilderment: "The winning bids for land in Hoang Kim are excessively high compared to reality. A plot in a suburban district, with incomplete infrastructure and amenities, has reached nearly 4 billion VND, which truly exceeds actual demand." Residents have reported that recent auctions have seen the involvement of professional land brokers who artificially inflate prices to create a scarcity effect, only to resell on the secondary market.
The ongoing land auction frenzy in the suburban districts continues to heat up the real estate market in Thanh Hoa City, which benefits from being the administrative and economic center of the province. In various online groups focused on real estate in Thanh Hoa, investors are actively discussing the "potential" and "opportunities" for price increases in the near future, hoping for high transaction volumes.
Currently, land plot prices near popular areas like Aeon Mall Thanh Hoa and new developments in Dong Hai, Dong Ve, and Dong Huong wards are skyrocketing, with asking prices reaching 35-40 million VND per square meter. The apartment market in Thanh Hoa City is also witnessing significant price hikes, with some completed projects increasing by 25-30% compared to mid-2024.
This situation not only creates market distortions but also poses considerable risks for inexperienced investors, particularly those who buy based on herd mentality. Thanh Hoa is preparing to auction off a series of new plots. On March 26, 2025, the Provincial People's Committee issued Decision No. 878/QD-UBND, approving a list of 892 land use right auction projects for the year 2025 (phase 1). This list includes 738 projects carried over from 2024 and 154 new projects across various districts, towns, and cities in the province.
With a total area of land expected to be auctioned reaching 730.9 hectares, after deducting costs for site clearance and infrastructure investments, the net revenue is projected to exceed 17 trillion VND. This initiative is a crucial step towards effectively harnessing land resources, increasing budget revenues, and meeting the demand for residential and rental land. It also offers genuine investors the chance to access legally clear land.
However, this process also carries the risk of a repeat of inflated pricing if not closely monitored, particularly regarding the selection of auction participants and the oversight of transactions post-bid. Investors in Thanh Hoa have noted an unusual surge in land prices in areas lacking significant infrastructure development, suggesting a potential recurrence of speculative bubbles.
To manage the market, the Provincial People's Committee issued Official Dispatch No. 2397/UBND-CN on February 26, 2025, focusing on rectifying and addressing price manipulation and real estate speculation while inspecting investment and construction projects. The committee has mandated that the Department of Construction promptly publicize information about housing and the real estate market, including notifications regarding properties eligible for business, housing development programs, land use planning, urban and rural planning, and urban development programs to ensure transparency in market information.
The committee also requires the Department of Construction to closely monitor the activities of real estate trading floors and brokerage service companies in the area to ensure transparency and professionalism, preventing instability in the market. They aim to ensure that properties entering the market do not experience unusual price increases and that no one takes advantage of the situation to distort the market.
Thanh Hoa possesses significant long-term potential for real estate development due to its rapid urbanization, gradually improving infrastructure, and interest from major corporations. However, for the market to develop healthily, investors need to prioritize legal factors and genuine potential over chasing speculative "frenzies" driven by rumors. Real estate experts advise investors to remain vigilant to avoid being swept up in psychological waves and purchasing assets without real value.
The best approach is to invest only in areas with clear planning, complete legal documentation, and actual housing demand to facilitate liquidity. The rapid changes in the real estate market in Thanh Hoa serve as a reminder of the importance of informed investment decisions in a fluctuating economic landscape.
