In the first quarter of 2025, the Vietnamese real estate market saw a remarkable surge in land plot prices, particularly in the Northern provinces, according to a report from PropertyGuru Vietnam. This trend indicates a strong recovery and heightened interest among investors in the land plot segment, which has consistently outperformed other real estate categories.
Specifically, land plot prices in Hung Yen skyrocketed by 55%, while Bac Ninh experienced a 46% increase. Hanoi and Hai Phong also saw significant price hikes of 42% and 21%, respectively, compared to the same period in 2023. Conversely, the Southern provinces recorded more modest increases; for instance, Dong Nai's land prices rose by 30%, Binh Duong by 25%, and Ho Chi Minh City only saw a 5% uptick.
The heightened interest in land plots is further evidenced by a surge in search activity. In March 2025, searches for land plots in Hanoi increased by 52%, with Ho Chi Minh City seeing a 31% rise, and other provinces experiencing a 54% increase compared to February 2025. Mr. Dinh Minh Tuan, the Southern Regional Director of PropertyGuru Vietnam, noted that the market is distinctly divided between the North and South, with the North exhibiting wider price distributions and higher values.
In the Central region, Quang Nam and Da Nang also showcased strong growth, particularly in the coastal areas. Notably, in March 2025, land prices in Da Nang's Cam Le district surged by 80%, while Lien Chieu district and Hoa Vang district saw increases of 75% and 50%, respectively, compared to January 2023.
Mr. Le Bao Long, the Strategy and Marketing Director at PropertyGuru Vietnam, explained that the ongoing rise in land prices is driven by several factors. He highlighted that Hanoi's population density, which is eight times higher than the national average, has been steadily increasing over the past five years. This demographic pressure, coupled with a limited land supply, is pushing prices higher as demand outstrips availability.
Furthermore, Mr. Long pointed to recent changes in the Land Law, which have shifted from a five-year update cycle to an annual adjustment of the land price list. This change means that land prices are now more closely aligned with market values, leading to an inevitable increase in both primary and secondary real estate prices. According to Mr. Long, "There are numerous reasons for prices to rise and very few for them to fall. As long as demand remains high, especially in urban centers like Hanoi, prices will continue to climb."
In addition to these developments, the government in Gia Lai province faced challenges in recovering over 15.1 billion VND in deposit money from land auctions where payments were delayed. In 2019, the Chu Se district had organized an auction for 205 land lots, but the winning bidders failed to make timely payments, with delays ranging from 20 to over 300 days. Although the local authorities were expected to reclaim these deposits, they reported on April 12, 2025, that recovery was "impossible" as the funds had already been deposited into the state budget.
Meanwhile, in Dong Nai province, the local government imposed a significant fine of 990 million VND on Sa Ha Do Joint Stock Company, the developer of the Tan An Construction Materials Industrial Cluster. This penalty was enacted due to serious environmental violations, including the lack of an environmental permit and inadequate waste management systems. The company has been ordered to halt operations related to waste generation without proper permits for 4.5 months, marking a strict stance by the Dong Nai authorities on environmental compliance.
Looking ahead, Thanh Hoa province is preparing for a series of land auctions, with 18 sessions scheduled in the latter half of April 2025. A total of 984 land lots, covering over 106,200 m², will be auctioned with a starting value of nearly 800 billion VND. The auction process will involve a sealed bidding format, allowing for competitive pricing that could exceed initial estimates based on investor interest.
As the real estate market continues to evolve, it is clear that various factors—including demographic pressures, legislative changes, and regional disparities—are shaping the landscape. Investors remain keenly interested in opportunities, particularly in areas experiencing rapid growth and development.
Overall, the first quarter of 2025 has set a promising tone for the Vietnamese real estate market, with land plots leading the charge in both price increases and investor interest. The ongoing trends suggest that the sector may be poised for further growth as the year progresses, driven by a combination of economic factors and regulatory adjustments.
