Land prices in Hanoi’s outlying district of Thach That have continued increasing based on unconfirmed rumours.

Thach That land prices shoot up after urban areas rumours

In late March, early April, land prices in Thach That District shot up suddenly after news that Vingroup had proposed to build two urban areas there. Even though the authorities of Thach That District haven’t made any announcement, hundreds of people went to Dong Truc Commune to search for opportunities. Some middlemen have already taken advantage of the news to earn hundreds of millions of VND a day.

The land price in Thach That District has increased by VND1m (USD43) to VND1.5m per square metres each day. A 103-square-metre land was put on sale for VND16m per square metre. A few hours later, its price went up to VND18m. Before the investment news broke out, the land prices there were only VND4m to VND6m per square metre.

A similar situation had happened at Thach That in 2008-2009 period. The land prices went up by seven times per square metre when there were rumours that Hoa Lac urban area would become a satellite urban area. After 10 days, the authorities warned the public that these were rumours and the number of customers immediately ceased.

According to realtors, this location has good infrastructure and positive development of Hoa Lac Hi-tech Park. Housing projects for the engineers, students and workers are promising. Moreover, despite higher prices, the land prices there were still more reasonable than other places.

The land prices in other outlying districts of Hanoi also went up recently. In Hoa Binh, the land prices increased because of the rumours that Ky Son District will merge into Hoa Binh City. In Dong Anh, the land prices per square metre increased by VND7m (USD301) due to a smart city project.

According to the experts, land prices in the outlying districts increased after the outbreak and resort real estate is considered a potential investment channel as people are more concerned about their health and the environment.

Doan Van Binh, vice chairman of Vietnam Real Estate Association said green real estates with high piracy level will be popular. Tran Nam Son from Vietnam Capital Partners said as GDP and income per capita increases, more people will search for resort real estate.

According to a survey from Savills, the number of rich families in Vietnam will rise from 250,000 in 2016 to 530,000 in 2020.