Hanoi has sought opinions on a draft land price list that seems certain to have a broad impact.

Hanoi has been collecting public feedback on its first-ever land price list,
set to be announced and implemented on January 1, 2026. The list will help the capital
complete its digital land database and publish prices online, giving residents and
businesses easier access, and forms part of efforts to improve coordination between
local authorities in updating and synchronizing data.

Redrawing Hanoi’s land map

Under Hanoi’s new proposal, land prices will be divided into 17 zones, to group
areas with similar development conditions such as geography, urbanization, infrastructure,
and population density, while reflecting clear differences between central, suburban,
and outlying districts. The new zoning system is expected to make land valuation
and application more consistent and transparent.

According to the Hanoi Department of Agriculture and Environment, residential
land prices in 2026 are projected to rise by 2-26 per cent depending on location,
reaching as high as VND702 million ($27,000) per sq m.

Zone 1 covers wards within Ring Road 1, including Tay Ho, Ngoc Ha, Ba Dinh,
Giang Vo, O Cho Dua, Hoan Kiem, and Hai Ba Trung, with an average residential land
price of VND255 million ($9,800) per sq m, up 2 per cent from current levels. Prime
streets in the city center will see the highest prices.

A similar 2 per cent increase is proposed for areas within and between Ring
Roads 2 and 3, and for some outer districts on the right bank of the Red River.
The highest rate in these zones is about VND319 million ($12,200) per sq m, on Lang
Ha Street. The steepest price hikes are expected in suburban communes.

According to the VIC Valuation and Trading JSC, the city’s consulting unit,
rapid urbanization is driving strong price growth in areas such as Dong Anh, Gia
Lam, Thanh Tri, and Hoai Duc. Population influx and rising housing demand have intensified
pressure on urban land, especially near new infrastructure projects.

Between 2024 and 2025, Hanoi has invested heavily in key transport projects,
including Ring Road 4, Metro Lines 2A and 3, and major road expansions. Improved
connectivity and social infrastructure, including hospitals, schools, and industrial
parks, are pushing up land values, particularly in the western and northern suburbs.

The city’s property market is also regaining momentum, with strong demand for
social housing, new urban zones, and industrial developments. Investor interest
is rising in suburban and peri-urban areas slated for administrative upgrades or
located near major transport routes, while the apartment segment, especially high-end
units, continues to heat up.

Revaluing the ground beneath

According to VIC Valuation and Trading, Hanoi’s new land price list will have
wide-ranging effects on the economy, investment environment, and social stability,
offering both benefits and challenges.

Economically, reasonable price increases are expected to promote more efficient
land use, curb speculation, and reduce waste. A land price table aligned with market
values would help localities generate stable tax revenues, strengthen the State
budget, and reinvest in infrastructure, healthcare, and education. Land prices also
shape population flows and urban growth.

Additionally, a transparent, market-based land price table would also give
investors greater clarity on costs and business planning, strengthening confidence
and attracting both domestic and foreign capital.

According to the Hanoi Department of Agriculture and Environment, the draft
price list follows the Land Law 2024 and related decrees, narrowing the gap between
official and market rates and enhancing transparency. It also seeks to balance the
interests of the State, land users, and investors while linking land valuation with
broader economic goals.

For households, higher land values will increase property assets and improve
access to credit through use as collateral. Compensation closer to market levels
will also ensure fairer treatment for those affected by public projects. However,
the department acknowledged that higher land-based taxes and fees could pose challenges
for low-income groups.

Effects of rising land prices

Experts and industry insiders have warned that Hanoi’s proposed land price
hike could have a domino effect on the real estate market. Mr. Nguyen Quoc Hiep,
Chairman of GP.Invest and Chairman of the Vietnam Association of Construction Contractors
(VACC), said higher land prices would push up project costs and selling prices,
making homes less affordable for most buyers.

He added that while the Land Law 2024 calls for balancing the interests of
the State, land users, and investors, current valuation methods still overlook business
needs. “Increased State revenue or compensation payments are short-term gains,”
he noted. “The real risk is the long-term drag on economic growth.”

Mr. Hiep urged Hanoi to avoid repeating Ho Chi Minh City’s mistake, where steep
land prices had to be revised after hurting the market. As the first city to implement
the new system, Hanoi’s move could set a precedent for other localities. “If land
prices rise too sharply, it could lift the national price floor and stall investment
just as the market is recovering,” he warned.

The Vietnam National Real Estate Association (VNREA) has also written to the
Hanoi People’s Committee urging a more cautious approach. While supporting efforts
to make pricing more transparent and aligned with market values, the Association
warned that steep increases could backfire. “The government is working to make housing
more affordable, and controlling input costs is crucial,” VNREA stated.

VET-Phan Duong