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.
VNREA urges caution in land price adjustments.
Localities nationwide are preparing new land prices, set to take effect on January 1, 2026. The Vietnam National Real Estate Association (VNREA) has stressed that while transparent and accurate pricing is necessary, adjustments must be made carefully to balance the interests of the State, businesses, and citizens.
VNREA noted that land is a key production input directly affecting business costs, investment decisions, and competitiveness. Excessive increases could raise input costs, delay projects, and weaken economic growth, while reasonable pricing could boost GDP and support recovery.
As real estate and related sectors contribute around 10 per cent of GDP, VNREA warned that higher land prices might slow market recovery, impact housing affordability, and put pressure on related industries such as construction and finance. Rising prices would also strain public investment budgets and delay infrastructure projects.
The Association further cautioned that higher land prices could drive up housing and rental costs, limit investment in new areas, and burden both citizens and enterprises through higher taxes and fees.
VNREA called on localities to thoroughly assess land price adjustments to ensure fairness and maintain economic stability while supporting sustainable growth.
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