Land values have skyrocketed in Hanoi by as much as 270 percent in some places in line with moves to increase land values to be more in line with their actual market value, through reforms to Vietnam’s Land Law. The most expensive part of Hanoi was found to be Hoan Kiem where the land value has been set at 695.3 million VND per-square-metre.
Official land values have been depressed in the past by laws through which the central government would set land prices once every five years. This, however, caused problems in that officially land values would fall largely out of step with the true market value with buyers either paying extra off the books or land owners refusing to sell altogether.
This has now changed to local governments setting prices annually, however, the gap between the past official value and real market value has blown out in recent years which means there are big jumps in prices now being recorded.
See also: Real Estate Industry in Vietnam