Land prices throughout Hanoi have recently skyrocketed following the revelation of future development plans.

Land prices in Lang- Hoa Lac street , Ha Dong, Gia Lam and Tay Ho, the hottest areas, have surged by 35 percent or more over the previous month.

In areas covered by the Geleximco project in Le Trong Tan street, Ha Dong District, current land prices stand at 65 million VND (3,420 USD) per square metre compared with the last month of 43 million VND (2,260 USD).

In Kim Chung and Di Trach, Ha Dong, prices also increased to 30 million VND (1,578 USD) per square metre from 26 million VND (1,370 USD) last month.

Prices in Gia Lam and Tay Ho districts have also increased, including the Dang Xa new urban area, where valuations grew to 25 million VND (1,310 USD) per sq.m from 18 million VND (947 USD) last month. Land in Ciputra is now valued at 110 million VND (5,790 USD) per square metre from 80 million VND (4,210 USD).

The land price in some areas such as An Duong Vuong Street, Tay Ho District and Bat Trang, Dong Du, Gia Lam District also doubled.

According to the real estate experts and companies, there are many reasons for the rising land prices.

Nguyen The Cuong from the Long Bien real estate consulting office said that the Ecopark new urban area and Gia Lam Park developments have helped boost prices in Gia Lam district.

Nguyen Anh Tuan from the New Hanoi Real Estate Co believed that the prices were being strongly affected by the Hanoi 2030 master plan submitted to the Government by the Ministry of Construction in March.

"The Hanoi master plan announcement, including five satellite urban areas created the increase in land prices in these areas," said Tuan.

In addition, the gradual completion of infrastructure projects in these areas and the decrease in lending interest rates by commercial banks, combined with investors' speculation were reasons to push the prices, said Le Xuan Truong, director of BDS Real Estate Co.

"At present, many people think that the land prices will increase further in the near future, so, they are pouring money into real estate," said Truong.

Dang Hung Vo, senior advisor to the Ministry of Natural Resources and Environment, said that the Hanoi real estate market was flourishing due to people wanting to invest in real estate as the country's economy remained relatively stable. However, Vo warned that land prices would be subject to fluctuation and susceptible to speculators./.