Land fever: speculators spread rumors to push prices up

Land prices recently soared by VND30-50 million per square meter in some places, but the number of successful transactions was modest.

Land fever: speculators spread rumors to push prices up

The Ministry of Construction (MOC) recently released a bulletin about the first quarter real estate market based on local authorities and agencies’ reports.

The ministry said the basic indexes of the real estate market, including supply, number of transactions, investment capital, credit, and enterprises’ operations remained stable. Only the index about real estate prices showed heavy fluctuations.

The prices increased considerably in Q1 and land fever was found in some areas in provinces and cities.

The land prices soared in Hanoi (the districts of Dong Anh, Dan Phuong and Thach That), HCM City (Thu Duc City), Hai Phong (Thuy Nguyen district), Bac Ninh province (Tu Son Town), Ninh Binh province (Gia Vien district), Binh Thuan (Phan Thiet City and La Gi Town), Binh Phuoc (Hon Quang district) and Quang Tri province (Gio Linh district).

In Hanoi, the land prices in some suburban areas that are expected to be upgraded into inner-city districts, according to market analysis firms, rose by VND30-50 million per square meter. In the areas of Son Tay, Hoa Lac, Thach That, Hoai Duc, Dong Anh, Gia Lam and Long Bien, the prices increased by 20-30 percent.

In HCM City, the prices in Thu Duc City have been increasing steadily for many months, since the news about the establishment of Thu Duc City was released.

On Nguyen Xien, Nguyen Phuoc Thien, Hoang Huu Nam and Nguyen Van Tang Roads, the prices of road-front land plots were quoted at VND100 million per square meter. In Truong Tho Ward, the price soared from VND40-50 million per square meter to VND70-90 million.

The sharpest price increases were seen in Quoc Oai (+20 percent), Ba Vi districts (+45 percent) of Hanoi, in Hoa Binh (46 percent), Bac Ninh (20 percent) and Hung Yen (26 percent).

However, the ministry pointed out that there were few official transactions.

In most cases, buyers paid a deposit for land plots and re-sold the land plots soon after they found other buyers who accepted prices which could bring profits.

In the land fever last March in Ha Long City in Quang Ninh province, local authorities said that speculators, Ho had worked together had a hand in it.

The speculators quietly bought land at projects at low prices. After hearing the news about urban development planning, they spread rumours among the public in order to push up the land prices within a short time, creating artificial demand for land. The market became scorching hot and prices escalated every day.

Some transactions of land in these hot areas were carried out by the speculators themselves.

MOC affirmed that land price escalations had occurred in some localities but lasted a short time only before the local authorities took action to force prices down.

 

The local authorities released official information about public investment projects and urban development planning (investment in an airport in Binh Phuoc, the administrative center planning of Thuy Nguyen district in Hai Phong and land price adjustment for areas in Da Nang), while warning people against false rumors from speculators.

Mai Van Phan, Deputy General Director of the Land Administration General Directorate, at a press conference in late April, confirmed that land prices started going down after local authorities provided official information about land use planning.

Land allotments for sale

MOC warned about risks of purchases of foundation soil which need intervention from state management agencies. It is necessary for ministries and branches, and local authorities, to tighten land management to prevent land fever from spreading to other areas, which could create a real estate bubble.

The basic indexes of the real estate market, including supply, number of transactions, investment capital, credit, and enterprises’ operations remained stable. Only the index about real estate prices showed heavy fluctuations.

MOC said it needed to complete the legal framework on publishing information about housing and real estate market.

The Ministry of Natural Resources and Environment (MONRE) is expected to complete legal documents on agricultural land and forestry land use, to prevent illegal land transfer and the use of land for wrong purposes.

The State Bank of Vietnam also needs to tighten control over capital flow into the real estate sector to avoid risks and prevent the use of capital provided to fund production and business for real estate trade.

To recent the spread of rumors, local authorities must publicize information about the real estate market, urban development planning, infrastructure development projects, large real estate projects, and thecmerger and upgrading of administrative units.

It is also necessary to take drastic measures to prevent the sale of land allotments in areas without investment licenses and completed infrastructure systems.

Relevant agencies need to join forces to control the repeated purchases and re-sale of the same properties by real estate brokerage institutions and individuals.

Meanwhile, the HCM City Real Estate Association (HOREA) has proposed to the Prime Minister that very high taxes be imposed on the selling and transferring of real estate in the first years after purchase, and then a high tax in the following years. 

Thuan Phong

As land prices soar, land management in 26 provinces to be inspected

As land prices soar, land management in 26 provinces to be inspected

The Ministry of Natural Resources and Environment has told local authorities to inventory land and report on land use. 

Five suburban districts to become inner districts, land price soars

Five suburban districts to become inner districts, land price soars

The plan to turn some suburban districts in HCM City into inner districts is only on paper but it has triggered a new land fever in localities.

 
 

Other News

.
Failure of Vietnamese literary film adaptations
Failure of Vietnamese literary film adaptations
FEATUREicon  19/05/2021 

The tragic level of box office revenue of most films that have been adapted from books is examined by cinema critic Nguyen Phong Viet.

21-year-old attends fifth grade in Nghe An
21-year-old attends fifth grade in Nghe An
FEATUREicon  19/05/2021 

After a serious illness at the age of 6, Mua Ba Tenh was unable to walk normally because of a leg problem. He had to put off school for 10 years.

Covid-19 vigilance still needed as Vietnam continues negotiations on vaccination purchases
Covid-19 vigilance still needed as Vietnam continues negotiations on vaccination purchases
FEATUREicon  20/05/2021 

Vietnamese Deputy Prime Minister Vu Duc Dam and the World Health Organization (WHO) representative Kidong Park have both noted that Covid-19 has been quietly spreading in the community.

Enterprises worried as steel prices escalate globally
Enterprises worried as steel prices escalate globally
FEATUREicon  20/05/2021 

The domestic steel price hike has been attributed to a global price increase. To reduce steel prices, production costs need to be cut.

Fixing technological vulnerabilities and fighting coronavirus
Fixing technological vulnerabilities and fighting coronavirus
FEATUREicon  20/05/2021 

Although the VHD, NCOVI and Bluezone apps have helped people make health declarations, there are still loopholes that allow people to avoid the declarations.

PhD production plan: Will Project 89 go a new way?
PhD production plan: Will Project 89 go a new way?
FEATUREicon  19/05/2021 

Before launching Project 89 that aimed to produce 7,300 more lecturers with a doctoral degree, the Ministry of Education and Training (MOET) ran two projects on preparing human resources with doctoral and master’s degrees, worth trillions of VND.

'Farm rescue' campaigns are on the way out
'Farm rescue' campaigns are on the way out
FEATUREicon  19/05/2021 

Farm produce should be sold in a competitive market, rather than through a "market of compassion" or rescue campaigns, experts have said.

Hue residents take active role in building smart city
Hue residents take active role in building smart city
FEATUREicon  19/05/2021 

Applying IT in practice and developing people-centered smart cities, the government of Thua Thien-Hue province has encouraged active feedback from its residents.

Three keys to fight against Covid-19 in Vietnam
Three keys to fight against Covid-19 in Vietnam
FEATUREicon  21/05/2021 

Along with the 5K message, Vietnam is strictly implementing three counterattacks: large-scale testing; implementation of a vaccine strategy; and application of technology for Covid-19 tracing.

Taxing rental apartments: lessors and lessees will face difficulties
Taxing rental apartments: lessors and lessees will face difficulties
FEATUREicon  18/05/2021 

Imposing tax on the leasing of apartments and business premises is not a new idea, but the method of taxation remains controversial.

Multi-billion VND apartment buildings unoccupied in central Hanoi
Multi-billion VND apartment buildings unoccupied in central Hanoi
FEATUREicon  18/05/2021 

Many apartment buildings in Hanoi have been left idle for many years, even while many people seek accommodations.

Ben Tre takes different approach to change its fate
Ben Tre takes different approach to change its fate
FEATUREicon  18/05/2021 

“What should we do – continue to complain about difficulties to get subsidies from the state budget, or become self-reliant to rise up,” said Ben Tre Provincial Party Committee Secretary Phan Van Mai.

Old discarded clothes turned into expensive products
Old discarded clothes turned into expensive products
FEATUREicon  15/05/2021 

All old things, from clothes and guitars to motorbikes, can be recycled into useful and highly aesthetic items thanks to talented artisans.

Female scientist wants to start public awareness campaign about organ donations
Female scientist wants to start public awareness campaign about organ donations
FEATUREicon  16/05/2021 

Dr Do Pham Nguyet Thanh, born in 1995, an expert at the Biomedical Research Center under the Pham Ngoc Thach University of Medicine, has been honored as one of HCMC 2020 Outstanding Young Citizens thanks to her active contributions to the community.

Land price hikes stop, but property remains expensive
Land price hikes stop, but property remains expensive
FEATUREicon  15/05/2021 

Though land fever has eased, prices are still high. The apartments in projects in advantageous positions are being offered at sky-high prices of VND300-400 million per square meter.

Hanoi advised to follow Japan’s urban railway model
Hanoi advised to follow Japan’s urban railway model
FEATUREicon  16/05/2021 

The Tokyo-Tshukoba urban railway line was funded by converting land in 18 projects along the route. The land price in these areas soared from $1 per square meter to $5,000.

Covid-19 vaccine and the gap between countries
Covid-19 vaccine and the gap between countries
FEATUREicon  16/05/2021 

The US announcement to support the waiver of IP protection on Covid-19 vaccine has not been the good news that was previously expected.

9-year-old pupil becomes national master of chess
9-year-old pupil becomes national master of chess
FEATUREicon  14/05/2021 

At the age of nine, Hanoi’s Dau Khuong Duy has been granted the title national master of chess.

Phu Tho woman finds husband after 13-year absence
Phu Tho woman finds husband after 13-year absence
FEATUREicon  14/05/2021 

Thanks to a video posted on Tiktok, a woman in Phu Tho province has found her husband who was missing for 13 years.

The path for Vietnam to become owners rather than just wage earners
The path for Vietnam to become owners rather than just wage earners
FEATUREicon  17/05/2021 

Technology and innovation are the answers to the question about how Vietnam can to escape from doing only outsourcing for foreign partners.

 
 
 
Leave your comment on an article

OR QUICK LOGIN