Proposed airport sparks ‘land fever’ in Binh Phuoc

Authorities in Hon Quan District in the southern province of Binh Phuoc are warning buyers to be careful about land transactions, saying the proposed airport in the district, which has not been approved, has caused a “price bubble”.

A land plot near the main road connecting An Khuong and Tan Loi communes, in Binh Phuoc Province's Hon Quan District, is cleared for development, with purported rumours of an airport in the province in the planning. — VNA/VNS Photo Sy Tuyen

In the past few days, hundreds of people have been flocking to An Khuong and Tan Loi communes in Hon Quan District, causing land prices to surge after hearing news about the proposed dual-purpose airport.

Beverage stalls have been set up along the roads to serve buyers, mostly from Hanoi, HCM City and Binh Duong Province. A local real estate broker said the “hotspot” area included street-side asphalt plots conducive to trading.

A metre wide of land, which used to cost VND100 million (US$4,332), has jumped to VND300-400 million or even VND450 million in the last few days.

The price of some plots, located about 1.5km from the proposed airport, has surged to several billion Vietnamese dong for a 450-500sq.m plot, which normally cost only VND150 to VND200 million.

A resident in An Khuong Commune who declined to be named said that agricultural land plots, initially priced at only VND300 million per plot, have surged by 2-3 times in price.

A 260m wide street-side land plot initially sold for VND10 billion ($433,508), but now the price has jumped to VND28 billion ($1.21 million) after a few days of trading from one person to another, he said.

Experts revealed that the price jump was caused by speculators and middlemen taking advantage of news about the proposed airport.

Speculators and middlemen have posted ads on social networks and organised “events” to take buyers to visit land plots. They have even sent people to notary offices to make 'fake transactions' in order to tempt inexperienced buyers.

Binh Phuoc has recently proposed the construction of the Hon Quan airport for both economic development and defense purposes on an area of 500ha in the district under the form of a public-private partnership (PPP).

The provincial People’s Committee and specialists have surveyed the location of the airport project. The 100-ha Hon Quan airfield is expected to be widened to about 400-500ha.

Nguyen Van Dung, director of Truong Phat Real Estate Company, said most deals in recent days had been speculative. Few have actually ended up for registration, said Dung, who warned buyers to be careful.

“The province has only completed a survey of the location of the airport project to submit to the central Government for approval,” he said.

The dual-purpose airport model would be more suitable for defense and security purposes (due to low population density and low demand), according to the initial survey.

In addition, the current inter-regional connections have not been sufficient in the province, Dung added.

Last year, land prices also skyrocketed in Binh Ba Commune in Chau Duc District in Ba Ria - Vung Tau Province due to rumours about a giant property company buying there.

This attracted thousands of buyers from HCM City, Dong Nai Province and other northern provinces. After warnings from experts and local authorities, the “land fever” cooled down after two weeks. VNS