The land price fever has returned

The ‘land price fever’ returned after a period of quiet in July 2018, when National Assembly’s deputies delayed the enactment of the Special Economic Zone Law.

Analysts said the price bounce-back was foreseeable. The quiet period was just temporary as investors and realtors halted their transactions because of the delay. 

In the long term, Van Don is expected to become a dynamic economic center with service complexes, a tourism industry and casinos within a decade.

However, price levels for land are still exceedingly high. Lao Dong reported that prices have soared by 15-50 percent compared with July 2018. The land plots in advantageous positions, facing major roads, are being hunted by brokers and trading floors. On average, the prices of the land plots are 20-30 percent higher.

C, a tycoon in Ha Long City, said all the land plots and properties in Van Don have increased in price.

“Landlords ask for VND12-15 million per square meter for their land plots in the middle of nowhere, if they have documents to prove the ownership of the land,” C said.

The price has escalated to VND23-30 million per square meter for the land area that faces Road 334, while it was VND20 million only a couple of weeks ago.

The representative of a notary office revealed that on peak days, the office deals with tens of land transfer deals a day.

“The buyers are mostly from other localities, not Van Don. The other offices here are also in the same situation,” he said.

He said the real demand is not high as described by brokers. People are rushing to buy land because brokers said the price would escalate.

An official of the local authority said the local real estate market has become distorted because brokers had ‘fabricated’ demand. 

He said in mid-March, the provincial people’s committee released a document requesting the department of natural resources and the environment to inspect land management, use and transfer in the locality.

It is expected that in the future, Van Don will have an airport and highway that links Hanoi – Van Don – Mong Cai. However, to date, no big project on resorts or high-end hotel complexes has been implemented, though numerous projects have been registered. The land remains deserted and lacks necessary conditions to become a large urban area center.

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