Land fever is cool

4 min read

According to the Ministry of Construction and the Ministry of Natural Resources and Environment, the places where land prices have increased hot recently are the suburbs of Hanoi, Ho Chi Minh City, Can Tho, Da Nang, Quang Ninh, Hai Phong, Bac Ninh, Bac Giang, Hoa Binh, Phu Tho, Dong Nai, Binh Duong.

However, a survey of VnExpress shows that the fever is starting to cool down. Land prices in 5 districts along Saigon including: Binh Chanh, Nha Be, Hoc Mon, Cu Chi, Can Gio all tended to move sideways in the past 4 weeks after increasing 3-20% in the first quarter.

A land in front of Tan Loi – An Khuong inter-commune road, Hon Quan district for sale during the land fever at the end of February. Photo: Phuoc Tuan.

In mid-April, districts of Can Gio, Nha Be, Binh Chanh appeared a few transactions with prices higher than the end of March, but not significantly, could not represent the whole market. Most of the asking prices remained at high anchor, few recorded transactions on the new price level on a large scale and at the same time there was no decline in prices. Meanwhile, the current land prices in Long An, Binh Duong, and Dong Nai are flat compared to the end of March 2021.

Transactions in Dong Nai are mainly townhouses while Long An and Binh Duong recorded more land transactions. These localities recorded some transactions with a slight decrease of 2-3% in secondary asking prices compared to the end of 2020 with the case of fast payment in cash but not popular.

In Binh Phuoc, the land fever near Técníc Hon Quan airport which took place in late February and early March also quickly cooled down about 1-2 weeks later. The scene of cars parked on both sides of the road stretching hundreds of meters in front of the gate of Waterfall No. 4 only took place for a short time, then cooled down completely.

In April 2021, the land deposit transaction in this area was quiet, many local storks offered to sell the land at a price reduction of 30-40% compared to the land fever (increased 4-5 times) but There is no deposit bustling in the market like it was a month ago. The market for land plots and land-attached assets in the coastal tourist capitals of Ba Ria – Vung Tau, Phan Thiet, Khanh Hoa, Da Nang did not have much change in prices in April 2021.

In the North, land prices in the areas around Hanoi and neighboring provinces are also in a similar situation. People are also more cautious when investing in land. Anh Hoc, a land broker, said the number of phone calls to see land from a few dozen a day was only 2-3. “Many people even quit, withdraw their deposits, don’t trade anymore,” he said.

“Land prices are leveling off, not increasing as sharply as in the first quarter,” said Mr. Nguyen Quoc Anh, deputy director of Batdongsan site. According to him, the land fever in the past was mainly due to the cash flow shifting from stocks to land, and at the same time, there appeared a lot of information about the planning that caused land prices to rise sharply. These fevers usually last for only 1-2 months.

Mr. Nguyen Van Dinh, General Secretary of Vietnam Real Estate Brokerage Association explained, thanks to the intervention of the State, the market has stabilized again. To limit land fever, management agencies have tightened real estate credit, inspected land use, changed the purpose of land use, forest land … Provinces also tend to monitor Land transaction price fluctuations when the issue of land is blamed on the local authorities for land heating up.

“When the state is tightly controlled and issued warnings, investors also started to calm down, causing the market to cool down more,” Dinh said.

Mr. Mai Van Phan, Deputy Director General of the General Department of Land Management, Ministry of Natural Resources and Environment on April 28 said that, after the local disclosure of information, the land fever showed signs of cooling. He calls this a lesson on real estate market management when this work has not been thoroughly implemented, leading to the situation of brokerage taking advantage of, causing a hot market. Next time, the General Department of Land Administration will inspect land management in 26 provinces and cities.

However, experts say that even though the real estate market has cooled down, strong cut-loss and sell-off will not happen.

According to Mr. Quoc Anh, those who invest in land early will accept less large losses, so they will not report too low prices. In the absence of a transaction, they will leave the price at least equal to the purchase price or slightly decrease. “Anyway, putting money in land is an investment in the long term,” he said, thinking the market would continue to move sideways in the next two quarters.

Sharing the same view, Mr. Dinh emphasized, the source of goods eligible for trading in the capital market is not much.” The source of goods is too little to sell off, it is still valuable, but it will return to the real price of the market instead of rising as before,” he emphasized.

Meanwhile, the land plots voluntarily divided into plots, separated by law … or projects that have not yet qualified for the market have been banned from transactions by the authorities, so “sell-off” is not allowed.

Source: ndh.vn – Translated by fintel.vn