Ho Chi Minh: Project Land To Be In Hot Demand

Many land magnates are “disillusioned”, and customers have started more carefully than before because neighboring districts of Ho Chi Minh City such as Hoc Mon, Binh Chanh and Can Gio are not qualified enough to upgrade the urban district as the recent share of HCM City leaders. However, the prices have not shown signs of decrease.

Back to hot points in “virtual fever”

After the meeting between the leaders of Ho Chi Minh City and representatives of departments and districts for the change of Decision 33 on the minimum area of land to be separated, city leaders said that they had rejected the policy of the transferring three districts of Binh Chanh, Hoc Mon and Nha Be into urban districts. Although the brokers and land magnates in the surrounding districts have not used the preparation of being urban districts as a method to attract customers, they still have drawn the prospect of infrastructure development to increase the heat of the market.

Along the Phan Van Hon route in Hoc Mon district, large agricultural land plots are still enthusiastically marketed by brokers. A broker said that there will be an open road which is from Dai Han Highway to Long An and parallel to Phan Van Hon Street, so many people have put their money into agricultural land plots. Therefore, whether Hoc Mon is an urban district in the next time or not, the price of land is still rising. Mr. Nam, a customer from Tan Phu district, said that by the end of 2015 he bought a plot of agricultural land in this area with the price of fewer than 131 dollars per sqm; From the end of 2016 to now, land magnates and brokers have continuously called for a purchase at a price of over 217 dollars per sqm but he has not sold.

In Hoc Mon district large agricultural land plots are still marketed enthusiastically.

The area of Binh Chanh district, especially in Vinh Loc A and Vinh Loc B communes, the situation of a land transaction is still in fever, although the enthusiasm of customers is not the same as before. Mr. Thanh, an owner of a mechanical unit in Binh Tan District, said last year he planned to buy 4 adjacent plots of land with 4×15 meters per plot in an alleyway in Nguyen Thi Tu Street of Vinh Loc B Commune for a factory with a total cost of 34 thousand dollars. About less than three months ago, the landowner requested for double price or 68 thousand dollars. And a few days ago, they negotiated to purchase but the landowner did not sell.

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In Nha Be district, after learning the decision of the city, land prices have not shown signs of decrease. Probably, as the information has just been announced, the buyers are more hesitant, but the sellers, especially land magnates and brokers have continued to give information on infrastructure development in upcoming years to push the price. Mr. Dan who is owner of an agricultural land area of 1,689sqm, including 300sqm of residential land located in Rung Sac road frontage, Binh Khanh commune, Can Gio district and is selling for 196 dollars per sqm said that from the beginning of the year until now, the price of land in Can Gio has increased sharply. According to Dan, sellers and buyers have their own arguments. The land price in some districts are equal to or even lower than that in some neighboring provinces of Ho Chi Minh City, therefore, it is easy to understand that many people have found some places such as Can Gio. Meanwhile, the announced information on upcoming infrastructure development in Can Gio has attracted customers.

Price rapidly increasing

According to Le Hoang Chau, chairman of HoREA, the phenomenon of “virtual price fever” in the land segment in the district as District 9, District 12, Thu Duc District, Binh Tan and some districts such as Nha Be, Binh Chanh, Hoc Mon, Cu Chi, Can Gio has been warned for several months but now it has not the sign of decrease. The price of land plots in District 9, Thu Duc district, Binh Chanh district has reached over 869 dollars per sqm. In Can Thanh, Long Hoa Commune, Can Gio district, that has been up to 434 – 521 dollars per sqm. Agricultural land in some areas in Hoc Mon, Cu Chi has increased to over 50% in the first four months of 2017, of which ground land in Highway 22 frontage has reached over 869 dollars per sqm.

Many real estate experts say that in the past year, land prices have increased by less than 30%

Many real estate experts say that over the past year, land prices have increased by more than 30%. In particular, in some areas, the price has increased to over 70% to be difficult to accept. The determination of the “virtual price” is very dangerous because it distorts the market, causes potentially many risks, and threatens the healthy development and sustainability of the market. However, some preventive measures are still very difficult to implement.

Market observations of the past few days showed that in addition to information on the decision of the city, the recent warning of the authorities about the “virtual price fever ” has strongly impacted on the psychology of buyers. Some brokers in the surrounding districts said that prices had not changed in recent days, and buyers were still searching, though the transaction was not successful. According to HoREA, if investors are not cautious, they will suffer heavy losses when the market is not in hot demand.

Although the amended Decision 33 has not yet officially been issued, many people think that the regulation of land plots of more than 2,000 sqm must be projected but brokers are still unlawful as usual. Therefore, as Mr. Nguyen Thanh Toan, deputy director of Ho Chi Minh City Department of Planning and Architecture, it is important to control the infrastructure in accordance with the standard, then whether in any form, the infrastructure of the city is supposed to be guaranteed.

At the meeting on May 18th 1977, Le Van Khoa, Vice Chairman of HCM City People’s Committee, said that after the decision to amend or replace Decision 33, the district will be managed in accordance with the Decision in order to avoid the exploitation of brokers and land magnates. In fact, the brokers and land magnates are always very dodgy so it is more important for the buyer to be alert.

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