Ho Chi Minh City: “Turn To Evil” With Land Prices

The phenomenon of land prices in HCM City in the recent months has been causing customers to “turn to evil”, while the information on this issue is tending to contradict each other.

Price Increases

The land market in the coastal city of Ho Chi Minh City is growing day by day on a large scale. At the gateways in the East, West, South, and North gates of the city, and the fever has yet to stop. Not just land for projects, but even individual land plots in residential areas, prices have also risen.

According to the survey of the Newspaper Bidder, in the area of Binh Tan District, land prices have fluctuated sharply, some places up to a few dozen percent, especially in Binh Hung Hoa and Binh Hung Hoa ward. A Many of the earthen brokers here say, the ability until the end of the year prices has not cooled down.

Many experts in the field of real estate that the land market in HCMC has been hot since 2015

In Hoc Mon district, from the end of 2016 up to now, land prices along the Phan Van Hon road, especially agricultural land increased sharply. A large specialist land hunting large area has not changed the purpose of use, in early 2016 he bought a plot of agricultural land nearly 3000 sqm for less than $170 thousands. Now, someone has paid almost double, but still do not want to sell.

Similarly, in the East, land prices in Thu Duc, District 9 and District 2 are still at the center of the land fever. Along the routes Do Xuan Hop, Nguyen Duy Trinh, Bung Ong Thoan, Lien Phuong… land prices last month compared to the following month has very disparity. For example, a land area of about 100 sqm on Nguyen Duy Trinh street now sells for over 1300$/sqm, compared with 1100$/ sqm at the beginning of last month.

“I just bought a plot of land in District 9 on the Rach Chiec Bridge front earlier this year. In just one year, prices have doubled, so unexpected. Although prices are rising, if people buy at this moment the profitability will be very low and the risk is very high because prices will come back to normal,” Duong said.

Real or virtual fever?

It is a question is always of the highest interest of the client. Especially in the present context, when people want to participate in the race with the ground but are afraid of the possibility of trapping the broker.

According to Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), the lesson of land fever in the period 2007-2010 is still there, but people seem to have quickly forgotten. Do not exclude the speculators push up the price of land up, who do not withdraw funds will soon suffer great losses. The high profits have attracted people who have not had real estate experience, so the situation is worrying.

In Hoc Mon district, from the end of 2016 up to now, land prices along the Phan Van Hon road, especially agricultural land increased sharply.

 In fact, brokers use a variety of tactics to push up the price of land is undeniable. However, from the fourth quarter of 2016 to the present, the project land market or subdivision in Ho Chi Minh City and neighboring provinces has been very active with a relatively high number of successful transactions. In the fever just as virtual, if the customer is not wake up they will trap.

Tran Thi Cam Tu, General Director of Eximrs Real Estate Services, said that buying land at this stage should consider many factors, firstly price, then location, quality infrastructure and legality. Because the land is the best asset, 80% of people who want to buy real estate prefer soil. Real estate in the land segment in 2017 – 2018 is still a good investment channel, but it is necessary to consider the conditions mentioned above.

However, if there is no measure to prevent this phenomenon, the risk will be unpredictable because of the loss of people, banks and the market while the only investors or broker get a benefit.

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