Land fever in 3 zones is a good signal!

Mr.Nguyen The Diep, Chairman of Reenco Song Hong Joint Stock Company, said that the situation of land price increase in the planning area of ​​three special zones over time is a happy phenomenon, great potential, great opportunity, credit good effect.

At the seminar “Real Estate Forum 2018: Opportunities and Policies” took place recently, when commenting on the decision to suspend land transactions of the provinces of Quang Ninh, Khanh Hoa, Kien Giang, Pham Thanh Hung, Vice President of Century Group (CEN Group), said that Vietnam is trying to obey the objective laws of the market economy, so the need to respect market rules.

Over time, land in the special-use zones has risen sharply

“In the market economy, the supply and demand rule is a very important rule, regulating the whole behavior, price, money flow of investors. The law of supply and demand will regulate everything. If sufficient supply, balanced with demand, the market reached a certain level of stability. Any lack or redundancy will have an effect, “Hung said.

According to Hung, equilibrium of the market is always a dynamic equilibrium and very fragile, only exist in a short time. “We do not want to change the rules of the market. Market manipulation is objective, so we can only advise investors to withdraw or withdraw from the market. ”

Regarding this matter, Nguyen The Diep, Chairman of the Board of Directors of Reenco Song Hong Joint Stock Company, said that the situation of land prices in three special zones is a happy signal.

“This is really great potential, great opportunity, good signal, not bad,” Diep emphasized.

Commenting on the decision to temporarily suspend land transaction, Mr. Diep said that this is not a good solution because “we have to comply with market rules, there is demand, prices are pushed up and market acceptance field “.

“The state also collects taxes, has transactions 40 times and the state collects 40 times the tax, I think is very good,” Mr. Diep said.

The land price in Van Phong has increased 100 times

Talking more about the problem of land fever in the planning areas, Mr. Pham Thanh Hung said that the cause of this situation is due to planning too slow. Due to the slow planning, it is impossible to supply timely sources to the market. “The Khan also raises the price of land,” he said.

For example, Hung said that CEN Group had a rather detailed survey in Van Phong. Survey results show that the land in the past two years has increased more than 100 times.

“Two years ago, the land price in Tuan Le town was about VND 40-50 million / land lot (equivalent to 200 thousand / sqm). In 2017, the price of land has increased to 400 million VND / lot (10 times increase). This year, still the land, the price was VND5.5 billion, “Hung said.

According to Hung, the reason for the price hike is due to the scarcity of supply and the fog of planning information. “The entire town of Tuan Le is only about 3,000 households, all 111,000 hectares in the planning so far do not know where, there are no projects out of the market.The story has been planning since 2006, year 2009 has preliminary planning, 2017 adjusted and 2018 preparation for approval.

“However, we have yet to see the product of any project or metropolitan area launching to satisfy the thirst of investors. Lack of supply will increase the price is normal, “Hung said.

The vice president of the CEN Group emphasized: the story is still supply and demand. “If we influence that supply and demand relationship by being transparent about the supply, many investors begin to develop pre-planned areas before making decisions about approvals, Preferential policies with special zones will control this situation much better than letting the market automatically raise prices, automatically scarce in an uncontrolled way, “he added.

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