The Ho Chi Minh City real estate market has recently started to hunt down the land for planning purposes, especially in some suburban districts with new project information or upgrading to the district.
According to expert analysis, the planning head often brings many attractive opportunities, but the risk is quite high.
Hot spots welcome project
Cu Chi, a coastal district far from the center of Ho Chi Minh City for dozens of kilometers, has been “forgotten” for many years due to lack of development, But recently has become the focus of real estate investment business before information Tuan Chau Group proposed investment in super projects in the northeast of this district.
According to the proposal, Tuan Chau Group will invest in New City New City project with an area of about 15,000 hectares (15 times the area of Phu My Hung urban area and Thu Thiem urban area combined). With this scale, the new urban center of the city will be forced to adapt to the situation of climate change, sea level rise.
This new city will create social housing, affordable commercial housing, employment creation, full service and utilities for residents. To connect the project to the downtown, the boulevard along Saigon River will take advantage of the river bank alluvial ground, with a length of 63 km, the estimated speed of 100 km / h.
The deployment of the route will be quick because it does not take time to clear the ground while taking advantage of the riverside alluvial land. When this route is completed, it takes only 20-30 minutes to go from Cu Chi to District 1.
The investor plans to put the construction into operation in 18 months. This highway will facilitate access to Highway 22 and the routes of Binh Duong Province. Real estate businesses will coordinate with Tuan Chau Group to exploit the land fund here, to revive the potential land in the North West of the city.
Although this is only a story proposed from the business, Cu Chi is becoming the focus of real estate investors. Those who have landed in Cu Chi are happy and anxious. Happiness is that if the project is implemented, the probability of land prices will increase, but do not know if their land is falling into the planning area or not.
Mr. Thanh, a resident of Thu Duc district, has 4,000 square meters of land in Cu Chi that he bought many years ago to farm. He has been receiving phone calls every day to buy his land for nearly a month.
“At first, people paid a low price, but then the price was higher, but because I did not intend to sell, I refused”, Mr. Thanh said, not only in this case, some friends near the area also repeatedly received offers to buy land.
Not only in Cu Chi, in some districts like Binh Chanh and Hoc Mon, they recently launched news of establishing a new Binh Chau district on the basis of separating and merging some communes of the above districts. This information has been creating land fever in the coastal districts.
Mr. Diem, the resident of Pham Van Hai commune, Binh Chanh district, said before Tet that he bought a piece of land near the house, landowners claim $43,000, but have not yet bought papers. However, after Tet, he asked again, the landowner raised the price to $65,000.
Similarly, Mr. Tam, living in Le Minh Xuan commune, Binh Chanh, said that six months ago he was planning to buy a plot of land in the resettlement area of Vinh Loc B, 4x16m. At that time, the broker asked for $34,000 but he did not dare to buy expensive. Recently, he asked the land that has risen to $69,000.
It is worth mentioning that the resettlement area is still in a sparse population, hundreds of unoccupied apartments, but the land price is still hot. At the rear of this resettlement site, there are some stumps for sale of raw soils and subdivision for sale, hand paper with prices ranging from $21,000 to $43,000; but still “expensive as fresh shrimp”.
Soaring land prices and strong liquidity have attracted many people into the real estate investment. Mr. Thien, an athlete in the fitness club, said that before Tet he had accumulated little fund to buy a piece of land near his home for $60,000. At the Tet holiday, there were buyers, he challenged $78,000; they agreed to buy immediately. After this easy money, Mr. Thien continued to buy another apartment and sold again.
“Since the beginning of the year, I have bought and resold successfully three pieces of land, earn lots of money without much effort,” Thien Thien said.
Great profit, high risk
It can be said, with the real estate business, the story welcomes planning is the factor often bring great opportunities, because in fact many people have achieved great profit thanks to the right planning, but there are many cases of “transfixed” because of wrong. In fact, the risk of picking up the planning is quite large, not just the risk of policy changes, but also the many market factors and capabilities of the project owners.
The lesson from the Vietnam International University (VIUT) Project, invested by Malaysia’s Berjaya Group in the North West urban area, is a typical example. Nearly 10 years ago, from the eloquent proposals of investors, Berjaya Group was granted a certificate of investment in the land of 925 hectares by Ho Chi Minh City, with a total investment of $ 3.5 billion.
The project includes many functional areas such as education, general service center, green park, public welfare, medical center … At this policy, many expect the project will change the land, in which there have been many investors hunting land to welcome this project. However, almost 10 years have passed, the VIUT project is just a wasteland.
Next to this project is An Phu Hung New Urban Area project of An Phu One Member Limited Liability Company, with an area of over 610 hectares in Tan Hiep and Tan Thoi Nhi districts (Hoc Mon district). After many years of land allocation in Ho Chi Minh City (2004), but investors have not compensated and land clearance for so long, recently, the city has issued Decision 5195 revoke, lose the above-mentioned project.
Back in the Tuan Chau Group’s proposed investment project, Le Hoang Chau, chairman of HoREA, said that this is a groundbreaking idea of planning if done will solve a lot of problems. However, this is just a suggestion from the idea of the investor, which is an idea that is likely to be implemented and also likely will not be done, and the problem of planning is unclear.
“In fact, the information that comes to plan is a unique story that has a market element that is difficult to control. However, it should be warned that the risk from this is huge because the people who benefit from this are the “storks” and those who are most at risk are those who come later, at which time the price has been pushed up quite high”. Mr. Chau said that the information capture is important, but need to be of sound mind before the rumors are not officially informed.
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