Land prices everywhere rise, so what is the cause of "burning" the market?

Land prices everywhere rise, so what is the cause of "burning" the market?

The housing market in many southern provinces and cities, calculated from Ninh Thuan to Dong Nai, Binh Thuan, Long An, Tay Ninh, Binh Duong, Vung Tau and Can Tho is growing hot day by day. Many people believe that the network of transport infrastructure is "pulled" long, the land there will increase prices. So what is the real cause of this heat wave?

Real estate market (HCMC) in the first months of 2019 still has too few new projects announced to the market. Meanwhile, according to experts, in the coming time, there are still no signs of brighter when the project investment procedure is still too difficult.

The supply of housing in HCMC is scarce, it is obvious that many large real estate enterprises are "pulling" customers to other provinces. In particular, investors said that the real demand in many remote areas is still very high, so the price of land plot sale also increased sharply while the number of projects is not much.

Ms. Nguyen Vu Thien Diem, General Director of Thien Minh Group, said the condominium segment continued to grow and become the throne in 2019 in big cities. But this depends on each project, each region. There are many factors affecting the heat of a project such as location, value, construction, brand owner, utility ... but in general the apartment segment is still worth investing.

Particularly, the market in the South in this year and in the coming years will be active in the vicinity of HCMC, because the land fund in the central areas has been exhausted. The surrounding areas and surrounding areas of HCMC are waiting for investors and customers. "The supply of 2019 is scarce, so it is understandable for the land market in the areas easily accessible to HCMC to attract visitors", Ms. Diem said.

Real estate expert Tran Khanh Quang said that the land plot and townhouse segment will have a price surge in 2019. The reason is that the land fund in many localities is big enough for businesses to invest in townhouse projects. While procedures for townhouse projects are much worse than building apartments.

Especially, over the past 1 year, the projects of division according to HCMC People's Committee's Decision 60 only count on the fingers, so there has been almost no approved records throughout 2018. These reasons make land prices and townhouses prices in 2019 to increase and spread to most other provinces in the region.

Through the actual survey, it is known that Long An area borders Binh Chanh and Binh Tan districts (Ho Chi Minh City), with the advantage of relatively soft land prices and fresh cool water air which is currently being invested by many investors. hunt for land fund to develop a closed garden and resort model.

In particular, Long An real estate market recently witnessed the explosion of new projects with large scale, appearing in many different districts such as Thu Thua, Duc Hoa, Can Duoc, Can Giuoc, Germany. Hue ... since then is making the selling price is changing in the direction of 15-20% compared to the beginning of 2019.

Meanwhile, from March 25, 2019, the coefficient of land price adjustment in 2019 of Dong Nai province has taken effect. Accordingly, the collection price of land use, land lease, water surface rent will increase by 1.2-8 times compared to the previous. Some areas such as Bien Hoa City, Long Thanh, Trang Bom, Vinh Cuu, Nhon Trach districts and Long Khanh Town are having quite strong land prices. Especially in Khanh when this place is about to welcome the decision to raise the city of the Prime Minister.

Mr. Le Van Thu, Deputy Director of the Department of Finance said: "In the past 2 years, many transport infrastructure works and construction are making the land prices in Dong Nai soar. to adjust the coefficient of land price increase to suit each region and route ".

Going a little further, the market of Phan Thiet, Mui Ne and La Gi land in Binh Thuan province has been hot and hot right from the beginning of this year. When key areas such as Ho Chi Minh City, Hanoi, Phu Quoc ... are still listening to static policies, speculators and investors in many provinces and cities across the country have flocked here. In coffee shops, pubs, sidewalk water shops ... the main theme, if not the only one, is land.

From the beginning of 2018, when the airport, highway project information will be restarted has pulled a series of "giants" of real estate here. Immediately, the influx of people rushed to Phan Thiet to buy, sell, transfer, even surf as soon as the deposit was made. People buy land in spite of high prices! The price of a land (1,000m2) is located from 3-5km from the coast, offered for sale about 700-900 million VND, then it is over 1.5-2 billion VND the next day. If the storks know how to "drag" buyers, the selling price can be up to VND 3-4.5 billion today.

Through studying many brokers in the area, it is known that the road area DT715 connecting Vo Nguyen Giap street with the center of Thien Nghiep commune is always crowded with people. At the coffee shops along this route, there are always dozens of cars carrying the number plates from provinces and cities every day. Especially, on weekends, there is a time when vehicles come to the center of Thien Nghiep commune to move little by little due to the excessive traffic of cars. Around the story on the water table is the price of each piece of agricultural land.

Recently, the real estate market in La Gi town and along Ke Ga seaway are developing strongly, attracting investors strongly, along with rising real estate prices and many real estate brokers. life makes this market even more attractive. At the same time, many customers also transfer cash flow into land lots of potential areas because they want to "follow" large-scale projects that are being deployed to build in La Gi.

Some other land plot projects have been sold by investors to the market at a price of about 6-8 million VND / m2, now they are traded on the secondary market for 12-13 million VND / m2 ... Or Commercial beach townhouse project Queen Pearl Marina Complex at La Gi is also traded quite exciting for 2-3 billion VND / unit.

Survey at Thong Nhat street in this district, the price of facade houses fluctuates at 25 - 35 million VND / m2, an increase of 20-30% compared to 2018. In the existing residential area along Le road Benefit near La Ga fishing port, land and house prices are fluctuating at VND 18-22 million / m2. In convenient business locations such as Lagi market area, fishing port area, housing prices have reached 25-30 million VND / m2.

Many investors said that the most important reason made Binh Thuan land so hotly belong to infrastructure and supply and demand. First is the infrastructure. Phan Thiet Airport has officially adjusted its investment scale from more than 5,000 billion VND to over 10,000 billion VND to become one of the 3 largest airports in the Central region, only after Cam Ranh and Da Nang airports are expected to be The construction starts in quarter 3/2019.

Besides, the Dau Giay - Phan Thiet high-speed project with a total investment of nearly VND 15,000 billion is also expected to start construction in the next 6 months. Currently, Binh Thuan province is planning and submitting the route plan connecting Ho Chi Minh City - Long Thanh - Dau Giay highway to the center of La Gi town to create a continuous traffic network to go directly to Mui National Tourism Zone. Ne.

Previously, Binh Thuan province had a written request to the central government to support investment budget to build 3 key and urgent coastal routes to connect from Mui Ne to Vung Tau, forming the most beautiful coastal road in the area. Southern area. On the other hand, the psychology of customers now wants to keep the coastal land waiting for the price to increase, when La Gi information is prepared to become a city.

Accordingly, over 14 years since becoming a town, La Gi (Binh Thuan province) has been continuously invested and developed and become the second largest city of Binh Thuan province (after Phan Thiet city). In April 2018, La Gi was upgraded to a grade III city. According to the orientation to 2020, La Gi will become a city directly under Binh Thuan province.

The assessment of real estate investors shows that there are both airports and highways so everyone believes that the land has increased. In addition, according to preliminary statistics, there will be 18 super projects in 2019, with a total investment of nearly 3 billion USD pouring into this province, of which the most concentrated are in Mui Ne and La Gi.

According to the survey, in Xuyen Moc district (Ba Ria - Vung Tau), compared to the end of 2017, land prices in some areas have increased by 2-3 times, even 5 times. Ms. M., a resident in Phuoc Thuan commune, said that at the end of 2017, a meter across the land in Ho Tram coastal area cost about VND 100 million, now has increased to VND 300 million, even 500 million dong and no sign of stopping.

Report of Branch of Land Registration Office of Xuyen Moc District showed that from the beginning of 2019 until now, the unit has received about 3,000 transaction records on land, increasing twice compared to the same period of the year. 2018. In particular, the amount of transfer records accounted for more than half.

Mr. Pham Tan Binh, Branch Manager of Land Registration Office of Xuyen Moc District, said: “Local land transaction started to be active from March 2016 until now, in which the biggest increase in the months at the end of 2018 and after the Lunar New Year 2019 up to now. Land is heavily traded mainly in coastal areas and district centers ”.

Meanwhile, if you walk around a real estate project in TX. Thuan An, Di An or Binh Duong New City (Binh Duong province) and not be stunned when hearing the team of "stork" land screaming. At present, in some wards of the town, such as Thuan Giao, Vinh Phu, Binh Hoa, etc., the land price has increased sharply since the Lunar New Year in the year of 2019. If the time before Tet, the price of land in TX. still at an average level of less than 20 million VND / m2 in the business areas, busy trading, now has fluctuated from over 20 million VND to ... 60 million VND / m2.

Mr. Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association, said that before 2015, the villa and townhouse real estate segment did not get much attention of businesses and investors. But now the villa and townhouse segments are vibrant and forecast the following months will continue to grow.

Traders in this segment are mainly home buyers, speculators only account for less than 10%. Regarding investment returns, townhouses are superior to other real estate segments thanks to higher valuations and a more stable rental market.

However, Mr. Chau said that in order for the market to develop sustainably, avoiding the implications like the past, businesses must put the interests of customers first, keep the prestige, ensure the quality of the work, proceed construction level, handover of houses; building smart apartments, smart buildings, forming a green, environmentally friendly living space; attach importance to after-sales service, to mobilize advance capital from customers in accordance with real estate business law.

Nam Phong