Project land - Effective investment channel in 2021

In fact, many customers have confused between project land and subdivided land, these misunderstandings can seriously affect investors' decisions. The following article will help readers better understand the concept of "project land" and the difference between "project land" and "subdivided land".

Project land (Illustration).

The concept of “project land” is becoming more and more popular as real estate projects are gradually being deployed across the country, however, many new customers and investors still confuse project land with subdivided land. In addition, experienced investors with many years of experience still do not fully grasp the basic legal information between project land and subdivided land. In many cases, customers buy subdivided land but ask about legal information of project land such as Decision 1/500, 1/500 planning, decision on compensation and site clearance, etc.

What is project land?

“Project land” can be understood as products planned by investors (usually real estate companies) in a project. Project land can be located in residential areas or planned urban areas - depending on the scale of the project, because project land has been planned, the information is clear, transparent, ensuring infrastructure, utilities as well as security issues, fire prevention and fighting...

In addition, the investor is responsible for completing legal and financial procedures related to the project such as: compensation for site clearance, licensing of legal documents related to the project and land lots.

What is land division?

There are many terms related to the concept of land division, but simply put, land division is a large plot of land divided into many lots, the area of ​​each lot according to the state regulations applied in that area.

The land is usually divided by individuals, who carry out the division and legal and financial procedures related to the land. These are usually non-agricultural land lots, converted to residential land, sacrificing a part of the land for traffic infrastructure, then dividing the plot into many products. The infrastructure factors, traffic system, utilities as well as security issues here largely depend on the location of the land.

Land subdivision (Illustration).

Project land - Effective investment channel in 2021

The project land is well planned, with many advantages such as: synchronous infrastructure, full of electricity, roads, schools, stations and advanced facilities including parks, entertainment areas, commercial centers, sports areas..., security factors, fire prevention and fighting are all focused on ensuring. These items are all approved and licensed by competent authorities, accepted before being put into use.

In addition, customers and investors can also evaluate the project through the reputation of the investor. Unlike land subdivision, which is often carried out by individuals, project land is carried out by large enterprises with financial potential. Customers can also easily find information about the investor on mass media.

Currently, according to the law, investors must publicize legal documents, so checking information is very simple. At the same time, customers can also request investors or consultants to provide legal documents for the project, thereby making it public, transparent and easy for investors to evaluate the project.

Thanks to the above factors, project land is considered an effective investment channel in 2021. According to experts, each year the price of land increases by an average of over 20%/year. Compared to other investment channels such as stocks or savings, land investment currently occupies a lot of room. Not to mention, the supply of land is increasingly limited, which further stimulates the growth in price and profit of this segment.