Land prices in suburban and rural areas of Nghe An increase

Quiet apartment

Approaching real estate trading floors in Vinh City in mid-February, we found the atmosphere quite deserted. According to representatives of some key trading floors in the city, since the beginning of the calendar year, especially the days after Tet, transactions have still been taking place but are generally sparse. According to a survey at a large trading floor in Vinh City, in the month after Tet holiday, only 10 contracts have been signed; other trading floors still have people coming to learn about products every day but the rate of successful transactions is very low.

A corner of Vinh city. Photo: Thanh Cuong

The reason for the current decrease in transactions is that the floors are narrowing down, only introducing and selling their own products, not selling products from other units. A representative of a trading floor said: transactions through the floor have disadvantages, there are trading floors that accept product advertising for a whole year, but when selling, the company contracts directly with the customer, the floor does not receive commission. On the other hand, due to the amendment of the 2015 Law on Real Estate Business, companies are no longer required to put 20% of products for sale on the floors, so transactions have decreased. On the customer side, if they buy directly, they do not have to pay commission, so it is more convenient.

The leader of the Housing and Real Estate Management Department, Department of Construction said: for the above reason, the Department currently does not know how many apartments or project land are put on the market each year; because there are no binding regulations, companies do not report or report incompletely and substantively. Through the Department's monitoring, Nghe An currently has only about 20 trading floors operating but quite moderately, nearly 8 floors have been dissolved.

According to data released by the provincial interdisciplinary inspection team, from 2000 to present, the province has 72 apartment projects invested, built and put into use with 8,073 apartments, of which Vinh City has 69 apartments, accounting for 95.8%.

According to information from the Provincial Real Estate Association, in 2019 and 2020, the province has tightened some regulations, so there are few new apartment projects being invested and built. In 2020 alone, it is expected that about 300 apartments of some apartment projects will be put on the market, of which nearly half are for resettlement. Current apartment transactions are mainly buying and selling old projects of customers and prices have not increased. Recently, some customers who bought apartments for speculation, now to cut losses, have advertised for sale below the previous purchase price of nearly 1 million VND/m2.².

Suburban land prices increase

In contrast to the gloomy atmosphere of the apartment market, land prices show signs of increasing, especially in suburban areas and some rural towns.

Following a person who wanted to buy land in Hung Loc and Nghi Duc communes (Vinh city), we were told by a landowner: Recently, the family had a plot of land near the resettlement area of ​​35m road that they wanted to sell. After posting the information on social networks, every day, a few people came to ask to buy it. They were willing to pay a high price, but the family did not sell because they saw that the demand from the people was quite high.

It is known that land prices in Nghi Duc, Nghi An, Hung Loc areas have all increased, in which land in resettlement areas on 35m or 72m roads (from Nghi Duc commune to Cua Lo around Vinh - Cua Lo Boulevard) in Nghi Duc commune has increased the most. Specifically, there are lots in Xuan Dong or Huong Tin hamlets that were previously sold for only 8 - 10 million VND/m2.²now up to 14-15 million VND/m². In Nghi An commune area, compared to 2019, the current land price has also increased from 1-2 million VND/1m2.².

Learning more, we learned that from the effect of Vinh - Cua Lo Boulevard and new routes such as the 35m road connecting Nghi An - Hung Hoa, the 72m road section Vinh - Hung Tay, land prices in communes on the outskirts of Vinh city have all increased, with regular transactions. The highest increase is in the communes of Hung Loc, Nghi Duc, Nghi An (Vinh city), Nghi Phong (Nghi Loc).

In Cua Lo town, land prices have also increased. According to a land broker in Cua Lo area, from mid-2019 until now, prices have not increased sharply but transactions have been quite active, with 4-5 transactions per day. Land prices have increased sharply and the easiest to sell are the plots of land next to the 20m road from Nghi Huong ward parallel to Binh Minh road to Nghi Hoa commune (Cua Lo town), at times the price has increased by up to 50%.

In general, land prices at the beginning of the year are stable, land in Nghi Duc commune as well as on both sides of the 72m Vinh - Cua Lo road from the end of 2019 has tended to increase the most, an average of 40-45%, some areas have doubled in price. However, in this area, the province is planning both sides of the road to attract large projects, so the land fund put into the market is not much, mainly land put into transactions by households.

Mr. Nguyen Quoc Khanh - Chairman of Nghe An Real Estate Association

The resettlement project of Nghi An - Nghi Duc 35m road combined with land exploitation of Vinh City People's Committee has been heating up since mid-2019. Photo: Nguyen Hai

In addition to the land along the 72m road, some land projects in rural areas in the communes of Hung Hoa, Nghi Thai, Nghi Phong and the North of Cua Hoi bridge in Nghi Xuan commune have restarted and are gradually warming up. Although there are not many transactions, they still maintain an increase of 20-25% from last year. In addition, due to the effect of resettlement projects and land exploitation of Vinh City in the suburbs of Nghi Duc and Hung Loc, which have invested in quite good infrastructure and high starting prices, the number of people offering to sell has also increased sharply.

Mr. Nam, a land buyer, said: Previously, land in front of the Pedagogical College in Hung Loc commune cost from 5-6 million VND/m2.²Now when asking to buy, households all ask for prices from 8-10 million VND/m².

A resettlement project combined with land exploitation in Quynh Hong commune (Quynh Luu). Photo: Nguyen Hai

Along with the increase in resettlement land and interspersed in communes on the outskirts of Vinh city and Cua Lo town, infrastructure investment projects to exploit land funds of plain and coastal districts such as Do Luong, Yen Thanh, Quynh Luu, Dien Chau ... also increased sharply, commonly from 30-40%. A land buyer in Quy Hong commune (Quynh Luu) said: Previously, the land plot in the area behind the commune People's Committee headquarters cost about 800 million VND/200 m²Now it's at least 1 billion or 1.2 billion VND, so it's very difficult to buy the desired lot.

Another land exploitation project by auction in Nghi Duc commune (Vinh city), previously had the lowest starting price of only 6 million VND/m2, now the lowest starting price is expected to be 9 million VND/m2.2Photo: Nguyen Hai

Mr. Dao Xuan Son - Head of Quynh Luu Department of Natural Resources and Environment said that in 2019, the district completed procedures to auction about 200 land lots in communes. Due to the high demand for residential land among rural people and the auction method switching to secret ballot, although the starting price increased by 30-40%, people were confident and boldly participated in the auction. In 2020, due to the new land price frame also increasing by 10-20%, the district plans to exploit over 400 billion VND from the auctioned land fund and meet part of the people's residential land needs.