Nghe An land is hot again

In contrast to the somewhat stagnant housing segment, the land market, especially auctioned land in some localities, is showing signs of gradually "heating up".

A representative of a real estate joint stock company in Vinh city said: “From 2018 to present, land in areas such as: Quan Bau, Dong Vinh, Hung Dong, Vinh Tan area, Le Mao extended road; 72m Vinh - Cua Lo road (Nghi Duc, Nghi An, Nghi Phong) and Cua Lo, Cua Hoi areas have shown signs of “heating up” with prices increasing by 150-200%.

Many people come to buy land in the suburbs. Photo: Thanh Phuc

For example, in Quan Bau, the land price used to be only 6-6.5 million VND/m2.²now increased to 12-13 million VND/m²Some places even increased to 17-18 million VND/m². Or like Cua Lo area, 2 years ago, the price was about 15-20 million VND/m²(coastal area), 10-13 million VND/m²(Land 2) now doubles, even triples.

The reason why land prices in these areas are skyrocketing is because infrastructure is being invested in synchronously, many large projects are being implemented, so investors buy for speculation, and people buy to live.

The auctioned lands are planned and have synchronous infrastructure. Photo: Viet Hung

Not only in the city, in many localities, people's purchasing power has increased significantly, especially when infrastructure is invested synchronously and ensured. In Quynh Luu district, from 2018 to now, the land market has gradually warmed up, the demand for land purchase is quite high.

Mr. Ho Minh Mau - Chairman of the People's Committee of Quynh Tan Commune (Quynh Luu) said: In early June 2019, after announcing the auction of 39 land lots, there were over 100 applications submitted for the auction. In just one auction session, all 39 land lots had owners, with an average price of 530 million VND/lot. The reason why land in the "remote" commune is easy to sell is because the commune plans to sell land along National Highway 48E, so people buy both to live and to do business, some households buy 2-3 adjacent plots of land for business.

Pilot auction by indirect secret ballot at land auction in Quynh Thuan commune (Quynh Luu). Photo: Viet Hung

Mr. Nguyen Van Quy - Vice Chairman of Quynh Luu District People's Committee added: From the beginning of 2019 to now, Quynh Luu district has organized land auctions in 3 communes including Quynh Minh, Quynh Tan, Quynh Thuan communes. Basically, all auctions are sold out, there is no backlog like before. Up to this point, Quynh Luu district has collected 52 billion VND from land auctions (the province's plan is 140 billion VND), it is expected that by the end of 2019, the district will continue to auction land in 5 communes, the amount collected will reach over 200 billion VND.

The reason why rural land is easy to sell is because the district changed the auction method from direct to indirect under the direction of the province. At the auctions, there is no longer the scene of jostling and disorder because "land brokers" force land buyers to fix prices like in previous auctions.

Mr. Nguyen Van Quy, Vice Chairman of Quynh Luu District People's Committee

The land market in Do Luong is very active. Mr. Hoang Van Hiep - Vice Chairman of Do Luong District People's Committee said: The target assigned by the province to the district is 105 billion VND for land auction, but in 2019, through land auctions in 10 communes of Do Luong district, it reached 109 billion VND.

From now until the end of 2019, the district will continue to auction land in 3 communes including Dong Son, Yen Son, and Tan Son. Yen Son commune alone auctioned 50 land lots on September 30, but currently there are over 400 auction records.

The land market in the districts is quite active. Photo: Van Truong

The revival of the land market in the districts can be explained by the rapid recovery and growth of the economy; the urban space is narrowing, so many investors are looking to buy land in rural areas for speculation and business.

Besides, if in the past, the construction of infrastructure for auctioned land was mainly assigned to the communes, so it lacked uniformity and quality, now many districts are taking the lead as investors, so the planning and construction of infrastructure is reasonable and consistent.

At the same time, the implementation of indirect land auctions through secret ballots has limited the "price inflation" and "land brokers" that prevailed as before. Only those with real needs can participate in the auction. Therefore, land prices are also close to market prices, creating peace of mind and trust for buyers.

Therefore, auctioned lands have increased the number of buyers, increasing local budget revenue.