Land 'virtual fever', two ministries request localities to adjust prices
Faced with the sudden increase in land prices in some places, the Ministry of Natural Resources and Environment and the Ministry of Construction requested provinces and cities to review.
On March 30, Mr. Le Minh Ngan, Deputy Minister of Natural Resources and Environment, said that the ministry received information showing that,land priceincreased in localities, causing virtual fever, affecting economic development management and investment project implementation.
The Ministry of Natural Resources and Environment has assigned the General Department of Land Management to inspect 26 provinces in implementing planning, land allocation, land lease, and land use conversion.
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| Cars lined up in two long rows on the road in the center of Thien Nghiep commune, morning of March 10. Photo: Viet Quoc |
The Ministry of Construction also said today that on March 25, it requested localities to control land price increases to ensure they are consistent with local development conditions. In addition, localities will have to publicize planning information, progress of infrastructure and real estate development projects, especially large projects, and mergers, establishment, and upgrading of administrative units...
Previously, Hanoi also requested that there be no profiteering or land speculation in the planning of the Red River. Ha Long reviewed the certification of transactions related to land use rights. Bac Giang requested that the People's Committees of communes in areas showing signs of a sudden increase in land use purpose changes and transfers, and "virtual fever" must pay special attention to direct specialized agencies.
Localities also need to control virtual transactions, inflated land and real estate prices; proactively regulate land funds on the market by creating clean land funds to auction land use rights.
In many localities, the Real Estate Brokers Association said that there has been a phenomenon of spreading false information about planning and project development. There have even been cases of taking advantage of the directives of state leaders, creating fake documents to spread information and create waves.
In addition, there are also cases of land being sold that are not in accordance with legal regulations such as: forest land, rice fields, gardens... Many "brokers" often gather in these areas, creating excitement, spreading baseless information, pushing up prices every hour, every day to attract investors.
According to experts, some of the reasons for the recent increase in land prices are:land price frameThe prices of many real estate projects have been adjusted up by 15-20% in all localities; supply is limited due to the lack of positive signs in approving investment projects; there is a huge demand for housing in the area, especially for affordable housing, social housing, and land projects. Next, the demand for investment and depositing money in land has increased sharply and suddenly due to ineffective investment in other economic sectors due to the pandemic. Not to mention, the sharp decrease in bank interest rates combined with the recent short-term investment in stocks and gold has brought great profits, so many investors quickly closed their profits and stored them in land.
Faced with this phenomenon, General Secretary of the Real Estate Brokerage Association Nguyen Van Dinh recommended that local leaders take action and take responsibility for preventing the phenomenon of virtual land fever...
