Land prices in rural areas of Nghe An continue to soar.
(Baonghean.vn) - Land prices in rural areas have continued to rise sharply in recent days, especially in localities with good infrastructure.
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| In the Ruong Bong and Ho Trot land auction planning area of Luu Son commune (Do Luong district), some land plots fetched up to 6.1 billion VND after auction. Photo: Ngoc Phuong |
The auctions were bustling with activity.
Recently, the sessionland auctionThe Ruong Bong and Ho Trot planning area in Luu Son commune (Do Luong district) is very vibrant. The auction of 62 land plots attracted 420 participants, including a real estate company from the province that won the bid for 14 prime plots, each measuring 170 m².2up to 175 m2The winning bids exceeded 5 billion VND per plot. The price difference between the plots won by this company and the starting price ranged from over 2.4 billion to 2.7 billion VND.
A real estate investor in Dien Chau said: "The starting price was 3.1 to 3.4 billion VND, but we boldly bid up to 4.5 - 4.7 billion VND and still missed out."
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| Overall plan of the Ruong Bong and Ho Trot planning area in Luu Son commune (Do Luong district). Photo: Hai An |
Reportedly, the reason for the high increase in land prices in Luu Son, Do Luong district, is due to the synchronized infrastructure development and the prime location of the land. Furthermore, Do Luong is planned to become a town by 2030, therefore, many investors are very interested in Do Luong.
In Dien Chau district, the real estate market is heating up day by day. For example, a recent land auction in Dien Nguyen commune (Dien Chau) was very lively. Specifically, 48 land plots were auctioned, with over 200 participants. Even after the auction, land prices continued to skyrocket. Depending on the location, some plots with a starting price of over 1.4 billion VND ended up fetching over 3 billion VND after the auction, a difference of over 1.5 billion VND for the winning bidder compared to the starting price.
In the near future, Dien Chau district will auction off planned land areas in Dien Thai and Dien Dong communes… These planned land areas are all located in prime locations with integrated infrastructure, signaling that a continued surge in the real estate market is inevitable.
Constantly buying and selling
We went to the land that had just been auctioned off in Dien Nguyen commune.Performance(Europe),We saw a bustling scene of people and vehicles. Mostly real estate agents and prospective buyers viewing land. Ms. T., an agent in Dien Chau town, told us she still had four plots of land available, each priced at 1.4 billion VND, and that if we finalized the deal now, we would make a profit.
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| Cars are flocking to all parts of Dien Chau district to "hunt" for land. Photo: Hai An. |
After surveying the auctioned land, we found that a group of people from Yen Thanh district quickly bought up several of the auctioned plots. The paperwork and deposit money were exchanged right in their cars, and some brokers even brought money counting machines to facilitate the transaction.
According to a local real estate broker, each plot of land won at auction is resold with a profit of 100-120 million VND. Buyers resell it immediately after acquiring it to make a profit.
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| Using a cash counting machine right at land transactions. Photo: Hai An |
Other reasons include the fact that, over the years, the inter-regional transportation system between cities, towns, and commune centers in Nghe An province has been increasingly improved. Suburban development projects have also been planned, and some have already begun construction, encouraging people to invest in land.
However, this is truly a risky time for investors. Not to mention the herd mentality and many new "investors" continuing to participate in land speculation based on herd mentality.
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| Real estate brokers flock to find land in Block I, Yen Thanh town, Yen Thanh district. Photo: Hai An. |
Mr. Nguyen The Phiệt, Head of the Housing and Real Estate Market Management Department of the Nghe An Department of Construction, added: "As of now, land prices for subdivided plots in project areas are stable, only slightly increasing. Buyers are advised to be cautious as some areas have already reached their peak. To curb real estate speculation, capital should be directed towards sustainable production and business development."
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The Ministry of Construction warns that land speculation may still occur in some localities.
In its report on the implementation of tasks in the first six months of 2018, the Ministry of Construction stated that the land price surge has subsided, but a similar surge may still occur in some localities in the future.
