Nghe An: Land price reduced by half a billion VND per plot but still difficult to transact

Land in Yen Thanh district has been reduced by 300-500 million VND/plot but no one is buying. Photo: Hai An

In the districtYen ThanhAfter Tet, the land market became even more quiet. Through a survey, land for sale on National Highway 7B, Nam Thanh and Lien Thanh communes, Yen Thanh district, 1 lot is priced at 2.5 billion VND, in some cases where the owner urgently needs money, the advertised price can be reduced to 2 - 2.1 billion VND but still cannot be traded. Land in row 2 also in Nam Thanh commune was previously bought for 1.5 - 1.6 billion VND/lot, but now it is advertised at a loss of 1.1 - 1.2 billion VND, which is also very difficult to sell.

In the infrastructure subdivision of Tang Thanh commune (Yen Thanh), there is a synchronous investment, including traffic system, electricity, drainage canals, located next to Yen Thanh town, near the garment factory planning, however, at this time the land here is very "quiet". A landowner in Yen Thanh town shared: In April 2022, we bought here for over 1.5 billion VND/plot, because we could not bear the interest rate, we offered to sell at a reduced price of 1.2 billion VND (taking a loss of 300 million VND) but no one asked to buy.

Yen Thanh district has more than 10 real estate brokerage transaction points, for many months at these establishments there have been no land purchase or sale transactions. Some real estate transaction points have had to "close" and dissolve and switch to other industries.

An urban project in Dien Chau district has been invested synchronously but has few buyers at this time. Photo: Hai An

Representative of Yen Thanh District Land Registration Office branch shared more: Transaction situationreal estateIn Yen Thanh district, the situation has been gloomy recently. During the peak of the "land fever", the office received 120-150 land use rights transfer applications. Now, there are only 30-40 applications per day, most of which are donation and inheritance transactions, with very few buying and selling transactions.

In Dien Chau district, the land market that was once bustling is now quiet. In Thai Hoa town and Nghia Dan district, land and adjacent houses are also difficult to trade. A real estate broker with a real estate consulting office in Thai Hoa town added: During the land fever, some people from the lowlands came up to "hug" quite a lot of land plots in remote communes such as Nghia Thanh, Nghia Mai, Nghia Lac (Nghia Dan), the purchase price at that time was 220-230 million VND/plot of 200m2.². Currently, the investor asked us to advertise 170 million VND/lot, but since Tet until now, no one has asked to buy.

Shop-house and townhouse projects in Thai Hoa town are quite quiet. Photo: Hai An

For Shop-house and villa projects in Thai Hoa town, during the "fever" period, many people bought them at 4.2 billion VND, then sold them for 5.2 billion VND. Some people could not stand the current bank interest rates and also resold them for 4.2 billion VND, but it was very difficult to transact.

According to a reporter's survey, land prices in urban project areas in Nghe An have slightly decreased, but transactions are very "dripping" at this time.

The owner of a project in the urban area of ​​Dien Chau district shared: The land price of the project is the real price, not "virtual" like the price.auctioned land, we invested in synchronous infrastructure, the traffic system was paved with asphalt, and there were accompanying welfare works. Since Tet, the unit has been advertising and selling on websites, however, no plots of land have been sold yet.

Through research, it is known that the reason for investors' concerns at this time is due to high interest rates, real estate prices tend to go down and most investors are waiting to see what happens. Investors who have cash are afraid that if they buy land, it will decrease further. In addition, some others are having difficulty accessing credit capital from banks.

Land plots in remote communes of Nghia Dan district are currently being sold for 170 million VND/plot, half the price, but transactions have been difficult since Tet. Photo: Hai An

Not to mention the assessment that with current bank interest rates, people holding a lot of cash tend to save money rather than invest in land because of the good and safe returns.

Mr. Nguyen The Phiet - Head of Housing and Real Estate Market Management Department, Department of Construction said: After Tet until now, the real estate market in Nghe An is still quiet, for land of projects, although synchronous investment, has many advantages compared to auctioned land, but transactions are very "drop by drop". Predictions about the real estate market in the coming time will be very unpredictable.

The authorities have now requested project investors to publicly and transparently disclose information on construction planning, lists, and progress of infrastructure development projects and real estate projects, especially large projects, thereby preventing the spread of rumors and speculation to illegally increase prices.